Morgan Stanley: AIA's new business value in the third quarter increased by 15% year-on-year at fixed exchange rates, rating it as "hold".

Morgan Stanley released a research report stating that it is expected that AIA (01299) will see a 15% year-on-year increase in new business value in the third quarter at fixed exchange rates, continuing the momentum of a 14% year-on-year increase in the first half of the year. The bank currently maintains a "hold" rating for AIA with a target price of HK$96. The bank expects the Hong Kong and Thailand markets to continue to be growth drivers, with the Hong Kong market expected to achieve a 20% increase in new business value in the third quarter at fixed exchange rates, due to the introduction of popular new participating products. It is expected that the new business value in the Mainland market will increase by 9% year-on-year, with demand expected to remain healthy due to a new round of interest rate cuts, as well as expansion in business areas and growth in bancassurance channels. The bank also expects the Thailand market to achieve a 20% year-on-year growth in new business value in the quarter, as total annualized premiums in July and August increased by 13% year-on-year, and some medical product profit margins remain high, while the co-payment rules remain controllable. The Singapore market is expected to achieve a 19% year-on-year increase in new business value, with its new linked products likely to continue to be attractive.