Morgan Stanley: AIA (01299) Q3 new business value fell 5%, broadly in line with expectations; maintains "Overweight" rating

Morgan Stanley issued a research report stating that AIA's (01299) third-quarter new business value fell 5% year-on-year at constant exchange rates to US$1.415 billion, broadly in line with the market's expected 4% decline, though slightly below the firm's forecast of a 3% drop. It maintains an "Overweight" rating with a target price of HK$101. AIA's annualized new premiums fell 13%, but the margin improved significantly by 5.3 percentage points year-on-year to 63.3%. The firm noted that the high base in mainland China and Hong Kong was the main factor weighing on AIA, while other markets recorded 18% growth. Management is confident about fourth-quarter performance, with growth in September having accelerated to 25%.