Debevoise Advises AIA Group in Its Equity Investment in China Post Life

29 June 2021

The Hong Kong and Shanghai offices of Debevoise & Plimpton are advising AIA Group in its proposed equity investment in China Post Life Insurance Co., Ltd. (“China Post Life”), a subsidiary of China Post Group Co., Ltd. (“China Post”).

Under the agreements, AIA Group will invest, through its wholly-owned subsidiary, AIA Company Limited, RMB 12,033 million (US$1,860 million) for a 24.99% equity stake in China Post Life. The investment is subject to securing all necessary regulatory approvals.

As part of the transaction, AIA Group has also agreed to provide targeted technical advice and support to China Post Life under a technical assistance agreement, and AIA Group and China Post have agreed to explore additional business opportunities under a business cooperation framework agreement.

China Post Life is the leading bank-affiliated life insurer focused on bringing financial protection to the mass and emerging mass-affluent market in China. Through its distribution partnership with Postal Savings Bank of China Co., Ltd., China Post Life has access to the largest retail financial distribution network in China.  AIA’s investment in China Post Life and potential business cooperation with China Post will increase AIA’s exposure to the Chinese life insurance market and the potential from distribution channels and customer segments that are complementary to its existing strategy in China.

The Debevoise team advising AIA is led by partner Edwin Northover and includes international counsel Tingting Wu, associate Fengjian Ao and international associates Michelle Qi, Yue Yang and Ellena Xu.  The team supported AIA Group General Counsel Mitch New, and Group Regional Senior Counsel Clive Anderson and Winnie Chung.