AIA-R's stock surged 5.04% during intraday trading on Tuesday, following a positive research report from JPMorgan that reaffirmed confidence in the company's growth prospects.
JPMorgan maintained its "Overweight" rating on AIA, highlighting solid performance, a share buyback program exceeding expectations, and management's confidence in growth quality. The bank raised projections for cash generation from existing life insurance policies to between $7.7 billion and $9.6 billion for 2026 to 2028, reflecting improved capital efficiency prospects.
The report noted that AIA's new business economic benefits have improved, with the new business value to new business investment ratio rising significantly. JPMorgan projects new business value for 2026 and 2027 that surpasses market expectations, and anticipates double-digit new business value growth over the next three years despite some adjustments due to macroeconomic volatility.