AIA Rises as Incoming CEO Seen Boosting China Growth, Fintech

(Bloomberg) -- AIA Group Ltd. shares rose in Hong Kong trading as investors welcomed the appointment of a new chief executive officer, who is seen as well-placed to lead a faster expansion in China.

The stock jumped as much as 3.8% in early trading Monday, after industry veteran Lee Yuan Siong was named the next CEO, replacing Ng Keng Hooi. Lee joins from rival Ping An Insurance (Group) Co., where he was co-CEO and chief insurance business officer.

“Lee could play a critical role in, and significantly accelerate AIA’s China business expansion,” Citigroup Inc. analysts led by Michelle Ma wrote in a note to clients. He could also help improve AIA’s technology adoption by bringing in Ping An’s FinTech experience, they said.

Read more: AIA Picks Ping An’s Lee to Lead Insurer as CEO Retires

While the retirement of 64-year-old Ng wasn’t unexpected, “Lee’s succession came as a big surprise to the market as he is managing one of the biggest competitors of AIA in China,” Daiwa Capital Markets analysts led by Leon Qi wrote in a note.

Ng, who took over from Mark Tucker as CEO on June 1, 2017, will finish in the role on May 31, 2020, AIA said in a statement late Friday. Lee, 54, will continue at Ping An until Jan. 31, and start as AIA chief June 1.

Lee helped run Prudential Plc’s China venture before joining Ping An. He will be especially instrumental in negotiating with provincial regulators for new licenses and talent recruitment, the Citi analysts said.

China is AIA’s second-biggest market after Hong Kong.

However, the succession could be “less seamless” than the passing of the baton between Tucker and Ng, as the transition period will be shorter, the Citi analysts said.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter Vercoe, Jonas Bergman

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