AMP: Scores in China
AMP: Scores in China. AMP is set to acquire a 20% stake in China Life Pension Company for A$240m, which is the largest pension insurance company in China. The company has been growing at over 40% compound and is expected to break-even in two years. We believe this is a rare opportunity provided to few Australian companies to get exposure to China's rapidly growing financial market. This is an area China's Government is looking to support as seen by tax incentive changes. This will mark the second investment in China, with the other being a 15% stake in a dedicated funds management business with China Life. China Life is the largest Life Insurance company in the world and is the largest shareholder in China Life Pension Company. This move is supportive of our current Buy recommendation.
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