#1AIA HEALTHIER, LONGER, BETTER LIVES AIA Group Investment in China Post Life A unique growth opportunity 29 June 2021#2Disclaimer AIA This document ("document") has been prepared by AIA Group Limited (the "Company", and together with its subsidiaries, "AIA" or the "Group" or "AIA Group") solely for use in connection with the announcement of the Company's proposed investment, through its wholly-owned subsidiary, AIA Company Limited, in China Post Life. References to "document" in this disclaimer shall be construed to include any oral commentary, statements, questions, answers and responses made in connection with this document. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information and opinions contained herein are subject to change without notice. The accuracy of the information and opinions contained in this document is not guaranteed. Neither the Company nor any of its affiliates or any of their directors, officers, employees, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information contained or presented in this document or otherwise arising in connection with this document. This document may contain certain forward-looking statements relating to the Company and/or China Post Life, China Post and PSBC that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words "anticipate", “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought” and similar expressions, as they relate to the Company and/or China Post Life, China Post, PSBC or the Company's management, are intended to identify forward-looking statements. These forward-looking statements reflect the Company's views as of the date of this document with respect to future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements. The Company assumes no obligation to update or otherwise revise these forward-looking statements for new information, events or circumstances that occur subsequent to the date of the document. China Post Life is not a subsidiary of the Company and accordingly, there are limitations as to the extent and quality of the information relating to China Post Life and its shareholders contained in this document. There are limitations as to whether this document contains all information in relation to China Post Life that any individual investor may deem appropriate or sufficient for the purpose of considering the proposed investment and its impact on the Company. Further, certain information contained in this document relating to China Post Life has been provided by China Post Life and the information has not been independently verified by the Company. Whilst the Company has no reasons to doubt the accuracy of the information provided or authorised to be provided for inclusion in this document, no representation is given as to its accuracy. This document does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. No securities of the Company may be sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended. In Hong Kong, no shares of the Company may be offered by the Company to the public unless a prospectus in connection with the offering for sale or subscription of such shares has been authorised by The Stock Exchange of Hong Kong Limited for registration by the Registrar of Companies under the provisions of the Companies Ordinance and has been so registered. The information herein is given to you solely for your own use and information, and no part of this document may be copied or reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) in any manner or published, in whole or in part, for any purpose. The distribution of this document may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. 2#3AIA Group Investment in China Post Life Investment ☐ AIA will own a 24.99% equity stake in China Post Life, post investment, through its wholly-owned subsidiary AIA Company Limited Investment of RMB12,033m (US$1,860m¹) representing 1.34x 2020 China Post Life book value on a pre-money basis² Fully financed on an all-cash basis by internal resources from Group Corporate Centre - financial flexibility remains very strong Financially compelling investment with significant upside potential China Post Life Unique operating structure and platform - enabling rapid profitable growth at scale with market-leading efficiency #1 bank-affiliated³ life insurer and #94 largest life insurer in China by Gross Written Premium5 ■ Access to ~40,000 financial outlets and more than 600m retail customers across China through distribution partnership with PSBC Governance ■ AIA will have the right to nominate one non-executive director to China Post Life Board AIN ■ AIA and China Post Life to form Technical Assistance Advisory Committee to deliver further value creation ■ Technical assistance provided by dedicated team from AIA Group Office - AIA China will operate independently from China Post Life ■ Business Cooperation Framework Agreement with China Post to explore additional business opportunities with AIA Conditions Subject to China Banking and Insurance Regulatory Commission (CBIRC) and other necessary regulatory approvals 1. Unless otherwise specified in this document, the translation of Renminbi into United States Dollars is made for illustration purposes only at the rate of RMB6.47 to US$1. No representation is made that any amounts in Renminbi could have been or could be converted at the specified rate. 2. 1.24x China Post Life pro forma book value on a post-money basis; 2020 book value on PRC GAAP basis, which refers to the generally accepted accounting principles in the People's Republic of China. 3. Bank-affiliated life insurer refers to a life insurer whose main distribution channel is bancassurance and is controlled by, or affiliated with, a large commercial bank in China. 4. WIND database of company filings, as at end of 2020. 5. Gross Written Premium refers to life insurance premium income on PRC GAAP basis (excluding reinsurance premium income). 3#4China Post Life - A Unique Growth Opportunity ■ Largest Retail Financial Distribution Network ☐ Access to the largest retail financial distribution network in China with ~40,000 financial outlets Strong PSBC franchise with more than 600m retail customers Unique Platform for Scalable and Efficient Expansion Strong Operational Capabilities China Post Life currently distributing in 21 provinces, covering 80% of the PSBC network ☐ Distinctive operating structure and platform enabling rapid profitable growth AIA Scalable operations leveraging China Post's resources and infrastructure, delivering market-leading efficiency Extensive presence in fast-growing cities and counties with low insurance penetration rates Proven track record of sales to PSBC retail customer base ☐ ■ Shift towards regular premium and protection products underway with strong persistency Prudent balance sheet with robust risk management Right Time, Right Model for Differentiated Partnership Distribution Significant Upside Potential Leveraging AIA Expertise ■ ☐ Unique operating model and partnership with AIA overcomes common bancassurance challenges Regulatory changes encouraging positive product mix transformation Strong relationship between China Post Life and PSBC as part of China Post Fully aligned on value creation through agreed governance model between AIA and China Post Life Tremendous scope for growth uplift and margin enhancement through Technical Assistance Advisory Committee Explore additional business opportunities between AIA and China Post Source: China Post Life, 2020. 4#5Access to Largest Retail Financial Distribution Network in China AIA PSBC Network > No. 2 and No. 3 Combined # of Retail Financial Outlets¹ Current Distribution Footprint 40,000 21 provinces 23,000 16,000 15,000 291 cities China Post Life Distributes Across 80% of PSBC Network Potential Footprint: PSBC Network³ 31 provinces 334 cities 32,000² 10,000 1,624 counties 2,800 counties PSBC No. 2 No. 3 No. 4 No. 5 Vast Retail Base Offering Significant Sales Potential PSBC Retail Customer Base 622m Notes: All figures are as of end 2020 unless otherwise stated. Source: China Post Life, PSBC, China Post and company annual reports. Strong PSBC Retail Franchise Retail Deposits RMB trillion Retail Deposits as % of Total Deposits 8.2 +11% 9.1 2019 2020 1. Retail financial outlets refers to bank branches and other outlets of PSBC that distribute life insurance. Retail financial outlets for peers refers to bank branches. Numbers shown are rounded to the nearest '000. 2.~32,000 retail financial outlets that distribute China Post Life insurance products. 3. As at end 2019. -88% 5#6Unique Operating Structure and Platform AIA Rapid Expansion Across Entire Province Unique Operating Structure ■ No need for individual city / county permits once province is approved ■ Products and services can be provided with no sub-level approvals needed Market-leading Efficiency Leveraging Existing Platform ■ China Post's existing infrastructure and resources used for customer servicing to support China Post Life's operations ■ No need for new office infrastructure across cities / counties enabling low-cost expansion GWP CAGR, 2015-2020 27.1% 14.2% 16.0% Administrative Expense Ratio³, 2020 (%) 2.2 8.0 6.0 China Post Life Life Insurance Industry¹ 1 Big 4 Average 2 China Post Life Listed Peers Average 4 Big 4 Average 2 Source: company data from financial reports, CBIRC industry data. 1. In China. 2. Big 4 refers to life insurance companies affiliated with commercial banks in China, including ICBC-AXA, ABC Life, CCB Life, BOC-Samsung Life. 3. Refers to administrative expenses divided by Gross Written Premium. 4. Listed peers refers to H-share listed China life insurance companies, including Ping An, China Life, New China Life and CPIC. 6 00#7Strong Operational Capabilities and Prudent Balance Sheet Move to Regular Premium Products First Year Regular Premium as % of New Business Premium AIN Strong and Consistent Persistency Persistency Ratio 70% 50% 100% 90% 100% 90% 80% 80% 30% 2016 2017 2018 2019 2020 2018 2019 13-month 2020 2018 2019 25-month 2020 Shifting to Longer-term, Higher-margin Product Mix New Business Premium by Product Type Long-term Savings with Protection¹ O Savings Prudent Balance Sheet Investment Portfolio Others 3% Alternatives 2% Equity 12% 1Q 2021 Notes: All figures are as of end 2019 unless otherwise stated. Source: China Post Life company data. 1. Includes whole life, term life and long-term health. 2020 Fixed Income 83% Robust Risk Management ■ No negative spread business ◉ No non-performing assets ■ Assets and liabilities closely matched ~2% alternative assets 7#8Differentiated Partnership Distribution – Right Model at the Right Time - Bancassurance accounts for 30% of China Effective and efficient access to customers Insurance an essential offering for banks life insurance market AIA Regulations promoting regular premium business Common Bancassurance Challenges Insurer limited to manufacturing, bank owns customer Focused on short-term, deposit replacement products High commissions and fierce competition Partnerships often misaligned on long-term ambitions Differentiated AIA Group - China Post Life Partnership Uniquely Positioned to Capture Growth Upside Strong relationship between China Post Life and PSBC through common parent Significant potential for further growth and margin enhancement leveraging AIA's expertise Unique operating model with substantially lower costs compared with peers Alignment on sustainable value creation between China Post, China Post Life and AIA 1. By Gross Written Premium, Insurance Association of China, CBIRC, 2020. 8#9Leveraging AIA's Expertise to Deliver Significant Upside AIA Significant Value Upside Opportunity Increase New Business Penetration1 from ~1% Expand China Post Life Share of PSBC New Business AIA Group Office Expertise To Deliver Value Technical Assistance Advisory Committee supporting long-term value creation through a dedicated joint team between China Post Life and AIA Group Office focusing on: 622m PSBC Retail Customers Improve Product Profitability and Product Mix 2020 VONB Margin China Post Life AIA Group Bancassurance 1 Transforming and growing distribution capabilities 2 Developing long-term, protection-led propositions Deliver Material Growth in VONB 3 Expanding technology, digital and analytics enablement US$269m 4 Enhancing investment and actuarial expertise 2020 VONB² 5 Delivering world-class risk management and governance Notes: All figures are as at end 2020 unless otherwise stated. Source: company data. 1. Penetration has been determined as number of China Post Life in-force policies divided by total PSBC retail customers. 2. VONB is stated on China Post Life embedded value basis, translated into United States Dollars based on average spot rates over the period. 9#10AIA's Strong Track Record in Transforming Partnerships Case Study: AIA India Bancassurance Partnership¹ Activity میرا 1.9x Cases per Active Sales Staff Partnership Engagement Source: AIA internal information. 1. 2016-2021, refers to 1 April to 31 March financial year end. Productivity 2.4x Volume VONB Margin 28% ° 11 23ppts ANP per Active Sales Staff ANP CAGR Increase Increase in VONB Margin AIA's Key Success Factors Distribution Enablement and Industrialisation Value-driven Propositions AIA Customer Needs Awareness and Lead Generation 10#11Benefit from Full Growth Potential of China Life Insurance Market AIA AIA Group Further increases exposure to the large and rapidly-growing Chinese life insurance market Captures opportunities across complementary distribution channels and customer segments AIA China 100% Owned ◉ Target fast-growing middle class and affluent customers ◉ China Post Life 24.99% Investment1 Target mass and emerging mass-affluent market ◉ Premier Agency distribution model leveraging unique opportunity as target market quadruples by 2030 Comprehensive long-term protection and savings propositions integrated with AIA's health and wellness ecosystem ■ Unique distribution model leveraging PSBC's ~40,000 financial outlets and more than 600m retail customers ◉ Long-term savings with protection products to meet the primary needs of the target customer segment Helping Millions More Chinese Families Live Healthier, Longer, Better Lives 1. Subject to securing all necessary regulatory approvals. 11#12China Post Life - A Unique Investment Opportunity ☐ Access to largest retail financial distribution network in China Unique model enabling rapid expansion with market-leading efficiency Right model at the right time for successful partnership growth Strong operational capabilities with prudent balance sheet Significant upside potential leveraging AIA's expertise Financially compelling and complementary to AIA China's strategy AIA 12#13HEALTHIER, LONGER, AIR BETTER LIVES APPENDIX#14Post Investment Ownership and Governance Structure Ownership Structure Post AIA Investment Governance Structure AIA China Post Life Board Representation AIA has the right to nominate one non-executive director 24.99% AIA China Post 75.01% China Post Life¹ Public Shareholders 67.37% 32.63% Technical Assistance Advisory Committee PSBC2 Distribution Partnership³ Notes: PSBC is listed on Hong Kong Stock Exchange (stock code: 1658.HK) and Shanghai Stock Exchange (stock code: 601658.SH). Technical Assistance Focus Areas Business Cooperation Framework Agreement Joint AIA and China Post Life committee to report directly to China Post Life board AIA representation through a dedicated team from AIA Group Office Provide support to China Post Life to deliver long-term value creation 1 Transforming and growing distribution capabilities 2 Developing long-term, protection-led propositions 3 Expanding technology, digital and analytics enablement 4 Enhancing investment and actuarial expertise 5 Delivering world-class risk management and governance Explore additional business opportunities between AIA and China Post 1. China Post Life shareholding includes both direct and indirect holdings as at end 2020. Proposed investment by AIA is subject to securing all necessary regulatory approvals. 2. PSBC shareholding includes both direct and indirect holdings. Source: PSBC, as at 31 March 2021. 3. Distribution partnership refers to the existing arrangement between China Post Life and PSBC for the distribution and servicing of life insurance business. 14#15China Post Life Key Financials (RMB m) Revenue Metrics Total Revenue Gross Written Premium Gross Written Premium Growth % Investment Yield Gross Investment Yield % VONB VONB Growth% Balance Sheet Metrics Total Assets Time Deposit Available-for-sale Financial Assets Total Liabilities Life Insurance Claims Reserve Shareholders' Equity Source: China Post Life company data; figures shown on a PRC GAAP basis other than VONB which is stated on China Post Life embedded value basis. AIA 2019 2020 74,820 93,784 67,541 81,996 17.1% 21.4% 8,116 12,459 5.1% 5.2% 856 1,866 15.2% 118.1% 192,395 283,814 32,900 60,400 130,385 159,808 167,097 256,948 160,444 234,390 25,298 26,866 15