(Yicai Global) Jan. 14 -- AIA Group said it has completed buying nearly a quarter of China Post Life Insurance for CNY12 billion (USD1.9 Billion), the biggest ever deal in China’s insurance sector.

AIA became the life insurer's second-biggest shareholder with a 24.99 percent stake, according to a statement published on the Hong Kong-based firm’s website on Jan. 12. The investment was completed after AIA received all necessary regulatory approvals.

AIA, which caters to middle- and high-income groups, is seeking new opportunities in the Chinese market. The deal should help it benefit from China Post Life’s extensive distribution channels and customer base, AIA said.

Beijing-based China Post Life sells most of its products via its distribution partner Postal Savings Bank of China. The lender has around 40,000 outlets and more than 600 million retail customers nationwide.

The registered capital of China Post Life, whose main shareholder is China Post Group, will increase to CNY28.7 billion from CNY21.5 billion as a result of the deal.

Editor: Emmi Laine, Xiao Yi