IAG should look beyond its recently failed China play to investments in India, according to analysts JP Morgan.

Under the advice “pack your bags for India”, JP Morgan has told investors it expects IAG to shift its focus to the Indian and the UK markets after the acquisition of China Pacific Property Insurance (CPPI) disintegrated earlier this month.

IAG, Australia’s largest automotive insurer, had planned to buy 24.9% of CPPI, but the purchase has been suspended due to uncertainty stemming from the forthcoming initial public offering of parent company China Pacific Insurance Group and restraints by its US private equity shareholders.

In a research note, JP Morgan said the failed $375 million bid could signal a change in direction for IAG.

“IAG has said that it remains committed to the Chinese market. However, in light of this announcement it seems likely to us that China will remain insignificant for IAG.”

IAG has a relatively small interest in China through its partnership with China Automobile Association, a road-service operation that also distributes insurance products for the top three national insurers.