Huize at a Glance

In 2006, we launched our online insurance business under the “Huize” brand, and are now a leading insurance technology platform connecting consumers, insurance carriers, and distribution partners digitally through data-driven and AI-powered solutions in China. We distribute a wide spectrum of insurance products underwritten by our carrier partners and help them reach a larger number of insurance clients. We also empower the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service.

Investment Highlights

1) Ecosystem Connecting Consumers, Insurance Carriers, and Distribution Partners. We are the top independent online life and health insurance distribution platform in China. Our ecosystem is comprised of: 1) collaborating with our carrier partners to co-develop and distribute customized and innovative insurance products to mass affluent customers; 2) empowering insurance intermediaries and independent agents with proprietary intelligent tools, diverse product offerings and customer service support and 3) providing streamlined transaction experience and professional insurance services to customers. The ecosystem creates a virtuous cycle, fostering a robust network effect, that strengthens our leading position in driving the digitalization of the insurance industry.

2) 2) Open Platform Empowering Digital DTC and Partnership Distribution. Our open platform plays a pivotal role in integrating direct-to-consumer (DTC), business-to-business-to-consumer (B2B2C), and business-to-agent-to-consumer (B2A2C) distribution models. In our DTC approach, we leverage various digital channels such as web and mobile platforms, social media, and search marketing to directly engage with consumers. For our B2B2C distribution model, we collaborate with influencers, corporates, merchants, and financial intermediaries and leverage their networks to effectively promote our products and services to a wider audience. In the B2A2C segment, we empower independent financial advisors (IFA) with efficient professional support, including digital customer relationship management and underwriting systems, enabling them to better serve their clients and drive business growth.

3) Industry-leading AI-Solutions Driving Efficiency Gains. By leveraging our proprietary AI solutions and sophisticated data analytics expertise, our business model enables us to empower consultation and customer service and reach the insurance retail market more cost-effectively. Our gross written premium (GWP) per employee has increased to RMB5.2 million with a CAGR of 31.6% from 2019 to 2023, while our expense-to-revenue ratio decreased by 7.3 percentage points year-over-year to 33.1% in 2023, reflecting the sustainable productivity gains and operational efficiencies driven by our AI solutions.

4) Sizable and Growing Customer Base with High LTV Potential. As of the end of 2023, we have cumulatively connected with 9.3 million insurance clients who have demonstrated ample upselling opportunities. In 2023, the average age of customers who purchased long-term insurance policies through our platform was 34.1 years old and 66.3% of them were from higher-tier cities, and the average repeat purchase rate of insurance customers who purchased savings insurance products was 34.9%.

5) Co-developed Product and Distribution Partnerships with Top Insurance Brands. Our specialization in offering long-term insurance products through our integrated online-to-offline insurance service platform has become a fundamental source of our competitive advantage. In 2023, the GWP contribution of long-term insurance products was 92.3%, marking the fourth consecutive year exceeding 90%. Leveraging our 17-year track record, insurance expertise, actuarial capabilities, risk management capabilities, and huge client database, we also co-develop tailor-made insurance products with our carrier partners. As of the end of 2023, we cooperated with 123 insurance carriers, and the GWP contribution from our exclusive co-branded products was 61.6% in 2023.

6) Trusted Consumer Brand for Professional Insurance Services. Our comprehensive digital insurance platform, combined with our extensive offline presence, allows us to cover the entire insurance life cycle and provide insurance customers with one-stop services across all scenarios. In 2023, we provided claims assistance for 92,000 claimed cases with a total claim settlement amount of RMB 570 million, and the average persistency ratios for long-term insurance at the 13th and 25th month sustained at an industry high level of more than 95%.

7) Expansive and Large Market Opportunities in Asia. Huize is committed to capitalizing on the large and growing market opportunities of the industry in China and Asia. Meanwhile, we actively extended our presence in the Hong Kong market leveraging the robust cross-border and local insurance demand. In the fourth quarter of 2023, the revenue contribution from our Hong Kong brokerage business reached 6% of our total revenue. Beyond Hong Kong, we are actively exploring insurance business opportunities in Southeast Asia. We believe that the China-proven success of our business model can be replicated overseas, especially in emerging markets with young and digital native populations, low insurance penetration and high GDP growth. Our goal is to achieve double-digit revenue contributions from overseas businesses in 2024.

8) Strong Profitability and Liquidity Position Driven by Scalable Business Model. Our scalable business model has contributed to a robust profitability and liquidity position. Over the period from 2019 to 2023, our GWP has surged from RMB 2.0 billion to RMB 5.8 billion, reflecting a CAGR of 30.3%. As a result of our concerted efforts, we achieved an adjusted net profit of RMB72.3 million in 2023, accompanied by a continuously improving adjusted net profit margin. As of December 31, 2023, we possess RMB 249.3 million in cash and cash equivalents, providing us with strong cash reserves for potential M&A opportunities.