On March 26, 2024, ZhongAn Online (6060.HK) released its 2023
annual results. For the year ended December 31, 2023, ZhongAn
Online achieved gross written premiums (GWP) of RMB29,501 million,
with a year-on-year increase of 24.7%. ZhongAn remained as the 9th
largest P&C insurance company in the Chinese market as measured
by GWP in 2023, and the fastest growing company among the top 10
P&C insurance companies in China, with underwriting profits for
three consecutive years. The Group has adopted the new accounting
standard for insurance contracts, HKFRS 17, starting from January
1, 2023. Insurance revenue from the P&C insurance business
under HKFRS 17 amounted to RMB27,521 million, an increase of 24.2%
year-on-year.
In 2023, we celebrated ZhongAn's 10th anniversary. With a decade of
dedicated cultivation, ZhongAn has always adhered to "Insurance +
Tech" dual-engine strategy, and has achieved high-quality growth by
adopting a customer-centric approach and focusing on its core
insurance business. During the past decade, ZhongAn has been
dedicated to improving its technology, product, service and brand
strengths, thereby achieving numerous breakthroughs from scratch,
and contributing its one-of-a-kind strengths to accelerating the
digital and intelligent transformation of the insurance industry.
In 2023, as the only InsurTech company selected, ZhongAn Online was
included in the 2023 China 500 list published by Fortune with
honor, demonstrating the market's recognition to ZhongAn's
decade-long brand and technology.
For a long term, ZhongAn Online adhered to the strategy of
"sustainable growth with quality" as well as technology-driven
cost-efficiency. In 2023, our underwriting combined ratio for 2023
was 95.2%, achieving underwriting profit for three consecutive
years, and beyond the industry average performance. The Group
recorded net profit attributable to owners of the parent of
RMB4,078 million, this included a one-off investment gain of
approximately RMB3,784 million as ZA International ceased to be a
subsidiary of the Company and was accounted for as a joint venture
under the equity method with effect from August 14, 2023. Excluding
this one-off investment gain, the Group's adjusted net profit to
owners of the Company amounted to RMB294 million, a turnaround from
the previous year.
Benefiting from the domestic economic recovery and the ongoing
digital transformation in the global financial industry, the
Group's technology segment recorded technology export revenue of
RMB829 million, representing a year-on-year increase of 40.0%., of
which domestic revenue grew by more than 73% year-on-year.
Building user-centric proprietary channels
In 2023, the Company stayed focused on multi-scenario and
multi-dimensional touchpoints with potential customers around the
"ZhongAn" brand, continuously exploring and grasping online traffic
dividend from mainstream content platforms via short video and
livestreaming. Through AI customer service and Enterprise WeChat
customer service, we delivered efficient cross-guidance and
customized product recommendation, and continuously optimizing the
contents of live streaming. This year, ZhongAn also stayed focused
on cross-penetration between ecosystems, provided comprehensive
insurance protection around four ecosystems, and increased value
proposition to users through upgraded medical health, family, and
pets related services. In 2023, the GWP of our proprietary channels
increased by 31.0% year-on-year to RMB7,614 million, whose growth
rate is higher than the company's overall GWP growth, and accounted
for 25.8% of the total GWP. The number of paying users of our
proprietary channels increased by 47.6% year-on-year to 11.36
million. Renewal rate reached 88.3%, with year-on-year improvement
of 3.3 percentage points; and the average premium per user reached
RMB670.
Diversified product offerings of health ecosystem provide medical
coverage for over 100 million people and digital lifestyle
ecosystem innovates to lead the way
In 2023, China's commercial health insurance market reported GWP of
RMB903.5 billion, representing a year-on-year increase of 4.4%. As
China's multi-level healthcare protection system continued to
penetrate and improve, there is a growing demand for multi-level,
diversified and personalized health protection. Adhering to our
original aspiration of provide medical insurance for 100 million
people, our health ecosystem provided health insurance to
approximately 28.80 million insured customers in 2023, recorded GWP
of RMB9,806 million in 2023, representing a year-on-year increase
of 9.2%. The health ecosystem had approximately 19.96 million
individual insurance paying users, representing an increase of
23.6% as compared with the corresponding period of last year.
Meanwhile, the company also published the customized products for
the chronic disease patients, elderly, children, and female, as
well as critical illness policy, outpatient policy, and other types
of productions to meet the diversified needs of users under
different scenarios.
For digital lifestyle ecosystem, ZhongAn capitalized on the booming
growth of the domestic e-commerce industry, the strong recovery of
the air travel business, and the explosive growth of innovative
business including pet insurance. The GWP of the digital lifestyle
ecosystem reached RMB12,563 million, representing a year-on- year
increase of 41.6%. Among them, the e-commerce business segment
amounted to RMB6,593 million, representing a year-on-year increase
of 25.3%. The travel business segment provided travel protection
for nearly 70 million users, recording GWP of RMB3,242 million in
2023, representing a year-on-year increase of 89.0%.
In the innovation business segment, ZhongAn closely follow the
trends of emerging consumer behavior, continuously leverage
technology empowerment, and rapidly launch various innovative
insurance products to meet evolving insurance protection needs of
users. In 2023, we launched a brand new sports accident insurance
named Zhong Participation covering general sports and high-risk
sports, and enriched our pet insurance product matrix, serving over
4.65 million pet owners nationwide and consolidating our highly
leading position in the domestic pet insurance market.
Beyond that, along with the continued recovery of the domestic
economy in all sectors, and the emergence of new hotspots such as
AI and NEV, the Company ushered in a new era in the consumer
finance ecosystem and the auto ecosystem. With the recovery of the
consumer finance industry, ZhongAn consumer finance ecosystem
recorded GWP of RMB5,551 million, representing a year-on-year
increase of 22.5%. We also seized the opportunities for the NEV
insurance and embracing government support, bringing new momentum
to auto insurance, with GWP of NEV auto insurance increased by
approximately 196.1% year-on-year in 2023 and total GWP of auto
ecosystem increased by 24.7% year-on-year to RMB1,580 million in
2023
Tech segment grows fast with innovations powered by AIGC
In the long term, ZhongAn continues to focus on the development of
cutting- edge technologies including artificial intelligence,
blockchain, cloud computing, and big data, aiming to reshape every
stage throughout the insurance value chain with technology,
creating a value delivery system of "technology + service". In
2023, ZhongAn launched "Lingxi", an AIGC middle platform,
EasyCreation, the pioneering intelligent content creation platform
with AIGC application covering scenarios of insurance verticals,
and CWisdom, the operational analysis platform (AI upgraded
version) with conversational AI. ZhongAn empowers the finance and
insurance industry with AI, promotes high-quality development for
financial industries with core technologies and reshapes the
landscape of digital finance.
In 2023, ZhongAn's technology segment continued to expand both
domestically and internationally, helping many clients across the
globe with their digital transformation processes. During the
reporting period, ZhongAn recorded technology export revenue of
RMB829 million, representing a year-on-year increase of 40.0%.
Benefiting from the industry's demand for continued digital
upgrading and transformation brought by Digital China and the
digital economy, our domestic technology export business recorded
revenue of RMB504 million, representing a year-on-year increase of
73.2%. Number of newly contracted clients along the insurance
industrial chain reached 91, of which more than 40 clients had a
contracted amount of more than RMB1 million and 4 clients had a
contracted amount of more than RMB10 million. ZhongAn's tech
segment also made breakthroughs in expanding business into
diversified sectors, serving 12 clients from the banking and
securities industries, and further expanded to cover manufacturing
and other high-tech industries.
For overseas technology export, ZA Tech, under ZhongAn
International, founded in 2018 and headquartered in Singapore,
focuses on exporting new insurance core systems and digital
insurance technology experience to overseas insurance companies and
insurance intermediary platforms, aiming to build a new digital
operating system of the global insurance industry. As of now, ZA
Tech's footprints have covered regional markets such as Japan, Hong
Kong, Southeast Asia, and Europe. In 2023, ZA Tech recorded
technology export revenue of RMB325 million, of which sustainable
revenue accounted for 51%, and the gross margin increased to 46%
from 40% for the corresponding period of 2022.
ZA Bank continues to build a leading financial services platform In
Hong Kong
As one of the first banks in Hong Kong granted a virtual banking
license, ZA Bank has become one of the virtual banks with the most
comprehensive product matrix in Hong Kong market. By the end of
2023, ZA Bank had total deposits of approximately HKD11.7 billion
and gross loans of approximately HKD 5.4 billion.
ZA Bank became the first virtual bank in Hong Kong to be granted a
Type 1 regulated activity (dealing in securities) license by the
Securities and Futures Commission (SFC) in January 2022, and has
been actively expanding its product matrix for investment business
since then. The Bank officially launched mutual fund services in
August 2022, successfully onboard over 100 investment fund
products, and officially launched its US stock trading services in
February 2024 for Hong Kong users. By the end of 2023, retail
users' AUM amounted to nearly HKD 1 billion. Meanwhile, benefiting
from the interest rate hike cycle and the diversification of loan
products, ZA Bank's net interest margin further improved to 1.94%
from 1.84% in the corresponding period of 2022. In 2023, ZA Bank
recorded net revenue of approximately HKD 370 million, representing
a year-on-year increase of 42.9%; With the Bank's focus on business
quality and operationalefficiency improvement, the net loss margin
narrowed by approximately 85.6 percentage points
The General Manager of ZhongAn Online Simon Jiang says, "In the
past decade , ZhongAn had been growing on the background of FinTech
development and diversification trend across the globe. In the wave
of digital transformation, we remain true to our original
aspirations and adhere to the concept of "insurance + technology"
so as to offer more inclusive products to users, bring warm
experience of ZhongAn and contribute to the building of a
high-quality inclusive financial system."
About ZhongAn Online P&C Insurance Co., Ltd. (Stock Code:
6060.HK)
Founded in October 2013, ZhongAn Online P & C Insurance Co.,
Ltd. ("ZhongAn Online", "ZhongAn" or the "Company") is a leading
digital-only insurance company in China. On September 28, 2017,
ZhongAn became the first FinTech company listed on the Stock
Exchange of Hong Kong. ZhongAn offers insurance products and
solutions within four ecosystems, which include health, digital
lifestyle, consumer finance, and auto. Focusing on InsurTech,
ZhongAn leverages its advanced InsurTech experience and
technological capability to facilitate the digital transformation
of companies along the insurance industry value chain through the
development of new digital infrastructure.
For further information, please contact ZhongAn Online IR team
Email: IR@ZhongAn.com
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