ZhongAn Online Announces 2023 Annual Results — TradingView News • KMD REVIEW

HONG KONG, March 27, 2024 – (ACN Newswire) – On March 26, 2024, ZhongAn Online (6060.HK) released its 2023 annual results. For the year ending December 31, 2023, ZhongAn Online achieved gross written premium (GWP) of RMB29,501 million, a year-on-year increase of 24.7%. ZhongAn remained the 9th largest P&C insurer in the Chinese market as measured by GWP in 2023, and the fastest-growing company among China's top 10 P&C insurers by underwriting profits for three consecutive years. The Group has adopted the new accounting standard, HKFRS 17, for insurance contracts with effect from January 1, 2023. Insurance revenue from P&C insurance business under HKFRS 17 was RMB27,521 million, an increase of 24.2% year-on-year.

In 2023, we celebrated the 10th anniversary of Zhong'an. With a decade of dedicated cultivation, ZhongAn has always adhered to the “insurance + technology” dual-engine strategy, and 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, making many breakthroughs since the beginning, and becoming the first company of its kind to accelerate the digital and intelligent transformation of the insurance industry. Have contributed unique strengths. , In 2023, as the only insurtech company selected, ZhongAn Online was honorably included in the 2023 China 500 list published by Fortune, demonstrating the market's recognition of ZhongAn's decade-long brand and technology.

For the long term, ZhongAn Online adhered to the strategy of “sustainable development with quality” as well as technology-driven cost-efficiency. In 2023, our underwriting combined ratio for 2023 was 95.2%, achieving underwriting profits for three consecutive years, and beyond the industry average performance. The group recorded a net profit attributable to original owners of RMB4,078 million, this included a one-time investment gain of approximately RMB3,784 million as ZA International ceased to be a subsidiary of the company and was treated as a joint venture. Under the equity method from August 14, 2023. Excluding this one-time investment gain, the group's adjusted net profit attributable to company owners was RMB294 million, a change 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 accounted for the majority. happened. 73% year-on-year.

Building user-centric ownership channels

In 2023, the company focused on multi-scenario and multi-dimensional touchpoints with potential customers around the “ZhongAn” brand, continuously exploring and grasping online traffic dividends from mainstream content platforms through short videos and livestreaming. Through AI customer service and enterprise WeChat customer service, we provided efficient cross-guidance and customized product recommendation, and continuously optimized the content of live streaming. This year, ZhongAn also focused on cross-penetration between ecosystems, providing comprehensive insurance protection around the four ecosystems, and enhancing the value proposition for users through advanced medical health, family and pet-related services . In 2023, the GWP of our proprietary channels increased by 31.0% year-on-year to RMB7,614 million, the growth rate of which is higher than the overall GWP growth of the company, and accounts for 25.8% of the total GWP. The number of paying users of our proprietary channels increased 47.6% year-over-year to 11.36 million. The renewal rate reached 88.3%, an improvement of 3.3 percentage points year-on-year; And the average premium per user reached RMB670.

The diverse product offering of the health ecosystem provides medical coverage for over 100 million people and the digital lifestyle ecosystem drives innovation towards

In 2023, China's commercial health insurance market recorded a GWP of RMB903.5 billion, showing a year-on-year increase of 4.4%. As China's multi-level health protection system continues to penetrate and improve, the demand for multi-level, diversified and personalized health protection is increasing. Adhering to our original aspiration to provide medical insurance for 100 million people, our health ecosystem provided health insurance to approximately 28.80 million insured customers in 2023, recording a GWP of RMB9,806 million in 2023, the year -Represents a year-on-year growth of 9.2%. , There were approximately 19.96 million individual insurance paying users in the health ecosystem, showing a growth of 23.6% compared to the same period last year. Meanwhile, the company also published customized products for chronic disease patients, the elderly, children and women, as well as critical illness policy, outpatient policy and other types of products, to meet the diverse needs of users under different scenarios. Did it.

For the digital lifestyle ecosystem, ZhongAn took advantage of the surging 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, showing a year-on-year increase of 25.3%. The travel business segment provided travel protection to approximately 70 million users, recording a GWP of RMB3,242 million in 2023, representing a growth of 89.0% year-on-year.

In the innovation business segment, ZhongAn closely follows the emerging consumer behavior trends, continuously takes advantage of technology empowerment, and rapidly launches various innovative insurance products to meet the increasing insurance protection needs of users. In 2023, we launched a brand-new sports accident insurance named Zhong Participation, covering normal sports and high-risk sports, and enriched our pet insurance product matrix, covering more than 4.65 million pet owners nationwide and solidified our extremely leading position in the domestic pet insurance market. ,

Furthermore, with the continued recovery of the domestic economy across all sectors and the emergence of new hotspots such as AI and NEVs, the company ushered in a new era in the consumer finance ecosystem and auto ecosystem. With the recovery of the consumer finance industry, ZhongAn consumer finance ecosystem recorded a GWP of RMB5,551 million, representing a year-on-year increase of 22.5%. We also took advantage of NEV insurance opportunities and embraced government support, bringing new momentum to auto insurance, with the GWP of NEV auto insurance increasing by approximately 196.1% year-on-year in 2023 and the total GWP of the auto ecosystem increasing by 24.7% Went. -RMB1,580 million annually in 2023

The tech sector is growing rapidly with innovations driven 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 of the insurance value chain with technology and create a value delivery system Is. Technology + Service”. In 2023, ZhongAn launched “Lingxi”, an AIGC middle platform, EasyCreation, the leading intelligent content creation platform covering scenarios of insurance verticals with AIGC applications, and CWisdom, the operational analysis platform with conversational AI. (AI Advanced Edition) launched.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 domestically and internationally, helping many customers around the world 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 industry demand for continuous digital upgrading and transformation brought about 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%. The number of new contracted customers in the insurance industrial chain reached 91, of which more than 40 customers had a contracted amount of more than RMB1 million and 4 customers had a contracted amount of more than RMB10 million. ZhongAn's technology segment also succeeded in expanding business into diversified sectors, serving 12 clients in the banking and securities industries, and expanding 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 create a new To create a digital operating system. Global Insurance Industry. So far, ZA Tech's footprint has 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 gross margin increased from 40% to 46% for the same period in 2022.

ZA Bank continues to build a leading financial services platform in Hong Kong

As one of the first banks to be granted a virtual banking license in Hong Kong, ZA Bank has become one of the virtual banks with the most comprehensive product matrix in the Hong Kong market. As of 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 obtain a Type 1 regulated activity (transactions in securities) license by the Securities and Futures Commission (SFC) in January 2022, and has since been actively expanding its product matrix for investment business. Used to be. , The bank officially launched mutual fund services in August 2022, successfully covering more than 100 investment fund products, and officially launched its US stock trading services for Hong Kong users in February 2024. By the end of 2023, AUM of retail users will reach approximately HKD 1 billion. Meanwhile, benefiting from the interest rate rising cycle and diversification of loan products, ZA Bank's net interest margin increased from 1.84% to 1.94% in the same period of 2022. In 2023, ZA Bank recorded net revenues of approximately HKD 370 million. Represents a year-on-year increase of 42.9%; With the bank's focus on improving business quality and operational efficiency, the net loss margin narrowed by approximately 85.6 percentage points.

Simon Jiang, General Manager of ZhongAn Online, says, “In the past decade, ZhongAn was growing on the background of the worldwide fintech development and diversification trend. In the wave of digital transformation, we remain true to our original aspirations and adhere to The concept of “insurance + technology” to offer users more inclusive products, enjoy the warm experience of Zhong'an, and contribute to the building of a high-quality inclusive financial system.

About ZhongAn Online P&C Insurance Co., Ltd. (Stock Code: 6060.HK)

Established 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 provides insurance products and solutions within four ecosystems, including health, digital lifestyle, consumer finance and auto. Focusing on insurtech, ZhongAn leverages its advanced insurtech experience and technical capability to facilitate the digital transformation of companies along the insurance industry value chain through the development of new digital infrastructure.

For more information, please contact ZhongAn Online IR Team

Email:IR@ZhongAn.com

Source: ZhongAn Online P&C Insurance Co., Ltd.