ZhongAn Online P & C Insurance (6060) H1 2024 earnings summary

Executive summary

• Insurance revenue rose 19.0% year-over-year to RMB15,088 million for H1 2024, with total income up 12.7% to RMB16,035 million.

• Net profit attributable to owners was RMB55 million, down from RMB221 million in H1 2023, mainly due to lower insurance segment profit and higher loss ratio.

• Maintained over 20% market share in China's online P&C insurance, ranking first in the sector and 9th overall by GWP.

• Technology and banking segments significantly reduced losses, with ZA Bank net revenue up 45.9% to HKD255 million and net loss margin narrowing by 71.7 percentage points.

• Comprehensive solvency adequacy ratio remained strong at 224% as of June 30, 2024.

Financial highlights

• Total income: RMB16,035 million (+12.7% YoY); insurance revenue: RMB15,088 million (+19.0% YoY).

• Underwriting profit: RMB314 million; underwriting combined ratio: 97.9% (up 2.1 pts YoY).

• Technology export revenue surged 65.5% to RMB442 million, with domestic tech export up 112.7%.

• Net investment income was negative RMB171 million, while net fair value changes through profit or loss were RMB789 million.

• Total assets reached RMB43,037 million and net assets RMB20,240 million as of June 30, 2024.

Outlook and guidance

• Focus on dual-engine growth of "Insurance + Technology" and sustainable quality growth.

• Plans to further export InsurTech capabilities domestically and internationally, and to drive digital transformation in the insurance industry.

• Continued innovation in Hong Kong FinTech and expansion of digital banking and insurance services.

• Strategic adjustment in user acquisition for health insurance to improve cost efficiency.

• Actively preparing for bond repayments and considering refinancing options.