Huize Holding (HUIZ) Q2 2024 earnings summary

Executive summary

• Navigated a transforming Chinese insurance intermediary industry with regulatory changes, declining interest rates, and evolving consumer behavior.

• Proactively adapted by diversifying product mix, innovating customized products, and expanding omni-channel distribution.

• Advanced AI capabilities and prioritized high-quality clients, while expanding internationally, notably in Vietnam.

• Gross written premiums (GWP) for Q2 2024 were RMB 1,336.9 million, down 3.0% year-over-year, with renewal premiums up 42.8% and first year premiums (FYP) down 27.4%.

• Net loss was RMB 23.3 million, compared to net profit of RMB 14.1 million in Q2 2023; non-GAAP net loss was RMB 13.0 million versus non-GAAP net profit of RMB 19.0 million a year ago.

Financial highlights

• Total gross written premiums (GWP) reached RMB 1.34 billion, with revenue at RMB 218 million in Q2 2024.

• First year premiums (FYP) facilitated were RMB 650 million; long-term life insurance FYP grew 5% YoY to RMB 318 million.

• Renewal premiums rose 42.8% YoY to RMB 690 million; long-term insurance premiums made up over 90% of total GWP for the 19th consecutive quarter.

• Gross profit margin improved by 2.3 percentage points sequentially to 31.3%.

• Cash and cash equivalents stood at RMB 236 million (US$33 million) at quarter end.

Outlook and guidance

• Expense ratios expected to revert to Q1 levels after a temporary increase in share-based compensation.

• Anticipates an uptrend in FYP in Q3, especially for savings products, due to pent-up demand and regulatory-driven timing shifts.

• Expects participating (par) insurance products to become mainstream over the next 1–3 years.

• Targeting entry into two additional Southeast Asian markets within 12 months and aiming for international revenue to reach 30% of group revenues by 2026.

• Focus remains on leveraging technology, expanding into Southeast Asia, and diversifying revenue streams for sustainable long-term growth.