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

Executive summary

• Achieved total income of RMB16,035 million in H1 2024, up 12.7% year-over-year, with insurance revenue rising 19.0% to RMB15,088 million and net profit attributable to owners at RMB55 million, down from RMB221 million in H1 2023 due to lower insurance segment profit.

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

• Sustained underwriting profitability and significant loss reduction in technology and banking segments.

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

• Dual-engine strategy of "Insurance + Technology" driving InsurTech exports and digital banking expansion.

Financial highlights

• Gross written premium increased by 5.4% to RMB15,238 million; insurance service revenue up 19% to RMB15,088 million.

• Underwriting combined ratio at 97.9%, marking the fourth consecutive year of profitability.

• Technology export revenue rose 65.5% to RMB442 million; domestic output revenue up 112.7%.

• ZA Bank net revenue increased 45.9% to HKD255 million, with net loss margin improved by 71.7 percentage points.

• Total investment income for P&C insurance was RMB620 million; annualized yield 3.3%.

Outlook and guidance

• Focus on user-centric strategies, sustainable development, and digital transformation.

• Continued expansion in technology export, both domestically and internationally, with emphasis on AI and digital platforms.

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

• Plans to maintain innovation in Hong Kong's FinTech sector and enhance user experience through technology.

• Actively preparing for bond repayments and considering refinancing options.