HUIZE: Pre-announces strong 4Q2020 revenue and 47% jump y-o-y
SINGAPORE, Jan. 28, 2021 /PRNewswire/ — Founded in 2006 and based in Shenzhen, Huize Holding Limited (NASDAQ: HUIZ) is proving that it can disrupt the health insurance distribution in China.
The company has just announced its preliminary estimated unaudited total operating revenue and selected operating data for the fourth quarter of 2020:
- Total operating revenue is expected to be at least RMB380 million, representing a record quarterly high and a year-over-year growth of 47.1%.
This exceeds the Company’s previous guidance of RMB330 million to RMB350 million.
- Total Gross Written Premiums (“GWP”) facilitated on the Company’s platform are expected to be approximately RMB1,000 million.
This represents a record quarterly high and an increase of 55.7% compared to the same quarter last year, of which first-year premiums accounted for approximately RMB610 million, representing an increase of 39.3% compared to the same quarter last year.
Huize has outdone itself while outperforming the industry at the same time.
The outstanding performance was primarily attributable to better-than-expected market demand for the proprietary critical illness products co-developed by Huize and its insurer partners, against the backdrop of continued economic recovery in China which has improved consumer confidence.
Mr. Cunjun Ma, Chairman and CEO of Huize, commented, “Our record results reflect our core competencies in co-developing with our insurer partners, attractive long-term health insurance products leveraging on our in-house data-analytics capabilities and the proven distribution strength of our technology-enabled online platform.”
As an independent online product and service platform in China with a focus on long-term life and health insurance, Huize has served 6.7 million insurance clients and has accumulated an insured customer base of over 56 million as of September 30, 2020.
This provides Huize with deep insights into customer’s insurance preferences and specific needs, and big data pertaining to insurance transactions.
With strong foundation in insurance technology, in-house actuarial capabilities and risk management, Huize has partnered with numerous insurance companies throughout the years to co-design and co-develop insurance products.
These collaborations not only strengthen Huize’s relationships with insurance companies partners, but also enable Huize to better understand and satisfy the diverse insurance needs of its insurance customers, and thereby create a dual-engine business model.
From a long-term perspective, Huize is well-positioned to capture the tremendous growth potential of China’s insurance market, which is projected to reach RMB6.9 trillion by 2023, a CAGR of 13% from 2018 and 2023.
Currently trading at US$6.43 on Nasdaq, Huize is valued at approximately US$335 million.
Recognising its growth potential, Citibank, China Everbright and AMTD International have initiated coverage on Huize with a “BUY” rating. The highest target price of US$11.47 represents an upside of 78.4%.
SOURCE Huize Holding Limited