ZhongAn Online earns US$71 million net profit in H1

ZhongAn Online P&C Insurance Co Ltd reported a net profit of 490.5 million yuan (US$71.2 million) in the first half of 2020, jumping more than fourfold compared with a year ago.

Benefiting from a decrease in underwriting losses and solid investment income performance, the insurance segment remains profitable, according to its interim financial results.

The insurer recorded gross written premium (GWP) of 6.7 billion yuan, representing a year-on-year increase of 14.7 percent.

Its business structure has been continuously optimizing, driven by the accelerated growth of health and lifestyle consumption ecosystems.

In the January-June period, GWP from the health ecosystem doubled from a year ago, now contributing to 45 percent of the overall premiums.

Meanwhile, the lifestyle consumption business segment grew by 40.4 percent year on year, now accounting for over a quarter of the company’s GWP during the reporting period.

The outbreak of COVID-19 at the beginning of the year not only significantly raised consumer health insurance protection awareness, but also further shifted their insurance purchasing activities from offline to online, ZhongAn noted.

Leveraging its Internet model, it has effectively captured this market opportunity by offering customers a smooth and pleasurable purchasing experience, leading to a 138 percent annual growth of GWP from its Personal Clinic Policy Series in the first six months.

The firm provided services to approximately 400 million insured customers, among which more than half were under the age of 35.