Insurance platform Huize delivers strong revenue growth
Nasdaq-listed insurance platform Huize said it delivered a revenue growth in 2020, but the annual net profit still declined due to increased operating costs and expenses.
Driven by an increase in brokerage income, the company’s total operating revenue in the fourth quarter jumped 50 percent year on year to 388.1 million yuan (US$59.5 million).
For all of 2020, revenue increased by almost 23 percent year on year to 1.22 billion yuan.
Total gross written premiums facilitated on the platform grew by 63 percent in the fourth quarter to 1.04 billion yuan, and around 50 percent for the entire year to a record high of just over 3 billion yuan.
The total number of insured clients was approximately 57.6 million as of last December.
Despite revenue growth, however, Huize posted a net loss of 18.3 million yuan for the year, compared with a net profit of 15.0 million yuan in 2019.
The loss was primarily attributable to increased operating costs and expenses in areas like service fees paid to user traffic channels, advertising and marketing as well as research and development.
The company expects total operating revenue for the first quarter of 2021 to be 650-700 million yuan.
The company's revenue growth is due to its rich experience in the insurance industry, the competitive advantages of its online platform business model, its unique focus on long-term insurance products and industry-leading digital development capabilities, said Ma Cunjun, founder, chairman and chief executive officer of Huize.
While fully embracing digitization, the Nasdaq-listed company also plans to expand its offline business in first-tier cities such as Shanghai and Shenzhen by setting up high value client service centers to further optimize the service experience and maximize clients’ lifetime value.