In This Article:
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Gross Written Premiums (GWP): RMB2.06 billion, a new quarterly record.
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Total Revenue: RMB370 million.
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Net Profit: RMB18.7 million.
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First Year Premiums (FYP): RMB1.35 billion, up 110% year-over-year.
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Renewal Premiums: RMB706 million, up 18% year-over-year.
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FYP from Savings Products: Increased 1.5 fold year-over-year.
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Whole Life Insurance FYP: RMB765 million, up 150% year-over-year.
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Short Term Insurance GWP: RMB129 million, up 40% year-over-year.
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Average FYP Ticket Size for Savings Products: RMB79,000, up 59% year-over-year.
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Persistency Ratios: Over 95% for both 13th month and 25th month.
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International Revenue Contribution: 19% of total revenue, a new record high.
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Cash and Cash Equivalents: RMB243 million (USD35 million) as of end of September.
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Expense to Revenue Ratio: Improved by 5 percentage points year-over-year to 24%.
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Repurchase Ratio for Long Term Insurance Products: 40.2% during the quarter.
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Total Number of Customers: Surpassed 10 million by the end of the third quarter.
Release Date: December 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Huize Holding Ltd (NASDAQ:HUIZ) achieved a record quarterly gross written premium (GWP) of RMB2.06 billion in Q3 2024.
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Total revenue for the quarter amounted to RMB370 million, with a net profit of RMB18.7 million.
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The company saw a 110% year-over-year increase in first-year premiums (FYP), reaching approximately RMB1.35 billion.
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Huize's international business contributed a record high of 19% to total revenue, driven by strong demand for premium products.
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The company successfully expanded into the Vietnam market, enhancing its international presence and setting a benchmark for future expansions.
Negative Points
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The gross margin declined to around 27% in Q3, reflecting the impact of expense rationalization in the brokerage channel.
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The company anticipates a less strong Q4 compared to Q3 due to front-loaded demand in the savings product category.
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General and administrative expenses rose significantly, attributed to increased rental and utility costs.
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The transition to new product regimes, such as power products, is expected to take two to three quarters, potentially impacting short-term growth.
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The company did not provide specific guidance for 2025, indicating uncertainty in future financial projections.
Q & A Highlights
Q: What is Huize Holding Ltd's outlook for net profit in the fourth quarter and 2025? A: According to Xiao Minghan, Co-Chief Financial Officer, Q3 was strong due to adjustments in interest rates for savings products in China, leading to front-loaded demand. However, Q4 is expected to be less strong due to a transition to new product regimes and a shift in consumer mindset. Offshore markets, particularly Hong Kong, show strong momentum, but overall, Q4 will likely be weaker than Q3.