Shanghai, China--(Newsfile Corp. - April 22, 2025) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced the establishment of Zhibao Labuan Reinsurance Company Limited ("Zhibao Labuan"). The Zhibao Labuan received its license to seek to undertake general reinsurance operations beyond mainland China from the Labuan Financial Services Authority ("LFSA") on April 14, 2025.
Zhibao Labuan's Role in Zhibao's Growth Strategy
Currently, Zhibao's revenue is primarily derived from brokerage and MGU fees earned from its insurance partners. We believe the incorporation of Zhibao Labuan enables the Company to tap into potentially an additional revenue stream through reinsurance premiums and the potential for underwriting profits based on the performance of the reinsured policies. Furthermore, we believe Zhibao Labuan may generate income from reinsurance premiums, in line with standards established by local regulators. For example, if the Company typically earns a 20% commission on the sale of a policy and Zhibao Labuan accepts a corresponding 20% reinsurance risk from the Chinese insurance carrier, the Company would have the potential to realize an additional 20% revenue from that policy—effectively doubling its revenue—with further potential for underwriting profits and proceeds from the investment of premiums.
As a result, we believe Zhibao Labuan can open up a new revenue frontier for Zhibao. The target is for Zhibao Labuan to eventually participate in about a small portion of the total insurance premium generated by Sunshine Insurance Brokers and Zhibao Health. While the formation of Zhibao Labuan adds depth and vibrancy to the Company's offerings and enhances support for customers, Zhibao will remain primarily an insurance brokerage company, with Zhibao Labuan serving mainly as a minority risk taker for targeted business.
"I am pleased to announce the establishment of Zhibao Labuan, which provides us with the opportunity to earn additional revenue and profits through reinsurance premiums and potential underwriting deals. I believe Zhibao Labuan opens up a new frontier for revenue that presents unique opportunities to Zhibao. Additionally, I am excited about seeking to gaining access to the thriving insurance market in Labuan, Malaysia—a well-established, internationally regarded hub for insurance and reinsurance providers. With the formation of Zhibao Labuan, I believe we position ourselves as an innovator in an industry where it is traditionally uncommon for a brokerage company to establish a risk-carrying entity. Our upstream subsidiaries, which are intimately familiar with their customers' needs and the underwriting terms of the policies, will participate in selecting the business for inclusion in Zhibao Labuan. This initiative not only provides a vote of confidence in the quality of our business but also aligns our interests with those of our insurance and reinsurance partners. In cases where local insurance carriers are unable to meet the customization needs of our customers, Zhibao Labuan can leverage our accumulated data and deep market knowledge to lead on pricing and product development, ensuring that we deliver the highest quality and most appropriate products to our customers. Moreover, this new endeavor enhances our ongoing strategy to diversify our revenue streams and generate profitable market investments that we believe will drive shareholder value," said Zhibao's Chief Executive Officer, Mr. Botao Ma.
About Zhibao Labuan's Leadership
Zhibao Labuan will be headed by Guangtong (Arthur) Ren as Principal Officer, who also serves as Zhibao's Executive Director & Chief Actuary. Mr. Arthur Ren is a senior executive with nearly 30 years of experience in insurance, corporate finance, strategic planning, and risk management. During his nearly 30-year tenure at AIG China, he served in various senior roles including CFO, Chief Actuary, Chief Risk Officer, Chief Internal Auditor, and Regional Chief Actuary for AIG Greater China. Prior to his time at AIG, Mr. Ren was a management consultant with the Boston Consulting Group and served as Deputy General Manager overseeing life and health insurance product development at China Ping An Insurance. He holds an MBA from London Business School, a BSc in Mathematics, and an MSc in Finance from Nankai University in Tianjin, China.
About Zhibao Technology Inc.
Zhibao Technology Inc. (NASDAQ: ZBAO) is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").
Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Investor Relations Contact
Zhibao Technology Inc. Investor Relations Office Email: ir@zhibao-tech.com
Skyline Corporate Communications Group, LLC Scott Powell, President Avenues Tower 1177 Avenue of the Americas, 5th floor New York, NY 10036 Office: (646) 893-5835 Email: info@skylineccg.com
