SHENZHEN, China - Huize Holding Limited (NASDAQ: HUIZ), an insurance technology platform, has announced a strategic partnership with New China Life Insurance Company (OTC:LFCHY) Limited (NCI) to introduce a new annuity insurance product named Bliss. This product aims to serve customers seeking stable and low-risk financial options.
Bliss offers several features, including rapid cash value growth with flexible payment structures, a choice of annuity start times, a streamlined enrollment process without a health declaration, and affordable premiums starting at RMB2,000 annually. Additionally, customers can benefit from complimentary health management services for up to five years.
Mr. Cunjun Ma, Chairman and CEO of Huize, expressed enthusiasm for the launch of Bliss through the partnership with NCI. He emphasized the product's alignment with the current shift in customer investment preferences towards savings products. Ma also highlighted the broader strategy to innovate in the digital distribution of insurance services, leveraging Huize's capabilities in customizing internet insurance products, customer management, and health services expansion.
The collaboration between Huize and NCI is part of an ongoing effort to capture industry opportunities and reinforce Huize's position as a preferred digital partner for insurers. The company aims to continue leading the digital transformation in the insurance industry.
NCI, established in 1996 and based in Beijing, is a prominent life insurance company with significant annual gross written premiums and total assets. It serves millions of retail and institutional customers across China and has a substantial marketing and service network.
This partnership is based on a press release statement.
In other recent news, Huize Holding Limited has regained compliance with the Nasdaq's Minimum Bid Price Requirement, following a notification from the Nasdaq Listing Qualifications Department. The company's American depositary shares (ADSs) maintained a closing bid price at or above $1.00 for 20 consecutive business days, resolving the previous issue of not meeting the minimum bid price for 30 consecutive business days.
In addition, Huize reported a strong financial performance in 2023, with total gross written premiums facilitated on its platform increasing by 18.2% to RMB 5.8 billion. The company also saw a 3.3% increase in total revenue, reaching RMB 12 billion, and a non-GAAP net profit of RMB 72.3 million, surpassing expectations.
In a significant move, Huize expanded into the ASEAN market through the acquisition of Vietnam-based Global Care Consulting Joint Stock Company, marking the debut of Huize's international brand, Poni Insurtech, in the region. The acquisition is expected to accelerate Global Care's product development through Huize's technology and AI solutions.
Moreover, Huize has also announced strategic partnerships, including collaborations with Aviva-COFCO Life Insurance and Ruihua Health Assurance Corporation, introducing new insurance products.
InvestingPro Insights
As Huize Holding Limited (NASDAQ: HUIZ) embarks on its strategic collaboration with New China Life Insurance Company Limited, offering the new annuity insurance product Bliss, it's worth noting the company's financial standing and market perception. According to InvestingPro, Huize is currently trading at a low earnings multiple, with a P/E Ratio of 6.1, suggesting that the stock may be undervalued relative to its earnings. This could be of interest to investors seeking value in the insurance technology sector.
Moreover, the company has demonstrated a strong return over the last three months, with a 62.57% price total return, reflecting a positive market response that could be tied to strategic moves such as the recent partnership with NCI. Additionally, Huize's market capitalization stands at 49.59M USD, and with a revenue growth of 4.29% in the last twelve months as of Q1 2024, it indicates a steady increase in its financial performance.
For those considering an investment in Huize, it's important to note that the company does not pay dividends, which aligns with its focus on reinvesting to fuel growth and product development. Interested investors can find a total of 12 InvestingPro Tips available, offering deeper insights into the company's potential and performance metrics. To make the most of these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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