Recently, the digital insurance service platform HUIZ. US released its unaudited performance report for the third quarter of 2023. Data shows that in the third quarter of 2023, Huixuan contributed a total premium of 1.25 billion yuan, a total revenue of 290 million yuan, and achieved an adjusted net profit of 18 million yuan within the quarter, earning profits for four consecutive quarters.
Net profit achieved in the third quarter of 2018 million yuan
In the third quarter of 2023, the predetermined interest rate for domestic life insurance decreased from 3.5% to 3.0%, and the growth rate of life insurance premiums slowed down. Under the influence of pre demand, the life insurance industry experienced negative growth in the third quarter of 2023.
According to data statistics, in August this year, the top five life insurance companies in terms of premium scale achieved a total premium income of 88.487 billion yuan, a year-on-year decrease of 1.87%, and the industry's premium growth rate was sluggish; In September of this year, the trend of declining premiums for life insurance companies continued. The five life insurance companies mentioned above achieved a total premium income of 110.365 billion yuan, a year-on-year decrease of 6.39%.
Under the turbulent market, Huixuan's entire platform contributed a total premium of RMB 1.25 billion and a total revenue of RMB 290 million in the third quarter.
According to Huize's third quarter financial report data, in the first three quarters, Huize's first year premium reached 2.2 billion yuan, a year-on-year increase of 54%. During the third quarter, Huixuan's long-term health insurance contributed 100 million yuan in new premiums, a year-on-year increase of 8%; The new premium for annuity insurance is 120 million yuan, a year-on-year increase of two times. As of the end of the third quarter, Huize had a total of 9.12 million insured customers, with 223000 new insured customers added in the third quarter.
Meanwhile, in terms of net profit, Huixuan's adjusted net profit for the third quarter was approximately 18 million yuan, with a cumulative adjusted profit of 56 million yuan in the first three quarters, achieving profitability for four consecutive quarters.
Long term insurance premiums account for 90.9%
In terms of product structure, during the third quarter, Huizhi's long-term insurance premiums accounted for 90.9% of the total premiums. Based on the first year's premium, the average cost of Huixuan Savings Insurance in the third quarter was about 50000 yuan, a year-on-year increase of 23%. Savings insurance premiums accounted for 66% of the total premiums, an increase of 13 percentage points year-on-year.
In terms of product system construction and sales, Huixuan has launched customized and segmented products to meet customer needs through "cost performance optimization+brand optimization". For example, in the third quarter, we launched Little Wonder 3, Little Naughty 2, and Xinxiangshou (Exclusive Edition) pensions, covering children's accident insurance, children's serious illness insurance, and increased lifetime insurance. At the same time, Huixuan Hong Kong and Taipo Life Insurance Hong Kong have signed a strategic cooperation agreement to jointly launch the "Gold Satisfaction and Abundant Multicurrency Edition" for the Hong Kong market. By developing insurance products and cross-border services that meet regulations, Huixuan Hong Kong will fill the service gap of Hong Kong's insurance customers' "northward elderly care".
From the existing customer base, Huixuan's strategic positioning lies in middle-class families. During the third quarter, the total premium of Huixuan's long-term life insurance reached 670 million yuan, a year-on-year increase of 12%; The renewal premium was 600 million yuan, a year-on-year increase of 7%. Among its long-term insurance clients, the average age is 33.9 years old, with 67.5% in second tier and above cities; Long term insurance repurchase customers accounted for 38%, an increase of 5 percentage points year-on-year.
At the same time, as the mainstream consumer group is becoming younger, Huixuan focuses on the young market. In the third quarter of 2023, Huixuan's short-term insurance premiums recovered strongly, with a year-on-year increase of 50.1%. In September, the domestic tourism insurance premiums on the platform exceeded the same period in 2019, with nearly 60% of young customers under the age of 40.
Adhere to the three major strategies of "channels, products, and customers"
The third quarter report pointed out that in 2023, Huixuan will continue to adhere to the three major strategies of "channels, products, and customers".
Specifically, on the channel side, deploy the "online+offline" strategy. During the third quarter, its independent agent brand "Jumi" contributed to a new premium of approximately RMB 90 million, a year-on-year increase of 38%. Meanwhile, Huixuan will deepen its hot chain function and serve insurance agents during the third quarter.
On the product side, provide customers with a "1+1> 2" solution. Successfully converted over 30000 insured users through monthly promotions, holiday benefits, and other activities.
On the operational side, continuously refine operations to improve efficiency. Layered maintenance of 5 major customer groups, precise and scenario based matching of customer personalized needs through AI operational research models. From the perspective of effectiveness, a total of 223000 new insured customers were added during the quarter, and the total operating expenses in the third quarter decreased by 26.7% year-on-year, driving the gross profit margin to increase by 6 percentage points year-on-year.