On March 20th, the domestic digital insurance service platform Huize released the unaudited performance reports for the fourth quarter of 2023 (hereinafter referred to as "Q4") and the entire year. Data shows that in 2023, Huize contributed a total premium of 5.8 billion yuan, a year-on-year increase of 18%; The total revenue was 1.2 billion yuan, a year-on-year increase of 3%; Realized an adjusted net profit of 72.3 million yuan, achieving profitability for five consecutive quarters and exceeding expectations to achieve an annual profit target of 60 million yuan.
The report shows that in terms of insurance types, the long-term insurance moat remains stable, while the short-term insurance business is experiencing an outbreak. From the perspective of premium structure, long-term insurance accounted for 92.3% of the total premium in 2023, accounting for over 90% for four consecutive years. Among them, the first year's premium increased by 42% year-on-year, reaching 2.62 billion yuan; The renewal premium increased by 4% year-on-year to 3.18 billion yuan. The new premium for long-term health insurance is about 510 million yuan, a year-on-year increase of 19%. As of the end of December, the cumulative retention rates for long-term insurance in the 13th and 25th months were both above 95%, continuing to maintain a high level in the industry.
At the same time, short-term insurance business has also experienced an outbreak. By supporting national strategic plans such as new citizens, small and medium-sized enterprises, and new energy, Huize has driven a significant year-on-year increase of 74% in new property and accident insurance premiums, reaching 390 million yuan.
Under the market opportunity of concentrated demand for savings insurance, Huize contributed to a new premium of approximately 1.65 billion yuan for savings insurance in 2023, a year-on-year increase of 54.6%. With the comprehensive resumption of customs clearance between Hong Kong and mainland China in 2023, the number of mainland residents going to Hong Kong for insurance has surged. During Q4, Huize Hong Kong's insurance business contributed 6% to total revenue. Benefiting from this, based on the first year's premium, Huize savings insurance items have significantly increased by 30% to approximately 59000 yuan.
In terms of continuously optimizing cost control, in 2023, Huize's total operating expenses decreased by 15.4% year-on-year, the expense ratio decreased by 7.3 percentage points, and the gross profit margin further increased to 37.4%. In addition, in 2023, Huize provided professional insurance services for over 1 million families and over 11 million policies, and assisted 92000 customers in handling claims, with a total amount of 570 million yuan.
Ma Cunjun, Chairman and CEO of Huize Holdings, stated that in the future, Huize will seize the sustained growth trend of the insurance industry in China and Asia, strengthen its ability to customize products across all scenarios and differentiation, and integrate online and offline sales and service capabilities. At the same time, it will continue to expand its insurance market business in Hong Kong and actively explore the development opportunities of the insurance industry in emerging markets in Southeast Asia, achieving the goal of achieving double-digit international market revenue contribution by 2024.