Huize Holding Ltd. Q2 FY2024 earnings call

• Adapted to market conditions in Q2 2024 with diverse product mix, innovation in customized products, and strengthened omnichannel distribution capabilities.
• Advanced AI capabilities, prioritized high-quality clients, and expanded international presence.
• Total GWP RMB1.34 billion, total revenue RMB218 million in Q2. Long-term insurance premiums 91.3% of total GWP.
• Short-term insurance FYP +33.5% YoY. Renewal premiums +42.8% YoY.
• Customized products accounted for 41.2% of total FYP, up 16.9 ppt YoY.
• Acquired Vietnam's Global Care, entering second international market, aiming to build pan-Asia insurtech platform.

In the second quarter of 2024, total gross written premiums (GWP) facilitated on Huize's platform reached RMB1.34 billion, with total revenue at RMB218 million. Total FYP on the platform was RMB650 million. Long-term health insurance FYP was RMB120 million, long-term life insurance FYP grew 5% YoY to RMB380 million, renewal premiums were RMB690 million (+42.8% YoY). Long-term insurance premiums accounted for 91.3% of total GWP, the 19th consecutive quarter above 90%. Short-term insurance FYP increased 33.5% YoY to ~RMB120 million. International business contributed 11% of total revenue in Q2.

• Expect FYP uptrend in Q3 due to pushback demand from policy rate change.
• Target international revenue to contribute 30% of group revenues by 2026.
• Expense ratio expected to revert to Q1 levels as SBC non-cash item normalizes.

Q: Concerns on earnings guidance, FYP trends, and product mix post-regulatory changes.

A: SBC increased due to new options issuance, FYP Q2 impacted by regulatory commission rationalization and policy rate change, product mix shifting to participating products with customized partnerships.

Q: Question on international business strategy and new market entry.

A: Encouraged by initial international results, targeting two new markets in 12 months, seeking local partners to localize operations.

Q: Inquiries on introducing more customized products, especially participating ones.

A: Huize has expertise in co-developing products, already launched first par product in Q2, will continue to innovate customized products to address market needs