Huize Holding Limited Q1 FY2025 earnings call

• Huize upholds a customer-centric approach, leveraging AI across operations for productivity improvements and cost optimization.
• Launched products like Bliss No. 3, Jin Man Yi Zu No.6, Xing Hai Hui Xuan, and Xiao Tao Qi global to cater to market demand shifts.
• Deployed the Huize AI agent development platform, an AI-powered smart portal on the app, and AI in claims processing for efficiency gains.
• Reduced total operating expenses by 29% sequentially through workplace optimization and AI-driven automation.
• Poni Insurtech continues to drive international growth, with progress in Singapore and Vietnam operations.

In the first quarter of 2025, Huize's operating revenue exceeded RMB 280 million. Gross written premiums on the platform increased 38% sequentially to RMB 1.4 billion, and first-year premiums facilitated reached RMB 730 million, up 31% sequentially. Renewal premiums grew 46% sequentially to approximately RMB 710 million. The cumulative number of users surpassed 11 million, with 390,000 new clients added during the quarter. The average age of long-term insurance customers was 35, with over 65% residing in high-tier cities. The average ticket size for long-term products rose 58% to over RMB 5,400. As of the end of March, Huize had strong partnerships with 143 insurance companies. Internationally, Poni Insurtech's Vietnamese operation saw total policy count grow 29% compared to Q1 2024, with gross written premiums and revenue increasing 35% and 34% year-over-year respectively.

• Q1 2025 is likely the rock bottom for the year, with Q2 showing decent momentum.
• Expect Q3 to be strong, with August being the peak for domestic sales of savings products.
• Poni Insurtech remains a key growth driver for long-term sustainable growth.
• Target to reach 30% of total revenue from international markets by 2026.

• Macro and geopolitical volatility posing challenges.
• Regulatory changes impacting agency channels, though expected to have a positive impact on Huize's business.
• Muted effect of pricing rate cuts on consumer purchase incitement compared to past years.

Q: Amy Chen from Citi asked about selling expenses and sales momentum in Q2.

A: Kwok Ho Tam responded that Q1 2025 was a high base for Q1 2024, Q2 shows decent momentum, and Q3 is expected to be strong with August being the peak for domestic savings products.

Q: Kenny Lim from UOB Kay Hian asked about regulatory impact on agency channels and international expansion.

A: Kwok Ho Tam responded that regulatory changes on agency channels could have a positive impact on Huize's business, and progress in Singapore is on track with plans to be operational by Q3, while Philippines development is prioritized for the second half.