ZhongAn Online P & C Insurance Co., Ltd.

In H1 2024, ZhongAn reported total premium income of HKD 15.23 billion, up 5.4% year on year, and insurance service revenue of HKD 15.08 billion, up 19%. The combined ratio was 97.9%, with a combined loss ratio of 60.7% and a combined expense ratio of 37.2%; management said this marked the fourth straight year of underwriting profitability. By segment, insurance service revenue was RMB 4.876 billion for health (+22.7%), RMB 7.07 billion for digital life (+24.2%), RMB 2.8 billion for consumer finance (-1.7%), and RMB 863 million for automotive (+24.2%). Technology export revenue rose 55.5% to HKD 4.24 billion, and the Technology segment loss narrowed by HKD 165 million. ZA Bank reported net income of HKD 255 million, up 45.9%, while overall net loss was said to have narrowed by HKD 99.1 million in H1. Management did not provide formal full-year guidance; it said consumer finance would remain prudent and smaller, technology growth should continue, and ZA Bank is moving toward profitability.

Jiang Xing framed 2024 as the start of a new decade for ZhongAn and emphasized staying focused on user feedback, better user experience, and long-term sustainable development. He highlighted product innovation in health, auto, pet, and other scenario-based insurance, and said the company is extending coverage to underserved groups such as new citizens, flexible workers, and micro and small enterprises. His tone was constructive and confident, but he acknowledged macro pressure in consumer finance and the need to keep tightening risk control.

Li Gaofeng focused on profitability, capital, and portfolio discipline. He said H1 insurance service revenue reached RMB 15.08 billion, the combined ratio was 97.9%, and the company maintained a comprehensive solvency adequacy ratio of 224% as of June 30, 2024. On investments, he said domestic insurance funds totaled about RMB 27.69 billion, with fixed income investments at 75.4%, domestic bond and bond-fund exposure around 55%, investment income of RMB 620 million, and annualized total investment yield and net investment yield of about 3.3% and 2.3%. He also noted USD 590 million of debt due next July and USD 360 million due in March 2026, saying cash flow is stable and refinancing remains an option.

Analysts pressed management on why premium growth slowed, why health premium and service revenue diverged, how to think about investment income in a lower-rate environment, and whether credit insurance can stay profitable. Management said premium growth slowed mainly because consumer finance was intentionally scaled down and health acquisition strategy was adjusted to be more economical, while health service revenue benefited from richer products and broader coverage. On investments, management said the mix is still mainly fixed income, with efforts to adjust duration and improve yield, and on consumer finance it said the business remains profitable but will stay conservative with strict risk controls. Analysts also asked about technology growth and future plans; management said revenue growth should keep coming from higher-margin products and AI-driven efficiency gains, while losses continue to narrow.