SHENZHEN, China - Huize Holding Limited (NASDAQ: HUIZ), an insurance technology platform, announced today its expansion into the ASEAN market with the acquisition of Vietnam-based Global Care Consulting Joint Stock Company. The move marks the debut of Huize's international brand, Poni Insurtech, in the region.
Global Care, established in 2017, is at the forefront of Vietnam's insurtech sector, offering digital transformation solutions to the insurance industry. The company's cloud-based API solutions and mobile applications have connected insurers with various distribution channels, including e-commerce platforms like Grab and Ahamove. In 2023, Global Care's platform facilitated 13.5 million policies, saw a fourfold revenue increase, and registered users grew to over 1.3 million.
Under the terms of the agreement, Huize will acquire a controlling stake in Global Care through a series of transactions, involving the purchase of existing shares and subscription of new shares. VinaCapital Ventures, a technology investment entity of VinaCapital Group, will receive newly issued class A common shares of Huize as part of the transaction.
These shares will represent approximately 1.7% of Huize's issued capital on a fully-diluted basis, with half subject to a one-year lock-up period.
The acquisition is expected to bring significant synergies, enhancing Global Care's market share growth by accelerating product development through Huize's technology and AI solutions. Additionally, Huize welcomes VinaCapital as a strategic shareholder, with prospects for further collaboration in Vietnam's local market.
Ron Tam, Co-Chief Financial Officer and Head of International Business at Huize, expressed enthusiasm for the strategic investment, citing Vietnam's potential as an emerging insurance market with a sizable, young, and digitally native population. Dinh Thi Ngoc Niem, Founder and CEO of Global Care, echoed the sentiment, highlighting the strategic value for partners and customers as well as the acceleration of digitalization in Vietnam's insurance industry.
Upon completion, Global Care will become a subsidiary of Huize, and its financial results will be consolidated into Huize's financial statements.
This expansion aligns with Huize's mission to serve consumers' lifelong insurance needs through its integrated insurance ecosystem, which spans the entire insurance life cycle. The company leverages AI, data analytics, and digital capabilities to enhance the insurance service chain.
The information for this article is based on a press release statement from Huize Holding Limited.
In other recent news, Huize Holding Limited, a renowned insurance technology platform, has reported a series of significant developments. The company has announced robust financial growth in 2023, with an 18.2% increase in total gross written premiums facilitated on its platform, amounting to RMB 5.8 billion. Additionally, Huize achieved a 3.3% increase in total revenue, reaching RMB 12 billion, and a non-GAAP net profit of RMB 72.3 million, exceeding expectations.
In strategic partnerships, Huize has collaborated with Aviva-COFCO Life Insurance to introduce a whole life insurance product, 'Fu Man Jia'. This product targets a wide customer base and offers a guaranteed compound return of 2.5%, with the potential for additional non-guaranteed annual dividends.
The company has also partnered with Ruihua Health Assurance Corporation to launch a new critical illness insurance product, Darwin Critical Care No.9, providing comprehensive coverage for a variety of illnesses.
These recent developments showcase Huize's commitment to expanding its product offerings and partnerships, catering to diverse customer needs.
InvestingPro Insights
As Huize Holding Limited (NASDAQ: HUIZ) ventures into the ASEAN market with its strategic acquisition of Global Care Consulting Joint Stock Company, the company's financial metrics and market performance provide a snapshot of its potential for growth and the challenges it may face. With a market capitalization of $50.03 million, Huize's size reflects its niche position in the insurance technology sector. Its current price-to-earnings (P/E) ratio stands at 6.13, suggesting that the stock may be undervalued compared to industry peers, especially considering the company's strong free cash flow yield, an InvestingPro Tip that indicates financial flexibility and the potential for reinvestment in growth opportunities like the ASEAN expansion.
Despite not offering dividends, another InvestingPro Tip highlights Huize's high shareholder yield, which could be attractive to investors looking for capital gains rather than income. The company's recent performance shows a robust return over the last three months, with a 33.96% price total return, signaling investor confidence that may be tied to its profitability over the last twelve months and analysts' predictions for continued profitability this year.
For those interested in a deeper dive into Huize's market potential and strategic moves, InvestingPro offers additional analysis and tips. There are 10 more InvestingPro Tips available for Huize, providing a comprehensive outlook on the company's financial health and market position. Readers can access these insights and take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With its recent expansion, Huize is poised to leverage its technology and AI solutions to tap into Vietnam's burgeoning insurance market, and the InvestingPro platform stands ready to guide investors with detailed analysis and up-to-date metrics on the company's progress.
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