Huize Holding (HUIZ) Q2 2024 earnings summary

Executive summary

• Navigated a volatile insurance intermediary market in China by diversifying product mix, innovating customized products, and expanding omni-channel distribution and international presence.

• Gross written premiums (GWP) for Q2 2024 were RMB 1.34 billion, down 3.0% year-over-year, with renewal premiums up 42.8% and first year premiums (FYP) down 27.4%.

• Operating revenue declined 23.2% year-over-year to RMB 283 million, mainly due to lower FYP.

• International business contributed 11% of total revenue, with the acquisition of Vietnam's Global Care marking entry into a second overseas market.

• Persistency ratios for long-term life and health insurance products remained above 95% at both 13th and 25th months.

Financial highlights

• GWP was RMB 1.34 billion in Q2 2024, flat year-over-year by one source, but down 3% by another; total revenue reached RMB 283 million.

• Renewal premiums rose 42.8% year-over-year to RMB 690 million.

• Gross profit margin improved by 2.3 percentage points sequentially to 31.3%.

• Cash and cash equivalents stood at RMB 236.2 million (US$33 million) at quarter end.

• Net loss was RMB 23.3 million, compared to net profit of RMB 14.1 million in Q2 2023; non-GAAP net loss was RMB 13.0 million.

Outlook and guidance

• Expense ratios expected to revert to Q1 levels after a temporary increase in share-based compensation.

• Anticipates an uptrend in FYP in Q3, especially in savings products, due to pent-up demand and regulatory-driven timing shifts.

• Expects participating (par) insurance products to become mainstream over the next 1–3 years.

• Targeting entry into two additional Southeast Asian markets within 12 months and aiming for international revenue to reach 30% of group revenues by 2026.

• Focus remains on leveraging technology, expanding into Southeast Asia, and diversifying revenue streams for sustainable long-term growth.