Huize Holding Limited (HUIZ) 17 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, welcome to the Huize Holding Limited Third Quarter 2023 Earnings Conference Call. After the management's prepared remarks, we will have a question-and-answer session. Today's conference call is being recorded, and a webcast replay will be available. Please visit Huize's IR website at ir.huize.com under the Events and Webcast section. I'd now like to hand the conference over to your speaker host today, Mr. Relations Investor Huize's Lou, Manager. Kenny Please go ahead.

operator. conference call you, Hello, of everyone, earnings our to welcome for and XXXX. Thank the quarter third

are operating earlier our Our were website currently and IR and both available newswire. financial and on results today released

would press we earnings will you to in which be as we also applies making to the Before like refer statements. harbor safe I statement call forward-looking continue, release, our to this

our we that more will discuss release today, the measure with are in note non-GAAP partly which SEC. explained also earnings filings and Please

quarter operating Joining And Cunjun up will open us Co-CFO, turn Jiang, Minghan will then CEO, the financial by the company's XXXX. today are to Ma our and the on overview and call the for start Founder I Co-CFO, Jiang Ma. Ma, details call and for Mr. Mr. the an before highlights results Mr. over Xiao; Mr. the now for questions. provide first providing period will Li COO, Tam. call the we Ronald Mr. of Mr. of Mr. performance

you showing Hello, of joining economy and recovered. macro XXXX, thank economic third Earnings for In improvement. Language] [Foreign XXXX the Huize's Third quarter with -- gradually signs Conference Call. of everyone, activities Quarter the

markets challenges relationship products persisted transformation. experienced international depend However, insurance and erratically continue and The to capital industry fluctuations. for adjustment [indiscernible]

of distribution we ongoing but insurance external set interest acquisition the market and a by capabilities high-quality another cap the income. year-on-year towards positive profile on edge generally innovation, affected our on to profit the customer and a is competitive of The uncertainties, leveraging recovery. omnichannel reported product long-term Amid in investment solid trend. the rates is market losses, adverse primarily -- and experiencing insurance of customer industry path the results. The X upstanding, continuous these In focus impact assets downward declining were life quarters, industry show companies of the stock resulting net overall downturn. first impact impairment an

reached third billion, XXX total we or total premium, platform recorded RMB X.XX gross on our RMB the In and of quarter, recent million. GWP, facilitated revenues

XX.XX with third Our XX% fourth profit million GAAP net and RMB in to net consecutive increased we our XX.XX of quarter non-GAAP the million, sequentially achieved quarter. profit RMB

to In product omnichannel product our mix, diversified of terms we distribution continue and leverage solid offering capabilities.

facilitated year-over-year the XX% First The the by third in or first in year FYP to while RMB months XXXX, increased premiums long-term million quarter. FYP products X.X RMB RMB of platform our to quarter. approximately first XXX billion. X% health on Across of by XXX has X million FYP reached increased year-over-year our the

growth Our savings quarter. products maintained strong the during momentum

the resilient insurance of year-over-year users, the annuity XXX FYP to our our million, and a we tripling year-over-year effect renewal on our snowball long-term to RMB products are as flow our million. cash products of strategic in [indiscernible] seeing our sequentially, steady focus With generating a XXX RMB premiums business support performance. stickiness high reached and of XX% result strong QX X%

the where recovery accident this products boosted was to has insurance in XX%. third insurance short-term XXth quarter continued further the marking GWP of contribution the and the products P&C the domestic Moreover, for exceeded consecutive health, of long-term quarter. Meanwhile, demand XX.X%, economy

insurance As products RMB XX% a FYP our of the short-term XXX to result, million. increased year-over-year by

reached clients quarter, new additional the third end As of our X.XX XXX,XXX number an million, of customers. representing cumulative the of insurance

our the and purchase young, years focus were old, cities in third who customers. reflecting was loyal long-term from the insurance clients Our higher-tier age on average and XX.X% high-quality XX.X quarter.

terms RMB FYP, products In take approximately the side of average was long-term insurance of X,XXX.

at the XX% approximately our RMB in long-term levels month cumulative XXth of year-over-year savings of for persistency XX,XXX, up than of size remained take as of August, XX%. the ratios average high more While -- was by industry and insurance the XXth products end

of co-develop we Care product with Since high-quality cooperated units continue child critical cost-effective multiple XXX end and illness partners. insurer #X, Shot customized #X, we Guardian and products. insurance Meanwhile, of have to benefit launched insurance customized we have partners. quarter, our a critical various September, insurance As a the insurance third the customized products with Critical

partnered Life with life We also Sinshangsho, Insurance China products. to increasing launch jointly and insurance whole Pacific premium

with millennials. the awareness the With of the increasing increasing planning retirement

plans. younger as We We develop life recently and[indiscernible] to management and long-term and including and children #X products, insurance their wealth provide products clients product [indiscernible] range annuity protection through families long-term for and products. products comprehensive insurance health well as various customers offerings, our for strive have launched X to broad of sustainable retirement insurance

with the [ agents innovative In technologies. segment, insurance empower continue we to XA ]

types the During third up business upgraded relink by system In the RMB XXXX. is consultants opportunities. XX.XX facilitated system can insurance automated of by facilitated FYP to by by segment and relink new year this XA the the of opportunity XX% How providing XX identify and XA the upgraded the amounted X business The XXX the effectively with FYP FYP total RMB scenarios whole million, first in the functions alert. In surpassing assist facilitated business quarter, more period, our of identification we year-over-year. XXXX, reached months million, able and XXX agents business efficiently. business to currently

through and than brand Activating XX,XXX sales and attracting than these promotions conversions. XX,XXX and We hold across activities that high continued segment, services uses. continued customer-centric to effective various more engagement engaging approach to users at aimed high-quality segments. existing reached customers' quarter, we time value our achieved insurance to third the and various the XC meet In new and customer diversified effects provide we users users, In our successfully remained more committed needs

lower strengthen our long-term engagement In quarter, customers to stabilize high XX.X% In costs. user of acquisition base. loyalty capabilities of will repeat helped customers. client quarter, the stickiness enhance X.X and the from points our continue product the and customer our reflecting customer our This to purchases level third percentage has up upselling of we existing stream value the revenue our efforts our insurance customers. lifetime year-over-year, of maximize our third

we percentage by year-over-year driving Meanwhile, continued XX% in operating gross year-over-year, demonstrating point X in total improvement In reduced operational a X expenses. community's margin third and our a optimized, XX.X%. profit in particular, efficiency. G&A XX% efficiency points the In overall be ratio, year-on-year by in organizational to resulting to decrease percentage expenses revenue general quarter, the decline administrative expenses total increased to our the our

needs our and and develop customer forward, retirement Going protection satisfy health care, of customized will range full customers' planning. leverage products the to a broad our innovative insights spectrum from accident of financial asset to that we

committed agents the service facilitating of provide will the to our insurance the and the service CFO, OXO of empower companies and through same application with for aims highlights customers to win-win call prepared Mr. digital development . This This quarter. integration the for our teams deepen the between the a in will promote industry. today. and financial digital products Ronald We high-quality dynamic now insurance within I we insurance the opportunities our to overview digital and an technology transformation by industry's time, third fostering ecosystem. Tam, see my will of our further key turn technology presented remarks are platform. At finance concludes who

structure base from and and the products following phase GWP platform, transitional this fairly Thank evening, with distribution Mr. the the a product suspension the remained Ma, billion In online you, entered have. Chinese Despite quarter, respect that integrating has facilitated third challenge, of resilience omnichannel channels, large industry-wide X everyone. insurance to a RMB and the has in product platform X.X% off-line we about quarter. on significant Thanks good total our Kenny August. market insurance at of stable established a innovation our high-quality to strong year-over-year customer X.X the and third capabilities and

than end acquiring total We in quarter. the X.X . net XXX,XXX are with the new customers consistently customers to to added number million at the new the efficiently of QX Bringing more ecosystem more

During continued line profitability. our million, strategies. This consecutive execution bottom net to a non-GAAP our successful RMB the being fourth business driven quarter marking key the strong is of performance quarter, of profit XXX of we about by record

focus a from products remain insurance in GWP long-term we with at remaining products steadfast First, about XX%. these contribution

offerings agents which through Second, to our product technologies. omnichannel advanced empower we insurance and continue distribution platform,

continued generating RMB increase a FYP business year-over-year XX%. total XX representing of XA, to growth, line deliver robust Our of million, XC

to-sea our customer Third, across segment, upselling target to base. direct we continue mass in our and opportunities drive high-quality affluent consumers young

In terms points long-term percentage of ratio the of to year-over-year insurance our repurchase QX. about by FYP, products X in XX.X% increased

improvements focus operational we throughout in our on and Lastly, continue operating reflecting that's and growth margins. to our business, efficiencies boosting

about stood to our RMB persistency increased our August, XXXX, the the and value reflect of savings customer industry health XX% relentless a increased XX at highlights by an XX,XXX. Key quarters GWP increased and Total average for into the premiums life insurance high ticket year-over-year include and XX%. XX% long-term and XX% the long-term products high-quality X long-term tapping success premiums profile our ratios the of size remained results renewal operating following: positive of for our during and These insurance efforts Number from XX% which our continue first about Two, year to And potential as first XX respectively. by customers. year-over-year, month level metrics lifetime persistency third, one, in by of year-over-year and and ratio takeaways at

XXX products million. products. The X% the while million, XXX increased market-leading long-term FYP tripled long-term our In products sustained RMB insurance third we our quarter, annuity our the more position RMB to to in health year-over-year of than by of year-over-year FYP

between savings tightening satisfy our and a on We to customer to improve margin will balanced profit pursue structure continue efficiency. evolving and channel costs long-term our categories remain health product and to optimizing needs. focused We organizational marketing the mix

a our driven the million. decreased increased over to strong period same XX% in year-over-year compared to XX% operating by costs customer QX leading of to XX% primarily last to and customers on year, the as RMB a result, XX% total period operating and by XXX the margin improvement year-over-year, expenses QX of in decrease, platform. gross our acquisition from XX% operating improved to by XX% our ratio last to continued by our in expense efficiencies QX, in In year. same falling repurchases existing As

XX and figures QX. non-GAAP were approximately RMB GAAP million and million RMB our in net And XX profit

under and As our increased liquidity open shares RMB balance of XXX and market of quarter, have continue repurchase the continued strong we of to the end the cash from to our as cash September equivalents model maintain And we end to million, the demonstrate ADSs share growth which the prospects. of business of to to repurchased X.X approximately repurchase aggregate program. an in management's we have our long-term of confidence continue as and million date, quarter, the combined

financial forward, Moving of continue AI innovation to to enhance deepen and our upselling generative will product applications capabilities. the we striving

online clients customers and offline and high-quality agents acquire the to strengthen with of We'll ecosystem effectively. further engage to efficiently integration our our empower and more

across to allocations in solidifying resource continue also committed as as business. in the efficiency market the improvements will service We to optimize a share business in product drive and growth. enhance China our our we insurance market digital strive home and expanding value We operating achieve shareholder and sustainable position remain and platform to top-tier

We gaining Insurance, Hong retirement are the running ever and life Kong with also investing up an August innovative Hong now international operations whole product facilitates our having market in momentum, the earlier that feature with customized Mainland. launched and Kong Hong China first opportunities with in insurance in the growth in Life Kong product underwriting and good Pacific

we next from into with Group's And other double-digit and attractive to call up now markets Thanks now the open ASEAN questions. the the currently revenues XX generate we'll markets region, operator. to We targeting expand you, our within our that, to over and international to of are months. in percentage working are

Our of Stanley. will question Morgan Gong CoCo first come from

environment. today, third questions a challenging have the Congratulations for on of very performance. if X quarter I in good XXXX I very may. a

some X the health So the changes especially short-term some of would China, well be as channel regulations broker recent as regulation in first on about on the insurance.

management perceive business. on this overall our the impact does change how So

launching would That changes changes much. just the appreciated. or insight of mix units second an [indiscernible] positive bit terms maybe would very credibleness of is the Thank product. you product sort critical significant, recently. or the much a But like of And given on demand, for sort product seeing question type demand how demand about be of because product you about related any little in units change talked new very the marginal the are be of we've critical innovation are the but the anything demand the we the protection critical savings seeing or

here. Ron It's CoCo. Thanks,

you. from questions X So

business. first how that The changes is overall X relating and the regulatory impacting

I think right bad a it's question, very that's very and topical now.

changes. fronts the multiple the is think of I impacted business the being recent by regular

the coming to led cessation think numbers we seen the have think, channel that as I be would has quite overall X.X% checks. has as, X recovery slowly, a after top-tier holidays have the think think commenced the we products, I the Day and somewhat downturn FYP after X But market holidays. a most the the I National of companies I October among the the down well bit. demand evident that across board, seen market in starting

I being think some November. momentum we seeing into regained are

we of notwithstanding special But the that I think still month any are a were structure that where normal a changes regulatory changes. the bit by we product driven is short for in

in I So for terms participating think product or seeing demand some of mix, are we products. market channels

more profile a seeing of consumers. environment fixed it there. policing that We of return think -- trends I very to that, return a in some lower guaranteed products the top relatively new believe kind we're interesting variable be do with of could on where provides

for strong and of long with product of that good I think still kind good over consumers term, a savings more structure. would in deliver the demand protected returns

So the products particularly year. I could think gain new momentum, participating in

That's point number one.

in also recent we're we retirement launched annuity least have think good already with products quarter. X the at demand I And from annuities seeing that, products. consumers and on

As remarks different targeting the in companies we with insurance have segments population. of X I mentioned the opening --

drive So interesting. already still that increase continuing think some product to subject to is I in products are in The customer to assured we preferences place. on regulated the capitalize the changes changing are innovation

risk see expected I when a environment to continue what of X% to decline the guarantee overall to by is should be to the continue market IRR, think term. that close the near in provides we kind medium which

illness is health primarily have also have long-term products. critical we that, critical I With disclosed publicly X% segment, year-over-year from to think respect products, on on we that illness around the which growth

it's innovation also then But respect. So in product are a slow driving this we recovery.

example, types child different segments illness of for critical the the that launched. consumer launched of for we have have illness products We different critical base

tackle consumer So I of of resumption high-value think we of a or recovery customized delivery to through products. will continue demand

question, be So addressed will With on I partial think that respect the illness to question. second your demand. first your answer also just now to the it

your good those So to hopefully, questions. are answers

[indiscernible] CICC. The question next from comes of

launch product with many question to is, like I products, our My strategy. unusual vale.

popular So under details the products. could sales your the too And how MCB by of observation, share we're products, . way, more you is some

]. Yuyu [ you Thank

popular days. on products So first the each of more question these

data we're think I real-time systems. seeing in our

categories I more that together towards top are -- be think with And our the annuities. #X X that think I are will or top customized these retirement X probably the launched products we partners. have

the quarter. best I gaining that third think momentum in is the

as We I are seeing demand we question also -- products. in think mentioned well participating as good to Coco's I just now,

some is new, So think, I our this a bit of something trends. new

-- second So launched category. August. to And I with have product new a we the this think products, MCB in be respect will

product, push in market this residents retirement for or innovative as the enables which channels So a no jump on think and us I our But Kong still privileges think Mainland. it decent to time I getting we're takes to feedback up sales. really Hong

is think given -- the product to on but And this think pretty that run, we achieving will product for time, structure. that very this. sales be innovative good think I I I a

[indiscernible] We China. I there of from getting attention -- momentum brand incoming the are getting our equity good also we're a because think travelers. Mainland also in And

Hong operators think I the I demand seen respect by international strongest companies mix market, brand for mostly, is products in with Kong insurance still other or so as to is that there, with And or think in Kong probably savings product have the companies we other name. underwritten Hong

question. that's think to your answer So second I my

question of from comes [Operator Citi. Amy Instructions] next Chan Our

here. possible I And have X questions on Congratulations quarter. another

be X on year. first for would guidance next The

-- quarter. operating management trend bit that the target also, I all if on outlook wonder enormous we product on product You I'm well And operating the income see mix if is touched strategy you brokerage that down. your come through a has question And third cost-to-income in about on we the of has the ratio a share side. costs that the color fronts. this what's And earnings And could terms ratio? company as wondering of in for second has more your as made see the containing the XXXX. assets in effectively,

Okay. Thank Amy. you,

first year. now, guidance. refreshed on So your next to have for our with Right respect not question the we guidance

we'll giving with I think coming be we year. guidance up next results when quarter are the fourth

I think we to still the looking are next year. strategy for on strategize overall

can tell think early more little to So I it's bit we product a mix, insights. bit a in share now.

I more products explore [indiscernible] companies respect the we and with think are also category. and involved venture cooperation particular in larger-sized companies. savings with likely savings-related that to new in joint can the to insurance cooperate in year, with we're

And very in that a in segment. that think I particular, likely customized would will with respect to we out participating rolling product be products,

a retirement with tied Second, to very products think we I strong the still on focus have and annuities insurance additional policies. service

that in this product we able ourselves competition. So think we the I drive and set something strong to can in -- also to are that's innovations differentiating apart from demand, is

of So I in organizational our of I structure. next our of strategy. product be on the to focus the be across strong mind cost X top the always across it's going And additional terms think year business, think driving efficiencies in for those will terms side,

a we have we'll So continue year-to-date. already then cost-cutting down. substantial regard. quite that to costs I to done that always think further Maybe hard But improve And to in think But we drive continue to few we that probability the out work focused will something can another on. for to business. will be that there. squeeze already drive that's on think we I I room there's Maybe continue very points percentage

time. back any closing for turn to [Operator remarks. Lowe at Instructions] now I'll the this call Kenny Seeing no further questions

like call. today's on in you behalf we for thank participation of your In would team, Huize's closing, to management

any If information, Thank This us. you for call today. to joining concludes you to free reach require further us the out feel .

Thank conference may you and attending now you now presentation, disconnect. today's The concluded. for has