China’s largest online-only insurer ZhongAn has announced net profit of RMB 554 million (USD 84.9 million) for 2020, with performance driven by its health and digital lifestyle ecosystem.
Over the year, ZhongAn Online’s total gross written premiums (GWP) rose 14.2% year-on-year to RMB 16,705.9 million.
ZhongAn Online’s operating metrics also improved as it focused on growth and technology-empowered development to reduce costs and improve efficiencies.
In 2020, the combined ratio improved by 10.8 percentage points to 102.5%, which helped to drive the company’s first profit since its listing.
The net profit of RMB 554 million represents a substantial turnaround from a net loss of RMB 454.1 million in 2019.
ZhongAn Online’s health ecosystem provided insurance and medical services to approximately 23.90 million users and recorded RMB 6,604.3 million in GWP, an increase of 37.4% year-on-year.
The company attributed this increase to its efforts to enhance insurance awareness among users, actively develop medical services to create a closed-loop ecosystem, and provide users with personalized and customized insurance products and services.
ZhongAn likewise continued to enhance its capabilities in marketing, customer acquisition and services on its proprietary platform.
GWP generated through the company’s proprietary platform significantly increased by 94.6% year-on-year to RMB 2,168.1 million, and contributed roughly 13% of ZhongAn’s total GWP, compared with 8% in 2019.
Additionally, revenue generated by innovative products contributed 16% of total revenue, which was up from just 4% in 2019, and boosted revenue of digital lifestyle ecosystem to RMB 6,298.6 million, an increase of 25.2% year-over-year.
And revenue from ZhongAn Online’s technology exports was RMB 365.1 million, representing a year-on-year increase of 35.4%. As of December 31, 2020, the Company served a total of 75 clients, a net increase of 39 from last year.