Business
Zhibao Technology Announces the Establishment of Zhibao Labuan Reinsurance Company Limited
Shanghai, China--(Newsfile Corp. - April 22, 2025) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced the establishment of Zhibao Labuan Reinsurance Company Limited ("Zhibao Labuan"). The Zhibao Labuan received its license to seek to undertake general reinsurance operations beyond mainland China from the
About this update from Zhibao Technology Inc.
[{"type":"text","content":"Shanghai, China--(Newsfile Corp. - April 22, 2025) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced the establishment of Zhibao Labuan Reinsurance Company Limited ("Zhibao Labuan"). The Zhibao Labuan received its license to seek to undertake general reinsurance operations beyond mainland China from the Labuan Financial Services Authority ("LFSA") on April 14, 2025.","length":614,"tagName":"p"},{"type":"text","content":"Zhibao Labuan's Role in Zhibao's Growth Strategy","length":56,"tagName":"p"},{"type":"text","content":"Currently, Zhibao's revenue is primarily derived from brokerage and MGU fees earned from its insurance partners. We believe the incorporation of Zhibao Labuan enables the Company to tap into potentially an additional revenue stream through reinsurance premiums and the potential for underwriting profits based on the performance of the reinsured policies. Furthermore, we believe Zhibao Labuan may generate income from reinsurance premiums, in line with standards established by local regulators. For example, if the Company typically earns a 20% commission on the sale of a policy and Zhibao Labuan accepts a corresponding 20% reinsurance risk from the Chinese insurance carrier, the Company would have the potential to realize an additional 20% revenue from that policy—effectively doubling its revenue—with further potential for underwriting profits and proceeds from the investment of premiums.","length":902,"tagName":"p"},{"type":"text","content":"As a result, we believe Zhibao Labuan can open up a new revenue frontier for Zhibao. The target is for Zhibao Labuan to eventually participate in about a small portion of the total insurance premium generated by Sunshine Insurance Brokers and Zhibao Health. While the formation of Zhibao Labuan adds depth and vibrancy to the Company's offerings and enhances support for customers, Zhibao will remain primarily an insurance brokerage company, with Zhibao Labuan serving mainly as a minority risk taker for targeted business.","length":528,"tagName":"p"},{"type":"text","content":""I am pleased to announce the establishmen...