Zhongan Online P&C Insurance Co., Ltd. Class H · HKEX:6060
Zhongan Online P&C Insurance Co., Ltd. Class H — FY2020 Earnings Presentation
25 slides from Zhongan Online P&C Insurance Co., Ltd. Class H's earnings presentation, Jul 22, 2021
Slide 1: ZhongAn Insurance Annual Results Presentation 2020
2020 ZhongAn Insurance Annual Results Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ZhongAn Online P & C Insurance Co., Ltd. (the "Company") solely for information purposes. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
Slide 3: Our mission
Our mission 科技驱动金融，做有温度的保险 3
Slide 4: Strong business performance driven by technology-empowered quality growth
Strong business performance driven by technology-empowered quality growth (RMB) No.1 No.9 16.71 bn Online P&C insurer by P&C insurance industry ranking 520 mn market share GWP +14.2% Up 2 places from 2019 Insured users 365 mn 102.5% 554 mn Technology export revenue Combined ratio Net profit attribut
Slide 5: We're more than an insurer…
We’re more than an insurer… Insurance Technology 5
Slide 6: Using cutting-edge InsureTech to drive users' lifetime value
…Moreover we use cutting-edge InsureTech to drive users’ lifetime value Individualized user experiences Small ticket, highly frequent, and fragmented Boosting long-term user products retention and enhancing brand value Frequent interactions Technology- with users to build driven innovation user prof
Slide 7: Focus on high quality business to tap opportunities derived from COVID-19
Focus on high quality business to tap opportunities derived from COVID-19 2019-2020 GWP growth rate High Rapid industry growth % as of total GWP: 78% Higher underwriting profit margin Health Digital Lifestyle Boosting brand and long-term user value 2020 Auto Underwriting profit margin1 High Co
Slide 8: Health ecosystem: unlocking the value in China's healthcare industry
Health ecosystem: to unlock the value in China’s healthcare industry by leveraging our advantages as a payer 不断拓展的健康生态 Expanding health ecosystem Rising number of paying users and revenue contribution 2025 market size forecast (RMB) 2017-2020 paying users of individual health insurance (Million) 12
Slide 9: ZhongAn Internet Hospital: full stack health management solution
ZhongAn Internet Hospital：full stack health management solution ZhongAn’s Health ecosystem: 23.9 million users Medical professional support: 2,000+ doctors, average 5+ years experience Medical Pharmacy Information Delivery Rising user value Ecosystem partnerships: network of 100+ external partne
Slide 10: Digital lifestyle: innovative products and services
Digital lifestyle: innovative products and services to fulfil users’ diversified needs Rising contribution of innovative products More innovative offerings to enhance growth of user value Contribution of innovative products1 as % of total GWP Phone screen crack Pet health Big data risk control insur
Slide 11: Effective brand building to capture opportunities in new scenarios
Effective brand building to capture opportunities in new scenarios, upgrading from product-focused to user-centric operations Emerging brand influence GWP contribution No. 1 in Industry 3.0x 2.6x # of followers Brand cognitive APP MAU on Douyin and growth1 Kuaishou 13% Proprietary platform as % of t
Slide 12: Increasing R&D investments to build competitive edge in InsureTech
Increasing R&D investments to build competitive edge in InsureTech (RMB) 47% 905 mn 503 The First % of engineers and The first digital technicians to total R&D investments Cumulative patent currency RMB policy workforce applications in China Note: 2020 data or data as of December 31, 2020 12
Slide 13: Building a product portfolio spanning the entire InsureTech value chain
Building a product portfolio spanning the entire InsureTech value chain to drive digitalization of the insurance industry Tailwinds for InsureTech accelerated by Insurance industry pain points during Comprehensive product portfolio for Covid-19 and regulators digitalization technology exports COVID-
Slide 14: Well-established tech product strategy to fuel customers and revenue growth
Well-established tech product strategy to fuel customers and revenue growth (RMB) 75 insurer customers, retention reached 75% in 2020 Rapid revenue growth of technology export （RMB million） 49 customers Visual backtracking Trust (～ RMB 1 million） system Customer 365 acquisition tools 270 11 cust
Slide 15: Our future: user-centric approach to bring the company to next level
Our future: “user-centric”approach to bring the company to next level Tech-driven product innovation to cover more users Innovation Personalized services and Build the brand, boost experience revenue from proprietary platform Brand User Services 15
Slide 16: Technology overseas business saw ample success
Technology overseas business saw ample success Insurance InsureTech companies Solutions Graphene: Mainland China Distributed core insurance system Japan Hong Kong, China Industry Knowledge Internet–based platforms Malaysia Fusion: Singapore Integrated insurance and Indonesia finance solution Market
Slide 17: ZA Bank and ZA Insure provide a new experience for Hong Kong users
ZA Bank and ZA Insure provide a new experience for Hong Kong users ZA Bank, the first ZA Insure, a fully virtual bank in digitalized insurance Hong Kong company Based on the idea of In-depth cooperation Provides insurance “user co-creation”, between products that “everyone ZA Bank brings new Hong Ko
Slide 18: Long term commitment to pursue quality growth
Long term commitment to pursue quality growth 2017-2020 total GWP and combined ratio 133.1% 120.9% 113.3% 16,706 102.5% 14,630 11,256 5,954 2017 2018 2019 2020 GWP (RMB Million) 保费收入（百万元） Combined ratio 综合成本率 18
Slide 19: Online insurance is bearing fruit, new initiatives are taking shape
Online insurance is bearing fruit, new initiatives are taking shape New initiatives from zero one Proven online insurance Net profit/(loss) of online insurance segment (RMB millions) Online insurance 993 8 Technology export (880) ZA (1,330) Bank ZA Insure 2017 2018 2019 2020 User Revenue Profit 19
Slide 20: GWP up 14% driven by our strategic focus on high quality businesses
GWP up 14% driven by our strategic focus on high quality businesses Gross written premiums ("GWP") GWP by ecosystem GWP Health Digital lifestyle (RMB million) (RMB million) (RMB (RMBmillion) million) +14.2% 25% 33% 40% 27% 34% 38% +37.4% +25.2% +30.0% +67.6% 6,604 +63.6% 6,299 4,806 5,032 2,868 3,07
Slide 21: Profitability improved substantially
Profitability improved substantially Loss ratio and channel fees as % of NWP Loss ratio and channel fees as % of NWP by ecosystem Health Digital lifestyle 93.8% 94.6% 92.1% 73.8% 68.7% 32.6% 35.8% 80.6% 20.8% 24.7% 26.9% 26.5% 53.0% 58.0% 62.0% 41.8% 2019 2020 2019 2020 Consumer finance Auto 109.0%
Slide 22: Solid investment strategy to sustain insurance assets' appreciation
Solid investment strategy to sustain insurance assets’appreciation Insurance business investment assets and investment yields (RMB million) Total investment yield 1 9.6% 5.7% Net investment yield 2 5.0% 3.5% 27,638 17.3% 4,780 Category Amount % 19,251 Stocks and equity 3,108 11.2% funds 31.2% 8,643
Slide 23: Appendix: Major financial items
Appendix: Major financial items (RMB million) 2020 2019 Change % Gross written premiums 16,706 14,630 14.2% Net premiums earned 16,213 12,801 26.7% Underwriting loss (408) (1,699) (76.0%) Investment income1 1,207 1,816 (33.5%) Technology export revenue 365 270 35.4% Technology segment net loss (368)
Slide 24: Technology empowers public welfare and corporate responsibilities
Technology empowers public welfare and corporate responsibilities, supporting social sustainable development Technology is a capability, kindness is a choice ZhongAn - not in the front-line but always online Concern for the rights and interests of the disadvantaged and Online medical and Social
Slide 25: Q&A
Q&A 25
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