US insurance broker Huize publishes its 2021 financial report

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Huize’s revenue and net loss both increased more than 80% in fiscal 2021

Chinese licensed digital insurance products and services platform Huize Holding Limited (HUIZ:NASDAQ) released fourth quarter and full year 2021 financial results on March 18, 2022.

For the fourth quarter of 2021, Huize reported revenue of CNY 976.3 million (USD 59.86 million), up 151.6% year-on-year. Reported net profit was CNY 19.8 million, compared to non-GAAP net profit of CNY 21.6 million. Total gross written premiums, or GWP, facilitated on Huize’s online platform in the fourth quarter increased 90.2% year-on-year to CNY 1.99 billion.

According to the financial report, its operating costs in the fourth quarter were CNY 748.0 million, an increase of 156.2% year-on-year; selling expenses were CNY 112.3 million, an increase of 57.1% year-on-year. Research and development spending jumped 190.8% to CNY 46.1 million in the fourth quarter, which Huize mainly attributed to an increase in the number of R&D employees.

For the full year of 2021, the insurtech company recorded revenue of CNY 2.245 billion, marking an increase of 84.0% year-on-year, and its net loss was 107, CNY 7 million, an increase of 83% over the previous year.

Total GWP facilitated for the year increased 66.2% from the same period a year earlier to 5.02 billion yuan, of which first-year premium accounted for 62.2%.

Partnering with 109 insurance companies in Q4 2021, Huize offers more than 1,000 one-stop insurance products and solutions, ranging from online risk assessments and consultations to product recommendations and insurance services. assistance with complaints. To date, it has served a total of 58.4 million users according to its official website.

The financial report indicates that Huize’s board of directors has approved a share buyback. Under the plan, the company would repurchase CNY5 million worth of American Depositary Receipts (ADRs) over the next 12 months and choose to fund the repurchase with its existing cash balance. “This reflects our confidence in Huize’s long-term growth prospects,” said Cunjun Ma, Founder and CEO of Huize.

Previously, shares of Huize fell to $0.61, setting a record low and down almost 96% from its high of $14.80. However, at press time, its share price has recovered to $1.2, with a total market capitalization of $68.53 billion.

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