【行业研究报告】众安在线-2022年中报点评：承保有质量地增长，投资拖累业绩

Healthanddigitallifestylebusinessessawsteadygrowthwhenconsumerfinance
businesswascutdownforassetsafety.Thecompanyrealized1H22grosswritten
premiumsRMB10.52bn(+7%YoY)andpremiumsfromHealth/digitallifestyle/
premiumsRMB10.52bn(+7%YoY)andpremiumsfromHealth/digitallifestyle/
consumerfinance/autosectorwereRMB4.34bn(+10%YoY)/3.82bn(+14%YoY)/
1.83bn(-16%YoY)/0.53bn(+41%YoY).TheautoecosystemsawrapidYoYgrowth
fromalowbasewithacquisitionoflong-tailcustomersandimplementationofpolicies
tostimulatecarconsumption.Thehealthecosystemgrewsteadilywithanongoing
explorationofsegmentinsuranceneedsandimprovementofproductmatrix.Premiums
ofreturnedfreightinsurancefromlive-streame-commercein1H22increasedby18.6%
YoYtoRMB1.16bn.Atthesametime,ZAintroducedinnovativeinsuranceproducts
rapidly.In1H22,itspremiumsfrominnovativebusinesses,includingpetinsurance,
screencrackinsuranceandmulti-sceneaccidentinsurancereachedRMB876mn,upby
30.9%YoY.Duetotherecurringpandemic,sloweconomicrecoveryandrisingcredit
risk,.ZAcutdownthesizeofconsumerfinancetocontrolrisksandprotectthesafetyof
underlyingassets,resultinginanegativepremiumgrowthofthisbusiness.

LossratiosawaYoYincreaseandexpenseratioreducedviaproprietarychannel
building;underwritingprofitwentup.ZArealized1H22underwritingprofit
RMB81mn,upby63.4%YoY,with99.2%combinedratio(-0.2pctsYoY)andexpense
ratio43.0%(-7.0pctsYoY),thanksto:1)Improvementofproprietarychannelbuilding:
ZA’s1H22premiumsfromtheproprietarychannelwasRMB2.31bn,upby49.1%and
accountingfor22.0%(+6pcts)ofthetotalpremiums.2)Technologydrovecost
reductionandefficiencyenhancement:ZA’s1H22onlineclaimrateexceeded95%,and
efficiencyofsmartreviewonscreencrackinsuranceclaimswentupto60timeshigher.
ZA’s1H22overalllossratiowas56.2%(+6.8pctsYoY),lossratioinHealth/Digital
lifestyle/consumerfinance/Autosegmentwas50.3%/66.2%/48.8%/54.1%,upby
+13.2/+4.1/+9.9/-17.4pctsYoY.

Thecovid-19pandemichitZA’stechnologybusinessandpoorinvestmentreturns
draggeddownprofitgrowth.Therecurringpandemicin1H2022resultedinproject
delayandbusinessexpansiondisruptionsoZA’srevenuefromthetechnologyoutput
businessdeclinedby12%YoYtoRMB234mn.Atthesametime,thesharpfluctuation
intheequitymarkethitthecompany’sinvestmentreturnandtotalinvestmentincome
decreasedbyRMB110mnYoYtoRMB910mn;1H22netinvestmentreturnwas1.2%,
flatYoYandtotalinvestmentreturnwas0.9%,downby2.3pctsYoY.

EarningsForecast&Rating:Consideringthepressuredinvestmentreturnunder
capitalmarketfluctuation,werevisedownZA’s2022-2024netprofitforecastto
RMB138/100.7/122.8mn;thecurrentpricecorrespondstoestimated2022PBat1.70x
and2022PSat1.23x.BasedonZA’simprovementofunderwriting-sideandflourishof
technologybusiness&virtualbanking,wemaintaina“Buy”rating.

Risks:Lower-than-expectedbuildingofproprietarychannel;overspending;negative
impactoninvestmentreturnduetocapitalmarketvolatility;foreignexchangerisks.
PricePerformance
14September2022