【行业研究报告】众安在线-Digital lifestyle leading growth; ZA Bank and technology export breakeven on track

ZhongAnreportedFY23resultswithnetprofitattributabletoshareholdersturning
positivetoRMB4.1bn,fromanetlossofRMB1.1bnin2022.Excludingtheone-
offgainondisposalofZAInternationalatRMB3.78bn,theinsurerrecordedRMB
294mnnetprofit,inlinewithconsensus.Weseemultiplehighlightsintheresults:
1)domesticP&Cgrowthmomentumcontinueddrivenbydigitallifestylewith
premiums+33.1%YoYin2H23despitemacrouncertainties;2)revenuefrom
domestictechnologyexportrose73%YoYtoRMB504mnbyridingthewaveof
DigitalChina;3)ZABankbreakevenwasontrack,withthebank’snetrevenue
+42.9%YoYandNIM+10bpsto1.94%onthebackofalowerloan-to-deposit
ratioat46%(vs2022:53%).Lookingahead,wearepositiveontheInsurTech
geneandexpectZhongAntoopenupnewspaceforfin-techandrebuildthedigital
financelandscape,topropelthegrowthinproprietarychannelsandZABank.
DomesticP&Cdrivenbydigitallifestyleecosystem.Whiletheunderwriting
combinedratio(CoR)rose1.0pptto95.2%in2023,theinsurer’sunderwriting
combinedratio(CoR)rose1.0pptto95.2%in2023,theinsurer’sunderwriting
profit(UWP)rose1.7%YoYtoRMB1.3bn,thankstoahigherinsurance
revenueby+24.2%YoY.Amongfourecosystems,digitallifestylecomprised
ofe-commercerelatedcargoinsurance,travelinsuranceandinnovative
productssuchaspetinsurancesawinsurancerevenue+40%YoY,sustaining
thesolidgrowthto2H23(+37.8%YoY,vs1H:+42.5%YoY).Healthsegment
recordedgrosspremiums(GWP)ofcriticalillnessby+130.6%YoYto
RMB1.3bnin2023,translatingintoa7.2xspikein2H;andtheoutpatientand
emergencyinsurancepremiumwasupby157.3%YoYin2023,reflectingthe
insurer’sintentiononfocusingmedicaldiversification.AstheNo.1domestic
internetinsurer,ZhongAnhasthepotentialtoachievecontinuedgrowthin
GWPandunderwritingprofitofHealth,DigitallifestyleandAutoecosystems,
butweremainconservativeonconsumerfinance,forwhichweexpectlow-
singledigitpremiumgrowthin1H24.
Proprietarychannelsempowercross-ecosystempenetration.Backedby
digitalinfrastructureandcentralizeddataplatform,theinsurerrealized31.0%
YoYpremiumgrowthinproprietarychannelstoRMB7.6bn,c.26%oftotal
GWP.InHealthecosystem,GWPfromproprietarychannelsgrew45.0%YoY
toRMB4.4bn,representing44.5%oftotalHealthGWP.Byend-2023,the
insurer’senrichedproductmixinproprietarychannelsresultedin:1)the
numberofpaidcustomers+14.8%to11.43mn,2)premiumsperuser+14.4%
YoYtoRMB670,and3)policyrenewalrate+1.0pptHoHto88.3%.
ZABanklaunchedUS-stocktradingwithnetrevenue+43%.Asthetop-
rankingvirtualbankinHongKong,ZABankislong-awaitedbymarketforits
breakevenprogress.Thebank’snetrevenuerose42.9%YoYtoRMB366mn
in2023,underpinnedbystronggrowthmomentumin2H23(+76.2%YoYand
+40.8%HoH).TheNIMexpanded1.0pptYoYto1.94%,drivenbymorerapid
growthindeposits(+27.4YoY)versusloansandadvances(+10.1%YoY).In
Jan,thebanklaunchedUS-stocktradingtocatertothetech-navvycustomers’
demands,which,inourview,isagoodstrategyfornewcustomeracquisition
andraisingretentionamidcompetition.MaintainBUYwithnewTPatHK$22.0.