Huize Acquires Leading Vietnam Insurtech Platform Global Care
Huize Holding (NASDAQ: HUIZ) has acquired Global Care Consulting, a leading Vietnamese insurtech company, marking its entry into the ASEAN market through its international brand Poni Insurtech.
This acquisition aims to expand Huize's digital insurance distribution platform in growing economies with a young, digital-native population. Global Care, founded in 2017, specializes in digitizing insurance sales processes and has shown strong growth, facilitating 13.5 million policies in 2023 and quadrupling its revenue.
Huize will acquire a controlling stake in Global Care, with VinaCapital Ventures receiving newly issued Huize shares as part of the consideration. Upon completion, Global Care will become a subsidiary of Huize, and its financial results will be consolidated into Huize's financial statements.
Huize expects significant synergies from this acquisition, leveraging its technology and AI solutions to drive market share growth and product development in Vietnam's burgeoning insurance market.
- Huize expands into the ASEAN market with the acquisition of Global Care.
- Global Care facilitated 13.5 million policies in 2023, with revenue quadrupling year-over-year.
- VinaCapital Ventures receives newly issued Huize shares, indicating confidence in the transaction.
- The acquisition is expected to generate synergies and drive market share growth in Vietnam.
- No negative aspects were highlighted in the press release.
Insights
Huize's acquisition of Global Care marks a significant strategic move. This is not just an expansion but a transformation of their business model into a pan-Asian digital insurance hub. The financial implications are notable. By acquiring Global Care, Huize gains access to Vietnam's fast-growing insurance market, which has a young and digital-savvy population. This move is expected to drive revenue growth through expanded market share and new product development.
Financially, the deal appears sound. Global Care's performance, with 13.5 million policies facilitated and quadrupled revenue in 2023, underscores a robust growth trajectory. Huize's integration of Global Care's results into its financial statements will likely boost its top-line numbers. Furthermore, the issuance of shares to VinaCapital Ventures, along with the lock-up period, suggests confidence in the long-term value creation of this acquisition.
This strategic investment positions Huize well to leverage technology and AI for streamlined operations and product innovation. However, investors should monitor integration challenges and the competitive landscape in Vietnam.
This acquisition points to a calculated expansion by Huize into an emerging market with strong parallels to its home base in China. Vietnam's large, youthful population and growing middle class make it an ideal market for digital insurance solutions. This move aligns with broader industry trends where insurtech is rapidly transforming traditional insurance sectors through digital solutions.
Global Care's capability to offer customized insurance products through cloud-based APIs and its partnerships with major e-commerce platforms like Grab are particularly compelling. These elements will facilitate Huize's market entry and provide synergistic benefits. Additionally, the collaboration with VinaCapital Ventures, a prominent local investor, enhances Huize's strategic positioning and resource access in Vietnam.
Retail investors should view this acquisition as a strategic play to capture new markets and leverage technological advancements. The potential for rapid adoption of digital insurance in Vietnam presents both short-term and long-term growth opportunities.
From a technological standpoint, this acquisition is a smart move. Global Care's suite of cloud-based solutions and mobile apps represents a mature tech infrastructure that can be seamlessly integrated with Huize's existing AI-powered platform. This will enable quicker deployment of innovative products and enhance operational efficiencies.
The focus on digital transformation solutions positions both companies to lead in the digital insurance space, which is becoming increasingly important in a post-pandemic world where digital interactions are the norm. The capability to embed customized insurance products and connect with various distribution channels, including leading e-commerce platforms, suggests a promising future for diversified revenue streams.
Overall, the technological synergies and the potential to leverage AI for personalized and efficient insurance solutions are significant. Investors should watch for further technological integrations and product innovations that could set Huize apart in a competitive market.
Strategic acquisition marks Huize’s entry into its second international market and accelerates its mission to create a pan-Asian digital insurance distribution platform under its international brand Poni Insurtech
SHENZHEN, China, June 20, 2024 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize” or the “Company”) (NASDAQ: HUIZ), a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today expanded its global footprint with the acquisition of Global Care Consulting Joint Stock Company (“Global Care”), a pioneering insurtech company in Vietnam specialized in digital transformation solutions for the insurance industry.
The acquisition marks the first step in the global expansion of Huize’s new international brand Poni Insurtech starting with ASEAN, a region with significant market parallels to China including rapidly growing economies, large and young demographics, urbanizing middle-class populations and increasing demand for digital insurance solutions, offering tremendous market opportunities for the Company to replicate its successful digital insurance model from its home market starting with Vietnam.
Established in 2017, Global Care is a leading insurtech company in Vietnam empowering insurers to streamline and digitize their sales processes, policy administration, and operations. Global Care’s suite of cloud-based API solutions and mobile apps offer a broad range of embedded and customized insurance products to a diverse customer base by connecting insurers with merchants and various distribution channels, including leading e-commerce platforms such as Grab and Ahamove. In 2023, Global Care facilitated 13.5 million policies on its platform with revenue more than quadrupling year-over-year and registered users growing in excess of 1.3 million.
Pursuant to the transaction documents, Huize through its newly established international arm Poni Insurtech will acquire a controlling stake in Global Care through purchase of existing shares and subscription of new shares in multiple closings. In connection with the acquisition, VinaCapital Ventures, the technology investment vehicle of VinaCapital Group, a leading investment management firm in Vietnam with USD4 billion of assets under management, will receive as partial consideration newly issued class A common shares of Huize representing approximately
Ron Tam, Co-Chief Financial Officer and Head of International Business of Huize, commented: “Vietnam is a highly attractive emerging market for insurance with a sizable, young and digital-native demographic of 100 million people, coupled with strong macro tailwinds and FDI inflows driving robust GDP growth in the coming decade. We are delighted to be entering Vietnam via a strategic investment in Global Care with founder Niem and her experienced team firmly establishing the company as a trailblazer in the delivery of innovative digital insurance solutions for the Vietnamese insurance industry. This acquisition is expected to generate significant synergies that will drive market share growth for Global Care by accelerating new product development through leveraging Huize’s technology stack and AI solutions, as well as existing partnerships with leading global insurance brands. We are also very pleased to introduce VinaCapital as a strategic shareholder of Huize through this transaction, and we are highly confident in driving further collaboration opportunities in Vietnam leveraging on VinaCapital’s vast resources and network in the local market.”
Dinh Thi Ngoc Niem, Founder and Chief Executive Officer of Global Care, commented: “We are excited to join forces with Huize, a recognized leader in insurtech. Becoming part of the Huize family will give us a unique and significant edge in this exciting market. Empowered by Huize's technologies, industry alliances and extensive operational experience, we will be able to significantly enhance our offerings and expand our reach. Most importantly, the two companies share a common mission and vision, and together we are poised to create strategic value for our partners, customers, stakeholders and further accelerate the digitalization of Vietnam’s insurance industry.”
About Huize Holding Limited
Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, customer engagement, marketing, risk management, and claims service.
For more information, please visit http://ir.huize.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize’s goal and strategies; Huize’s expansion plans; Huize’s future business development, financial condition and results of operations; Huize’s expectation regarding the demand for, and market acceptance of, its online insurance products; Huize’s expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing.
For investor and media inquiries, please contact:
Investor Relations
Harriet Hu
Investor Relations Director
investor@huize.com
Media Relations
mediacenter@huize.com
Christensen
In China
Ms. Yang Song
Phone: +86-10-5900-1548
Email: yang.song@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
FAQ
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