Zhibao Technology Announces the Establishment of Zhibao Labuan Reinsurance Company Limited
Zhibao Technology (NASDAQ: ZBAO), a leading InsurTech company, has announced the establishment of Zhibao Labuan Reinsurance Company , which received its license from Labuan Financial Services Authority on April 14, 2025. The new subsidiary will undertake general reinsurance operations beyond mainland China.
Currently generating revenue primarily from brokerage and MGU fees, Zhibao aims to tap into additional revenue streams through reinsurance premiums and potential underwriting profits. For example, if Zhibao typically earns a 20% commission on policy sales and Zhibao Labuan accepts a corresponding 20% reinsurance risk, the company could potentially double its revenue from that policy, with additional opportunities for underwriting profits and premium investment returns.
The company plans for Zhibao Labuan to participate in a small portion of the total insurance premium generated by Sunshine Insurance Brokers and Zhibao Health, while maintaining its primary focus as an insurance brokerage company.
Zhibao Technology (NASDAQ: ZBAO), una delle principali aziende InsurTech, ha annunciato la creazione di Zhibao Labuan Reinsurance Company, che ha ottenuto la licenza dalla Labuan Financial Services Authority il 14 aprile 2025. La nuova controllata si occuperà di operazioni di riassicurazione generale al di fuori della Cina continentale.
Attualmente, i ricavi derivano principalmente da commissioni di intermediazione e MGU, ma Zhibao punta a diversificare le entrate attraverso premi di riassicurazione e potenziali profitti da sottoscrizione. Ad esempio, se Zhibao normalmente guadagna una commissione del 20% sulle vendite di polizze e Zhibao Labuan accetta un rischio di riassicurazione corrispondente del 20%, la società potrebbe potenzialmente raddoppiare i ricavi da quella polizza, con ulteriori opportunità di profitti da sottoscrizione e rendimenti sugli investimenti dei premi.
L’azienda prevede che Zhibao Labuan partecipi a una piccola quota del premio assicurativo totale generato da Sunshine Insurance Brokers e Zhibao Health, mantenendo comunque il suo focus principale come società di intermediazione assicurativa.
Zhibao Technology (NASDAQ: ZBAO), una destacada empresa InsurTech, ha anunciado la creación de Zhibao Labuan Reinsurance Company, que obtuvo su licencia de la Autoridad de Servicios Financieros de Labuan el 14 de abril de 2025. La nueva filial llevará a cabo operaciones de reaseguro general fuera de la China continental.
Actualmente, los ingresos provienen principalmente de comisiones por corretaje y MGU, pero Zhibao busca diversificar sus fuentes de ingresos mediante primas de reaseguro y posibles ganancias por suscripción. Por ejemplo, si Zhibao normalmente gana una comisión del 20% sobre la venta de pólizas y Zhibao Labuan asume un riesgo de reaseguro correspondiente del 20%, la empresa podría potencialmente duplicar sus ingresos por esa póliza, con oportunidades adicionales de ganancias por suscripción y rendimientos sobre la inversión de primas.
La compañía planea que Zhibao Labuan participe en una pequeña parte de la prima total de seguros generada por Sunshine Insurance Brokers y Zhibao Health, manteniendo su enfoque principal como empresa de corretaje de seguros.
Zhibao Technology (NASDAQ: ZBAO)는 선도적인 인슈어테크 기업으로서, 2025년 4월 14일 Labuan 금융서비스청으로부터 라이선스를 취득한 Zhibao Labuan Reinsurance Company 설립을 발표했습니다. 새 자회사는 중국 본토를 넘어 일반 재보험 업무를 수행할 예정입니다.
현재 주로 중개 수수료와 MGU 수수료에서 수익을 창출하고 있으나, Zhibao는 재보험료와 잠재적 인수 이익을 통해 추가 수익원을 확보하려 합니다. 예를 들어, Zhibao가 일반적으로 보험 판매 시 20% 수수료를 벌고 Zhibao Labuan이 동일한 20% 재보험 위험을 인수한다면, 해당 보험에서 수익을 두 배로 늘릴 수 있으며 인수 이익과 보험료 투자 수익의 추가 기회도 기대할 수 있습니다.
회사는 Zhibao Labuan이 Sunshine Insurance Brokers와 Zhibao Health가 발생시키는 전체 보험료의 일부에 참여하되, 보험 중개 회사로서의 주된 역할은 유지할 계획입니다.
Zhibao Technology (NASDAQ : ZBAO), une entreprise InsurTech de premier plan, a annoncé la création de Zhibao Labuan Reinsurance Company, qui a obtenu sa licence de la Labuan Financial Services Authority le 14 avril 2025. La nouvelle filiale exercera des activités de réassurance générale en dehors de la Chine continentale.
Actuellement, les revenus proviennent principalement des commissions de courtage et des frais MGU, mais Zhibao vise à diversifier ses sources de revenus grâce aux primes de réassurance et aux profits potentiels de souscription. Par exemple, si Zhibao perçoit habituellement une commission de 20 % sur la vente de polices et que Zhibao Labuan assume un risque de réassurance correspondant de 20 %, l’entreprise pourrait potentiellement doubler ses revenus issus de cette police, avec des opportunités supplémentaires de profits de souscription et de rendements sur investissement des primes.
L’entreprise prévoit que Zhibao Labuan participe à une petite part des primes totales d’assurance générées par Sunshine Insurance Brokers et Zhibao Health, tout en conservant son activité principale de courtage d’assurance.
Zhibao Technology (NASDAQ: ZBAO), ein führendes InsurTech-Unternehmen, hat die Gründung der Zhibao Labuan Reinsurance Company bekannt gegeben, die am 14. April 2025 ihre Lizenz von der Labuan Financial Services Authority erhalten hat. Die neue Tochtergesellschaft wird allgemeine Rückversicherungsaktivitäten außerhalb des chinesischen Festlands durchführen.
Derzeit erzielt das Unternehmen seine Einnahmen hauptsächlich durch Makler- und MGU-Gebühren. Zhibao plant jedoch, zusätzliche Einnahmequellen durch Rückversicherungsprämien und potenzielle Zeichnungsgewinne zu erschließen. Wenn Zhibao beispielsweise üblicherweise eine Provision von 20 % auf den Policenverkauf erhält und Zhibao Labuan ein entsprechendes Rückversicherungsrisiko von 20 % übernimmt, könnte das Unternehmen die Einnahmen aus dieser Police potenziell verdoppeln, mit zusätzlichen Chancen auf Zeichnungsgewinne und Renditen aus der Prämienanlage.
Das Unternehmen plant, dass Zhibao Labuan an einem kleinen Teil der gesamten von Sunshine Insurance Brokers und Zhibao Health generierten Versicherungsprämien beteiligt sein wird, während der Hauptfokus weiterhin auf der Tätigkeit als Versicherungsmakler liegt.
- Potential to double revenue on participating policies through 20% reinsurance premiums
- New revenue stream through underwriting profits and premium investments
- Access to international markets through Labuan, Malaysia hub
- Enhanced ability to customize insurance products based on market data
- Taking on new reinsurance risks as minority risk taker
- to small portion of total insurance premium participation
Insights
Zhibao's new reinsurance subsidiary creates potential for doubled revenue on participating policies while adding underwriting capabilities that could diversify income streams.
Zhibao Technology's establishment of Zhibao Labuan Reinsurance represents a strategic business model expansion beyond their core digital insurance brokerage operations. This development transforms their revenue potential in several important ways.
Currently, Zhibao generates revenue primarily through brokerage and MGU fees from insurance partners. The new reinsurance subsidiary creates three additional revenue streams: reinsurance premiums, underwriting profits (contingent on favorable claims experience), and investment income from premium floats. As quantified in the announcement, if Zhibao typically earns a 20% commission on policy sales and Zhibao Labuan accepts 20% reinsurance risk from carriers, they could potentially double the revenue on those specific policies.
This vertical integration allows Zhibao to capture more value from each insurance transaction. Rather than merely facilitating policies, they now participate in the economics of the risk pool itself. The company's existing data assets and customer knowledge position them to make informed risk selection decisions.
However, this evolution isn't without trade-offs. While pure brokerage is largely fee-based with minimal risk exposure, reinsurance involves assuming underwriting risk. The company mitigates this by indicating Zhibao Labuan will participate in only "a small portion" of total premiums and serve "mainly as a minority risk taker for targeted business."
The initiative also enables Zhibao to potentially develop custom insurance products where "local insurance carriers are unable to meet the customization needs" of customers, potentially addressing market gaps while leveraging their accumulated data and market knowledge for product development.
Zhibao's strategic expansion into Labuan reinsurance creates geographic diversification beyond China while pioneering an integrated broker-reinsurer model.
The establishment of Zhibao Labuan Reinsurance represents a calculated geographic expansion beyond mainland China. The selection of Labuan, Malaysia is strategically significant as an established international insurance hub with favorable regulatory frameworks that can serve as a gateway to broader Asian markets.
This international diversification provides Zhibao with operational flexibility and potential regulatory advantages. Labuan's special economic zone status typically offers streamlined regulatory requirements compared to mainland jurisdictions, potentially enabling more efficient capital deployment while accessing international reinsurance markets.
More significantly, this move positions Zhibao as what their CEO describes as an "innovator" by crossing traditional industry boundaries between brokerage (distribution) and reinsurance (risk-bearing). This integrated model is relatively uncommon in the insurance ecosystem but potentially valuable as it allows Zhibao to leverage their accumulated customer data and market knowledge for competitive advantage in risk selection.
By selectively participating in the risks they broker, Zhibao creates alignment of interests with their insurance partners. As the company notes, this provides "a vote of confidence in the quality of our business" and demonstrates their willingness to stand behind the policies they distribute.
This initiative enhances Zhibao's competitive positioning by diversifying revenue streams beyond pure brokerage commissions. The dual revenue model could create more stable, recurring income if executed successfully, though it also requires developing new capabilities in underwriting, risk management, and regulatory compliance across jurisdictions.
Shanghai, China--(Newsfile Corp. - April 22, 2025) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced the establishment of Zhibao Labuan Reinsurance Company Limited ("Zhibao Labuan"). The Zhibao Labuan received its license to seek to undertake general reinsurance operations beyond mainland China from the Labuan Financial Services Authority ("LFSA") on April 14, 2025.
Zhibao Labuan's Role in Zhibao's Growth Strategy
Currently, Zhibao's revenue is primarily derived from brokerage and MGU fees earned from its insurance partners. We believe the incorporation of Zhibao Labuan enables the Company to tap into potentially an additional revenue stream through reinsurance premiums and the potential for underwriting profits based on the performance of the reinsured policies. Furthermore, we believe Zhibao Labuan may generate income from reinsurance premiums, in line with standards established by local regulators. For example, if the Company typically earns a
As a result, we believe Zhibao Labuan can open up a new revenue frontier for Zhibao. The target is for Zhibao Labuan to eventually participate in about a small portion of the total insurance premium generated by Sunshine Insurance Brokers and Zhibao Health. While the formation of Zhibao Labuan adds depth and vibrancy to the Company's offerings and enhances support for customers, Zhibao will remain primarily an insurance brokerage company, with Zhibao Labuan serving mainly as a minority risk taker for targeted business.
"I am pleased to announce the establishment of Zhibao Labuan, which provides us with the opportunity to earn additional revenue and profits through reinsurance premiums and potential underwriting deals. I believe Zhibao Labuan opens up a new frontier for revenue that presents unique opportunities to Zhibao. Additionally, I am excited about seeking to gaining access to the thriving insurance market in Labuan, Malaysia—a well-established, internationally regarded hub for insurance and reinsurance providers. With the formation of Zhibao Labuan, I believe we position ourselves as an innovator in an industry where it is traditionally uncommon for a brokerage company to establish a risk-carrying entity. Our upstream subsidiaries, which are intimately familiar with their customers' needs and the underwriting terms of the policies, will participate in selecting the business for inclusion in Zhibao Labuan. This initiative not only provides a vote of confidence in the quality of our business but also aligns our interests with those of our insurance and reinsurance partners. In cases where local insurance carriers are unable to meet the customization needs of our customers, Zhibao Labuan can leverage our accumulated data and deep market knowledge to lead on pricing and product development, ensuring that we deliver the highest quality and most appropriate products to our customers. Moreover, this new endeavor enhances our ongoing strategy to diversify our revenue streams and generate profitable market investments that we believe will drive shareholder value," said Zhibao's Chief Executive Officer, Mr. Botao Ma.
About Zhibao Labuan's Leadership
Zhibao Labuan will be headed by Guangtong (Arthur) Ren as Principal Officer, who also serves as Zhibao's Executive Director & Chief Actuary. Mr. Arthur Ren is a senior executive with nearly 30 years of experience in insurance, corporate finance, strategic planning, and risk management. During his nearly 30-year tenure at AIG China, he served in various senior roles including CFO, Chief Actuary, Chief Risk Officer, Chief Internal Auditor, and Regional Chief Actuary for AIG Greater China. Prior to his time at AIG, Mr. Ren was a management consultant with the Boston Consulting Group and served as Deputy General Manager overseeing life and health insurance product development at China Ping An Insurance. He holds an MBA from London Business School, a BSc in Mathematics, and an MSc in Finance from Nankai University in Tianjin, China.
About Zhibao Technology Inc.
Zhibao Technology Inc. (NASDAQ: ZBAO) is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").
Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Investor Relations Contact
Zhibao Technology Inc.
Investor Relations Office
Email: ir@zhibao-tech.com
Skyline Corporate Communications Group, LLC
Scott Powell, President
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249337
FAQ
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