Huize Holding Limited Announces Q1 2025 Financial Results
Huize Holding Limited (NASDAQ: HUIZ) released its unaudited financial results for the first quarter of 2025, presenting a mixed performance. The company saw a strong sequential increase in insurance premiums, with Gross Written Premiums (GWP) rising 37.8% quarter-over-quarter to RMB1,437.3 million. First Year Premiums (FYP) also grew by 30.9% sequentially, reaching RMB730.4 million. However, compared to the same quarter last year, both GWP and FYP declined by 16.3% and 14.8%, respectively.
Operational efficiency improved noticeably, with total operating expenses dropping 28.9% sequentially. The expense-to-income ratio improved from 40.7% to 29.1%. Despite these gains, Huize posted a net loss of RMB8.6 million, a reversal from the RMB6.9 million net profit reported in Q1 2024. The company continued to expand its customer base, serving 11 million insurance clients and partnering with 143 insurers.
Key Operational Highlights for Q1 2025
- Insurance Premium Growth: GWP reached RMB1,437.3 million, up 37.8% from Q4 2024. FYP also increased 30.9% sequentially to RMB730.4 million. This growth was fueled by a high-quality customer base, strong persistency ratios, and diverse product offerings.
- Efficiency Gains: Operating expenses fell 28.9% sequentially to RMB82.7 million. The expense-to-income ratio improved significantly to 29.1%, reflecting successful cost-optimization and AI integration in daily operations.
- Client and Partner Expansion: The company served 11 million insurance clients as of March 31, 2025. Huize collaborated with 143 insurer partners, including 83 life and health companies and 60 property and casualty insurers in China and internationally.
- Cash Position: Cash and cash equivalents stood at RMB201.7 million (US $27.8 million) as of the quarter-end.
Technology and Customer Service Enhancements
Huize launched new AI-driven solutions, including a smart portal within its app providing 24/7 support for insurance agents. The AI tools assist with policy inquiries and product matching, serving over 15,000 users daily. Additionally, the Xiao Ma Claim AI agent automates after-sales claims processing, cutting claim processing time from one day to one hour once fully deployed.
In Q1, Xiao Ma Claim processed RMB190 million in claims across 36,000 cases, improving customer experience with faster and more reliable claim settlements.
Detailed Financial Results for Q1 2025
- Gross Written Premiums and Revenue: GWP was RMB1,437.3 million (US $198.1 million), down 16.3% year-over-year from RMB1,718.0 million in Q1 2024. FYP accounted for RMB730.4 million or 50.8% of total GWP, a 14.8% year-over-year decline. Renewal premiums made up RMB706.8 million, down 17.9% year-over-year. Operating revenue was RMB283.8 million (US $39.1 million), decreasing 8.5% year-over-year due to lower FYP.
- Operating Costs: Operating costs were RMB210.5 million (US $29.0 million), down 4.4% compared to RMB220.2 million in Q1 2024, mainly driven by reduced channel expenses.
- Net Loss: The net loss attributable to common shareholders was RMB8.6 million (US $1.2 million), compared to a net profit of RMB6.9 million in the prior year period. The non-GAAP net loss was RMB10.9 million (US $1.5 million), compared to a non-GAAP net profit of RMB4.4 million in Q1 2024.
- Liquidity: Cash and cash equivalents were RMB201.7 million (US $27.8 million) as of March 31, 2025, down from RMB233.2 million at the end of 2024.
Customer Profile and Persistency
The average age of long-term insurance customers in Q1 was 35 years old, with 66.4% residing in higher-tier cities. Persistency rates remain strong, with 13th and 25th month persistency ratios exceeding 95%, indicating a stable and engaged customer base.
Insurance professionals may find interest in Huize’s AI-powered tools that streamline client service and claims processing. For those looking to enhance their understanding of AI applications in insurance, exploring relevant automation courses could provide practical insights.
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