Join the newsletter that everyone in finance secretly reads. 1M+ subscribers, 100% free.
Huize, a major Chinese insur-tech firm, reported a 40.2% jump in second-quarter revenue and made a return to profit, crediting its quick adoption of AI tools for both customer growth and cost savings.
What does this mean?
Huize's move to embed artificial intelligence throughout its operations paid off in a big way this quarter. The company trimmed its expense-to-income ratio to 23.9%, down sharply from 40.5% a year earlier, thanks to AI-powered efficiency. That helped fuel a 73.1% surge in first-year premiums to RMB 1,127.9 million, bringing net profit to RMB 10.9 million for the period. AI tech also encouraged a 50% spike in self-directed policy purchases, a sign that customers and operations alike are benefiting. Adjusted net income landed at RMB 7.6 million, reflecting widespread improvements across Huize's business. Investors took notice too - the company's forward price-to-earnings ratio has doubled to 8 in three months, and Wall Street's 12-month price target sits nearly 20% higher than current levels.
Huize's latest results highlight how tech adoption can rewrite the rules in China's insurance space. With AI boosting both profitability and investor optimism, the company's price-to-earnings ratio doubling and a median price target of $3.50 (about 19% above its latest close), analysts appear bullish - with zero sell ratings on record.
The bigger picture: AI rewires the future of finance.
Huize's story is part of a bigger shift across Asia's financial world: artificial intelligence and digital tools are turbocharging efficiency and shaking up once-stable business models. As more firms embrace these changes, the ones quickest to adapt could end up with a much larger share of the insurance pie.