Huize Holding Limited (Nasdaq: HUIZ) Q2 2025 Earnings Call | 09/12/2025

On September 12, 2025, Huize Holding Limited held its Q2 2025 earnings conference call, hosted by Investor Relations Manager Kenny Lo, with Founder and CEO Chen Junma, COO Li Jiang, and Co-CFOs Minghan Xiao and Ron Tam. The call highlighted robust financial performance, driven by a customer-centric strategy, AI integration, and international expansion, despite macroeconomic and regulatory challenges.

Key Highlights from CEO Chen Junma

• Strategic Focus: Huize maintained its customer-centric approach, emphasizing high-quality customer acquisition, strong persistency ratios, and a diversified product portfolio. The company strengthened its full lifecycle service ecosystem, targeting young, affluent customers in China’s first- and second-tier cities.

• AI Integration: Extensive AI adoption reshaped operations, with over 700 AI agents deployed, generating 200,000+ lines of code monthly, equivalent to 58 engineers’ output. This improved R&D efficiency, product delivery, and risk control, reducing the expense-to-revenue ratio by 16.6 points to 23.9% YoY. AI-driven customer service boosted self-service purchase rates by 50%, serving 20,000+ customers monthly with personalized recommendations.

• International Expansion: Huize’s international arm, PolyInsurTech, secured a financial advisor and insurance broker license in Singapore, marking a milestone in Southeast Asia. In Vietnam, subsidiary GlobalCare achieved 32% YoY growth in gross written premiums (GWP) and revenue, with a 52% increase in active platform users and tripled B2C ticket sizes. Vietnam’s first insurance KOL platform and partnerships with GXE and MWG enhanced market reach and embedded insurance offerings.

• Product Innovation: Huize expanded its portfolio with customized products like the Golden Edition Annuity for wealth management, Xiaoshun Hong 7.0 children’s accident insurance, and Litru Scholar 2.0 student insurance, developed with partners like Ping An and PICC. The company maintained relationships with 146 insurance companies, focusing on long-term and participating products.

Financial Details from Co-CFO Ron Tam

• Q2 2025 Results:

  • Total revenue: RMB 400 million (+40% YoY, a three-year quarterly high).

  • Net profit: RMB 10.9 million (GAAP), RMB 8 million (non-GAAP).

  • Gross written premiums (GWP): RMB 1.8 billion (+34% YoY).

  • First-year premiums (FYP): RMB 1.13 billion (+73% YoY), with long-term savings products at RMB 864 million (+100% YoY).

  • Short-term insurance GWP: RMB 140 million (+90% YoY).

  • Operating expenses: RMB 95 million (-17% YoY).

  • Expense-to-revenue ratio: 23.9% (-16.6 points YoY).

  • Cash and equivalents: RMB 239 million.

• Customer Metrics:

  • Cumulative insured users: 11.4 million (+400,000 in Q2).

  • Long-term insurance customers: Average age 35.2, 65%+ in first/second-tier cities.

  • Average FYP ticket size for long-term products: RMB 7,615 (+41% sequentially, +87% YoY).

  • Persistency ratios (13th and 25th months): >95%, industry-leading.

  • Repurchase ratio for long-term products: 37%.

  • Independent financial advisor (IFA) FYP: RMB 84 million (+13% YoY).

• International Performance: GlobalCare (Vietnam) saw 32% YoY growth in GWP and revenue, with partnerships driving embedded insurance and corporate property policies worth RMB 1 billion.

Strategic Initiatives

• AI-Driven Transformation: Huize’s proprietary AI platform and 200+ in-house AI agent developers enhanced productivity, with applications in R&D, customer service, and underwriting. A comprehensive training system supports company-wide AI adoption, fostering an AI-native culture.

• Participating Products: Strong demand for participating (par) products, driven by declining interest rates, led to customized offerings with partners like Aviva-Cofco and Generali. Huize ranks among China’s top three brokers for par product distribution.

• Southeast Asia Expansion: The Singapore license and Vietnam’s KOL platform replicate Huize’s proven China model, leveraging high social media penetration and middle-class growth. Partnerships with local players like MWG and GXE target embedded and micro-insurance markets.

• Market Outlook: In China, rising demand for health, retirement, and wealth management, coupled with regulatory support for technology-driven growth, fuels opportunities. Southeast Asia’s increasing digitalization and insurance penetration offer structural growth potential.

Q&A Highlights

• Participating Products (Tsingtao Chen, CICC): Huize’s early focus on par products since 2023, supported by agent training and partnerships with insurers like Aviva-Cofco and Generali, drove success. Customized annuity and retirement products strengthened supply, with continued growth expected in Q3 and Q4 due to consumer education and attractive yields.

• AI Applications (Tsingtao Chen): AI enhances customer acquisition via personalized app recommendations, improves underwriting efficiency, and supports long-term customer relationship management by recalling interaction data, boosting conversion ratios.

• International Business (Amy Chen, Citi): Regulatory changes in Hong Kong drove Q2 par product demand, with momentum expected to continue in Q3 due to offshore yield advantages. Vietnam’s growth reflects strong B2C performance and partnerships.

• Regulatory Impacts (Amy Chen): Caps on broker referral fees (effective October 1, 2025) and commission spreading (from 2026) are not expected to significantly alter demand, as offshore product attractiveness persists.

• Profit Outlook (Amy Chen): Huize anticipates sequential profit growth in Q3 and a profitable second half, despite ongoing growth investments.

• Margin and Product Mix (Kenny Lim, UOB Kay Hian): Gross margin stabilized at 27% (+1% from Q1), expected to remain steady. Health and protection products grew 24% sequentially, with potential for further growth as consumer confidence improves, though savings products dominate due to higher demand.