China IPO Watch: Huize Holdings – Online Insurance Platform

NASDAQ: HUIZ

Huize Holdings is a Shenzhen-based company operating an online insurance marketplace that aggregates insurance products and aims to provide a seamless user experience targeting the younger generation. The platform connects insurance providers and customers, providing the insurer with a digital sales channel and the customer with product variety.

OPENING: February 12, 2020

Huize raised $55 million in an offering of 5.3 million ADSs at $10.50, slightly above the midpoint of the range of $9.40 to $11.40.

MARKET:

• The Chinese insurance industry is large in size, worth 3.8 trillion yuan in 2018 having grown at an annual rate of 17% since 2013.
• According to the 2018 annual online insurance policy report, more than 222 million consumers, which comprises ~28% of China’s total internet users, have bought insurance policies online.
• Tailored to the digital native generation, Huize even employs a social media KOL marketing strategy, and worked with 17,587 influencers as of June 30, 2019.
• As of June 30, 2019, higher-tier cities accounted for 55.7% of Huize’s insurance client base.
• In the six months ended June 30, 2019, the average age of those who purchased life and health insurance products was 32.

PRODUCT:

Huize offers two broad categories of insurance products, life and health insurance products and property and casualty insurance products. In the six months ended June 30, 2019, the average age of those who purchased life and health insurance products was 32. The company also aims to establish a closed loop by handling user’s claim settlements and other transactions through convenient online access.