Zhibao Technology wins Nanjing insurance contract

SHANGHAI - Zhibao Technology Inc. (NASDAQ: ZBAO), a prominent InsurTech firm in China, has secured a contract to offer its homeowners' insurance product in Nanjing, China. The product, branded as "Ning Jia Bao" locally, will be backed by a consortium of insurers including the People's Insurance Company of China's Nanjing branch.

The "Hui Jia Bao" insurance, which Zhibao introduced in Quanzhou in December 2023, has since expanded to nine other Chinese cities or regions. With Nanjing's population exceeding 9 million, the company anticipates this move will address a significant gap in the insurance market.

Priced from CNY 99 annually, "Hui Jia Bao" is positioned as an accessible insurance option. It complements "Hui Min Bao," a medical insurance product, aiming to serve disadvantaged or low-income families.

Zhibao projects that "Hui Jia Bao" could generate up to CNY 230 million in premiums and CNY 46 million in revenue over three years. Luo Xiao, General Manager of Sunshine, a subsidiary of Zhibao, expressed pride in the contract, emphasizing the product's role in improving societal welfare and driving company growth.

Botao Ma, CEO of Zhibao, highlighted the company's commitment to offering products that benefit customers' lives. Discussions are underway to launch "Hui Jia Bao" and "Hui Min Bao" in additional cities across several Chinese provinces within the next three years.

Zhibao Technology Inc. specializes in digital insurance brokerage services and has pioneered a 2B2C digital embedded insurance model in China. The company operates a platform powered by proprietary PaaS technology and has developed over 40 digital insurance solutions.

This announcement, based on a press release statement, comes with the usual caution regarding forward-looking statements, which are subject to various uncertainties and risks.

The information provided does not constitute an endorsement of Zhibao's claims or future performance. Investors are encouraged to review the company's SEC filings for a more comprehensive understanding of potential risks and future prospects.

In other recent news, Zhibao Technology Inc., a leading InsurTech firm, has secured a significant contract with the People's Insurance Company of China Limited (PICC Group). This three-year agreement, valued at CNY 28 million, positions Zhibao as one of four exclusive vendors for all PICC Group subsidiaries, potentially bolstering its primary 2B2C digital insurance brokerage operations.

This recent development follows a competitive selection process and is expected to provide a stable revenue source for Zhibao. In addition, Zhibao Technology has appointed Xiaowei Le, a veteran in the insurance industry, as its new Chief Growth Officer. Le's extensive industry experience is anticipated to drive Zhibao's growth initiatives and strategic priorities.

The company aims to leverage Le's expertise to maintain and extend its market leadership in the 2B2C embedded digital insurance market in China. These recent developments highlight Zhibao's ongoing commitment to growth and innovation within the InsurTech sector.

InvestingPro Insights

Zhibao Technology Inc. (NASDAQ: ZBAO) has recently made headlines with its expansion of "Hui Jia Bao" homeowners' insurance in Nanjing, China. The company's strategic move to tap into a large market aligns with some positive indicators from InvestingPro data. ZBAO's market capitalization stands at a modest $120.87 million, which could imply room for growth as it penetrates new markets. Notably, the company has shown strong short-term returns, with a significant 14.79% return over the last week and an impressive 17.61% return over the last month, indicating heightened investor interest.

While ZBAO's revenue over the last twelve months has seen a slight decline of 4.72%, the InvestingPro Tips suggest an expected net income growth this year, hinting at a potential turnaround in financial performance. Additionally, the company's stock is known to trade with high price volatility, which may attract investors looking for dynamic trading opportunities.

InvestingPro also highlights that ZBAO does not pay a dividend to shareholders, which is not uncommon for growth-focused technology firms reinvesting earnings into expansion efforts. For investors seeking additional insights into ZBAO's financial health and future prospects, InvestingPro offers a range of other tips, with a total of 8 InvestingPro Tips available at: https://www.investing.com/pro/ZBAO.

With these insights in mind, investors interested in the InsurTech sector and ZBAO's growth trajectory may find value in keeping a close eye on the company's performance as it continues to expand its insurance offerings in China.

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