Zhibao Technology wins PICC Group tender

SHANGHAI - Zhibao Technology Inc. (NASDAQ: ZBAO), a prominent InsurTech firm, has secured a contract to provide third-party administration (TPA) services for high-end medical insurance to the People's Insurance Company of China Limited (PICC Group). The three-year agreement, valued at CNY 28 million, establishes Zhibao as one of four exclusive vendors for all PICC Group subsidiaries.

The tender, which involved a competitive selection process among eight candidates, evaluated participants on various criteria including operational capacity, experience, pricing, and service plan quality. Zhibao's successful bid grants them access to PICC's extensive network, which includes over 3,000 branches across China, potentially benefiting its Managing General Underwriting business and bolstering its primary 2B2C digital insurance brokerage operations.

Botao Ma, Founder, Chairman, and CEO of Zhibao, expressed confidence that this partnership would strengthen the company's credibility in the insurance sector and provide a stable revenue source. The collaboration is also expected to deepen Zhibao's relationship with PICC Group and support its profitability path.

PICC Group is recognized as the ninth-largest insurance group globally by premiums written in 2021, while its property and casualty arm, PICC P&C, ranked second globally in terms of premiums written in 2023.

Zhibao Technology, founded in 2020, is known for its pioneering 2B2C digital embedded insurance model in China. The company has developed over 40 digital insurance solutions across various industries, leveraging big data and artificial intelligence to enhance its offerings continually.

The information in this article is based on a press release statement and does not represent any endorsement of Zhibao Technology or its services.

In other recent news, Zhibao Technology Inc., a leader in the InsurTech industry, has appointed Xiaowei Le as its new Chief Growth Officer. Le, a veteran in the insurance industry, is anticipated to guide Zhibao through its forthcoming phase of expansion and innovation. His past roles at major Chinese insurers such as Alltrust Insurance and Bohai Insurance have equipped him with extensive knowledge and industry relationships, which are expected to be instrumental in driving Zhibao's growth initiatives and executing strategic priorities.

Part of Zhibao's wider strategy, this appointment aims to grow its customer base and diversify its revenue mix. The company is looking to leverage Le's experience to maintain and extend its market leadership in the 2B2C embedded digital insurance market in China. Furthermore, Zhibao's growth model, under Le's direction, is designed to coordinate the various aspects of the company's 2B2C model to achieve its revenue and profitability targets.

These recent developments reflect Zhibao's continuous adaptation to new market trends and customer preferences, as it remains a pioneer in the Chinese digital insurance space. The company's commitment to growth and innovation within the InsurTech sector is further emphasized by these strategic moves.

InvestingPro Insights

Zhibao Technology Inc. (NASDAQ: ZBAO), while making strides in the InsurTech space through its recent contract with PICC Group, presents a mixed financial picture according to InvestingPro data. The company's market capitalization stands at $118.84 million, reflecting its current valuation in the market. Despite a challenging past year with a revenue decline of 4.72% in the last twelve months as of Q2 2024, analysts on InvestingPro are optimistic about Zhibao's future. They predict that Zhibao will become profitable this year, a significant turnaround considering the company was not profitable over the last twelve months. This anticipated shift towards profitability could be a driving factor for potential investors looking for growth opportunities in the InsurTech sector.

InvestingPro Tips also highlight that Zhibao's stock tends to exhibit high price volatility, which could appeal to certain investors who are comfortable with higher risk for potentially higher returns. Additionally, the company does not offer dividends, which may influence the investment decisions of those prioritizing income generation. It's worth noting that Zhibao is trading at a high Price / Book multiple of 50.49 as of Q2 2024, suggesting that the market values it significantly more than its book value. This could be indicative of investor expectations for future growth or the company's intangible assets and market position.

For readers interested in a deeper analysis, InvestingPro offers additional insights and tips on Zhibao Technology, which can be found at InvestingPro. The comprehensive list of tips could provide valuable information for those considering an investment in Zhibao Technology.

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