On May 19th, it was reported by the International Finance News that Shouhui Group, the parent company of Xiaoyusan Insurance, has successfully passed the listing hearing on the main board of the Hong Kong Stock Exchange. Huatai International and CICC served as joint sponsors for the listing. This marks the third attempt by Shouhui Group to list on the Hong Kong Stock Exchange, with the previous two applications lapsing due to the six-month expiration period.
Shouhui Group has raised five funding rounds from investors including Polar Xintian and Sequoia Yucheng ahead of its planned IPO. The company’s prospectus outlines four key uses for the offering proceeds: expanding sales and marketing networks, boosting R&D capabilities, pursuing strategic acquisitions, and covering working capital needs.
The insurance technology firm will direct IPO funds toward strengthening its service infrastructure while developing new technical solutions through increased research investment. Strategic mergers and acquisitions form another priority as Shouhui seeks to accelerate growth in competitive markets.
With backing from institutional investors like Tibet Juzhi and StarReach Tech Limited, the company aims to leverage public market funding to enhance both its operational capabilities and long-term market position. The IPO comes as Shouhui looks to solidify its standing in China’s evolving insurtech sector through targeted investments in technology and business expansion.
Business Overview and Market Position
Shouhui Group operates as an intermediary service provider for life insurance, owning three major platforms: Xiaoyusan Insurance Brokerage, Kacha Bao, and Niubao 100. The company focuses on providing online insurance service solutions for policyholders and insured persons through life insurance trading and service platforms.
According to Frost & Sullivan data, in terms of total premiums for long-term personal insurance in 2023, Shouhui Group is the second-largest online insurance intermediary service provider in China, holding a 7.3% market share. It also ranks second in terms of first-year premiums for long-term personal insurance.
Distribution Channels and Product Types
Shouhui Group conducts direct online distribution through Xiaoyusan Insurance Brokerage, Kacha Bao through insurance agents, and Niubao 100 with the assistance of business partners. The company distributes both customized products and existing products of insurance companies. Since 2017, Shouhui Group has been distributing customized long-term personal insurance products, for which it participated in formulating liability terms and pricing. The first-year premiums of these customized products accounted for 52.5%, 59%, and 40.5% of the total first-year premiums in 2022, 2023, and 2024, respectively.
Financial Performance
From 2022 to 2024, Shouhui Group achieved revenues of 806 million yuan, 1.634 billion yuan, and 1.387 billion yuan, respectively. The corresponding net profits were 131 million yuan, -356 million yuan, and -136 million yuan, respectively. The fluctuation in net profit was attributed to changes in the company’s valuation and revenue fluctuations during the track record period.
Industry Trends and Future Outlook
Recently, insurance technology intermediaries have been active in the capital market. On April 30, the Internet insurance brokerage platform Yuanbao was listed on the Nasdaq Stock Exchange. On May 13th, the insurance technology service platform iYunbao announced the completion of its Series C financing round, with Manulife Financial Group of Canada as a strategic shareholder. In August 2024, Zhongmiao Chuangke became the first domestic insurance intermediary company to be listed on the Hong Kong Stock Exchange, followed by Youjia Youbao, Zhibao Technology, and Yishengxin Technology on Nasdaq.
Yang Fan, General Manager of Beijing Paipai Network Insurance Agency Co., Ltd., analyzed that the demand for capital exit is a key factor driving insurtech intermediaries to go public. Many of these companies have capital support and seek reasonable exit channels. Overseas markets, particularly the US and Hong Kong stock markets, offer higher acceptance and more reasonable valuations for technology-based enterprises. Additionally, going public provides necessary funds for technological research and development and business expansion.
Yang Fan believes that the current market environment, which values the combination of technology and insurance business, supports the trend of insurtech intermediaries going public. With advancements in artificial intelligence and big data, the “technology stories” of these institutions are more likely to attract market and investor favor. It is expected that more insurance intermediaries will choose to go public in the future, supported by both market conditions and the development of insurance technology.
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