SHENZHEN, China - Huize Holding Limited (NASDAQ:HUIZ), an insurance technology platform in China, has announced a collaboration with Aviva-COFCO Life Insurance to introduce 'Fu Man Jia', a whole life insurance product. The new offering features a guaranteed compound return of 2.5% with the potential for additional non-guaranteed annual dividends.
Targeting a wide customer base, 'Fu Man Jia' is accessible to individuals from 30 days to 70 years old. It offers flexible dividend payout options, including cash, deposit, premium reduction, or additional paid-up insurance. Customers can choose premium payment terms ranging from a single payment to annual payments over 3 to 15 years.
The partnership leverages Aviva-COFCO's investment track record, which includes a 3-year average portfolio return of 5.93% and a 6.42% return in 2023. This move is in response to growing demand for high-return participating insurance products, particularly after recent regulatory updates.
Cunjun Ma, CEO of Huize, expressed enthusiasm for the launch, emphasizing the product's role in providing customers with a range of options for future financial planning. The collaboration with Aviva-COFCO is seen as a testament to Huize's commitment to offering flexible and sustainable insurance solutions.
Aviva-COFCO, a joint venture between Aviva (LON:AV) group and COFCO, was established in 2003 and operates across 17 provinces and cities in China. It offers a variety of life and health insurance products through multiple distribution channels.
Huize, known for its data-driven and AI-powered solutions, aims to serve the life-long insurance needs of mass affluent consumers in China. The company's integrated insurance ecosystem spans the entire insurance life cycle, providing an array of products and services.
The information in this article is based on a press release statement.
InvestingPro Insights
In light of Huize Holding Limited's (NASDAQ:HUIZ) recent collaboration with Aviva-COFCO Life Insurance, the company's financial health and market performance are key factors for potential investors and stakeholders. According to InvestingPro data, HUIZ is currently trading at a low earnings multiple with a P/E Ratio (Adjusted) of 3.15 as of the last twelve months ending Q4 2023. This could signal an attractive valuation for investors looking for entry points into the insurance technology market.
Despite the promising new product launch, analysts anticipate a sales decline in the current year, which is reflected in the recent -8.67% quarterly revenue growth figure. Moreover, the stock has experienced high price volatility, with a significant decline of -51.45% in its one-year price total return as of the latest data. These metrics suggest that while there are opportunities, there are also considerable risks associated with investing in HUIZ.
For those considering a deeper analysis of HUIZ, there are additional InvestingPro Tips available that could provide further insights into the company's performance and potential. With a total of 13 additional tips listed on InvestingPro, including expectations of profitability this year and an analysis of the stock's long-term price performance, investors can gain a more comprehensive understanding of HUIZ's outlook. To explore these tips, visit InvestingPro's HUIZ page and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.