ZhongAn Online P&C Insurance, together with its subsidiaries, expect to achieve a net profit attributable to owners of the company for the year ended 31 December 2020 of no less than CNY500m ($78m).
The expected CNY500m profit would represent a turnaround in the operations of ZhongAn. For 2019, the digital insurer recorded a net loss of approximately CNY454.1m attributable to owners of the company.
The profit alert for 2020 is based on the Group’s preliminary review of the unaudited management accounts and available information of the Group, says ZhongAn in a statement filed with the Hong Kong stock exchange. The Group is still in the process of finalising its results for the year ended 31 December 2020.
The improvement in the performance was primarily due to a substantial decrease in underwriting losses. In addition, as the company persisted in pursuing growth with quality, the combined ratio further improved accompanied by a steady increase in gross written premiums.
Founded in 2013, the online-only insurer went public in 2017. The company reported net losses attributable to shareholders of CNY996m in 2017, CNY1,743.9m in 2018 and CNY454.1m in 2019. The 2020 financial year would be the first year that the company reports net profits since the public listing.