ZA ONLINE 2025 Mid-term Performance Release AI Reshapes the Insurance Value Chain Empowering the Company's Full Business Scenarios

According to the Zhitong Finance APP, on August 20, ZhongAn Online (06060) released its interim performance report for 2025. As of June 30, 2025, ZhongAn achieved total premiums of RMB 16.661 billion, a year-on-year increase of 9.3%. During the reporting period, ZhongAn's combined cost ratio was 95.6%, an improvement of 2.3 percentage points year-on-year, with underwriting profit increasing by 108.9%. At the same time, the company's investment income remained stable, and its digital banking business achieved a historic turnaround to profitability, with the company's net profit attributable to shareholders reaching RMB 668 million, a significant increase of 1103.5% compared to the same period in 2024.

AI Reshapes the Insurance Value Chain, Leading Industry Development

ZhongAn continues to deepen its layout in cutting-edge technologies in innovative fields such as artificial intelligence, blockchain, cloud computing, and big data, actively embracing the wave of AI technology. Utilizing mainstream large models and proprietary data, it has forged the AI middle platform "ZhongYouLingXi," fundamentally reconstructing the insurance value chain to make insurance more humane. ZhongAn continuously integrates AI technology deeply into insurance business scenarios, supporting full-chain applications, code development, and middle and back-office scenarios. In terms of the usage volume of mainstream general large models, ZhongAn has long maintained a leading position in the industry. The AI middle platform "LingXi Platform," independently developed by ZhongAn, has become the core engine of business transformation, with its knowledge engineering, voice services, AI Gateway, and other modules working in synergy to cover the full process needs of insurance. In the first half of 2025, nearly 110 active robots were on the "LingXi Platform," with a cumulative usage volume of 450 million times in the production environment of the LingXi middle platform, leading the industry.

Core Business Continues to Improve, Continuously Releasing Value

The total premium of the health ecosystem reached RMB 6.275 billion, a year-on-year increase of 38.3%, providing health protection for approximately 15.21 million insured users during the reporting period. As a flagship product in health insurance, the "Zunxiang eSheng" series has undergone 25 iterations over 10 years, not only closely aligning with users' personalized health needs but also fitting the trend of medical payment reform, adding coverage for purchased drugs and medical devices and expanding hospital coverage. During the reporting period, the "Zunxiang eSheng" series achieved total premiums of approximately RMB 4.25 billion. At the same time, ZhongAn adheres to the concept of health inclusiveness by launching the "ZhongMinBao" series, which accurately covers non-standard body users such as those with pre-existing conditions, elderly individuals, and chronic disease groups, thanks to features like no health declaration and no occupational restrictions. In 2025, ZhongAn further launched the "ZhongMinBao Mid-to-High-End Medical Insurance," which includes high-end medical coverage for major diseases, broadening the boundaries of inclusive protection. During the reporting period, the total premium of the "ZhongMinBao" series products reached approximately RMB 1.03 billion, a year-on-year increase of 638.8%.

The premium for the digital lifestyle ecosystem was RMB 6.209 billion, of which innovative business premiums reached RMB 2.490 billion, accounting for 40.1%, a year-on-year increase of 40.0%. In the area of pet insurance, ZhongAn continues to lead the development and breakthroughs in the domestic pet insurance industry. In the first half of 2025, the total premium for pet insurance approached RMB 563 million, a year-on-year increase of over 51.3%, with a leading market share, having served over 7.11 million pet owners to date. In terms of product innovation, ZhongAn integrates "tap-to-tap" NFC technology to enhance the convenience of purchasing and claims; it has launched the "NFT Pet Digital ID" series of digital collectibles, using blockchain technology to create a unique digital identity asset for pets and their owners, pioneering a new interactive digital experience for pets At the same time, ZhongAn has keenly grasped the development opportunities of the low-altitude economy, achieving precise pricing for different types of drones and service models, and launching solutions such as drone damage insurance and third-party liability insurance, serving over one million drone owners cumulatively, with the premium growth rate of low-altitude economy exceeding 20% during the reporting period.

In the automotive ecosystem, total premiums reached RMB 1.478 billion, a year-on-year increase of 34.2%. ZhongAn independently operated compulsory traffic accident liability insurance in Shanghai and Zhejiang, achieving a breakthrough from "0 to 1" in compulsory insurance, while also independently operating commercial vehicle insurance in Shanghai. ZhongAn seized the development opportunities in new energy vehicle insurance, providing products and services for over a hundred brands of new energy vehicle owners, with total premiums for new energy vehicle insurance in the first half of 2025 increasing by approximately 125.4% year-on-year, accounting for over 18% of the company's total vehicle insurance premiums. In addition, ZhongAn innovatively launched "Zhongyanbao" to address the maintenance cost issues after vehicles exceed the original factory warranty period.

In terms of brand building and self-operated channel development, total premiums from self-operated channels reached RMB 3.697 billion, increasing the proportion of total premiums to 22.2%, a year-on-year growth of 16.9%. ZhongAn continues to deepen its digital marketing strategy, accurately acquiring customers through emerging scenarios such as short videos and live broadcasts. Relying on AI intelligent customer service for efficient conversion and personalized service, ZhongAn closely follows the algorithm changes of public domain traffic platforms, strengthens the construction of private domain traffic systems, and enhances premium conversion rates and user stickiness through AI automatic Q&A on social platforms.

ZA Bank Achieves Historic Breakthrough, Leading a New Era of Digital Assets

ZhongAn's joint venture company, ZhongAn International's subsidiary ZA Bank, has developed into one of the most functionally and product-rich digital banks in the Hong Kong market. ZA Bank has created a one-stop comprehensive financial service platform through a fully digital operation model on mobile, being the only digital bank in Hong Kong currently providing 24-hour services for deposits, loans, transfers, card consumption, foreign exchange, insurance, investment, and corporate banking.

In the first half of 2025, ZA Bank achieved a historic turnaround to profitability, with a net profit of HKD 49 million. During the reporting period, ZA Bank achieved net income of approximately HKD 457 million, a year-on-year increase of 82.1%; net interest income was HKD 297 million, a year-on-year increase of 42.8%; non-interest income was HKD 160 million, a year-on-year increase of 272.1%, with a net interest margin of 2.38%, showing strong performance across multiple key indicators. Currently, ZA Bank has become one of the most functionally and product-rich digital banks in the Hong Kong market and is about to launch Hong Kong stock trading services. Invest customer assets increased by 125.3% year-on-year. ZA Bank continues to expand its retail wealth management landscape, creating a one-stop investment and financial management experience, being one of the few licensed banks in Asia to provide retail investors with fund, US stock, and cryptocurrency trading simultaneously, fully leading a new era of digital wealth management.

In the first half of 2025, ZhongAn's "insurance + technology" dual-engine strategy has shown remarkable results. ZhongAn always adheres to a user-centered approach, keenly responding to market changes, while striving for upward breakthroughs through innovation as it roots downwards, utilizing technologies such as AI, blockchain, cloud computing, and big data to make services more warm. In the future, we will continue to uphold the mission of "technology-driven finance, providing warm insurance," continuously creating value for users, shareholders, and society