Q1 2021 Huize Holding Ltd Earnings Call
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Once again today's conference is scheduled to begin shortly.
Please continue the standby thank you for your patience.
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Ladies and gentlemen, and thank you for standing by and welcome to you work holding Limited's first quarter 2021 earnings conference call.
At this time, all participants are and the list of all of them.
After the managements prepared remarks, there will be a question and answer the question.
Today's conference call and crude is being recorded.
And the webcast replay will be available.
Please visit our website.
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Now I'd like to hand, the conference over to your speaker host.
Today's the day.
It's hard to get here. He was the Investor Relations Director. Please go ahead of the hardware.
Yes.
Thank you operator, Hello, everyone and welcome to our earnings conference call for the first Florida all of 'twenty, 'twenty, one and our financial and the operating results were released earlier today and are currently available on our IR website and the newswires.
Before we continue I'd like to refer you to the Safe Harbor statement and our earnings press release, which also applies to this call as we will be making forward looking statements. Please also note that we will discuss non-GAAP measures a day, which are more sort of life and in our earnings release and filings with the SEC.
Joining us today are of founder and CEO, Michelle and Jean Marc.
Oh, he's the lead young co CFO, Mr them, and kind of shell and co CFO Mr. Ronald Tim.
It makes the law will start of calls that providing an overview of the company's performance and all crushing and I'll highlight for the fourth quarter of 'twenty or 'twenty one.
Tim will then provide details on the financial results for the peer range before we open up the call for question and I will now turn the call over to Mr. Ma.
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Hello, everyone and thank you all for joining and towards the first quarter 2021 earnings conference call.
And the first of all of our China insurance market and its been kind of steady growth driven by continuous improvement and the pin down the situation in China.
For the life and health insurance of sensor and the increasing of the Mark kicking mens cost side of the transition between old and new statutory definition.
The illnesses.
According to the data released by the Orange the.
Insurance industry of cheap insurance premium income of RMB, one eight trillion and the first quarter and.
And the increase of five five percentage of points from the loss of interest from the same period last year and.
The Montana, the health insurance settlement and increased by 16, 1% per year to RMB 310, and $6 6 billion.
With the backdrop of strong industry fundamentals.
The other continues to strength.
The capabilities of celebrating the channel transformation and capture greater market share share so all of them.
And what you the other piece of facilitated on our platform increased by one of things to be tying your ear to RMB, one 4 billion.
The total operating revenue nearly doubled the RMB instead of 130 million.
Achieving breakthroughs for the high side.
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But at the has been making steady progress on our loss of insurance strategy.
As part of our commitment to providing the first launch of an insurance policy for the younger generation we share.
Those two forecasts on the offering of long trend of health insurance policy with the hires.
Well on lifestyle.
The strategy is driven by non.
Factors first the payment terms for our critical illness insurance policy and also the as long as plenty of or even 30 years the law.
Longer the user stays on our platform the longer hours of service and interaction to and it is making it easier to establish trust and in three of the user's thickness that counts as younger users, aged and entering into more of a mature lifesaving new insurance needs well in March for example.
And when they start a family they will naturally come sooner corporation for their children, such as critical illness insurance and education savings and Sherman.
There being the users' evolving needs and generally sort of repeat purchase opportunities sort of pretty good operations and creating long term and use of value.
There is a long term relationships allows us to affirm the more users data from the south and the braking and friends aptitude to generate more accurate and profile.
We see the insights and you're done.
I mean, the preferences and purchasing behaviors and enable us to from a higher gross insurance product, while also providing us and foundation and preventing adverse selection.
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Next I would like to share a few key indicators that highlight the value of our insurance due to the face to face.
First our user profile.
I thought the solar and the accumulation of number of insurance clients reached Stefan Neely N and accumulated from number of insurance line of approximately five five and 15.
And 58 4 million of MA.
And the insurance and claims purchase launch of insurance products from the first quarter.
That's the key 322% were from higher tier cities and the average age was 32 point and Stephane.
Demonstrating strong insurance awareness.
The second of indicator.
Average ticket size and the first part of the ethylene is the first hear opinions of the long term policy and distributed with the Iran. RMB for Samsung and 500 and AC.
The sort of indicators are sufficiency ratio.
Starting from the second quarter of last year.
The ratio of long term life and health insurance and a third.
And plenty of faith of months have mentioned, that's about 94% before consecutive quarters with it.
We believe the other long term insurance business is the competition for use of quality and state of the user traffic or of Sanchez and customer targeting as well as our business positioning and differentiation and the industries are demonstrated two of our user of insurance consumption to the cause.
Pass the teeth and the average quality of our user profile.
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From the product perspective, the new statutory definition of free to go in.
So the challenges and opportunities to the critical illness insurance market.
The average out arent years.
And and continuous improvement and product customization capabilities, we upgraded our product.
And the revised definition went into effect and ensure the continuity of our quality process for clients.
And the Natura, we held our first online product launch conference chairman for something the highlights.
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And life insurance.
And another innovation and our shaping process kind of from Monday.
And from traditional and whole life insurance.
Products include both the space Glens and mature the expense.
Providing personal protection all of that.
Staffing function in the senior insurance policy.
Meanwhile, the new destination free illness product Darwin line flurry of flying a lot of especially safety trucks, especially on targeted cancer of medication and immunotherapy drugs.
First it provides additional countries for the weekend tumor.
And the insurance lines can receive repayments.
Repayments with 40% of the amount of insurance from each subject to find you and where do you care and helping clients, whereas the remains of managed services for many years of trading peer and here. It is and most of the products from the market.
Furthermore, additional coverage from miles of my math right and several of your Al mentioned is the option of which offers more flexibility.
And the long term with the least very still room for greater in mind for pretty good and protection and we will continue to explore and develop children's critical illness insurance part of the multiple multiple classes of product product flow and parents life and the other innovative product that's the value of I guess so.
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In terms of digital transformation during the quarter, we acquired authoritative statistic cage and qualification and technology and R&D, including the inflammation and security management and see sensitive patient the information technology and services management and see some certification and our R&D.
The center has successfully achieved the C and and maturity of lots of asleep certification.
That's the explanation six and you find places some R&D capabilities and our high standard of information security.
And we will continue to develop and optimize our technologies and the other two provides users with quality products and efficient and safe services.
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And.
Regarding our online to offline strategy, we have established a service team in Shenzhen and putting two trial operations during the quarter target users were selected based on loss of the national user of data accumulated on our platform driven by refined the use of fortunate timing from them because of.
Our off line team initiated contact with local users who have mask purchases on the platform and demonstrating stronger insurance, the NAND and higher potential to comfort and offering differentiated products such as family health insurance coverage and in government insurance.
We are laying the foundation for Celgene and the last mile copper and of high end product conversion by connecting online shopping with premium off line services.
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You sort of the job could you pull and some value but.
So net net.
So who conduct trends with the program could you give you a path the jokes they can't Cook city of buyback close both of them.
With the US Asia and segmentation of the regulation of Internet insurance business in China, the online insurance industry.
Right and the more sustainable and healthy environment and share.
Turning compliance and strong corporate governance has always seen the importance of startups.
With the management.
And the industry and so as I say, Oh fast and healthy development of.
And we'll continue to focus on the users policy on core capabilities into the operational efficiency and parasite users with more of its diversified and personalized products and services.
The online and offline channel as well.
The velocity the opportunity presented by the accelerating the digital transformation of the insurance industry empower upstream and downstream partners and the whole range insurance ecosystem with data and technology, it's off the more mature of insurance technology solutions and strive to achieve.
He of sustainable development and high quality growth going forward.
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Okay.
This concludes my prepared remarks was the day I will now turn the call of course, you are staying at home and several non cash.
He loved her life and also to your off of our key financial highlights for the quarter.
Thank you and the demand areas and HIFU and excellent.
The first day.
And of course, another record quarter of Q1 and.
In terms of a whole slew of GWG from citizens.
Yes.
That's the one of the thoughts little operating revenue.
For the first quarter two of those uwp amounted to RMB, one and fulfilling.
But the sending a very strong one of them.
Year over year in.
And in particular because of the premiums on wipes and Nike accounted.
Accounted for RMB 189, 8 billion.
One of the 4 billion.
Approximately 64% of W. P.
Which represent $2 two exports year over year.
The strong operating performance and FRP.
And as a result of industry factors, and Texas, particularly with respect to the transition of the.
Definitions of old to new teams during the period.
Really concentrated in the spike.
And with that the modem.
January and that's one of the traditional seasonal strength and the auspicious because the type of kind of the first quarter for the industry.
And the other half of strong growth in FY two months. He can also be attributed to a more aggressive and during the quarter.
In terms of both customer acquisition and servicing of case I'll try the appointment of stuff.
In order to really capture it isn't proportionate market share piece of it.
Petition and given our focus on the clients high quality long term insurance customers.
The leap the quota of yourself and shown that the Turkish football.
In terms of of renewal business and renewal premiums accounted for RMB 500 level of millions of doses of 36 per cent of the 1 billion pool of.
The WP.
Representing a year over year increase 57 per cent.
And as mother had touched on earlier, the freight probably with consistently strong persistency metric.
And killing of about 94% plus 13 and 25th month.
Persistency of doing the possible simple.
We believe that type of thing for us as we continue to drive efforts to increase the.
The time value of those estimates.
We have demonstrated the power increase distribution of the savings insurance products and the quota and Florida.
First quarter of approximately 18, 6% of our FY two months and was contemplated from multiple life and annuity products of distributions.
We have been able to generate the two purchases from existing users of savings programs was about the result.
30, and 90% of accumulated savings kind of some of that.
Yes.
And it puts us one of the more time before went up less of them.
And until the pump.
And the first quarter as I mentioned earlier due to the marketing messages and it's really simple.
The active marketing strategies to capture market share of CW.
Can you talk with people and long term health insurance increased by one of the two between between yoga and yet.
One of the 1 billion of Julien.
During the quarter due to the piece of long term life and health insurance accounted for approximately 96 of 9% of solutions of the geography.
And just other People's closely both of her insurance company partners.
Apart from the RMB 50 million accounting for 61% of total true distributors and representing an increase of 10% 10 percentage points from the same period of last year.
And with continued to reflect the increasing engagement with the upstream industry.
Among them the most of all of them for the following the free free.
Which is one of the best selling of critical illness insurance from its online.
Which would develop and life insurance.
And especially the premiums of approximately 320 billion on diesel.
Now I'll turn into revenue.
And revenue for Q1 was the RMB 17 of 735 billion.
And again that could quote and high.
Which was up by 196 and yields a year and outperformed the guidance previously given to the market in the previous conference calls.
The increase in revenue related to the increase.
The increase in brokerage income.
Due to the one of the 33% increase and pillows GW piece of associate is doing the positive.
Cost of revenue per Q1 increased to RMB 557 billion and married from tobacco increased simplicity and speed to our channel partners and as we had mentioned earlier and earlier.
The other expenses of quota reached by 45, and 12% year over year to RMB $77 million.
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Which increased by almost one excellent year over year.
Free again flexibly increased during the quarter and capitalize on the significant market opportunities and demand from critical illness products one of them.
The increase of some expenses.
It's a beautiful day increased sales and marketing head count year over year.
G&A expenses for the quarter, 38% of percent year over years of RMB 54 from 115.
This increase was primarily attributable to the increased rental expenses and just the opposite.
The potential so just wanted and integrating.
G&A some of it.
One of the benefit of benefits, which is offset by a decrease in share based compensation expense this year over year.
R&D expenses for the quarter Blue boxes of the April.
And to RMB, $18 8 million, which is maintenance of the side out of.
The continued investment in overall, R&D and data and the dependent on system.
For the quarter, we haven't reported a GAAP net.
Net profit profit of RMB $28, five new ones moving it.
Excluding share based compensation and non-GAAP tempered with the R&D.
And the $38 7 million.
We continue to maintain we would love to predict the and the rest of the strong financial position as of put in place with.
And with a combined balance of cash cash equivalents of supplements.
76 out of the U S dollar some of them.
Turning to our Q2 guidance of inherently middle of.
Operating revenue for Q2 to be and the range of the RMB 213th of $250 million.
We note that essentially flat the last year as well.
The market demand, particularly in the split ups has been largely absorbed the advantages of.
During the Q1 serious serious and Q2 of the traditionally slow quarter for Chinese insurance industry industry.
Taken together the tier ones and one of the guidance what percent of first half of revenue book of one excellent year over year versus the same half of last year.
This forecast reflects the company's current and preliminary views on the market conditions, and I'll push and the conditions, which is subject to change change caused by the various uncertainties.
And the ongoing COVID-19 synthetic index.
So thats the concludes our prepared remarks of the day to today, we'll now open up the call of this year and next year.
Thank you. Thank you.
Yes.
Yes.
Hi, all time zone.
We can start Q&A session now.
As a reminder to ask the question do you want me to grasp of our one on your telephone.
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Everyone in the call.
Yeah.
Your first question comes from the line of line.
Sure.
To your question.
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The.
And so I don't really kind of and they go up.
And as you call people.
What are the benefits.
I think the deal with a good day, what makes your book.
And then of course, you got anything of any of our union and if he could and would shrink them up all day.
What's the Daniel.
And then you go and digital and it comes and make a module and you would see it off you go.
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Women's and your answers you each of the there's a host of them go down there.
And then when we kind of mentioned.
And then that Bobby.
Yeah of course, all that's doing well.
The last couple of day job.
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And all of which I'll come back.
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For the first quarter.
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He wants the wanted and now all of that how much of the DWP.
And what's coming from repurchase declines and how much from new customers and also and he wanted to know what that what's the company's.
Quality of customer application and strategy.
And also the he want to know what the assay Sarah any available data regarding the repurchase range that a company can share.
Okay.
Okay.
And here and let me just the question for with the team I think the interest of repeat purchases will definitely.
Increasing our <unk>.
Maintaining existing customers and engagement and also trying to increase the lifetime values.
And our customers and I think that I, just mentioned and a prepayment cockpit allowance of 89% of our savings products coming from repeat purchases and of the other shed the around the possible 19% the.
And why people the first quarter of Tamas from savings, we had in front of us. So it goes to the number it's been basically.
And the idea of especially but that's sort of less than 10 per census, and a host of.
Customers on the purchases. So I think this number is the Westfield zone and it.
Definitely there's a lot of upside and doing both of those the growth in this area I think we have mentioned because of the market for the last three years, so a lot of it.
It's been ramped up and sales up more.
Of the WP spin.
And then obviously to us and acquiring new kinds of just from the market.
The cause of the just the.
And obviously the person that we have the town and the data and insights that would be happening until the cause of customers. We are definitely going to increase engagement and drive long term value and whatnot because.
Because of the sudden behalf.
More precisely the and that's why also and slipping and doesn't heavily on the R&D to bakery sales out of Pennsylvania efficiently the screen and.
And and empowering agents each of our consultants, who pursued is with people such as customers and.
And module and I mentioned before the.
And the offline strategy.
All of this very critical people and starting points and well once the fly in airplanes, and the cyclone and muscle and and things of that right now and the initiatives still very much like the 12.
We have not establish the channel team and shifted into Q2 really.
So of the business and I think that we'd be happy to share more.
The metrics of the market.
Yeah, it's more critical mass.
Well the answer the hurricane and I can't.
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Okay. Thank you of a run rate of runoff.
Yes.
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Your next question comes from the line of the value of CLSA. Please ask your question.
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Oh, no no way of my finance.
My question is related to the deregulation.
The other internet.
It's true both of which is expected to be rented.
January of next year.
You know within the rule, they're awesome requirement.
Of course.
Pricing and also expense ratio, so I just wonder.
And what kind of a corresponding measure.
Great.
Okay.
Thank you.
Great. Thanks, everybody for joining the conference call.
So I think the very quick responses, but the rest of your question was the sensus and we obviously are in constant dialogue with both like the latest sides of the time as far as the more importantly, our industry partners moving.
The insurance company and I think right now.
And the rule would you just mentioned and it's not just doing consultative basically, although the likelihood of being faster and being and Nexus.
Yeah, I think what we've tried to do as a platform is the first of all of the ball compiled.
Compliant operations, and Richie and I guess until the of our own and kind of system upgrades and so forth from.
Some of the nitrogen.
And I'll be able to get ready ready Red zone of sudden rules come into the income tax expense.
With respect to the industry pricing.
That's right I think this is still up if you want the word at this stage I think the the industry of the foreseeable time, two and two of which the consensus and I think the critical asset for free for us that we have laid a strong zone.
Relationships not just from the company partners and we have.
Demonstrated through our vehicles.
The rest of it in terms of the mining products with the upstream partners and definitely the pump.
And find pricing and structure of I think of the on a very well position two of them to vantage and kind of the changes and just not sure.
So maybe towards the bottom line the recognition of diseases.
That's great. Thank you.
Thank you and everyone should happen.
Okay.
Once again, if you wish to ask the question. Please press star one on your telephone and wait free named <unk> and now.
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Please ask your question.
Okay.
And how do I go like landing on the call.
And what should I read kind of the most of that from the share market. She can talk about both of them.
Like all of it yet.
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Something of a medicine and I like that from that.
And so you do you just get from gain something bad Guy from much of our culture.
The other when you ship to them and just and I'll, just I'll come and of course of the I'll break down the IP on telephone line.
Can you and I kind of somebody T J and the need to make us all of the ship and now what they've done things out with them and to you.
Thanks for taking my question.
The mall from the MPC. My first question is are we halfway into the magnitude of effects caused by the switch off of the type of all year and each step of nation. One thing the thing there's feedback of that would explain the weight. My second question is how do you expect the kind of profitability coffee the range Quintin markets and defensive.
Okay. Thank the thinking again, thanks for joining the call.
Just two questions here, the especially relating to the C eyesight product and the market definitely I think that'd be took the quota.
And so that they can spike in demand for the.
The old definition from them.
And the marketplace and I think the lumpy.
Industry participants, including ourselves that's true.
And to really proactively recapturing market share at the end of period and Thats, the kind of even the I guess.
Upward trend and the cost side of things and I think that's also.
The brings us a lot of the customers.
During the period and F&B afterwards, very rough on and for the long term business.
And I think for the view that they should put us if we didnt come on stream free and become.
Yes.
The votes.
The scale up net sales sales.
The market and I think that's important to wait until the later part of the quarter.
When the trying to come down and bucket is full of lots of people behind them and put them.
The more well and we're still on the market and how the consumers. So I think that's probably we'll see more of a recovery.
One of the distribution in the month of June to June and.
And then the first quarter of the year.
So I think that's the first question.
In terms of the second question on all of you on.
Of the ability of the things that you can see and of course sports and of course with the strong.
And it goes through and.
And also demonstrate the platforms and ability to see into the book of two seem to the businesses, we have been able to achieve much of significant.
The growth in the.
Single quarter without really are.
And and putting them.
The investments and non head count of two courses. So the demonstration of capabilities and also of the operating leverage out of the businesses and they have also shown the best pop.
And of course and of course.
And for the next few quarters and I think that that's when he came towards the look very slow.
And so you can see from our guidance.
And so Q2 is likely a bunch of public and I think that going forward the key.
And the market domains with the Ebola and I think that's a philosophy of balancing growth and the liquidity for the peso.
Some people to sort of the year.
The year.
Okay.
Thank you. Thank you.
Your next question comes from the line of our of checkout flow from kicking things off of that.
Yes.
Okay. Thank you. Thank you.
Of course.
How much of.
The world.
Uh huh.
Exactly.
Oh I'm from $10.
Okay.
Uh-huh without.
Okay.
That's true.
And question why.
And why you're fine.
Ah Okay and.
Hum.
Good morning, Josh the How's your share.
Uh huh.
Yeah.
And also holding on to pursue them.
The call I think of the next year.
And I can tell the town.
And to go and talented and.
A couple of things.
Yeah.
Oh.
So the first question that we have.
And the like Tencent and <unk>.
And of mutual aid platform.
Okay.
And I can say.
And of course.
On the commercial lines.
And our clients.
And on the other functionality.
And impact from the continuous right.
Mike.
And that the claims expense.
And then likely.
And.
No.
We kind of okay.
I'm sorry.
Yes.
And that's because.
So if we can think of.
Part of it.
Okay great.
Okay.
Okay.
Okay. Thank you.
And I guess the three questions.
The first question about the tool I guess, that's the question the question.
So obviously, we have seen that the market play of simply shutting down the various true up from let me say programs children are doing the overall.
A very realistic reflection of some.
And so the healthy and lumps and sustainability.
Although most of the industry I think the regulators are taking the.
And on this aspect and I think overall it doesn't mean that the competition closely.
And the tropical users of <unk>.
And maybe alleviate the visit.
Proposal three the because it had been.
And very laser focused on.
Focusing on the long term insurance, but of the sentiment in the marketplace and it is.
And most of you just touch on the.
Targeted customers or the abuse of program and may not be exactly what we are looking for and the core strategy. So I think the impact completely the right to the limits in terms of the see the business seem to Australia.
Yes.
So that's the first question.
The second question on the Cleveland and the <unk>.
And from this new government initiatives I think overall, the very encouraging in terms of promoting the general populations of insurance of redness, and and you know in the and the propensity to the book.
Procure of protection for themselves and the families and.
And again, I think that the pocket audience share.
That.
Really people sort of maybe more of a defense H or people, who are not the standard kind of climbed zone and lots of commercial insurance and all of the.
The medical reimbursement of true and stuff and the.
So I think that the who's who.
This new policy from the government of my assessment more.
With respect to the platform the more focus on short term insurance products from the medical insurance and so that's what the reimbursement.
The for ourselves, we are more and on the critical even the side on the month of life and health Science and I think that this may not be so they have as many of the impacts on August one of the systems.
So we are again focused on pocketing.
Pocketing the high achievement of these customers the people who are rapidly.
The timing of age with the highest.
Uh huh.
The income levels and revenue sort of education backgrounds and.
And and food.
Design of a high quality of life.
And it's sustainable.
Protection of policy for the where the ultimate holding by the.
The family.
So if we talk to the first question on cash.
And I think the consortium of items is a reflection of reality the opinions.
And the market not just ourselves and the across the book.
And particularly with respect to the incumbents of the top of my insurance companies in the country on inflation headwinds.
The quarter I think of that.
This is really has to do with the and so called the.
Critical illness.
And the absorption of demand from small cells.
So I think Q2 and Q1, it's all of that taken together again and I think its day.
A very strong yields of your revenue and some of them almost one onex and I think for the second half of the yoga skills and.
And sticking to all of you know.
Companies, the Microsoft keeping of quarterly guidance of like investments and we would wait until the.
The next quarter to keep off of the indication when the rest of it.
Thank you. Thank you.
Okay. Thank you.
Yeah.
Your next question comes from the line of Leo.
What type of fees off of your car.
And when she didn't actually isn't it.
So apparently the center of the journey.
What's the Eagle and Fiat and tier two shall range, how funny counties and the time guys.
Kingdom could use.
And you said.
The book those tonnes on the back of one of the like she tied to either one of them on Shanghai that'd be.
And so I just have the one question of anything and because of the magazine and take share from here.
And the competition landscape.
E comparing where you can engage the two decent new and insurers.
And all of the online platform.
Since then.
Okay.
Okay. Thank you.
Yeah Yeah.
So I think the question on the competitive.
Differentiation versus.
All of the competing platforms all of the.
I guess the more of the traditional offline book, because I think the first of all of them, but we are grateful pistol.
On July 19 of.
Technology and data to help the everything more of essentially neutral, which is all of the Genesis of the business model from 15 years ago.
I think it does and we have really have felt some of the team Clinton and the marketplace, including providing customers with a more comprehensive suite of products.
Providing them with the tools to compare and contrast for US we get the best value for money put up of himself and the most of the book one of them themselves.
The challenges being faced by the tradition of industry players with respect to maybe some of the aging agent force and schools.
And maybe more of a homogeneous product offering to the consumers. So I guess the differentiate by channel from the customer's perspective, along to get sick and the best of the.
And it's kind of for the only.
Yes, the other of especially in the sector, which is quite critical is the use of basically half and that's now a $7 billion, you'll hear sometimes that comes out of accumulated and myself.
Most of these customers already gone and just kind of what the average age of three to seven years and years.
And and most important of all 73 per cent of the declines are coming from the high tier cities in China. So I think that with respect to our product strategy of you have only from poverty.
It would be higher tickets feinstein, and we have disclosed just now and every super cycle and longtime policies on the front of the funnel.
Which also reflects the quality of the you said they said we are able to generate the new Intuit acquired.
On line with marketing channels.
And you know we have also been able to deliver a consistent and persistency ratio of ratios.
And at 94% I think that's the is.
Maybe some of the top quartile in the marketplace and also giving on ensuring the company. Upon this with the additional confidence and working with us to get out to something more and debated and more of.
Super kind of sort of market.
Thank you. Thank you.
Thank you. Thank you.
Okay.
Yes.
Your last question comes from the line of of Halsey Route of a M T V.
To your question.
Okay.
Okay.
The supply.
Right.
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I think that's possible.
Okay.
Yeah.
The sequential.
Yes.
Okay.
[noise], Brian and the Boston, Houston, and the team again.
And you basically kind.
The appointment.
Oh.
Got it.
Your line.
Uh huh.
Right.
And I said it can just imply.
Okay.
Okay.
Yeah.
And why.
And I was just I didn't want to come off of some pump.
Oh boy.
[laughter].
Yeah.
Okay.
Okay.
And so there are no questions.
I'd like to hand, the conference the battery the management for the closing remarks remarks.
Hi, Thank you for joining the cash today and we look forward to seeing you next time. Thank you.
Yeah.
Yeah.
This concludes today's conference call. Thank you for participating you may now disconnect.
Thank you everyone and I. Thank you.
Yeah.
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Okay.
And.
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