Huize Holding Limited, a leading insurance technology platform in Asia, has announced its acquisition of Global Care Consulting Joint Stock Company, a pioneering insurtech company in Vietnam. The acquisition marks Huize’s entry into its second international market and accelerates its mission to create a pan-Asian digital insurance distribution platform under its international brand Poni Insurtech.

Global Care, established in 2017, is a leading insurtech company in Vietnam that empowers insurers to streamline and digitize their sales processes, policy administration, and operations. Its suite of cloud-based API solutions and mobile apps offer a broad range of embedded and customized insurance products to a diverse customer base by connecting insurers with merchants and various distribution channels, including leading e-commerce platforms such as Grab and Ahamove. In 2023, Global Care facilitated 13.5 million policies on its platform with revenue more than quadrupling year-over-year and registered users growing in excess of 1.3 million.

Vietnam is a highly attractive emerging market for insurance with a sizable, young and digital-native demographic of 100 million people, coupled with strong macro tailwinds and FDI inflows driving robust GDP growth in the coming decade. Huize’s acquisition of Global Care is expected to generate significant synergies that will drive market share growth for Global Care by accelerating new product development through leveraging Huize’s technology stack and AI solutions, as well as existing partnerships with leading global insurance brands.

Huize’s new international brand Poni Insurtech will acquire a controlling stake in Global Care through the purchase of existing shares and subscription of new shares in multiple closings. VinaCapital Ventures, the technology investment vehicle of VinaCapital Group, a leading investment management firm in Vietnam with USD4 billion of assets under management, will receive as partial consideration newly issued class A common shares of Huize representing approximately 1.7% of issued share capital on a fully-diluted basis, and 50% of which will be subject to a one-year lock-up period. Upon completion, Global Care will become Huize’s subsidiary and its financial results will be consolidated into the Company’s consolidated financial statements.

Huize’s expansion into Vietnam is a strategic move that will enable the company to replicate its successful digital insurance model from its home market starting with Vietnam. The acquisition of Global Care is a significant step towards Huize’s mission to create a pan-Asian digital insurance distribution platform under its international brand Poni Insurtech.

As insurance executives, it’s important to stay ahead of the curve and embrace digital transformation solutions for the insurance industry. Huize’s acquisition of Global Care is a prime example of how insurtech companies are disrupting the traditional insurance industry and creating new opportunities for growth. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast. Get in touch with Riskwolf today to learn more about how we can help you stay ahead of the curve.

Source: MarketScreener