Thomas Wang

Thomas Wong requested updates on sales momentum per policy premium, product mix, and the trend in commission rate and tick rate.

Answer

CFO Ray Wan reported that total revenue was driven by insurance distribution services (27.9% growth) and system services (36.9% growth). He stated that the average premium for short-term policies remained consistent with historical levels, and the tick rate is expected to be relatively stable, emphasizing that tick rate is one of several factors considered in optimizing ROI.

Thomas Wong requested updates on sales momentum per policy premium, product mix, and the trend in commission rate and tick rate.

Answer

Ray Wan, CFO, reported that Q3 revenue was mainly driven by insurance distribution services (27.9% growth) and system services (36.9% growth). He noted that the average premium for short-term policies remained consistent with historical levels, and the tick rate is expected to remain relatively stable for the full year, emphasizing a holistic ROI optimization strategy beyond just tick rate.

Thomas Wang from Goldman Sachs asked which specific markets were showing weakness in the agency channel during the first half. He also inquired about the drivers behind the 10% rise in required capital in just six months and how to model this metric going forward.

Answer

CEO Anil Wadhwani identified Malaysia and Vietnam as the challenging markets for the agency channel, citing industry-wide issues, and noted a change management program is underway in China. CFO Ben Bulmer advised analysts to model required capital growth using 'very early double-digit growth rates' for future periods.