- Zhibao Technology (NASDAQ: ZBAO) has established the Zhibao Labuan Reinsurance Company.
- The new entity received its license on April 14, 2025, from the Labuan Financial Services Authority.
- Zhibao aims to diversify revenue by incorporating reinsurance operations to enhance growth.
Zhibao Technology Inc. (ZBAO, Financial), a prominent player in the InsurTech sector, has launched the Zhibao Labuan Reinsurance Company Limited. This new venture extends Zhibao's operations beyond mainland China and marks a significant diversification in its business model. On April 14, 2025, the company secured a license from the Labuan Financial Services Authority to conduct general reinsurance operations.
By introducing Zhibao Labuan, Zhibao Technology plans to explore new revenue streams through reinsurance premiums and potential underwriting profits. This strategy can potentially double the revenue from specific insurance policies. For instance, when Zhibao typically earns a 20% commission on policy sales, Zhibao Labuan's acceptance of a 20% reinsurance risk could result in doubling the income from those policies. This approach also opens up opportunities for underwriting profits and premium investment returns.
Despite these expansions, Zhibao remains committed to its core operations as a brokerage entity. Zhibao Labuan is set to participate in a small segment of the total insurance premiums generated by Sunshine Insurance Brokers and Zhibao Health. The strategic placement in Labuan, Malaysia, provides a gateway to international markets, leveraging Labuan’s reputation as a global insurance hub.
Guangtong (Arthur) Ren, Zhibao's Executive Director & Chief Actuary, will head Zhibao Labuan. With nearly three decades of expertise in insurance and finance, Arthur Ren brings extensive knowledge to spearhead this new initiative.
Through this strategic expansion, Zhibao Technology aims to enhance its competitive edge by integrating reinsurance capabilities, which allows the company to develop customized insurance products and further diversify its revenue model.
