Huize, a digital insurance product and services platform from China, has announced the acquisition of Vietnam’s insurtech company Global Care for an undisclosed sum.
The move represents the first step in Huize’s ASEAN expansion through its new international brand, Poni Insurtech.
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Established in 2017, Global Care specialises in digital transformation solutions for the insurance sector.
Its cloud-based application programming solutions and mobile apps are used by clients to offer an array of embedded and customised insurance products.
Global Care connects insurance companies with merchants and distribution channels, including e-commerce platforms such as Grab and Ahamove.
In 2023, Global Care’s platform is said to have facilitated the issuance of 13.5 million policies, with revenues more than quadrupling from the previous year.
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By GlobalDataThe company also saw its registered user base grow to over 1.3 million, Huize noted.
Huize’s Poni Insurtech will acquire a controlling stake in Global Care through the purchase of existing shares and the subscription of new shares in multiple closings, as per the transaction documents.
Global Care’s backer VinaCapital Ventures will receive newly issued class A common shares of Huize as partial consideration for the acquisition.
This will represent approximately 1.7% of Huize’s issued share capital on a fully-diluted basis, with half of these shares being locked up for one year.
Following the acquisition’s completion, Global Care will operate as a subsidiary of Huize, and its financial results will be consolidated into Huize’s financial statements.
Huize co-chief financial officer and head of international business Ron Tam said: “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.
“This acquisition 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.”
Global Care founder and CEO Dinh Thi Ngoc Niem said: “Empowered by Huize’s technologies, industry alliances and extensive operational experience, we will be able to significantly enhance our offerings and expand our reach.”
This deal comes shortly after Huize’s partnership with PICC Life Insurance in April, which saw the introduction of a new customised critical illness insurance product, i Wu You – Low-Threshold Edition.
