Shanhai-based Zhibao Technology has launched Zhibao Labuan Reinsurance Company Limited, a newly licensed reinsurance subsidiary based in Labuan, Malaysia.
The announcement follows the approval of Zhibao Labuan’s license by the Labuan Financial Services Authority (LFSA) on April 14, allowing the company to engage in general reinsurance business outside mainland China.
Zhibao Labuan will be led by Guangtong (Arthur) Ren as principal officer. Ren also serves as Zhibao’s executive director and chief actuary. He brings nearly three decades of experience in the insurance and finance sectors, including senior roles at AIG China such as chief financial officer, chief actuary, and regional chief actuary for Greater China.
His earlier career includes positions with Boston Consulting Group and Ping An Insurance. Ren holds an MBA from London Business School, along with a BSc in Mathematics and an MSc in Finance from Nankai University in China.
The formation of Zhibao Labuan marks a strategic expansion for Zhibao, which currently generates most of its revenue from digital insurance brokerage and managing general underwriter (MGU) fees through its Chinese operations.
Zhibao said that the new entity is expected to provide an additional revenue stream through reinsurance premiums and potential underwriting gains.
Zhibao noted that under certain scenarios, the company could effectively double its revenue per policy by combining its brokerage commission with reinsurance participation through Zhibao Labuan.
According to the company, the goal is for Zhibao Labuan to eventually reinsure a limited portion of the premiums generated by Sunshine Insurance Brokers and Zhibao Health, both upstream subsidiaries. The parent company will continue to focus primarily on brokerage services, with Zhibao Labuan acting as a minority risk carrier for select lines of business.
Zhibao CEO Botao Ma said the creation of the reinsurance entity provides access to additional revenue channels and positions the company within the insurance market in Labuan, which is known for its international reinsurance activity.
Ma also described the initiative as a means of leveraging Zhibao’s data and customer insights to tailor offerings and support the company’s broader objective of diversifying income sources.
Founded in 2015, Zhibao Technology is a Chinese insurtech firm specializing in digital insurance brokerage services. The company operates primarily through a 2B2C (business-to-business-to-consumer) embedded insurance model, delivering tailored insurance solutions to end-users via business partners.
In April 2024, Zhibao went public on the NASDAQ, raising US$6 million through its initial public offering.
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