Insurtech firm Zhibao Technology has launched a new reinsurance subsidiary, Zhibao Labuan Reinsurance Company, to focus on general reinsurance business outside mainland China.
Zhibao’s existing revenue streams are primarily derived from brokerage and managing general underwriter (MGU) fees through partnerships with insurers.
The firm expects Zhibao Labuan to open a fresh revenue avenue through reinsurance premiums and potential underwriting profits linked to reinsured policy performance.
It states that if it typically earns a 20 per cent commission on a policy and Zhibao Labuan takes on a corresponding 20 per cent reinsurance risk, this creates the potential to double its revenue on that policy.
The company adds that proceeds from the investment of premiums could further boost the group’s profitability.
Zhibao Labuan is expected to eventually participate in a small portion of the insurance premiums generated by Sunshine Insurance Brokers and Zhibao Health.
While the reinsurance unit expands Zhibao’s capabilities, the company remains primarily focused on its core brokerage business, with Zhibao Labuan playing a targeted, minority risk-taking role.
Botao Ma, CEO of Zhibao, says: “I am excited about gaining access to the thriving Labuan insurance market, an internationally recognised hub for reinsurance providers.”
He described the initiative as “a new frontier for revenue” and notes that it is rare for a brokerage to establish a risk-carrying entity, positioning Zhibao as an innovator in the sector.
Zhibao’s upstream subsidiaries, with detailed knowledge of clients and underwriting terms, will help select suitable business for Zhibao Labuan.
“In cases where local insurers fall short on customisation, Zhibao Labuan can take the lead in pricing and product development using our data and market knowledge,” Ma notes.
He adds that the strategy not only signals confidence in Zhibao’s business but also strengthens alignment with (re)insurance partners.
“This move supports our long-term goal of revenue diversification and enhancing shareholder value through profitable market investments,” he says.
