Fanhua Inc. (NASDAQ:FANH) Q3 2023 Earnings Call Transcript November 21, 2023
Fanhua Inc. reported lower-than-expected earnings for the third quarter of 2023. The company's EPS came in at $0.03, missing expectations of $0.31.
During the earnings conference call, all participants were in listen-only mode. The call was being broadcasted live over the Internet and a webcast replay would be available later. The call was recorded and a Q&A session would follow the prepared remarks.
The call was hosted by Ms. Oasis Qiu, Fanhua's Investor Relations Manager. She welcomed everyone and mentioned that the discussion would include forward-looking statements based on management's current expectations and beliefs.
Mr. Yinan Hu, Co-Chairman and Chief Executive Officer, started the call by discussing recent market trends and the company's strategy proposition. He mentioned that the life insurance sector has faced challenges due to regulatory policy changes, but the company's key strategies continue to pay off.
Mr. Ben Lin, Co-Chairman and Chief Strategy Officer, provided a review of financial and operational highlights and discussed the company's business outlook. He mentioned that the industry is shifting towards being driven by technology and services, and companies with innovative services and technological capabilities will have a favorable position.
Mr. Hu also discussed the company's open platform strategy and collaborations with product suppliers. He expressed confidence in the future prospects of the industry and the company's strategy.
He then presented the company's earnings results for the third quarter of 2023. Despite disruptions caused by pricing changes to life insurance products, the company's results were solid. Total life insurance premium grew by 23% year-on-year and net income attributable to shareholders increased significantly.
The company highlighted its commitment to digitalization, empowering its sales team, and its open platform strategy. It also mentioned its progress with overseas expansion and a strategic partnership with ASIA Insurance.
Mr. Hu concluded the presentation by mentioning that the anticipated implementation of commission caps in the fourth quarter may bring short-term challenges, but it will also accelerate the development of the company's open platform strategy.
The presentation was followed by a Q&A session.