Startup (00659.HK) announced its annual performance at the end of June this year, mentioning a significant 54% year-on-year increase in the Group's insurance business's attributable operating profit for the 2024 fiscal year, recording an attributable operating profit of 0.9649 billion Hong Kong dollars.
This remarkable performance is mainly attributed to business growth resulting in increased contract service margin release, higher return on earning assets, expected decrease in credit loss allowances, and one-time impacts related to the adoption of Hong Kong Financial Reporting Standard 17. Excluding the one-time impacts related to the adoption of Hong Kong Financial Reporting Standard 17, the attributable operating profit of the insurance business increased by 34%. Benefiting from strong new business, the contract service margin grew by 15% year-on-year to approximately 8.2 billion Hong Kong dollars as of June 30, 2024, driving profits recognized within the future contract period.
Startup mentioned that its subsidiary Futubull Insurance announced in July that it has been renamed chow tai fook Life, a strategic move aimed at strengthening its connection with the well-known brand "chow tai fook" and enhancing its market visibility. Chow Tai Fook Life, with attractive products, benefited from pent-up demand from mainland tourists after clearance, coupled with its promotional efforts, driving a strong annual growth of 77% in annualized premiums totaling 4.5489 billion Hong Kong dollars. Mainland tourists accounted for nearly 60% of the annualized premium amount, significantly higher than the pre-COVID-19 level. The new business value increased significantly by 37% annually to 1.2295 billion Hong Kong dollars, consolidating its long-term value. Due to product mix changes, the profit margin of new business value decreased from 35% last year to 27%. In the 2024 fiscal year, the fixed income investment portfolio of chow tai fook Life had an annual return rate of 4.5% (restated for 2023 fiscal year: 4.4%). In the first six months of 2024, chow tai fook Life ranked tenth in terms of annualized premiums performance among Hong Kong life insurance companies.
