BRIEF: Fanhua’s revenue down sharply on falling commission rates
Financial services provider Fanhua Inc. (FANH.US) reported on Wednesday its revenue fell 42.7% in the first half of 2024 to 1.12 billion yuan ($158 million), blaming falling commission rates and sales volume for the decline. Its profit plummeted over the period to 4.74 million yuan from 137 million yuan a year earlier.
The company’s total gross written premiums for its life insurance business fell 0.7% year-on-year to 8.64 billion yuan in the last six-month period. Its first-year premiums fell by a much larger 48% to 1.2 billion yuan, but that was mostly offset by a 16.7% rise in revenue from its renewal premiums.
Fanhua gets the big majority of its revenue from its core insurance brokerage business, though it is trying to diversify into other financial services. The company’s stock fell 4.6% in after-hours trade after it published its latest financial report on Thursday after market close.
By Doug Young
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