HONG
KONG, Nov. 29, 2024 /PRNewswire/ -- AIX Inc.
(NASDAQ:AIFU) is a leading company focused on insurance agency and
claims services. Recently, the company has been gradually pushing
for an intelligent and diversified transformation, aiming to
capture growth opportunities in the AI insurance and healthcare
sectors. The restructuring of its high-quality assets and a
strategic partnership with BGM Group Ltd. (NASDAQ:BGM) are expected
to create a second growth curve for the company's future
performance.
1. Restructuring Quality Assets to Build a Smarter
Future
AIFU has recently undertaken the restructuring of its core
assets, involving an amount of $140
million, including RONS Intelligent Technology
(Beijing) Co., Ltd. ("RONS
Technology") and Shenzhen Xinbao Investment Management Co., Ltd.
("Xinbao Investment").
This is not a simple "sale" transaction; the restructuring
involves the Duxiaobao AI insurance platform, which provides
intelligent solutions to the insurance market through AI and big
data. AIFU exchanged these assets for 72% of BGM Group's shares,
becoming the majority shareholder of BGM Group. This transaction is
expected to significantly increase BGM Group's market value and
open up new opportunities for AIX Inc.'s future development.
Key Points of Asset Restructuring:
- Business Growth Potential: The Duxiaobao AI insurance
platform has strong technical barriers (based on Baidu's big data
platform) and market potential (AIFU's insurance brokerage
platform) and is expected to drive significant performance growth
for BGM Group in the coming years. AIFU retains control of the
future development of Duxiaobao through its stake in BGM.
- Undervaluation: BGM Group currently has a market
value of only $52 million, yet its
new business has a market potential that far exceeds its current
valuation. As the majority shareholder of BGM, AIFU stands to
benefit from BGM's business growth.
- Dual Business Synergy: BGM Group is a global leader
in the pharmaceutical industry. Through deep cooperation with BGM
Group, AIFU has strengthened its presence in both the AI insurance
and healthcare sectors, with the potential to become a leader in
these two industries.
2. BGM Group: From a Market Value of Millions to a Potential
Leader in AI Insurance
- Technical Advantage: BGM is positioned to take a leading role
in the AI + insurance market transformation by leveraging the
Duxiaobao AI insurance platform and Baidu's big data capabilities.
It can offer personalized insurance solutions to the market.
- Market Opportunity: The global AI insurance industry is on the
brink of a major expansion, and BGM is well-positioned to seize
this opportunity.
- Industry Trend: The "pharmaceutical + insurance" model is
gaining momentum in China, where
over 400 million people have chronic conditions. Annual medical
expenses account for 60% of total expenses, yet related premiums
constitute only 5% of health insurance, revealing a significant
protection gap. From 2012 to 2022, China's commercial health insurance
experienced a compound annual growth rate (CAGR) of 25.93%, far
surpassing the average growth rate of the insurance industry,
indicating tremendous growth potential. Successful cases such as
CVS's acquisition of Aetna and UnitedHealth Group's integration
with OptumRx validate the critical value of "pharma + insurance"
collaborations in optimizing costs, innovating supply chains, and
facilitating data sharing.
Currently, BGM Group's market value has not yet been fully
realized in the secondary market. If the AI insurance business
expands rapidly, BGM Group's market value and stock price are
likely to undergo significant revaluation.
3. AIFU's Undervaluation
As of December 31, 2023, AIFU's
total revenue reached $3.198 billion,
reflecting a year-on-year increase of 14.98%, and net profit was
$289 million, demonstrating a
year-on-year increase of 237.25%. As the largest insurance
brokerage platform in China, AIFU
has a Price-to-Earnings (P/E) ratio of only 3.5x. In comparison,
Prudential Insurance reported revenue of $11.9 billion, up 143%, with a net profit of
$1.712 billion, up 271.72%.
Meanwhile, Prudential Financial's revenue was $53.979 billion, down 5.1%, but its net profit
rose by 249%, reaching $2.508
billion. These results highlight AIFU's significant growth
potential.
With a market value of approximately $76
million, AIFU stands in stark contrast to Prudential
Insurance (PUK, market value of $21.7
billion) and Prudential Financial (PRU, market value of
$46.1 billion). While Prudential
focuses primarily on traditional insurance products, AIFU is poised
to disrupt the industry with AI-driven solutions, supported by
Baidu's big data, which will effectively reduce costs, expand
market share, and improve customer satisfaction.
4. Pharmaceutical and Healthcare Strategy Driving Valuation
Growth
AIFU not only focuses on the AI insurance business but also
heavily invests in the pharmaceutical and healthcare sectors,
seizing new opportunities brought about by global population aging.
Key driving factors include:
- Aging Population: An increase in the elderly population
leads to a greater demand for insurance and healthcare
services.
- AI + Health Management: AIFU plans to use AI technology
to offer customized insurance products and services for its client
base.
Through the strategic restructuring with BGM Group, AIFU has
formed a powerful alliance in both the AI insurance and healthcare
sectors, positioning itself to become an industry leader. Whether
in terms of BGM Group's valuation potential or AIFU's business
expansion, this transaction presents a unique opportunity for
investors. The dual drivers of AI insurance and healthcare will be
the cornerstone of the company's future development.
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SOURCE AIX Inc.