Zhongan Online P&C Insurance Co., with more than 400 million customers, is targeting an initial public offering in the next 12 to 18 months, reports Bloomberg.
The company is currently eyeing listing in Hong Kong, but it is also considering holding the IPO in the US, according to CFO John Bi. Zhongan is also considering holding a pre-IPO private funding round to attract global investors and provide strategic value to its insurance business.
Backed by Chinese giants Ant Financial and Tencent Holdings Ltd., Zhongan works with internet companies to provide policies for China’s younger users in the automotive, health care and online shopping sectors.
Zhongan operates in an online insurance market that is expected to reach $300 billion by 2025.
Zhongan focuses on users who are used to simple procedures when shopping online and have no patience to fill in traditional insurance application forms. This kind of method makes it perfectly suitable for younger insurance buyers.
Ant Financial, formally known as Zhejiang Ant Small & Micro Financial Services Group, is Zhongan’s largest shareholder with a 16% stake. Tencent and Ping An each hold 12% stakes.
Zhongan’s flagship product is one that allow merchants who sell on Alibaba Group Holding Ltd. cover shipping losses when customers return goods, ranging anywhere from 10 to 100 yuan, depending on the performance history of the seller.