Fanhua Inc. (FANH) Reports Q1 EPS of $0.32

Fanhua Inc. (NASDAQ: FANH) reported Q1 EPS of $0.32. Revenue for the quarter came in at $134.44 million versus the consensus estimate of $217.69 million.

"The performance of our core business, life insurance business, was in line with our expectation. Our total life insurance premiums grew by 40.1% from a year ago, outpacing industry growth, primarily owing to strong year-over-year growth of 186.5% in renewal life insurance premiums during the quarter, reflecting the attractive business nature of the long-term life insurance business. i.e. the snowball effect created by the accumulation of renewal business. First year annualized premiums equivalent ("APEs") were down 12% year-over-year, consistent with our expectation, mainly affected by the continued adjustment in annuity products and the high base in the same period of last year. In the meantime, the fundamentals of our life insurance segment remain solid, as evidenced by the strong growth momentum in both registered sales agents and performing sales, and over 40% year-on-year growth in APEs of health insurance products for the first quarter of 2018.

"We are also happy to see positive operational and financial contributions from our various internet platforms which have demonstrated leading advantages in each of their respective areas and started to generate commercial value. These achievements have fully demonstrated the foresight and accuracy of the business strategies that we've implemented over the past few years. We believe our internet platforms will become a new driver for the continued growth of the company in the future.

"Looking ahead to the second quarter of 2018, we expect the life insurance industry will be on track for a healthier development, in view of current financial and insurance regulatory trends. But we firmly believe that the decoupling of manufacturing from distribution is an irreversible trend and the industry's transition towards protection-oriented business is favorable for Fanhua. As such, we expect to achieve positive growth in first year life insurance APEs and operating income of no less than RMB100 million in the second quarter of 2018."

For earnings history and earnings-related data on Fanhua Inc. (FANH) click here.

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