Report
EUR 88.49
For Business Accounts Only
Waterdrop was the largest independent third-party insurance distribution platform in China in terms of first year premium distributed in 2020, as per iResearch. As of Dec 2020, it had insured 79.4m consumers and generated RMB14.4bn of first year premiums. It was also the largest medical crowdfunding platform in China with 340m donors, as of Dec 2020, who had donated over RMB37bn to 1.7m patients.
Over FY18-20, Waterdrop’s FYP grew by 14.8x while its brokerage income grew by 22.1x, well ahead of overall revenue and FYP.
However, the company recently shut down one of its segments, mutual aid, without giving much explanation for its rationale in doing so. In addition, its crowdfunding segment has had its fair share of scandals over the past two years. To add to it, it faces stiff competition from Ant Financials in its insurance distribution business.
Waterdrop Pre-IPO - Not really a thirst quencher
Waterdrop, a technology platform for insurance and healthcare services in China, aims to raise around US$500m in its US IPO. Tencent owned 22.1% and Swiss Re owned 5.7% of the company prior to its listing.Waterdrop was the largest independent third-party insurance distribution platform in China in terms of first year premium distributed in 2020, as per iResearch. As of Dec 2020, it had insured 79.4m consumers and generated RMB14.4bn of first year premiums. It was also the largest medical crowdfunding platform in China with 340m donors, as of Dec 2020, who had donated over RMB37bn to 1.7m patients.
Over FY18-20, Waterdrop’s FYP grew by 14.8x while its brokerage income grew by 22.1x, well ahead of overall revenue and FYP.
However, the company recently shut down one of its segments, mutual aid, without giving much explanation for its rationale in doing so. In addition, its crowdfunding segment has had its fair share of scandals over the past two years. To add to it, it faces stiff competition from Ant Financials in its insurance distribution business.
Underlyings
TENCENT 700 HK
Waterdrop Inc
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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