Fanhua Inc (NASDAQ: FANH) stock fell 3.97% (As on May 31, 11:11:22 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 23 has reported the total net revenues of RMB827.7 million (US$120.5 million), representing an increase of 20.6% from RMB686.4 million for the corresponding period in 2022. Non-GAAP operating income was RMB63.5 million (US$9.2 million) for the first quarter of 2023, representing an increase of 208.3% from RMB20.6 million for the corresponding period in 2022. Operating margin was 7.3% for the first quarter of 2023, compared to 3.0% for the corresponding period in 2022. Investment income was RMB12.6 million (US$1.8 million) for the first quarter of 2023, representing an increase of 207.3% from RMB4.1 million for the corresponding period in 2022. The investment income in the first quarter of 2023 consisted of yields from short-term investments in financial products, and is recognized when the investment matures or is disposed of. Non-GAAP net margin was 7.7% for the first quarter of 2023, as compared to 5.9% for the corresponding period in 2022.

Moreover, net revenues for agency business were RMB725.5 million (US$105.6 million) for the first quarter of 2023, representing an increase of 23.4% from RMB588.0 million for the corresponding period in 2022. Total GWP increased by 29.0% year-over-year to RMB4,444.0 million, of which FYP grew by 51.4% year-over-year to RMB851.9 million while renewal premiums increased by 24.6% year-over-year to RMB3,592.1 million. Net revenues for the life insurance business were RMB683.4 million (US$99.5 million) for the first quarter of 2023, representing an increase of 22.3% from RMB558.6 million for the corresponding period in 2022. Total life insurance GWP increased by 29.1% year-over-year to RMB4,359.8 million, of which life insurance FYP increased by 55.9% year-over-year to RMB767.8 million and renewal premiums increased by 24.6% year-over-year to RMB3,592.1 million. The increase in net revenues for the life insurance business was mainly due to an increase in new policy sales and acquisitions completed in the first quarter of 2023 which generated total revenues of RMB163.6 million, offset by the decrease in renewal commission income as a result of the decreased weighted average renewal commission rate of renewal premium collected, and to a lesser extent, due to changes in product mix.

Net revenues for the P&C insurance business were RMB42.1 million (US$6.1 million) for the first quarter of 2023, representing an increase of 43.2% from RMB29.4 million for the corresponding period in 2022.