Transparency Updates - 30 September 2025

Bowtie Management Team

A Message to the Bowtie Community: The Key Strategy Behind Our Rapid Growth

At Bowtie, we believe in transparency, and that includes sharing the key driver behind our growth and numbers. Compared to traditional insurance companies, Bowtie operates a different customer acquisition and engagement model, focuses on different products, and has a different revenue model. We wish to share this context so you can have a clearer understanding of the insurance company you are choosing.

Since being authorized by the Insurance Authority in December 2018, we've rapidly scaled while keeping our initial purpose - to provide insurance protection to more people in more affordable means, and help close the insurance protection gap in Hong Kong. Over the past six years, our growth demonstrates acceptance of this new operating model:

Total Protection Amount: Surpassed HK$133 billion.

Annual Recurring Revenue (ARR): Reached HK$687 million in August 2025. This includes gross premiums from individual and group policies, as well as non-insurance recurring revenue.

ARR Growth: Over 120% year-on-year.

Market Ranking: We ranked first¹ in the direct channel, and 9^th position² across all distribution channels in terms of new individual non-single premium policies sold.

Market Share: We currently hold a 32% market share³ of new individual non-single premium policies sold through digital channels, and we believe our share is even higher within protection products.

Our Financials in Context

Bowtie is a well-capitalized leader in digital health insurance.

Financially, we and our investors understand that building a new insurance company operating a new model requires an upfront investment. We are fortunate to have anchor shareholders who share our purpose and also believe that digital insurance can be a new sustainable model. From day 1, our goal has been to build a sustainable model that provides real differentiated value to our policyholders, while being financially sustainable so that continued investments can be made into our products, systems and services. A variety of metrics below demonstrate the economics of our business model:

Strong Unit Economics

Strong Unit Economics: We are careful to monitor marketing spending to ensure our growth is sustainable. We target a 2-4x Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) ratio. This means for every marketing dollar we spend to acquire a customer, we expect to earn $2 to $4 over their lifetime.

Access to Capital

To date, we've raised over HK$1.2 billion from Sun Life Financial and Mitsui & Co. Our recent Series C round of HK$546 million is the largest funding round for a direct-to-consumer digital health insurer in Asia.

Solvency Ratios

As of August 2025, our estimated solvency ratio is well above 200%, which is higher than the industry target range of 120-150%, and meets all the requirements of the Insurance Authority. This represents a strong capital foundation for Bowtie to invest into our people and technology to better serve our customers, and to fulfill our claim promises.

Looking Forward

Given our strong year-on-year growth, we target to reach HK$1,000 million in ARR and achieve the point of breakeven by the end of 2026.

Our Commitment to Claims and Customer Value

Our business is built on trust. We believe in being transparent about our ability to pay claims, which is a key driver of our high customer retention.

Competitive Premiums: By removing sales commissions and streamlining our processes with modern technology, we can save you up to 40% on VHIS premiums⁴.

The claim approval rate of our VHIS products is at 98.3%⁵, proving we are a fair payer on legitimate claims. The remaining 1.7% are primarily due to health non-disclosure. For all products, we've processed over 150,000 claims, 99% of cases are picked up and assessed within 5 working days, and 95% are approved for settlement within the same timeframe⁶.

Retention Rate: Our 94%+ retention rate shows that customers aren't just buying our policies—they're staying with us.

Key Performance Indicators as of 31 August 2025

ARR: HK$687M

Unit Economics: 2-4x CLV:CAC ratio

Retention Rate:>94%

Number of customers: 152,435

Claim Approvals: 150,332

Customer Satisfaction: 90%

Operational Efficiency: HK$800M in protection per employee

Zero Commissions: We have zero sales commissions and zero surrender charges.

Our Vision for the Future

Bowtie is simultaneously achieving larger scale and faster growth, which validates our unique business model and reflects the public’s strong trust in our commitment. We are a mission-driven insurer, leveraging technology to better serve customers with simple, transparent products in a friendly, digital setting.Going forward, Bowtie will continue to benefit from Sun Life’s strong capital base and shared purpose of helping clients live healthier lives.We are confident that our transparent, customer-first approach will drive both financial success and industry transformation.

Disclosure Archive

2024

Financial Statements

Disclosure Statement



Remarks

¹According to Insurance Authority’s Provisional Statistics for Long Term Business 2024, in the fourth quarter of 2024, Bowtie Life ranked first in terms of the number of new individual non-single premium policies sold through Direct channel in Hong Kong.
²According to Insurance Authority’s Provisional Statistics for Long Term Business 2024, in the fourth quarter of 2024, Bowtie Life ranked in no.9 in terms of the number of new individual non-single premium policies sold through all channels in Hong Kong.
³According to Insurance Authority’s Provisional Statistics for Long Term Business 2024, throughout 2024, Bowtie Life has 32% of market share In terms of the number of new individual non-single premium policies sold through Direct channel in Hong Kong.The above premium comparison data is the result of a market study conducted on February 25, 2025, based on publicly available information.
⁴This study covers VHIS plans of a similar type, specifically those with the Ward level, that include "Supplementary Major Medical" and have a "Room and Board" limit between $800 and $1,200.
⁵According to public data, the average claim approval rate in the market ranged from 92% to 96% between April 2019 and the end of 2023. As of April 2025, the average claim approval rate for Bowtie's VHIS "Standard Plan," "Flexi Plan - Regular," "Flexi Plan - Plus," and Bowtie Pink was 98.3%.
⁶This data represents our typical service standards. The actual handling and processing time for any specific claim is subject to the complexity of the case, the completeness of the submitted documentation, and the specific health situation.