Zhibao's Subsidiary Receives 'Good' Financial Strength and Long-Term Issuer Credit Ratings from AM Best

Rhea-AI Summary

Zhibao Technology (NASDAQ: ZBAO) announced that its wholly owned reinsurance subsidiary, Zhibao Labuan, received an AM Best Financial Strength Rating of B+ and a Long-Term Issuer Credit Rating of bbb- with a stable outlook on November 14, 2025.

AM Best assessed Zhibao Labuan's balance sheet strength as strong, cited adequate operating performance, a limited business profile, and appropriate enterprise risk management. Zhibao Labuan was founded in April 2025, received a general reinsurance license in July 2025, and has not commenced operations as of the press date.

Positive

• AM Best Financial Strength Rating: B+ (Good)
• AM Best Long-Term Issuer Credit Rating: bbb- (Good)
• AM Best outlook: stable
• Balance sheet strength assessed as strong by AM Best
• General reinsurance license received in July 2025

Negative

• Zhibao Labuan has not commenced operations as of the press date
• AM Best cited a limited business profile for Zhibao Labuan
• Zhibao Labuan was founded recently in April 2025, indicating limited operating history

Insights

Insurance credit and corporate finance analyst

AM Best awarded Zhibao Labuan a B+ Financial Strength and "bbb-" Long-Term Issuer Credit Rating with a stable outlook.

Zhibao Labuan's ratings reflect a judged strong balance sheet, projected strong risk-adjusted capitalization at year-end 2025, prudent investment approach, and good liquidity; AM Best also cited adequate operating performance, a limited business profile, and appropriate enterprise risk management. The subsidiary was founded in April 2025, received its general reinsurance license in July 2025, and has not yet commenced operations.

These ratings create a credible third-party validation of the reinsurance vehicle's solvency and funding plans and can lower counterparty friction when seeking treaties or capital market access. Material dependencies include execution risk while building market share, the scale and terms of reinsurance assumed from affiliated brokers and MGUs, and the realization of the projected capitalization by year-end 2025. Watch for evidence of actual underwriting volume, the start of operations, and the pace of capital deployment over the next 6–12 months.

Shanghai, China--(Newsfile Corp. - November 14, 2025) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," or the "Company"), a leading and high-growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced that its wholly owned subsidiary, Zhibao Labuan Reinsurance Company Limited, a company incorporated in Malaysia ("Zhibao Labuan"), has received a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of "bbb-" (Good) from A.M. Best Company, Inc. ("AM Best"), the largest credit rating agency in the world specializing in the insurance industry.

The outlook assigned to these Credit Ratings is stable.

In addition, AM Best assessed Zhibao Labuan's balance sheet strength as strong and cited its adequate operating performance, limited business profile and appropriate enterprise risk management.

AM Best's ratings were supported by the following conclusions:

• Zhibao Labuan's risk-adjusted capitalization is projected to be at the strong level as of year-end 2025, supported by a prudent investment strategy and good liquidity;
• Zhibao Labuan expects to build its market presence by leveraging Zhibao and its affiliates' extensive partnerships with direct insurers and business platforms across various industries in mainland China;
• The subsidiary is expected to receive operational and underwriting support from Zhibao and affiliated companies; and
• Zhibao Labuan can benefit from improved data quality, particularly for health and medical products, as well as the expertise of its affiliated insurance broker and Managing General Underwriter.

"We are pleased to receive these positive ratings for Zhibao Labuan," said Zhibao's Chairman and CEO, Mr. Botao Ma. "The establishment of Zhibao Labuan is a core extension of our business model and an important step in our mission to redefine insurance services through technology.

"We believe these ratings affirm the strong foundational support and operational expertise we provide to Zhibao Labuan, which we believe will allow us to capture additional value within the insurance ecosystem and further strengthen our commitment to our partners, customers, and shareholders."

Zhibao Labuan's Principal Officer, Mr. Guangtong Ren, added, "These ratings from an international authority validate the foundations that our team has spent many months building. We are confident they will prove to be a great help to our business."

"We look forward to continuing to work with AM Best as they continue their regular monitoring and review of our operations in the international insurance landscape."

Zhibao Labuan, which was founded in April 2025 and received its general reinsurance license in July 2025, was created to reinsure a share of business produced by Zhibao Technology's operating entities, including Sunshine Insurance Brokers and Zhibao Health, in China. The subsidiary also enables Zhibao Technology to tap into an additional revenue stream through reinsurance premiums and the potential for underwriting profits based on the performance of the reinsured policies.

For example, if Zhibao Technology typically earns a 20% commission on the sale of a policy and Zhibao Labuan accepts a corresponding 20% reinsurance risk from the Chinese insurance carrier, we believe Zhibao Technology would have the potential to realize an additional 20% revenue from that policy-effectively doubling its revenue-with further potential for underwriting profits and proceeds from the investment of premiums.

While Zhibao Labuan adds depth to Zhibao Technology's offerings and enhances support for customers, we anticipate that Zhibao will remain primarily an insurance brokerage company, with Zhibao Labuan serving mainly as the core of the parent company's reinsurance business unit and as a minority risk taker for targeted business.

Zhibao Labuan operates alongside ZBAO's digital embedded insurance brokerage, Managing General Underwriter ("MGU"), and risk management units.

As of the date of this press, Zhibao Labuan has not commenced operations.

About Zhibao Technology Inc.

Zhibao Technology Inc. (NASDAQ: ZBAO) is a leading high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").

Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilize big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.

About Zhibao Labuan

Zhibao Labuan, which was founded in April 2025 and received its general reinsurance license in July 2025, was created to reinsure a share of business produced by Zhibao's operating entities, including Sunshine Insurance Brokers and Zhibao Health, in China. The subsidiary also enables Zhibao to tap into an additional revenue stream through reinsurance premiums and the potential for underwriting profits based on the performance of the reinsured policies.

As of the date of this press, Zhibao Labuan has not commenced operations.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

Investor Relations Contact

Zhibao Technology Inc.
Investor Relations Office
Email: ir@zhibao-tech.com

Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274510

FAQ

What AM Best ratings did Zhibao Labuan receive on November 14, 2025 for ZBAO?

Zhibao Labuan received a B+ Financial Strength Rating and a bbb- Long-Term Issuer Credit Rating with a stable outlook.

How does the AM Best assessment describe Zhibao Labuan's balance sheet for ZBAO?

AM Best assessed Zhibao Labuan's balance sheet strength as strong and projected risk-adjusted capitalization at the strong level by year-end 2025.

Has Zhibao Labuan started operations and when was it licensed for ZBAO?

Zhibao Labuan was founded in April 2025, received its general reinsurance license in July 2025, and had not commenced operations as of the press date.

What business role will Zhibao Labuan play within ZBAO's strategy?

Zhibao Labuan is intended to reinsure business produced by Zhibao's operating entities and serve as the core of the parent company's reinsurance unit and a minority risk taker.

Could Zhibao Labuan materially increase ZBAO revenue immediately?

The company gave an example where accepting a 20% reinsurance share could effectively add an incremental 20% revenue from that policy, subject to actual operations and underwriting results.

What risks did AM Best note for Zhibao Labuan relevant to ZBAO investors?

AM Best noted a limited business profile and referenced appropriate enterprise risk management but highlighted the subsidiary's limited operating history.