Virtual insurer OneDegree has reported its first full-year profit in 2025, becoming one of Hong Kong’s virtual insurance companies to achieve profitability.

The company reached this milestone just over five years after commencing operations in 2020, marking the fastest route to profitability among Hong Kong’s virtual financial institutions, including virtual insurers and digital banks.

For 2025, OneDegree recorded total revenue of HK$330 million, representing a year-on-year increase of 38%, while operating costs remained broadly stable.

Since its launch, the company has delivered a compound annual growth rate of over 100%.

Its overall policy renewal rate is expected to reach 90% by 2025, supported by a customer base that has expanded 19-fold to more than 240,000 cumulative policies.

The company attributed its performance to technology-led operations, high renewal rates and diversified business development.

Automation across underwriting, claims and renewals has improved operational efficiency, with 40% of claims approved automatically within seconds.

Despite revenue increasing 38-fold over five years, headcount has remained at approximately 100 employees.

AIFT Co-Founder Kwok Yin-lun said:

“As a virtual insurance company, we have made good use of technology automation and artificial intelligence to significantly improve operational efficiency. This has allowed revenue growth to far exceed the increase in expenses, while also improving customer experience, enabling the company to achieve profitability within a short period of time.”

Beyond insurance, non-insurance activities such as the OneDegree Pet Department Store and related partnerships contributed nearly 30% of strategic partner development revenue.

The company’s digital asset insurance business has expanded rapidly, with revenue growing more than sevenfold in three years.

In 2025, OneDegree also began expanding into overseas markets, while maintaining a 70% market share in Hong Kong.

Featured image credit: OneDegree