Chewy (NYSE:CHWY) Q3 2026 Earnings Call December 10, 2025 08:00 AM ET Speaker6Hello and welcome to the Chewy third quarter 2025 earnings call. My name is Emily, and I'll be coordinating your call today. After the presentation, you'll have the opportunity to ask any questions, which you can do so by pressing star followed by the number one on your telephone keypad. I will now hand over to our host, Natalie Nowak, to begin. Please go ahead.Speaker7Thank you for joining us on the call today to discuss our thir ...

Financial Data and Key Metrics Changes - The company delivered a solid third quarter in line with expectations, maintaining a full year 2025 EPS outlook of approximately $17 [6][16] - Medical cost trends continued to align with expectations, supporting the reaffirmation of the adjusted EPS outlook [16][19] - The company experienced favorable conditions that allowed for higher-than-anticipated investments, totaling approximately $150 million in incremental investments [16][17] Business Line Data and Key Metrics Changes - The Medicare product and experience focus is on maximizing customer lifetime value and member retention, with new sales at the high end of anticipated outcomes [8][10] - There was a significant reduction in plan-to-plan sales year over year, indicating a potential decrease in voluntary attrition [10][12] - The company is seeing improved Stars performance metrics, with operational gains continuing into 2025 [12][13] Market Data and Key Metrics Changes - The company is experiencing a favorable channel mix, with greater volume in its own distribution channels and improved digital distribution [9][10] - The company is not seeing outsized sales in areas where competitors have exited plans, indicating a stable market position [10][11] - The overall market growth is expected to be in the mid-single digits, consistent with historical trends [67][68] Company Strategy and Development Direction - The company is focused on transforming into a consumer healthcare company, emphasizing customer experience and retention [11][62] - Capital allocation strategies include selling non-core assets and investing in growth opportunities, such as The Villages Health acquisition [14][19] - The company aims to return to top quartile Stars results by 2028, with ongoing efforts to improve clinical excellence and operational efficiency [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pricing and outlook for AEP 2026, despite disappointing Stars results for bonus year 27 [15][19] - The company is committed to balancing short-term performance with long-term value creation, focusing on member experience and retention [62][63] - Management acknowledged the evolving external environment but remains optimistic about executing against their strategic plan [6][19] Other Important Information - The company is implementing a multi-year transformation plan aimed at improving operational efficiency and reducing costs [14][18] - The debt-to-cap ratio at the end of the quarter was 40.3%, down from 40.7%, with a long-term target of approximately 40% [19] Q&A Session Summary Question: Membership growth projections and operational capacity - Management emphasized a focus on lifetime value and member retention, indicating that growth is an outcome of these objectives [24][28] Question: Update on diversification strategy and H5216 - The company is working to deconsolidate H5216 to reduce risk and improve portfolio balance, with progress expected over the next few cycles [33][34] Question: Membership growth expectations and MA agreements - Management refrained from providing specific numbers but indicated that they are monitoring multiple factors affecting membership growth [39][40] Question: Stars recovery efforts and performance metrics - Management reported strong progress across various metrics, with a focus on HEDIS and patient safety metrics [50][51] Question: Margin characteristics and long-term targets - Management discussed the dual opportunity in Medicaid, highlighting the potential for higher margins compared to traditional MA business [94][95]

Financial Data and Key Metrics Changes - The company delivered a solid third quarter in line with expectations, maintaining a full year 2025 EPS outlook of approximately $17 [5][17] - Medical cost trends continued to align with expectations, supporting the reaffirmation of the adjusted EPS outlook [17] - The company experienced favorable conditions that allowed for higher-than-anticipated investments, totaling approximately $150 million in incremental investments [17] Business Line Data and Key Metrics Changes - The Medicare product and experience focus is on maximizing customer lifetime value and retention, with new sales at the high end of anticipated outcomes [9][10] - There was a significant reduction in plan-to-plan sales year over year, indicating a potential decrease in voluntary attrition [10] - The company is seeing improved channel mix and product mix, with higher-than-expected sales in plans rated four stars and above [10] Market Data and Key Metrics Changes - The company is not seeing outsized sales in areas where competitors have exited plans, indicating a stable market environment [10] - The overall growth strategy is focused on customer retention and experience, rather than solely on new sales targets [9][28] Company Strategy and Development Direction - The company is committed to achieving a Medicare Advantage pretax margin of at least 3% over time, with a focus on clinical excellence and operational efficiency [5][6] - Capital allocation strategies include selling non-core assets and investing in growth opportunities, such as The Villages Health in Florida [14][20] - The company is transitioning towards a consumer healthcare model, emphasizing customer experience and retention [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pricing strategy and the outlook for AEP 2026, despite disappointing STARS results for bonus year 27 [16][20] - The company is optimistic about returning to top quartile STARS results by bonus year 2028, with ongoing operational improvements [12][16] - Management highlighted the importance of balancing short-term and long-term value creation, focusing on sustainable growth [62][64] Other Important Information - The company is actively pursuing M&A opportunities in the current market dislocation, targeting small to mid-sized provider businesses [20] - The debt-to-cap ratio at the end of the quarter was 40.3%, with a long-term target of approximately 40% [20] Q&A Session Summary Question: Membership growth projections and operational capacity - Management emphasized a focus on lifetime value and retention, stating that growth is an outcome of these efforts, and they are dynamically managing new member growth [24][28] Question: Update on diversification strategy and H5216 - The company is working to deconsolidate H5216, aiming for a balanced portfolio of contracts to mitigate risk [33][35] Question: Membership growth expectations and MA individual membership - Management refrained from providing specific numbers but indicated that they are monitoring multiple factors affecting membership growth [39][40] Question: STARS recovery efforts and performance measures - Management reported strong progress across various metrics, including HEDIS and patient safety, and expressed optimism about future performance [49][50] Question: Margin characteristics and long-term targets - The company is prioritizing duals in Medicaid for their higher margins and is optimistic about growth opportunities in this segment [94][95]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [8] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, while the legacy business achieved a margin of 32% [19][24] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% in Q3 [21][24] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [8][10] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with operating EBITDA growing more than 7% [14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5% as integration efforts progressed [20] Market Data and Key Metrics Changes - The company experienced strong organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [15] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [16] - Recycling segment's operating EBITDA grew by 18% despite a nearly 35% decline in recycled commodity prices [10] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and leveraging technology to optimize costs [9] - Strategic investments in technology and automation are expected to yield benefits in 2026, with free cash flow projected to approach $3.8 billion [11][12] - The company remains disciplined in capital allocation, expecting to translate performance into returns for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [22][23] - The company anticipates achieving targeted operating EBITDA contributions from the healthcare solutions acquisition, with synergy capture exceeding expectations [23] - Management remains optimistic about achieving strong earnings, margin, and cash flow growth in 2025 and building on this success into 2026 [24] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions through the first three quarters of 2025 [22] - The CFO announced retirement after 23 years with the company, expressing confidence in the incoming CFO and the company's future [24][25] Q&A Session Summary Question: How much have you benefited from the one-time cleanup work at the landfill? - The total revenues from wildfire volumes were around $115 million for the year, with Q3 solid waste results indicating $145 million in EBITDA growth without meaningful impacts from wildfires [30] Question: Can you provide details on the charges this quarter? - The landfill impairment was due to a long-term pursuit of expansion at a hazardous waste landfill that was deemed no longer worth pursuing [31][32] Question: What are the expectations for sustainability EBITDA? - The company expects to hit the sustainability EBITDA target for 2025, with a step-up anticipated in Q4 [37] Question: How is the healthcare solutions business performing? - The healthcare solutions business is experiencing some churn but has renewed nearly $200 million worth of business with strong average price increases [90] Question: What is the outlook for M&A activity? - The company is looking at a normal $100 million to $200 million in M&A for 2026, with potential for additional transactions in Q4 [84][86]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [8] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, with the legacy business achieving a margin of 32% [19][24] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [21][24] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [8][14] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with operating EBITDA growing more than 7% [14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5% as integration efforts progressed [20] Market Data and Key Metrics Changes - The company experienced strong organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [15] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [16] - Recycling segment's operating EBITDA grew by 18% despite a nearly 35% decline in recycled commodity prices [10] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and leveraging technology to optimize costs [9] - Strategic investments in technology and automation are expected to yield benefits in 2026, with free cash flow projected to approach $3.8 billion [11][12] - The company remains disciplined in capital allocation, expecting to translate performance into returns for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [22][23] - The company anticipates achieving operating EBITDA and free cash flow guidance for the remainder of the year, with margin expectations raised to between 29.6% and 30.2% [24] - Management highlighted the importance of operational efficiency and customer relationships in driving future growth [18] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions through the first three quarters of 2025 [22] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [25] Q&A Session Summary Question: How much has the company benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [30] Question: What were the charges this quarter related to the plastics film plant and landfill closure? - The plastics film plant was idled due to market conditions, while the landfill impairment was related to a long-term pursuit of expansion that was deemed no longer viable [32] Question: What factors will contribute to the expected free cash flow improvement in 2026? - The expected improvement will come from the wind-down of sustainability investments, strong performance from the legacy business, and contributions from healthcare solutions [33][35] Question: How is the healthcare solutions business performing regarding pricing increases? - The company is deferring price increases to ensure customer satisfaction and stabilize revenue, with confidence in achieving mid-single-digit revenue growth in the long term [58][65] Question: What is the outlook for yield and pricing in 2026? - The company is optimistic about maintaining a good spread between core price and operating expenses, with strong performance expected in the collection and disposal business [70][72]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [6][10] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, while the legacy business achieved a margin of 32% [18][19] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [20][21] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [6][12] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with every line of business contributing to growth [12][14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5%, reflecting successful integration efforts [19][23] Market Data and Key Metrics Changes - The company experienced solid organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [13][14] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [14][48] - Despite a nearly 35% decline in recycled commodity prices, the recycling segment's operating EBITDA grew by 18% [9][20] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and technology optimization [6][7] - Investments in technology and automation, as well as in new recycling and renewable natural gas facilities, are expected to yield benefits in 2026 [10][11] - The company remains disciplined in capital allocation, expecting to return significant value to shareholders through dividends and potential share repurchases [21][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [21][23] - The company anticipates a strong fourth quarter, driven by improved execution and a robust post-collection network [50][51] - Management highlighted the importance of customer-centric strategies and operational efficiencies in driving future growth [62][64] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions [21] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [24][25] Q&A Session Summary Question: How much have you benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [29][30] Question: Can you clarify the charges this quarter? - The landfill impairment was due to a long-term pursuit of expansion that was deemed no longer viable, leading to recorded impairments [31][32] Question: What are the expectations for 2026 free cash flow? - The company expects free cash flow to approach $3.8 billion, driven by a wind-down of sustainability investments and strong performance from the legacy business [10][33] Question: How is the healthcare solutions business performing? - The healthcare solutions business is experiencing some churn but has renewed nearly $200 million worth of business, indicating strong customer retention and growth potential [81] Question: What is the outlook for M&A activity? - The company anticipates a normal M&A pipeline of $100 million to $200 million for 2026, with ongoing integration of the healthcare solutions business [77][79]

Core Insights - The article discusses the paradox of membership fees in e-commerce, where users often end up spending more to "break even" on their memberships, leading to a common frustration among domestic members [2][31] - Amazon's Prime membership, launched in 2005, is highlighted as a pioneering model that transformed the e-commerce landscape by focusing on long-term customer value rather than immediate profits [5][9] Group 1: Amazon Prime's Strategy - Amazon introduced Prime to address customer pain points related to shipping costs and delivery times, offering unlimited two-day shipping for an annual fee of $79, which was initially criticized as a risky move [5][7] - The success of Prime is attributed to its "flywheel" effect, where low prices and a wide selection attract users, leading to increased traffic and seller participation, creating a self-reinforcing cycle [11][13] - Prime members exhibit a threefold higher repurchase rate compared to regular users, making them highly valuable to third-party sellers [13][14] Group 2: Psychological Factors - Amazon employs psychological strategies such as the "sunk cost" effect, where users feel compelled to shop more to justify their membership fee, leading to increased spending [18] - The "decision fatigue" is mitigated by simplifying the purchasing process, allowing users to shop without worrying about shipping costs or delivery times [19] - The "endowment effect" is leveraged by continuously adding new benefits to Prime, making users reluctant to cancel their memberships despite not fully utilizing all features [21] Group 3: Domestic Membership Models - Domestic e-commerce platforms have attempted to replicate Prime's model, with varying degrees of success; successful examples include Taobao's 88VIP and JD Plus, which address specific consumer needs [23][25] - Some platforms have failed by overloading memberships with superficial benefits that do not resonate with users, leading to dissatisfaction [25][28] - The essence of membership should focus on building long-term relationships with users rather than merely extracting fees through a plethora of benefits [28][31]

Verizon (VZ) 2025 Conference Summary Company Overview - **Company**: Verizon Communications Inc. (VZ) - **Event**: Citi's 2025 Global TMT Conference - **Date**: September 4, 2025 Key Points Industry Focus - **Telecommunications**: Emphasis on wireless service revenue, adjusted EBITDA, and free cash flow growth - **Broadband Services**: Focus on mobility and broadband, including Fixed Wireless Access (FWA) and Fios Financial Performance - **Service Revenue Growth**: Achieved $1 billion in service revenue growth, up 2.4% in the first half of the year [8] - **Adjusted EBITDA Growth**: Reported 4.1% EBITDA growth, translating to $1 billion increase [45] - **Free Cash Flow Guidance**: Raised guidance for free cash flow to between $19.5 billion and $20.5 billion for the year [69] Strategic Priorities - **Operational Efficiency**: Focus on cost efficiency and operational performance [4][6] - **Capital Allocation**: Prioritizing investments in business, maintaining dividends, and deleveraging the balance sheet [80][82] - **Spectrum Investments**: Open to acquiring additional spectrum if it aligns with value creation [14][15] Growth Opportunities - **MyPlan and Perks**: Strong value proposition with MyPlan, aiming for 15 million perks in the portfolio, generating an annualized run rate of $2 billion [9][10] - **Convergence Strategy**: Targeting increased customer lifetime value through bundled services [11] - **AI Connect**: Exploring opportunities in AI workloads leveraging existing infrastructure [12] Market Dynamics - **Competitive Landscape**: Acknowledgment of a competitive market, with a focus on wireless service revenue rather than net adds [23] - **Churn Management**: Elevated churn rates observed, with strategies in place to reduce churn through value guarantees and convergence [27][28] Customer Engagement - **Upgrade Trends**: Noted a 19% growth in gross adds, with a focus on maintaining financial discipline during device refresh cycles [32][39] - **ARPU Performance**: Emphasis on growing average revenue per user (ARPU) through pricing actions and premium plans [35] Fixed Wireless Access (FWA) - **Subscriber Growth**: Over 5 million FWA subscribers, with a target of 8 to 9 million by 2028 [54] - **Network Deployment**: Continued rollout of C band to support FWA growth [55] Frontier Acquisition - **Regulatory Progress**: Secured approval in 8 out of 13 states for the Frontier acquisition, targeting completion by Q1 2026 [61][62] - **Synergy Potential**: Expected to achieve at least $500 million in operating run rate synergy by the third year post-acquisition [63] Convergence and Customer Bundling - **Converged Bundles**: Approximately 18% of customers currently utilize converged bundles, with potential for growth [67] - **Customer-Centric Approach**: Convergence strategy driven by customer demand, with a focus on enhancing service offerings [68] Capital Management - **Debt Reduction**: Reduced debt by $7 billion over the past year, with a target leverage ratio of 2 to 2.25 [70][71] - **Shareholder Returns**: Commitment to maintaining dividends and considering share buybacks once leverage targets are met [82] Operational Efficiency - **Cost Transformation**: Ongoing efforts to improve efficiency through AI and legacy network decommissioning [44][45] Future Outlook - **Market Resilience**: Despite potential industry growth slowdowns, demand for connectivity remains strong [78] - **Strategic Asset Optimization**: Continuous evaluation of business portfolio for potential divestitures to enhance focus on core operations [83][84]

Core Insights - The aviation industry's ancillary revenue has been steadily increasing, with estimates showing that it will rise from approximately 5% in 2010 to around 15% by 2024 [2] - Airlines are focusing on optimizing retail models rather than merely expanding service categories, emphasizing personalized recommendations and precise pricing strategies to enhance customer acceptance and conversion rates [2][3] - Frequent flyer programs have become a significant value pillar for many airlines, particularly in the U.S., where co-branded credit cards generate substantial revenue due to high credit card penetration and transaction fees [2] Group 1: Importance of Ancillary Revenue - Airlines are actively expanding ancillary services such as baggage fees, in-flight retail, and seat selection, which have higher profit margins and lower price sensitivity compared to base fares [2] - The global travel industry has not only recovered but surpassed pre-pandemic levels, with total bookings expected to reach 115% of 2019 levels by 2024 [3] Group 2: Retail Strategy and Customer Insights - Airlines are re-evaluating their product sales and customer service strategies to align with evolving consumer behaviors and expectations [3] - A survey of 7,000 travelers revealed eight common misconceptions in current retail strategies, highlighting the need for airlines to understand the complete retail journey from initial interest to post-travel interactions [3] Group 3: Misconceptions in Customer Preferences - Many airlines mistakenly believe they have fully tapped into customer preferences, while in reality, travelers are willing to pay a premium for desired services that go beyond static ticket packages [4] - Price is the primary consideration for 33% of travelers, but convenience and brand trust are equally important, each cited by 20% of respondents [5] Group 4: Potential for Revenue Growth - There is an estimated potential customer value of over $45 billion in the airline retail value chain that remains untapped, primarily due to misalignment between service offerings and customer willingness to pay [8] - Airlines need to shift from rigid pricing structures to dynamic, segmented, and customized service frameworks to fully exploit traveler demand [9] Group 5: Digital Experience and Customer Engagement - Airlines must enhance their digital retail capabilities by adopting advanced technologies and strategies that improve customer engagement and conversion rates [17] - The use of behavioral economics in the booking process can significantly influence traveler decisions, with effective prompts and visual presentations leading to higher conversion rates [18] Group 6: Distribution Channels and Market Dynamics - Direct sales channels have grown from 34% to 49% of global ticket sales from 2016 to 2024, but traditional intermediaries still play a crucial role in the booking process [20] - Despite the growth of direct sales, many travelers still prefer using intermediaries, particularly price-sensitive or infrequent travelers [20] Group 7: Key Pain Points in Booking - The primary concerns for travelers during the booking process are price transparency and flexible cancellation policies, rather than technical issues with booking systems [26][27] - Travelers express dissatisfaction with flight punctuality, seat comfort, and service quality, indicating that operational reliability is more critical than the booking experience itself [31] Group 8: Social Media Influence on Travel Decisions - While social media platforms are influential among younger travelers, traditional digital channels and personal recommendations remain significant sources of travel inspiration across all age groups [35][39] - Airlines should develop a comprehensive marketing strategy that transcends social media to engage travelers during the decision-making process [39]

Core Viewpoint - AIA's subsidiary, AIA Life, has demonstrated strong growth in the Chinese insurance market, with several key operational indicators showing steady improvement in the first half of 2025 [1][2]. Group 1: Financial Performance - AIA Life achieved insurance business revenue of RMB 49.708 billion in the first half of 2025, representing a year-on-year growth of 14.1% [2]. - The new business value for the first half of 2025 was USD 743 million, with a 10% increase before accounting for economic assumption changes, and a 15% growth in the second quarter [2]. - The new business value margin was 58.6%, an increase of 2 percentage points year-on-year [2]. - As of the end of the second quarter of 2025, AIA Life's comprehensive solvency adequacy ratio was 410.03%, and the core solvency adequacy ratio was 287.82%, maintaining a AAA risk rating for two consecutive quarters [2]. Group 2: Market Potential - By 2030, the middle class and affluent population in mainland China is expected to exceed 550 million, with a significant increase in the aging population, projected to reach 40% by 2050 [3][5]. - There is a substantial gap in health and pension insurance, with a life insurance protection gap exceeding USD 600 billion and a health insurance protection gap exceeding USD 1.4 trillion by 2024, accounting for 50% of similar gaps across Asia [3][5]. Group 3: Competitive Advantages - AIA Life's marketing agent team is a key competitive advantage, with the average new business value per agent in 2024 being 2.9 times higher than the industry average [8]. - Since 2017, the new business value generated by AIA Life's agents has increased by 60%, while the market has declined by over 40% during the same period [10]. - AIA Life focuses on customer lifetime value with a differentiated product portfolio that meets various life stage needs, with over 90% of agents selling protection policies [11][13]. Group 4: Innovation and Technology - AIA Life has upgraded its "Health You Walk" app to "AIA You Share," transforming it into a comprehensive digital platform for customer interaction, facilitating over 5 million online customer interactions in 2024 [23][25]. - The integration of artificial intelligence in the "AIA You Share" platform has improved customer resource integration and marketing efficiency, achieving a 19% conversion rate for high-intent customer leads [25][30]. Group 5: Strategic Expansion - AIA Life plans to expand into new markets, targeting 1-2 new provinces annually from 2025 to 2030, with a goal of achieving a compound annual growth rate of 40% in new business value in these regions [35]. - The company has established 14 provincial-level institutions and aims to leverage its marketing channels and differentiated bancassurance models to drive growth in new markets [33][35].