OneDegree Celebrates Milestone of the 5th Anniversary with Revenue Soars 27 Times Since Inception Strategically Moving Forward to the Booming Pet Economy with New App and Pet Mart Aiming for Full-Year Profitability in 2025 at the Apex Corne
Hong Kong, April 23, 2025 – Virtual insurer OneDegree marks its 5th anniversary today, resembling a significant milestone. Beyond continuing to be a trusted insurance partner for pet owners, OneDegree is entering a new phase of development, creating a one-stop pet care experience that includes pet health insurance, wellness management, and daily pet-related shopping benefits aiming at taking care of the everyday needs of pet owners. While maximizing business revenue, this strategic move aims to create added value for customers by balancing the interests of all stakeholders in pet ecosystem, achieving exponential growth in the most efficient way. Alongside with the sustainable profit growth strategy and a well-established operational model, OneDegree is set to achieve full year profitability at the apex corner on its 5th anniversary, outpacing industry peers.
5th Anniversary Milestones: 131% Compound Annual Revenue Growth Over 5 Years
Since receiving its virtual insurance license from the Hong Kong Insurance Authority in April 2020, OneDegree has launched market-leading products such as the Pet CEO Plan, as well as fire insurance, critical illness insurance, home insurance, and appliance maintenance insurance, achieving multiple milestones:
• 2024 full-year revenue exceeded HKD 240 million, increased by 27 times compared to 2020, with a compound annual growth rate (CAGR) of 131% from 2020 to 2024.
• Customer base grew over 17 times since 2020, with a 25% year-on-year increase in 2024 compared to 2023
• Launched market-exclusive turtle and bird insurance in 2023, followed by the first-ever pet critical illness cash benefit in 2024, covering epilepsy, quadriplegia, or patellar dislocation.
• Introduced Asia’s only virtual asset insurance in 2022, now serving nearly 80% of Hong Kong’s licensed virtual asset operators.
• Announced first quarterly profit in Q3 2024, making OneDegree the only one of Hong Kong’s four virtual insurers to report a break-even quarter.
• 2024 net income continuously improved significantly by over 30% compared to 2023.
In 2024, operating efficiency continued to improve, with the cost-to-income ratio dropping by 20% in 2024 compared to 2023. Per-employee revenue contribution rose by 29% in 2024, marking five consecutive years of growth.
To celebrate its 5th anniversary, OneDegree announces a collaboration with Sanrio’s popular character Hello Kitty, featuring TV commercials, large-scale outdoor ads at Hung Hom Parking Lot and Tai Lam Tunnel, and a major event, OneDegree x Hello Kitty Pet-friendly Carnival at Kai Tak AIRSIDE from May 8-11, 2025, inviting people from all walks of life to celebrate the milestone together and make a lifetime commitment with their pets under the witness of Hello Kitty. OneDegree also launchesthe Pawbook App and OneDegree Pet Mart on this milestone occasion (details in appendices below).
Pet Insurance
Pet insurance maintained strong growth in 2024, with revenue increasing 24 times compared to 2020, achieving a CAGR of 124%. While policy numbers surged to a significant size and dominate the market, the portfolio enjoys the benefit of scale resulting in improvement in claims performance, with the loss ratio improving by approximately 30% compared to 2020.
In 2024, OneDegree enhanced its Pet CEO Plan, the only one of its kind in Hong Kong, raising the annual coverage limit to HKD 100,000 – the highest in the market – and introducing the first-ever pet supplementary critical illness cash benefit for conditions including epilepsy, quadriplegia, or patellar dislocation. This add-on benefit is particularly popular among dog owners, with 23% of dog policies including it, compared to 15% for cats. Since the upgrade, the renewal rate for pet insurance, already above 90%, has further increased. The combination of revenue growth and higher renewals reflects strong support from both new and existing clients.
OneDegree’s trust among pet owners is evident in its high retention rate: over 52% of clients from 2020 remained with OneDegree as of December 31, 2024. Additionally, a quarter (25%) of pet owners insured multiple pets in 2024, showing strong trust from multi-pet households. To promote lifelong pet care and responsible pet ownership, OneDegree launched a microfilm earlier this year, which garnered over 4.4 million views. At the 2025 Hong Kong Pet Show, OneDegree recorded a record-breaking 83% year-on-year increase in premium income, breaking historical pet show sales records.
Home Insurance
Launched in 2022, OneDegree’s home insurance saw robust growth, with 2024 revenue up 57% yearon-year and a 3.6-fold increase since its debut. Growth accelerated in Q1 2025, traditionally a slow season for home insurance, with revenue further soaring 69% compared to Q1 2024, reflecting growing market awareness and acceptance of OneDegree home insurance product.
OneDegree’s home insurance offers flexible add-on coverage options. In 2024, 52% of policies included at least one add-on, a 27% increase from 2023.
Fire Insurance
Introduced in 2021, OneDegree’s fire insurance offers the lowest premium rate in Hong Kong at 0.034% of the insured amount, with a simple and flexible switching process. This has driven strong market reception, with a CAGR of 83% from 2021 to 2024 and a 5-fold revenue increase in 2024 compared to 2021.
Over 80% of Clients Under 40, Strong Growth Among Mature Clients Representing the Brand entering into mass adoption stage.
OneDegree has gained widespread support across age groups over its five years. By the end of 2024, 27% of clients were aged 30 or below, 39% were aged 31-40, meaning 67% of clients were under 40. Mature age groups saw significant growth in 2024, reflecting the increasing mainstream adoption of virtual insurance. The 61+ age group grew by 62%, followed by 51-60 (38%) and 41-50 (33%), demonstrating OneDegree’s ability to cater to all age segments.
30% of Workforce in Tech, Leveraging Insurtech for Enhanced Client Experience
Despite a 27-fold increment in revenue, OneDegree maintains a workforce of approximately 100 employees by leveraging insurtech to streamline and automate processes. This approach minimizes staffing needs while reducing human error and enhancing service quality. Approximately 30% of employees are tech-related, focusing on developing new products (e.g., the app and pet mart), automating workflows, and optimizing digital experiences.
AI-Powered Claims Processing: Fastest Approvals in as Fast as 1 Day
Through insurtech, OneDegree offers faster policy issuance experience in comparison to traditional insurers. With AI-powered claims processing, approximately 30% of claims are approved in as fast as one day. In 2025, OneDegree plans to further enhance operational efficiency through additional insurtech-driven improvements.
OneDegree’s Deputy CE Emily Chow said: “With improved operational efficiency, continuous product enhancements, and new revenue streams, we are confident in achieving profitability in 2025, aiming to become Hong Kong’s first virtual insurer to record full-year profits. Entering the next phase, OneDegree aims to deliver greater value to clients and our parent company, AIFT, while contributing to a better society as a trusted partner for the pet community and Hong Kong at large, leading the industry in giving back to the community.”
Emily added: “To celebrate our 5th anniversary, OneDegree has partnered with Sanrio’s Hello Kitty for a major collaboration, transforming Kai Tak AIRSIDE into a Hello Kitty-themed carnival from May 8–11, while launching the Pawbook App and OneDegree Pet Mart, laying a strong foundation for our next phase of growth.”
5th Anniversary 50% Discount and Exclusive OneDegree x Hello Kitty Gifts
OneDegree’s 5th anniversary includes a highly anticipated 50% first-year premium discount for three days only! From April 22-24, 2025, purchase a policy on OneDegree’s official website and enter the promo codes below to enjoy the offer. As part of the Hello Kitty collaboration, every policy purchased during this period comes with an exclusive OneDegree x Hello Kitty tote bag4 – the more policies, the more gifts!
Notes:
1 The 50% first-year premium discount comprises a partial discount and cashback.
2 25% discount in the first year, with an additional 25% cashback credited to the client’s credit card upon renewal in the second year’s first month, totaling 50%.
3 30% discount in the first year, with an additional 20% cashback credited upon renewal in the second year’s first month, totaling 50%.
4 Applies to policies with HKD1,000 or more in premium after discount and excluding the levy.
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About OneDegree Hong Kong Limited
OneDegree Hong Kong Limited (“OneDegree”) was established in August 2016, with a mission to make insurance simpler, faster and better. We received a virtual insurer licence from the Hong Kong Insurance Authority in April 2020. We are now a multi-line digital insurance business, offering protection for pet, human medical, e-commerce and home insurance to individuals; as well as professional indemnity, D&O insurance, cyber security and digital asset coverage to businesses. OneDegree Group closed its Series B round of funding at US$55 million in June 2023.
