MICT Launches Insurance Platform in China Ahead of Anticipated Scheduled Timeline
Recently filed resale registration statement does not reflect new issuance of stock but resale of a portion of outstanding restricted shares
MONTVALE, N.J., Dec. 21, 2020 (GLOBE NEWSWIRE) -- MICT, Inc. (Nasdaq: MICT) (“MICT” or the “Company”) today announces its wholly-owned subsidiary GFH Intermediate Holdings Ltd. (GFHI) has launched the Company’s proprietary insurance platform that is expected to be actively offering insurance products by week’s end, ahead of the Company’s anticipated timeline for launch. As a result, the Company believes that it will commence revenue generation from some of its insurance contracts during December 2020.
This announcement comes on the heels of the recently announced partnership with one of the country’s largest payment service providers as well as the signing of a number of insurance agency contracts being completed. China’s nascent market for insurance products is estimated to be the second largest in the world and has been forecasted to overtake the U.S. market by the mid-2030s. Online insurance premiums in China are forecasted to grow 41% annually between 2019 and 2024, with an estimated market size to reach $2.36 trillion by 2032.1
“We have anticipated this launch for some time and believe that we are providing the Chinese market with superior products and services and believe this will be an important part of our revenue stream moving forward,” commented MICT’s CEO Darren Mercer. “By launching the platform at this time, we will be able to commence revenue generation in December 2020. We also look forward to building significant momentum in the new year and will update shareholders on our progress.”
In addition, the Company wishes to clarify the purpose of the resale registration statement filing made on Friday, December 18, 2020. The filing was not for a new issuance of shares but was made to register a portion of the Company's currently outstanding restricted shares from certain of its holders.
MICT, Inc. (NasdaqCM: MICT) operates through its subsidiaries, GFH Intermediate Holdings Ltd. (“GFHI”) and Micronet Ltd. (“Micronet”). GFHI’s versatile proprietary trading technology platform is designed to serve a large number of high growth sectors in the global fintech space. Primary areas of focus include online brokerage for equities trading and wealth management services and sales of insurance products in several high-growth foreign markets, including Asia, where GFHI owns a substantial database of users. Micronet operates in the growing telematics and commercial Mobile Resource Management market, mainly in the United States and Europe. Micronet designs, develops, manufactures, and sells mobile computing solutions that provide fleet operators and field workforces with computing solutions in challenging work environments.
Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, statements related to revenue targets, the growth of the Chinese Insurance market and other statements that are not historical facts. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the Company's annual report on Form 10-K for the year ended December 31, 2019 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
1 Swiss Re Institute and Mordor Intelligence
Released December 21, 2020