OneDegree Group Achieves First Operating Profit in 3Q 2024, Demonstrating Robust Growth and Innovation
Hong Kong, Dubai, Singapore, 2 October, 2024 — OneDegree Group, a leading cyber security and insurance group, announced today that it has reached its first operating profit in the third quarter of 2024, marking a significant milestone for both the group and its insurance arm. This achievement underscores the value of OneDegree’s innovative product offerings and the effectiveness of leveraging technology for scalable growth.
Key drivers of this success include the scale and profitability of OneDegree Group’s two flagship products— digital asset protection and pet insurance — which have gained substantial market share. The Group’s focus on product innovation and technology automation has enabled these offerings to achieve scale and profitability while maintaining a stable headcount, attributable to the strategic use of AI and other advanced technology tools.
Over the past four years, OneDegree Group has successfully built a healthy portfolio, with favorable profit margins across its novel product lines. With this strong track record, the Group has attracted significant reinsurance support, which further bolsters profitability whilst mitigating risk exposure.
Digital Asset Protection Highlights
OneInfinity, the digital assets arm of the Group, has been working closely with regulators across Asia, the Middle East and Europe to develop consumer protection standards across major global digital assets hubs for over 3 years. Our intelligent insights on digital assets risk classification and mitigation have advanced significantly during this time, in step with the growth of our clients’ assets under custody, geographical expansion and trading volume.
In Hong Kong, OneInfinity insures ten out of thirteen virtual asset trading platforms (VATP) either licensed or deemed to be licensed under the Securities and Futures Commission VATP regime. We have contracted up to US$418 million coverage limit per client, and we are adding reinsurance capacity to expand the limit per client to US$1 billion.
In the Middle East, OneInfinity has onboarded clients with broad international backgrounds, which facilitates a diversified pool of risks and geographical exposure.
The Group has recently launched MAMORI.AI, an AI-powered Web3 risk intelligence platform for regulators, exchanges, and asset managers, after an initial beta phase. The Group will soon be launching tailor-made offerings for stablecoins in 4Q 2024.
AI and Cybersecurity Progress
Cymetrics, the AI and Cybersecurity arm of OneDegree Group, is leading the rapidly growing AI safety and cybersecurity sector. Valued at US$24.3 billion in 2023, the global AI cybersecurity market is projected to double by 2026 and reach nearly US$134 billion by 2030. Capitalizing on this mega trend, Cymetrics achieved an impressive 300% year-on-year revenue growth in 2023, with strong performance continuing into 2024.
Cymetrics offers advanced cybersecurity technology solutions, including automated, on-demand external attack surface management and vulnerability assessment tools, enabling organizations to proactively identify vulnerabilities and strengthen their security postures. Recently, Cymetrics partnered with a major telecom operator in Asia to white-label its solutions, enhancing the telecom’s security offerings. Additionally, Cymetrics provides technical underwriting assessments and continuous monitoring bundled with cyber insurance, ensuing comprehensive protection against cyber threats to insurance companies.
This year, Cymetrics launched Cymetrics Vulcan, a large language model (LLM) verification platform designed to assess AI models for vulnerabilities and compliance with responsible AI standards. As a member of the Singapore Infocomm Media Development Authority’s AI Verify Foundation and participant in the Hong Kong Monetary Authority’s GenAI Sandbox, Cymetrics is solidifying its leadership in AI safety and security through partnerships with top organizations across various industries.
Pet and Home Product Success
OneDegree, the only insurer offering the innovative “Pet CEO Plan”, has successfully tapped into the surge in pet ownership since Covid-19. Over the past four years, OneDegree has experienced remarkable growth, achieving monthly revenue that is 26x of the monthly revenue in its first year of operations.
This success is attributable to meta-marketing experience, from promotions riding on the Olympics and offline cat shows, to community adoption and pet legacy donation initiatives, which blend a humanized approach with cutting edge technology and solidify OneDegree’s strong brand and market leadership.
The Pet CEO Plan remains a flagship product, continuously enhanced to meet customer needs. Notably, OneDegree was the first to introduce Pet Critical Illness Plan, addressing three major illnesses and increasing customer lifetime value. Home and Fire insurance are also expanding significantly, with substantial growth.
Utilizing our advanced core insurance system IXT, OneDegree can rapidly launch and iterate products, with continuous enhancements of product features and digital experiences to align with evolving customer demands. The streamlined digital claim process allows customers to submit receipts easily, with claims for pet insurance typically assessed and reimbursed within five business days. This unique market positioning and technology-driven approach have not only accelerated revenue growth but also established OneDegree as the first profitable virtual insurer under Insurance Authority’s scheme.
“Our achievement of operating profit in Q3 2024 showcases our strategic focus on innovative product development and operational efficiency. We are committed to providing a security layer for future mega trends while ensuring responsible innovation that creates value and protects consumer rights,” says OneDegree Group co-founder Alvin Kwock.
“As we continue expanding our global market presence, we remain focused on strong unit economics to ensure the sustainability of our business. Our priority is delivering value not only to our customers but also to our partners and investors, and staying ahead of the innovation curve,” says OneDegree Group co-founder Alex Leung.