Advance Create Co.,Ltd. (8798) Stock Price

Advance Create is a company that operates a platform business centered on insurance comparison and sales. The company uses its proprietary brand "Hoken Ichiba" (Insurance Market) as its core, combining web-based customer acquisition with a contact center at its headquarters and face-to-face consultation offices in urban areas to create an environment where users can easily compare and purchase insurance.

The company's primary customers are individuals purchasing insurance, insurance companies, and partner agencies. Revenue is mainly generated from commissions paid by insurance companies and bonuses based on contracts. The company also has multiple revenue streams including marketing cost contributions from insurance companies, website advertising income, ASP (cloud platform) fees, and reinsurance premiums through subsidiaries.

The business is divided into four main segments: insurance agency operations, ASP (cloud) operations, media and media representation operations, and reinsurance operations. The agency business conducts mail-order sales, face-to-face sales, and online enrollment. The ASP business provides a common platform that manages the entire insurance contract workflow. The media business handles advertising space and ad operations for "Hoken Ichiba," while the reinsurance business operates a system that accepts reinsurance based on acquired contracts.

The company prioritizes balancing growth with financial stability, targeting a return on equity (ROE) of 20% or higher, operating profit margin of 20% or higher, dividend payout ratio of 50% or higher, and equity ratio of 80% or higher. Following a review of accounting practices in prior years that resulted in negative equity, the company raised approximately 7 billion yen through a third-party capital allocation in September 2025 to eliminate the deficit. The company aims to restore and maintain profitability and financial soundness through achieving these numerical targets.

Key investment areas focus on strengthening the platform centered on the insurance agency business, with substantial resources allocated to web marketing and enhanced smartphone and social media capabilities. As a differentiation strategy, the company leverages its proprietary brand "Hoken Ichiba" and common platform "ACP" to provide insurance companies and partner agencies with contract management and marketing infrastructure. This approach aims to secure recurring subscription-based revenue from platform provision in addition to agency commissions.

For market expansion and business growth, the company is expanding its roster of insurance carriers and product offerings while strengthening partnerships with affiliated agencies. On the offline side, it is enhancing the consulting plaza "Hoken Ichiba," while pursuing an OMO strategy centered on online consultations to expand customer touchpoints beyond geographic limitations. The company also plans to broaden its subscription-based revenue foundation by offering ACP to external partners and expand its business base for "comprehensive insurance operations" including media and reinsurance.

Regarding technological innovation, the company is advancing ACP functionality and enhancing online consultations through avatars and generative AI. Additionally, it is investing in compliance strengthening, information security, and internal audit system development and training enhancement to prevent recurrence of accounting issues and restore trust. Through these initiatives, the company aims to improve customer convenience, enhance operational efficiency, and build a stable revenue structure.