(Yicai Global) Sept. 6 -- Cathay Insurance Co., which has struggled with losses in recent years, reported a significant rise in revenue and cut losses after Zhejiang Ant Small & Micro Financial Services Group Co., or Ant Financial, took over as its controlling shareholder a year ago.

The insurer's income from January through August this year exceeded its full-year income in 2016, and it cut first-half losses by CNY63 million (USD9.66 million) from last year. The firm's products and technical support have quickly become associated with Alibaba Group Holding Ltd. [NYSE:BABA], which runs Ant Financial, the insurance firm told Yicai Global.

Cathay raised its capital last July, after which Ant Financial became its controlling shareholder with a 51-percent stake. Taiwan's Cathay Financial Holdings indirectly holds the remaining share through two wholly-owned subsidiaries.

As of Sept. 1, Cathay Insurance had recorded premium income of CNY653 million so far this year. The figure represents a 60.8-percent annual increase and was above whole-year income from premiums last year, according to data from the insurer.

Cathay has been struggling with loss since it began nine years ago. However, the situation has improved considerably since Ant Financial took the reins. Data from the insurer shows it earned first-quarter profits of CNY4.83 million this year.

The insurer is now prioritizing online services and has set up an internet business unit to expand in the sector, with help from its powerful fintech controller.

As the first traditional insurance company to integrate with fintech, Cathay is proactively exploring fragmented insurance demands stemming from the digital economy and trying to open up a different path from traditional and online insurances services, an executive at the firm said.

Cathay ran several new products from late 2016 through the first half of this year, including insurance for money lost in Alipay, return-freight insurance for online shopping and insurance for online platform sellers' performance. This April, it teamed up with Ant Financial to start a bike-sharing injury insurance product.

The insurance firm is also introducing a series of high-tech insurance products developed by Ant Financial, including Ding Sun Bao, an intelligent loss assessment technology relying on artificial intelligence, Che Xian Fen, which carries out risk assessment for car owners, and an intelligent customer service program.