CNinsure, an insurance agency and brokerage company operating in China, has signed definitive agreements to acquire majority interests in Changsha Lianyi Insurance Agency and Jiangmen Fanhua Zhicheng Insurance Agency, in an effort to further expand its distribution network in China. The transactions are expected to close in the first quarter of 2008.
According to the agreements, CNinsure will acquire an additional 65% stake in each of Lianyi and Zhicheng, bringing its total holdings to 70% from the 5% it already holds in each of these two agencies. The two agencies are both engaged in the distribution of property and casualty (P&C) insurance products. Their management teams, as former senior officers in insurance companies, have extensive industry experience and proven leadership skills, with access to a wealth of sales agents and customers.
Previously, CNinsure’s sales presence in Hunan Province was only limited to life insurance products. The addition of Lianyi will present CNinsure with a strategic platform to launch P&C business in the region, and enable local agents to distribute a wide variety of P&C products. Separately, the acquisition of Zhicheng will further strengthen CNinsure’s existing distribution network in Guangdong Province.
Yinan Hu, chairman and CEO of CNinsure, said: We are pleased to announce the acquisitions of Lianyi and Zhicheng. We believe our strong operating platform and enhanced brand recognition will help us attract more insurance intermediary players to join CNinsure, contributing to our nation-wide expansion and further enhancing CNinsure’s leading position in the Chinese insurance intermediary industry.