CNinsure, an independent insurance intermediary company operating in China, has acquired 65.1% equity interest in InsCom Holding, which owns 100% equity interest in Shenzhen InsCom E-commerce.
Headquartered in Shenzhen, China, Shenzhen InsCom currently operates an independent e-commerce insurance website in China that offers a variety of insurance products online and also the new updated industry and regulatory information.
Under the terms of agreement, CNinsure will acquire InsCom for RMB84m and as part of restructuring of InsCom, its equity interests in six of its affiliated property and casualty insurance agencies will be transferred to an affiliated subsidiary of InsCom in exchange for preference shares newly issued by InsCom.
In addition, upon completion of transaction, Chunlin Wang, head of CNinsure’s property and casualty insurance business unit, will serve as chairman and CEO, and Yuan Tian, former chairman and CEO of Shenzhen InsCom, will serve as vice president for Shenzhen InsCom.
Yinan Hu, chairman and CEO of CNinsure, said: “Upon acquisition, we will allocate resources to further strengthen InsCom’s existing call center and e-commerce platform. In the meantime, we understand how essential it is for online and offline integration.
“Therefore, we intend to combine the brand-new call center and the reinforced e-commerce platform of InsCom with CNinsure’s nation-wide distribution and service network established during its over ten-year operating history to supplement online sales with ground support.”