CNinsure, an independent insurance agency and brokerage company operating in China, has announced the acquisitions of majority interests in Shenzhen Huameng Insurance Brokerage and Fuzhou Guoxin Insurance Agency.
The transactions are expected to close by the end of March 2008 subject to certain consents, authorizations and other customary closing conditions.
With the addition of Huameng and Guoxin, CNinsure will five insurance brokerages and 24 insurance agencies. Upon completion of the acquisitions, CNinsure will hold 55% equity interest in Huameng and 70% equity interest in Guoxin. It previously invested and held a 5% interest in each of them.
Yinan Hu, chairman and CEO of CNinsure, said: The acquisitions of Huameng and Guoxin are good examples of our expansion strategy. Through these transactions, we have entered four new geographic markets, namely, Hubei, Zhejiang, Liaoning provinces and Tianjin.
We are optimistic about acquiring or investing in additional companies and entering new geographic markets in 2008 to further expand our distribution network.