CNinsure, an insurance agency and brokerage company, has signed a definitive agreement with Shandong Xin Guang Yuan Automobile Club to jointly set up Fanhua-Xin GuangYuan Insurance Agency in Shandong Province, China.
The transactions are expected to close in the first quarter of 2008 subject to certain consents, authorizations and other customary closing conditions. The new insurance agency, which specializes in auto insurance distribution, will be 51% owned by CNinsure and 49% owned by Shangdong Xin Guang Yuan.
Chunlin Wang, vice president and head of property and casualty insurance business unit, said: We believe that both CNinsure and Shandong Xin Guang Yuan will benefit from the economies of scale by combining the strengths of both parties while focusing on each other’s core competency.
We will utilize CNinsure’s operating platform, as well as Shandong Xin Guang Yuan’s existing branded auto sales sites and its professional auto repair service.