Insurance company CNinsure has announced that it will acquire majority interests in three insurance agencies namely Tianjin Xianghe Insurance Agency, Hebei Lianda Insurance Agency and Beijing Xinyue Insurance Agency. The transactions are expected to close in the first quarter of 2008.
Following the investment in Tianjin Xianghe for a 5% stake in November 2007, CNinsure will now acquire an additional 65% stake thereby increasing its total holding to 70%. By acquiring a majority interest in the agency, CNinsure now extends the reach of its distribution network to Tianjin.
CNinsure will also acquire a 70% equity interest in Hebei Lianda and a 51% interest in Beijing Xinyue, both of which focus on the property and casualty insurance business. The addition of these two agencies will further broaden CNinsure’s distribution network and boost its sales capability in Hebei and Beijing.
Yinan Hu, chairman and CEO of CNinsure, said: We are pleased with the achievements we have made so far in acquisition. Given the high fragmentation and existence of many small players in the Chinese insurance intermediary market, we believe tremendous opportunities exist for us to pursue growth through acquisition.