CNinsure, an insurance agency and brokerage company, has signed a definitive agreement to acquire a 60% stake in Guangdong Fangzhong Insurance Surveyors & Loss Adjusters, an insurance adjusting company based in Guangzhou.
This is the first acquisition agreement entered into by CNinsure and the proposed transaction is expected to close in January 2008. Consideration payable by CNinsure and the respective ownership interests of the parties in Fangzhong is subject to adjustment based on the three-year financial performance of Fangzhong following the closing of the acquisition.
Yinan Hu, chairman and CEO of CNinsure, said: We are very pleased to announce this strategic acquisition on Fangzhong. Through eight years’ development, Fangzhong has built a strong technical system to support a nationwide network of commercial and automobile insurance adjusting services. Our combined nationwide after-sales service system will allow us to integrate the businesses and provide customers with an even more comprehensive service offering.