CNinsure, an independent insurance agency and brokerage company, has signed a definite agreement to acquire the remaining 45% stake in Fujian Xinheng Insurance Agency.
CNinsure, through one of its affiliated entities in China, has acquired a 55% interest in the insurance agency in 2006. The transaction, which is expected to close at the end of January 2008, will give CNinsure full control over Xinheng. Consideration payable by CNinsure is subject to adjustment based on Xinheng’s net profit for the calendar year of 2008.
Yinan Hu, chairman and CEO of CNinsure, said: We are pleased to announce the acquisition of the remaining stake of Xinheng. Since 2006, it has shown robust growth and increasing market presence. After this acquisition, CNinsure will further increase investment of resources and expand penetration in the Fujian market so as to enhance the leading position of Xinheng in the region.