China’s CNinsure Buys Majority Interests in 2 P/C Insurance Agencies

CNinsure Inc., a leading independent insurance agency and brokerage company operating in China, is acquiring majority interests in Changsha Lianyi Insurance Agency Co., Ltd. (Lianyi) and Jiangmen Fanhua Zhicheng Insurance Agency Co., Ltd. (Zhicheng), in an efforts to further expand its distribution network in China. The transactions are expected to close in the first quarter of 2008.

According to the agreements, CNinsure will acquire an additional 65 percent stake in each of Lianyi and Zhicheng, bringing its total holdings to 70 percent from the 5 percent it already holds in each of these two agencies.

Lianyi is based in Changsha, the capital city of Hunan Province, and Zhicheng is located in Jiangmen of Guangdong Province. The two agencies are both engaged in the distribution of property and casualty insurance products.

Previously, CNinsure’s sales presence in Hunan Province was limited to life insurance products only. The company said that the addition of Lianyi will present CNinsure with a strategic platform to launch P/C business in the region, and enable local agents to distribute a wide variety of P/C products. Separately, the acquisition of Zhicheng will further strengthen CNinsure’s existing distribution network in Guangdong Province.

CNinsure’s distribution network reaches some of China’s most economically developed regions and affluent cities. The company distributes a wide variety of property and casualty and life insurance products underwritten by domestic and foreign insurance companies operating in China and provides insurance-related services.

Topics Mergers & Acquisitions Agencies China Property Casualty