CNinsure Announces Acquisition of Leading Insurance Agency and Expands its Business to Guangxi Province
GUANGZHOU, China -- CNinsure Inc. on May 5 announced the signing of definitive agreement to acquire 60% equity interests of Guangxi Xingfu Insurance Agency Co., Ltd., a leading insurance agency based in Guangxi Province. The acquisition also marks CNinsure's footprint in the 13th province.
Under the terms of the agreement, CNinsure will make an initial cash payment within 10 working days after register change with relevant authority and a deferred consideration, to be paid in 2009, is subject to adjustment based on Xingfu's financial performance in the calendar year 2008. The transaction is expected to close in the second quarter of 2008 subject to certain consents, authorizations and other customary closing conditions. Upon completion of the transaction, Xingfu's management team will continue to lead the company.
Commenting on this acquisition, CNinsure's Chairman and Chief Executive Officer, Yinan Hu, said, "The highly fragmented nature of China's insurance intermediary market calls for consolidation. We believe that CNinsure, with 10 years of operating history and supported by capital from our IPO, is well positioned to capture the consolidation opportunities in the insurance intermediary market."
Headquartered in Liuzhou, Guangxi Province, Xingfu is mainly engaged in property and casualty insurance business. In 1999, it started distributing auto insurance on ancillary basis as an auto service provider. Through nine years' efforts, it has secured a leading position in Guangxi Province, ranked No. 1 in Guangxi in 2006 and 2007 in terms of revenue, according to figures released by the China Insurance Regulatory Commission.
CNinsure is a leading independent insurance agency and brokerage company operating in China. CNinsure's distribution network reaches many 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, as well as other insurance-related services.