CNinsure Inc., an independent insurance agency and brokerage company operating in China, has announced the signing of definitive agreements to acquire a 60 percent stake in Guangdong Fangzhong Insurance Surveyors & Loss Adjusters Co. Ltd., an insurance adjusting company based in Guangzhou, China.
Fangzhong was founded in 1999, and was the “first China Insurance Regulatory Commission (CIRC) -certified insurance adjusting firm in China with a comprehensive range of services available nationwide,” said the bulletin. “Fangzhong offers various claims-related services, including pre-purchase inspection, appraisal and risk assessment; on-site inspection, loss assessment and adjustment as well as other services authorized by the CIRC.”
The Company is headquartered in Guangzhou and has branches in both Henan and Fujian provinces. It also plans to establish subsidiaries in Beijing, Shenzhen, Nanjing, Changsha, Wuhan and Chengdu.
The bulletin noted that this is the “first acquisition agreement entered into by CNinsure since its listing on the NASDAQ National Market on October 31, 2007. The transaction is expected to close in January 2008, subject to certain consents, authorizations and other customary closing conditions.
“Consideration payable by CNinsure and the respective ownership interests of the parties in Fangzhong is subject to adjustment based on the 3-year financial performance of Fangzhong following the closing of the acquisition.
CNinsure’s Chairman and CEO Yinan Hu commented: “We are very pleased to announce this strategic acquisition on Fangzhong. Through 8 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.”
Source: CNinsure Inc – http://www.cninsure.net