CNinsure Inc. remains in an acquisitive mode. The Chinese agent/broker announced that it has acquired majority interests in Shenzhen Huameng Insurance Brokerage Co., Ltd. and Fuzhou Guoxin Insurance Agency Co., Ltd.
The transactions are expected to close by the end of March 2008 subject to certain consents, authorizations and other customary closing conditions.
“With the addition of Huameng and Guoxin, CNinsure now has 5 insurance brokerages and 24 insurance agencies,” said the bulletin. “Upon completion of the acquisitions, CNinsure will hold 55 percent equity interest in Huameng and 70 percent equity interest in Guoxin. It previously invested and held a 5 percent interest in each of them.”
Huameng specializes in P/C insurance brokerage services. It is “based in Shenzhen, one of the four special economic zones and one of the most affluent cities in China. Guoxin, an insurance agency specialized in P&C insurance distribution, is located in Fuzhou, capital city of the Fujian province in southern China. It currently has approximately 200 sales professionals.”
Commenting on the acquisitions, CNinsure’s Chairman and CEO Yinan Hu, stated: “The acquisitions of Huameng and Guoxin are good examples of our expansion strategy. In the past few months, we have successfully completed several acquisitions. This is in part attributable to the enhanced brand recognition as a result of our IPO.
“Since January 2008, we’ve acquired majority interests in nine companies and set up one joint venture. Through these transactions, we have entered four new geographic markets, namely, Hubei, Zhejiang, Liaoning provinces and Tianjin. We are optimistic about acquiring or investing in additional companies and entering new geographic markets in 2008 to further expand our distribution network.”
Source: CNinsure Inc. – http://www.cninsure.net
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