The acquisition of an additional 41% equity interest in Hebei Fanlian Insurance Agency Co. Ltd., increases CNinsure Inc.'s total shareholdings in the insurance agency primarily engaged in the distribution of property/casualty insurance products in Hebei Province to 51%.
CNinsure Inc., an independent insurance intermediary company operating in China, announced that pursuant to the terms of the acquisition, the selling shareholder of Fanlian is obligated to pay back part of the consideration, and transfer part of its equity interest in Hebei Fanlian to CNinsure at nominal value if Hebei Fanlian fails to fulfill the guaranteed targets relating to net income, number of sales agents and monthly premiums written.
"Our partnership with Hebei Fanlian will greatly strengthen our capacity to distribute P&C insurance products,” says Yinan Hu, chairman and CEO of CNinsure. “Hebei Fanlian, together with two of our existing operating entities in Hebei, will help us further penetrate into Hebei Province and enhance our competitiveness in this region."
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