Friday, March 07, 2008

CNinsure to add 2 insurance agencies

CNinsure Inc, a Shenzhen-based private insurance brokerage and agency, announced the purchase of controlling stakes in Shenzhen Huameng Insurance Brokerage Co. Ltd and Fuzhou Guoxin Insurance Agency Co. Ltd, to further expand its business on the Chinese mainland.

The Nasdaq-listed firm will buy 55% equity interest in Humeng and 70% equity interest in Guoxin, both of which are property and casualty insurance brokerage firms. The deals, subject to the regulatory approval, are expected to finish by the end of this month.

It is the latest move of CNinsure to raise its business portfolio in China's insurance market. With the completion of the transaction, CNinsure will totally have five insurance brokerage companies and 24 insurance agencies. Its intermediary business will cover four new geographic markets, namely Hubei, Zhejiang, Liaoning and Tianjin.

Earlier this month, it signed distribution agreement with Ping An Insurance<601318><2318>, China's second largest insurer by premium. Under the agreement, it will market a co-branded accident insurance product for Ping An.

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