Independent financial services provider Fanhua has signed a term sheet to acquire a majority stake in China-based Zhongrong Smart Finance Information Technology in an all-stock transaction.

Under the term sheet, Fanhua will issue up to 62 million new ordinary shares, representing 5.44% of its enlarged share capital, in exchange for a stake of 57.73% in Zhongrong.

Established in 2018, Zhongrong has a network of nearly 300 non-affiliated regional insurance agencies that provide life insurance products.

Last year, Zhongrong’s life insurance business gross written premiums reached RMB1.4bn.

Fanhua chairman and CEO Hu Yinan said: “With our experience and resources accumulated in the past two decades, Fanhua is committed to building a public infrastructure platform to support all types of independent insurance intermediaries and independent agents to operate and thrive under a unified compliance framework, by providing them with access to a full spectrum of products and services, leading technology and digital operation capacities, professional training systems and services as well as capital support.

Yinan said the acquisition of Zhongrong would enhance Fanhua’s platform compliance and quality management capabilities.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Yinan added: “It also marks an important step forward in accelerating the expansion of our platform’s foothold, contributing to the sustainable, high-quality growth of the life insurance agency channel in China.”

The transaction is planned for completion in January 2023.

Through online platforms and offline sales and service network, Fanhua provide financial products and services such as life, property and casualty insurance products.

The firm also offers insurance claims adjusting services, such as surveys, damage assessments, authentications and loss estimations, as well as value-added services.