Fanhua, a Chinese life and property and casualty insurance company, has signed a deal to acquire a majority stake in Wuhan Taiping Online Insurance Agency (Taiping).
Under the terms of the deal, Fanhua will buy 51% of the equity interests of Taiping in exchange for 455,357 American Depositary Shares.
In 2025, Taiping is anticipated to generate gross written premiums of no less than RMB160m and a net income of RMB10m.
The stock consideration is variable based on Taiping meeting specific performance goals over the following three years.
It is also subject to a lock-up period of three years and will be released from lock-up in two batches after 2025.
Fanhua chairman and CEO Yinan Hu said: “Taiping’s dedication to professionalism sits squarely with our development strategy. Chen Qin and his team are great additions to Fanhua and help enhance our capabilities to deliver professional services to our customers.
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“We believe as Fanhua’s digital platform becomes increasingly advanced and intelligent, more and more industry elites will choose to partner with us, further reinforcing our leading position in China’s insurance market.”
Taiping chairman and general manager Chen Qin said: “Fanhua’s digital platform offers access to quality resources from across the industry. It will not only enable us to offer a much broader range of products and services but also greatly enhance our efficiency to engage with our customers by leveraging the platform’s professional and digital capabilities, allowing us to be more focused on doing what is best for our customers and thus ensuring greater business growth.”
Earlier this week, Fanhua signed a similar agreement to purchase a 51% stake in Zhongji Shi’An Insurance Agency.