Fanhua Signs Definitive Agreement To Acquire Taiping Online Insurance Agency
February 08 2023 - 4:21AM
Fanhua Inc. (“Fanhua” or the “Company”) (Nasdaq: FANH), a leading
independent financial services provider in China, today announced
that it has signed a definitive agreement (the “Agreement”) with
the existing shareholders of Wuhan Taiping Online Insurance Agency
Co., Ltd. (“Taiping”), to acquire 51% of the equity interests of
Taiping. The transaction is expected to be completed in the first
quarter of 2023, subject to certain customary conditions.
Pursuant to the Agreement, the Company will
acquire 51% of the equity interests of Taiping with stock
considerations of up to 455,357 American Depositary Shares. Taiping
is estimated to generate gross written premiums of no less than
RMB160 million and net income of RMB10 million in 2025,
representing compound annual growth rates of 40% and 26% from 2023
to 2025, respectively. The stock consideration, adjustable based on
the achievement of certain performance targets in the next three
years by Taiping, is subject to a lock-up period of three years and
will be released from lock-up in two batches after 2025.
Taiping has run a successful business through
the implementation of the ‘Triple-R’ (‘Account Responsibility,
Solution Responsibility and Fulfillment Responsibility’) marketing
model. It boasts a highly productive sales force with per capita
productivity of over RMB600,000, far above the industry
average.
Mr. Yinan Hu, Chairman and CEO of Fanhua, said:
“Taiping’s dedication to professionalism sits squarely with our
development strategy. Mr. Chen Qin and his team are great additions
to Fanhua and help enhance our capabilities to deliver professional
services to our customers. 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.”
Mr. Chen Qin, Chairman and General Manager of
Taiping, said: “We are very happy to join Fanhua. 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 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.”
About Fanhua Inc.
Fanhua Inc. is a leading independent financial
services provider. Through our online platforms and offline sales
and service network, we offer a wide variety of financial products
and services to individuals, including life and property and
casualty insurance products. We also provide insurance claims
adjusting services, such as damage assessments, surveys,
authentications and loss estimations, as well as value-added
services, such as emergency vehicle roadside assistance.
Our online platforms include: (i) Lan Zhanggui,
an all-in-one platform which allows our agents to access and
purchase for their policy holders a wide variety of insurance
products, including life insurance, auto insurance, accident
insurance, travel insurance and standard health insurance products
from multiple insurance companies on their mobile devices; (ii)
Baowang (www.baoxian.com), an online entry portal for comparing and
purchasing short term health, accident, travel and homeowner
insurance products and (iii) eHuzhu (www.ehuzhu.com), a non-profit
online mutual aid platform in China.
As of September 30, 2022, our distribution and
service network consisted of 697 sales outlets covering 23
provinces, autonomous regions and centrally-administered
municipalities and 100 service outlets covering 31 provinces.
For more information about Fanhua Inc., please
visit http://ir.fanhuaholdings.com/.
Forward-looking Statements
This press release contains statements of a
forward-looking nature. These statements, including the statements
relating to the Company’s future financial and operating results,
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as “will,”
“expects,” “believes,” “anticipates,” “intends,” “estimates” and
similar statements. Among other things, management’s quotations
contain forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about Fanhua and the industry. Potential risks and
uncertainties include, but are not limited to, those relating to
its ability to attract and retain productive agents, especially
entrepreneurial agents, its ability to maintain existing and
develop new business relationships with insurance companies, its
ability to execute its growth strategy, its ability to adapt to the
evolving regulatory environment in the Chinese insurance industry,
its ability to compete effectively against its competitors,
quarterly variations in its operating results caused by factors
beyond its control and macroeconomic conditions in China, future
development of COVID-19 outbreak and their potential impact on the
sales of insurance products. Except as otherwise indicated, all
information provided in this press release speaks as of the date
hereof, and Fanhua undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although Fanhua believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results. Further information
regarding risks and uncertainties faced by Fanhua is included in
Fanhua’s filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F.
For more information, please contact:
Investor Relations
Tel: +86 (20) 8388-3191
Email: qiusr@Fanhuaholdings.com
Source: Fanhua Inc.
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