In yet another change in the
landscape of China’s insurance market, Chinese life and general
insurance broker CNinsure has sold its 55% stake in Beijing Fanhua
Datong Investment Management Company – one of its two life
insurance distribution units – to Winner Sight Global, an affiliate
of US private equity firm Warburg Pincus.
The deal was completed in
late-March with CNinsure receiving $63.39m in cash and a cash
dividend of CNY10m ($1.5m) as consideration.
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CNinsure chairman and CEO
Yinan Hu said CNinsure had established a life insurance
distribution business unit in 2006 and that in 2008 it acquired the
55% stake in Fanhua Datong.
Commenting on the sale of
Fanhua Datong, he said: “However, the difference in the two
business units’ business philosophies and corporate cultures has
been increasingly presenting challenges to us in resources
allocation.”
CNinsure paid about $34m in
the fourth quarter of 2008 for its stake in Fanhua
Datong.
According to CNinsure, in
2010 Fanhua Datong generated net revenue of CNY251m and net income
of CNY29.7m.
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By GlobalDataThese results represented 16.9% of CNinsure’s total
revenue and 7% of its net income.
