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.
These results represented 16.9% of CNinsure’s total
revenue and 7% of its net income.
