Receive instant notifications when news comes out about your stocks. Claim your 1 week free trial Street Insider Premium here.
GUANGZHOU, China, November 24, 2022 (GLOBE NEWSWIRE) — Fanhua Inc. (“Fanhua” or the “Company”) (Nasdaq: FANH), a leading independent financial services company in China, today announced that it has signed a term sheet (the “Term Sheet”) with the existing shareholders of Zhongrong Smart Finance Information Technology Co. ., Ltd. (“Zhongrong”) to acquire 57.73% equity interest in Zhongrong in an all-stock transaction. The transaction is expected to close in January 2023, subject to certain customary closing conditions, including the completion of satisfactory due diligence.
According to the Term Sheet, the proposed transaction will include the issuance of up to 62 million new common shares of Fanhua, representing 5.44% of the expanded share capital, in exchange for 57.73% of Zhongrong’s equity interest.
Founded in 2018, Zhongrong is a leading general agency in China. Zhongrong offers life insurance products through a network of nearly 300 unaffiliated regional insurance agencies. In 2021, the gross written premiums of the life insurance business amounted to RMB 1.4 billion, of which the first-year premiums amounted to about RMB 730 million.
Mr. Hu Yinan, Chairman and CEO of Fanhua, commented on the proposed transaction: “With our experience and resources accumulated over the past two decades, Fanhua is committed to building a public infrastructure platform to support all kinds of independent insurance intermediaries and support independent agents. to operate and thrive within a unified compliance framework, providing them with access to a full spectrum of products and services, leading technology and digital operational capabilities, professional training systems and services, as well as capital support.”
“As a leading general agency in China, Zhongrong has unique advantages in compliance and quality management. The acquisition of Zhongrong is expected to greatly improve the compliance and quality management capabilities of Fanhua’s platform and rapidly increase our market influence. It is also an important step forward in accelerating the foothold expansion of our platform, contributing to the sustainable, high-quality growth of the life insurance agency channel in China.”
About Fanhua Inc.
Fanhua Inc. is a leading independent financial services company. Through our online platforms and offline sales and service network, we offer a wide range of financial products and services to individuals, including life, property and casualty insurance. We also offer insurance claims customization services such as damage assessments, investigations, authentications and damage estimates, as well as value-added services such as roadside assistance.
Our online platforms include: (i) Lan Zhanggui, an all-in-one platform that allows our agents to access and purchase a wide variety of insurance products for their policyholders, including life insurance, auto insurance, casualty insurance, travel insurance and standard health insurance products from multiple insurance companies on their mobile devices; (ii) Baowang (www.baoxian.com), an online access portal for comparing and purchasing short-term health, accident, travel and home insurance products and (iii) eHuzhu (www.ehuzhu.com), an online non-profit mutual aid platform in China.
As of September 30, 2022, our distribution and service network consisted of 697 outlets in 23 provinces, autonomous regions and centrally administered municipalities and 100 service points in 31 provinces.
For more information about Fanhua Inc. to http://ir.fanhuaholdings.com/.
This press release contains forward-looking statements. These statements, including those regarding the Company’s future financial and operating results, are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by of terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates,” and similar statements. Management’s listings and the Business Outlook section, among others, contain forward-looking statements. These forward-looking statements include 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 related to its ability to attract and retain productive agents maintain, especially enterprising agents, its ability to maintain existing business relationships with insurance companies and develop new ones, its ability to execute its growth strategy, its ability to adapt to the changing regulatory environment in China’s insurance industry, its ability to compete effectively with its competitors, quarterly fluctuations in its operating results caused by factors beyond its control and macroeconomic conditions in China, future development of the COVID-19 outbreak and their potential impact on insurance product sales. Unless otherwise specified, all information in this press release is as of the date hereof, and Fanhua assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances or changes in its expectations, except as required by law. While Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will prove to be correct, and investors are cautioned that actual results may differ materially from those anticipated. Further information about risks and uncertainties facing 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:
Tel: +86 (20) 8388-3191
E-mail: [email protected]
Source: Fanhua Inc.
Source: Fanhua Inc.