It should be true, Fanhua is still very powerful. The following is a report from NetEase. The acquirer, the insurance adjuster company Fanhua Capital, has entered the fast lane. This is a situation that has caused many thousands of insurance companies to struggle on the edge of losses.
It’s a day that intermediaries are envious of. On October 31, 2007, a Chinese company called Fanhua Insurance Services Group (stock code: CISG) announced its listing on NASDAQ. This “China’s first insurance intermediary concept stock” opened on the same day.
It moved higher and finally closed at $25.29, an increase of 58.06%.
Previously, Fanhua Insurance Services Group was enthusiastically sought after when it was issued. It not only received more than 20 times of subscription, but also saw price increases twice.
The overseas listing has made Fanhua, a holding group hidden behind many insurance intermediaries and covering many fields such as brokerage, agency, mortgage and so on, become the focus of the industry. This company fills the gap between Asian insurance intermediary companies and is listed on the world's major capital markets.
How did a blank enterprise build a huge insurance intermediary empire?
On December 5, Hu Yinan, Chairman and CEO of Fanhua Insurance, led a group of senior executives to make a collective appearance in Guangzhou. For the first time, Hu told the little-known journey behind Fanhua’s growth. At the same time, Hu announced its latest capital trends.
, that is, it successfully acquired Fangzhong Insurance Adjustment Company and obtained its first national adjustment business license.
With US$188.16 million in newly raised international capital, Fanhua entered the capital fast lane.
Among the acquirers, Hu Yinan’s goal is to create an “insurance intermediary empire” through capital operations.
Regarding the US$188.16 million raised by Nashi, Hu revealed its destination, "300 million yuan will be used to build an operating platform, and 1 billion yuan will be used to establish mergers and acquisitions and entrepreneurial plans." "Fanhua is going to build an insurance company that can support the entire insurance industry."
The basic operation platform of the intermediary industry has established a "highway" and "satellite network" for more than 2,000 insurance intermediary companies and 1.8 million insurance agents in the industry. Fanhua can acquire and invest in intermediary companies, and can also provide agents with entrepreneurship.
Platform, earn handling fees, and all cooperating insurance intermediary companies can obtain high-standard back-up system support without investing."
The operating platform includes IT, training and policy after-sales service systems that can support the national distribution network, and the latter plan is mainly used to strengthen Pan-China Insurance's current "backup platform + personal entrepreneurship" model.
According to the plan formulated internally by Fanhua Insurance, in the next 5 to 10 years, a distribution network will be established covering 23 provinces, municipalities and autonomous regions across the country, with no less than 100 independent insurance intermediary companies, 1,000 entrepreneurial teams, and 200,000 agents.
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Hu also announced its first acquisition after receiving market financing: on December 5, Fanhua officially acquired 60% of the equity of Guangdong Fangzhong Insurance Adjustment and Adjustment Company. Fangzhong Insurance Adjustment and Adjustment Company is the first domestic insurance adjustment and adjustment company approved by the China Insurance Regulatory Commission.
Agency, "Fanhua is interested in the two systems that Fangzhong Insurance Adjustment Company has built - the commercial insurance adjustment technology system and the vehicle insurance adjustment technology system. Fanhua will establish a national insurance adjustment technology system through the acquisition of Fangzhong."
A comprehensive policy after-sales service system.”
Insurance adjusters are considered to be the most technically demanding and lucrative areas in the insurance intermediary field.
The domestic insurance intermediary market has begun to enter a stage of rapid development. As of the third quarter of 2007, the China Insurance Regulatory Commission has approved the establishment of 2,607 insurance intermediary companies, but many intermediary companies have withdrawn from the market.
According to statistics, since 2004, 309 insurance intermediaries have been liquidated.
Since this year, insurance intermediary companies have been withdrawing from the market at an accelerated pace. In the third quarter alone, 43 professional insurance intermediaries went bankrupt.
Hu said this is also the best time for Fanhua to engage in large-scale acquisitions and expansion.
In fact, after Fanhua went public, countless insurance intermediaries came to join the company.
"On average, we receive more than three insurance intermediary companies every day, and the phone consultations are constant." An employee of Fanhua revealed.
Although Fanhua successfully raised funds in Nasdaq under the name of an insurance services group, its journey to fortune did not begin with insurance.
Fanhua officially "entered" the insurance market on a large scale in 2004. At that time, Hu Yinan saw that the opening up of the insurance market was accelerating, and emerging insurance agencies and agents emerged in large numbers. Fanhua also accumulated market share through years of hard work.
and experience.
Fanhua decided to fully enter the insurance intermediary market.
This year, Fanhua was split into Fanhua Insurance Group and Fanhua Financial Group. Following the first investment from Cathay Wealth Fund in 2001, Cathay Wealth invested again.
Subsequently, the top local PE Dinghui Investment Fund also invested a huge amount of RMB 150 million.
In October 2006, Cathay Wealth Fund once again invested RMB 110 million to support Pan-China.
Fanhua's insurance business has been upgraded from a subordinate status to an equal status with its financial business.
Since the registered capital only requires 500,000 yuan, the China Insurance Regulatory Commission has significantly relaxed the license requirements for insurance intermediaries.
At this time, the number of competitors in the domestic insurance intermediary market has rapidly grown from one or two hundred at the beginning to more than 2,000 in 2005, most of which are companies established by experts in the insurance industry.