Huize to Acquire Nationwide Insurance Agency Senhao to Further Accelerate Online-to-Offline Integration Strategy

Rhea-AI Summary

Huize Holding Limited (NASDAQ: HUIZ) announced an acquisition of 100% equity interest in Shanghai Senhao Insurance Agency for approximately RMB29.8 million. This acquisition aims to enhance Huize's offline presence and integrate online and offline services, benefiting customers with a broader range of insurance products. Senhao, founded in 2015, operates across 11 provincial areas in China and holds a license from the CBIRC. The transaction is anticipated to complete in Q1 2022, pending customary conditions.

Positive

• Acquisition of Senhao Insurance Agency enhances Huize's offline presence in China.
• Expected synergies from integrating online and offline services to provide a wider range of insurance products.

Negative

• None.

SHENZHEN, China, Dec. 17, 2021 (GLOBE NEWSWIRE) -- Huize Holding Limited, (“Huize”, the “Company”, together with its subsidiaries, its consolidated variable interest entity and the subsidiaries of the consolidated variable interest entity the “Group”) (NASDAQ: HUIZ), a leading digital insurance product and service platform for new generation consumers in China, today announced that the Group, through a wholly-owned subsidiary of the Group’s consolidated variable interest entity, has entered into a definitive agreement to acquire 100% equity interest in Shanghai Senhao Insurance Agency Co., Ltd. (“Senhao Insurance Agency”), a nationwide professional insurance agency company with business networks in 11 provincial areas in China.

Pursuant to the definitive agreement, the Group has agreed to acquire 100% equity interest in Senhao Insurance Agency at a consideration of approximately RMB29.8 million, subject to adjustment on appraised net asset value as at the valuation date. The transaction is expected to complete in the first quarter of 2022, subject to the satisfaction of customary conditions precedent.

Founded in 2015, Senhao Insurance Agency holds the license issued by the CBIRC to operate its insurance agency business nationwide, with a business network of 18 regional sales and service centers across 11 provincial areas to engage with insurance clients.

Cunjun Ma, Chairman and Chief Executive Officer of Huize, commented, “The acquisition of Senhao Insurance Agency represents another milestone in accelerating the execution of our online-to-offline integration strategy. We expect the acquisition of Senhao Insurance Agency to significantly strengthen our offline presence nationwide and reinforce our differentiated competitive edge in service capabilities by facilitating seamless online and offline operations simultaneously, thereby creating value for our customers with a wider range of insurance products and services across all scenarios.”

About Huize Holding Limited

Huize Holding Limited is a leading digital insurance product and service platform for new generation consumers in China. Targeting the younger generation, Huize is dedicated to serving its insurance clients for their life-long insurance needs. Leveraging its online platform, Huize offers a wide variety of insurance products with a focus on long-term life and health insurance products, and empowers its insurer partners to reach a large fragmented client base in the insurance retail market efficiently and enhance their insurance sales. Huize provides insurance clients with digitalized insurance experience and services, including suitable product recommendations, consulting service, intelligent underwriting and assistance in claim application and settlement, which significantly improve transaction experience.

For more information, please visit http://ir.huize.com.

Investor Relations
Harriet Hu
Investor Relations Director
+852 3180 9207
investor@huize.com

Media Relations
mediacenter@huize.com

Christensen

In China
Ms. Constance Zhang
Phone: +86 138-1645-1798
E-mail: czhang@christensenir.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com 

FAQ

What is the purpose of Huize's acquisition of Senhao Insurance Agency?

The acquisition aims to enhance Huize's offline presence and integrate its online and offline service capabilities.

What is the value of Huize's acquisition of Senhao Insurance Agency?

The acquisition is valued at approximately RMB29.8 million.

When is Huize expected to complete the acquisition of Senhao Insurance Agency?

The transaction is expected to complete in the first quarter of 2022, subject to customary conditions.

What is the significance of Senhao Insurance Agency for Huize?

Senhao Insurance Agency has a business network in 11 provincial areas in China, which will strengthen Huize's market position.

How will the acquisition impact Huize's service offerings?

The acquisition is expected to create value for customers by offering a wider range of insurance products and services.