Digital insurance platform Huize Holding has entered into an agreement with Hubei Shengs Life & General Insurance Agency that will see its subsidiary, Zhixuan Wealth Investment Management, acquire a majority shareholding in the life firm.
Following a series of restructuring, Shengs Life & General will become a wholly-owned subsidiary of a group company called Shengs Group.
Zhixhuan will the acquire a 56.19% equity interest in Shengs Group for approximately CNY42.68m (£4.8m, $6.6m, €5.6m) in cash, along with a capital injection of CNY15m.
The deal is expected to complete by the end of 2021, subject to customary conditions.
At completion, Shengs Life & General will be considered as a subsidiary of Huize.