China: EV maker takes over online insurer
Source: Asia Insurance Review | Jun 2023
Chinese electric vehicle manufacturer BYD has been given approval by the CBIRC to acquire 100% of financially-stricken online P&C insurer E An.
The 1bn shares held in E An by the seven original shareholders, which include software developer Shenzhen Infogem Technologies, will be transferred to unit BYD Auto Industry, reported Yicai Global quoting a statement from the CBRIC.
Although the takeover price was disclosed, rumours were swirling back in January that BYD might bail out E An by offering CNY3.6bn ($520m).
E An was taken over by regulators in July 2020 after two straight years of losses. The Shenzhen-based firm filed for bankruptcy in July last year, becoming the first insurer in China to go bust.
BYD has other interests in the insurance sector in China. In March 2022, Shenzhen-based carmaker set up an insurance brokerage, with a registered capital of CNY50m. A