Alibaba, Tencent, Ping An Insurance JV Seeks USD 1 Bln Series A
Cnstock.com, 3/23/15
ZhongAn Online Property and Casualty Insurance, an online insurance joint venture founded by Alibaba Group (NYSE: BABA) chairman Jack Ma, Tencent (0700.HK) chairman Pony Ma, and Ping An Insurance (2318.HK; 601318.SH) chairman Ma Mingzhe, has begun its first round of financing targeting private equity firms, and is planning a 2018 IPO, according to investment promotional materials. ZhongAn Online has finished contacting investors in Hong Kong, and is expecting to raise USD 1 bln for a 12.5% stake in the company, according to a source.
ZhongAn Online was founded October 2013 with RMB 1 bln in registered capital. Alibaba Group is the largest shareholder with a 19.9% stake, followed by Tencent and Ping An Insurance with 15% stakes each. Online travel service provider Ctrip (Nasdaq: CTRP) is among the other six founding stakeholders.
In the first full fiscal year, ZhongAn Online reported RMB 740 mln in income from insurance premiums for a profit of RMB 33.41 mln, according to the promotional materials. ZhongAn Online's scope of business includes property insurance, cargo insurance, credit and guarantee insurance for the e-commerce industry, as well as health and accident insurance for families and individuals.
Editor's Note: For more background on this topic, please see "Tencent, Alibaba, Ping An Online Insurance JV Starts Operation" MD 11/06/13 issue.
Keywords: Jack Ma Pony Ma Internet JV Ma Mingzhe online insurance funding first-round ZhongAn Online Property and Casualty Insurance
Sending
