ZhongAn International, a subsidiary of China’s largest online-only insurer ZhongAn Online P&C Co., has entered into a Shareholder Agreement with Japanese technology & telecoms investor SoftBank Vision Fund to help expand ZhongAn’s InsurTech solutions businesses in overseas markets.
The agreement will see ZhongAn establish a new operating entity to partner with SoftBank in exploring new international opportunities, with an initial focus on Asia.
SoftBank Vision Fund will participate as a strategic investor in this arrangement once the deal is confirmed following customary closing conditions and regulatory approvals.
SoftBank had recently been involved in discussions about a potential minority investment in reinsurance giant Swiss Re, although the talks have now reportedly ended with no agreement in sight.
ZhongAn International was originally found in December 2017 to explore international business development, collaboration and investment opportunities in Fintech and InsurTech.
The parties said that the new partnership will combine ZhongAn’s tech expertise with SoftwBank’s extensive ecosystem and enable ZhongAn International to commercialise its business across multiple markets in Asia.
Jeffrey Chen, Chief Executive Officer of ZhongAn Online, commented: “We are pleased to announce this partnership which will allow us to explore new and innovative ways to serve more companies and customers outside of China.
“SoftBank is an important business partner and we believe this collaboration will significantly boost our technology solutions businesses.”
Kentaro Matsui, Managing Director for SoftBank Investment Advisers, added: “We are excited to collaborate with ZhongAn to build their capabilities in new and dynamic markets. I am confident that utilizing ZhongAn’s existing technology and know-how alongside SoftBank’s international networks will ensure it is well positioned to capitalize on the tremendous growth potential in both Fintech and Insuretech across Asia.”
Finally, Wayne Xu, Vice General Manager of ZhongAn Online, in charge of International Business, said, “Since inception, ZhongAn International has focused on building technology capacity and fostering platform cooperation to support overseas business development.”
“Going forward, we hope the Asian markets will act as a bridgehead in expanding our business globally and SoftBank is the ideal partner,” he added.
