CBIRC approves BYD’s acquisition of 100% stake in insurance company 1 AN .COM

Shanghai (Gasgoo)- On May 9th, the China Banking and Insurance Regulatory Commission ("CBIRC") released on its official website a reply regarding the change of shareholders of 1 AN .COM, a Chinese property insurance company.

The reply indicated that BYD Auto Industry Co., Ltd. has been approved to acquire 1 billion shares of 1 AN .COM, representing 100% of the company’s equity interests. It means that BYD's acquisition of the insurance company has been officially approved by the CBIRC.

Photo credit: BYD

The document also shows that upon BYD’s buyout of 1 AN .COM, all original shareholders of insurance company will no longer hold any shares.

Headquartered in Shenzhen city, 1 AN .COM is an Internet-based insurance company approved for establishment by the CBIRC.

In July 2020, 1 AN .COM was taken over by the CBIRC due to insufficient solvency and other factors. Then in July 2022, the company's application for bankruptcy and reorganization was approved by the CBIRC, and strategic investors were publicly recruited. As publicly disclosed, there were a total of three potential investors who applied to participate in the restructuring of 1 AN.COM, two of which withdrew during the due diligence process, leaving only BYD.

As for why BYD participated in the restructuring, some believe that the main reason is that BYD intends to tap the auto insurance area. By acquiring 1 AN .COM, BYD may be able to apply for the operating qualifications related to auto insurances and thus develop insurance business for new energy vehicles.