BGM Group Acquires AI Subsidiaries, Expands into AI-Driven Insurance and Health Sectors

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BGM Group has acquired two AI subsidiaries from AIX Corp. for $140 million, aiming to revolutionize the pharmaceutical and insurance industries through AI integration. The company plans to leverage AI technology for insurance brokerage and health services.

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BGM Group's Strategic Acquisition and AI Integration

BGM Group Ltd. (NASDAQ: BGM) has made a significant move in the AI-driven pharmaceutical and insurance sectors with its recent acquisition of two subsidiaries from AIX Corp. (NASDAQ: AIFU) for approximately $140 million 12. This strategic acquisition includes Rongshu Technology and Xinbao Investment Company, positioning BGM Group for substantial growth in AI-driven insurance and health services.

Leadership and Technological Expertise

The acquisition brings notable leadership to BGM Group, particularly in the form of CEO Mr. Xin Chen. With a strong background in computer AI from the National University of Singapore, Chen has successfully integrated AI technology into traditional pharmaceutical operations 1. This integration has created a unique niche for BGM Group in smart insurance solutions, providing a significant competitive advantage in the market.

AI-Driven Insurance Platform

A key component of BGM Group's strategy is the planned acquisition of the Duxiaobao platform, developed in partnership with AIFU and Baidu 12. This AI insurance platform aims to revolutionize the industry through:

  1. Big data analytics and artificial intelligence
  2. Precise underwriting and personalized services
  3. Improved efficiency and reduced operational costs
  4. Potential for geometric increases in client numbers

Expansion into Health and Wellness

BGM Group is also positioning itself to capitalize on the growing health and wellness sector, particularly in response to the global aging population 12. The company plans to offer services such as:

  1. Anti-aging genetic management
  2. Medical diagnostic support
  3. Comprehensive health management solutions

By combining health initiatives with AI insurance, BGM Group aims to provide clients with end-to-end solutions that cover the entire lifecycle of insurance and health management.

Governance and Business Structure

The acquisition marks a shift in BGM Group's governance structure, transitioning from traditional sales management to cross-industry collaboration 12. This change is expected to optimize internal resource allocation and support future business expansion.

Market Impact and Future Potential

The market has responded positively to BGM Group's strategic moves, with the company's stock price experiencing significant volatility. On December 2, 2024, the share price surged by 13.49%, reflecting changing market sentiment and investor expectations 12.

Despite this positive movement, analysts suggest that BGM Group's market capitalization remains undervalued in the secondary market. As the company continues to expand its AI insurance and health and wellness businesses, there is potential for further growth and market recognition 12.

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