CNinsure To Acquire Majority Interest in Insurance Adjusting Company
December 05 2007 - 5:00AM
PR Newswire (US)
-- Acquisition Provides Platform to Enter China's Insurance
Adjusting Sector GUANGZHOU, China, Dec. 5
/Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (NASDAQ:CISG), a
leading independent insurance agency and brokerage company
operating in China, today announced the signing of definitive
agreements to acquire a 60% stake in Guangdong Fangzhong Insurance
Surveyors & Loss Adjusters Co. Ltd. ("Fangzhong"), an insurance
adjusting company based in Guangzhou. Founded in 1999, Fangzhong
was the first China Insurance Regulatory Commission (CIRC)
-certified insurance adjusting firm in China with a comprehensive
range of services available nationwide. Fangzhong offers various
claims-related services, including pre-purchase inspection,
appraisal and risk assessment; on-site inspection, loss assessment
and adjustment as well as other services authorized by the CIRC.
Headquartered in Guangzhou, Fangzhong has branches in both Henan
and Fujian provinces and plans to establish subsidiaries in
Beijing, Shenzhen, Nanjing, Changsha, Wuhan and Chengdu. This is
the first acquisition agreement entered into by CNinsure since its
listing on the Nasdaq National Market on October 31, 2007. The
transaction is expected to close in January 2008, subject to
certain consents, authorizations and other customary closing
conditions. Consideration payable by CNinsure and the respective
ownership interests of the parties in Fangzhong is subject to
adjustment based on the 3-year financial performance of Fangzhong
following the closing of the acquisition. Commenting on this event,
CNinsure's Chairman and Chief Executive Officer, Yinan Hu, said,
"We are very pleased to announce this strategic acquisition on
Fangzhong. Through 8 years' development, Fangzhong has built a
strong technical system to support a nationwide network of
commercial and automobile insurance adjusting services. Our
combined nationwide after-sales service system will allow us to
integrate the businesses and provide customers with an even more
comprehensive service offering." About CNinsure Inc. CNinsure is a
leading independent insurance agency and brokerage company
operating in China. CNinsure's distribution network reaches some of
China's most economically developed regions and affluent cities.
The company distributes a wide variety of property and casualty and
life insurance products underwritten by domestic and foreign
insurance companies operating in China and provides
insurance-related services. Forward-looking Statements This press
release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. You can identify
these forward- looking statements by terminology such as "will,"
"expects," "believes" and similar statements. The accuracy of these
statements may be impacted by a number of business risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated, including risks related to:
uncertainties associated with the timing of the closing of the
transaction; the possibility that the transaction may not close;
CNinsure's ability to maintain its leading position in the market
for independent insurance brokerage in China; the risk that
CNinsure's profitability may be adversely affected in future
periods for a variety of reasons, many of which may be beyond
management's control; and other risks outlined in CNinsure's
filings with the Securities and Exchange Commission, including its
registration statement on Form F-1, as amended CNinsure does not
undertake any obligation to update this forward-looking
information, except as required under applicable law. DATASOURCE:
CNinsure Inc. CONTACT: Phoebe Meng, IR Officer for CNinsure Inc.,
+86-20-6122-2730, or
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