CNinsure to Acquire Remaining 45% Stake in Insurance Agency
December 17 2007 - 8:00AM
PR Newswire (US)
GUANGZHOU, China, Dec. 17 /Xinhua-PRNewswire-FirstCall/ -- CNinsure
Inc., (NASDAQ:CISG), a leading independent insurance agency and
brokerage company operating in China, today announced the signing
of a definite agreement to acquire the remaining 45% stake in
Fujian Xinheng Insurance Agency Co., Ltd. ("Xinheng"), following
its acquisition, through one of its affiliated entities in China,
of a 55% interest in the insurance agency in 2006 as part of its
efforts to expand into the distribution of life insurance products.
The transaction, which is expected to close at the end of January
2008, will give CNinsure full control over Xinheng. Consideration
payable by CNinsure is subject to adjustment based on Xinheng's net
profit for the calendar year of 2008. Xinheng, an insurance agency
specializing in the distribution of life insurance products based
in Fuzhou, currently owns 7 branches with service network available
in many major cities in Fujian province. It also offers a wide
range of other insurance-related services, including the
distribution of property and casualty insurance products, insurance
premium collection, on- site loss assessment and claims settlement.
Commenting on this event, CNinsure's Chairman and Chief Executive
Officer, Yinan Hu, said, "We are pleased to announce the
acquisition of the remaining stake of Xinheng. Since 2006, it has
shown robust growth and increasing market presence. After this
acquisition, CNinsure will further increase investment of resources
and expand penetration in the Fujian market so as to enhance the
leading position of Xinheng in the region." 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," "anticipates," "intends," "estimates" and
similar statements. Among other things, the management's quotations
contain forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about CNinsure and the industry. Potential risks and
uncertainties include, but are not limited to, those relating to
CNinsure's limited operating history, especially its limited
experience in selling life insurance products, its ability to
attract and retain productive agents, especially entrepreneurial
agents, its ability to maintain existing and develop new business
relationships with insurance companies, its ability to execute its
growth strategy, its ability to adapt to the evolving regulatory
environment in Chinese insurance industry, and its ability to
compete effectively against its competitors. All information
provided in this press release is as of December 17, 2007, and
CNinsure undertakes no obligation to update any forward looking
statements to reflect subsequent occurring events or circumstances,
or to changes in its expectations, except as may be required by
law. Although CNinsure believes that the expectations expressed in
these forward looking statements are reasonable, it cannot assure
you that its expectations will turn out to be correct, and
investors are cautioned that actual results may differ materially
from the anticipated results. Further information regarding risks
and uncertainties faced by CNinsure is included in CNinsure's
filings with the U.S. Securities and Exchange Commission, including
its registration statement on Form F-1. DATASOURCE: CNinsure Inc.
CONTACT: Phoebe Meng, IR Officer, +86-20-6122-2730, or
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