CNinsure to Acquire Majority Interests in Three Insurance Agencies
January 28 2008 - 6:00AM
PR Newswire (US)
GUANGZHOU, China, Jan. 28 /Xinhua-PRNewswire-FirstCall/ -- CNinsure
Inc. (NASDAQ:CISG), a leading independent insurance agency and
brokerage company operating in China, today announced the
acquisitions of majority interests in three insurance agencies:
Tianjin Xianghe Insurance Agency Co., Ltd. ('Tianjin Xianghe'),
Hebei Lianda Insurance Agency Co., Ltd. ('Hebei Lianda') and
Beijing Xinyue Insurance Agency Co., Ltd. ('Beijing Xinyue'). The
transactions are expected to close in the first quarter of 2008.
Following the investment in Tianjin Xianghe for a 5% stake in
November 2007, CNinsure will now acquire an additional 65% stake,
increasing its total holdings to 70%. Tianjin Xianghe, which
specializes in the distribution of property and casualty insurance
products, is based in Tianjin and was founded by two industry
experts with average of ten years of experience. It currently has
153 registered agents. By acquiring a majority interest in the
agency, CNinsure now extends the reach of its distribution network
to Tianjin, the economic hub in north China. CNinsure will also
acquire 70% equity interests in Hebei Lianda and 51% interests in
Beijing Xinyue, both of which focus on property and casualty
insurance business. Hebei Lianda currently has 6 branches, 20
insurance service outlets and 220 sales agents in Hebei Province.
Beijing Xinyue, based in Beijing, boasting 10 years' track record
in property and casualty insurance distribution, has 163 sales
agents. The addition of these two agencies will further broaden
CNinsure's distribution network and boost its sales capability in
Hebei and Beijing, where it has already had sales presence. Since
its listing on Nasdaq in October 2007, CNinsure has acquired
majority interests in four insurance agencies and one adjusting
company, and incorporated a joint venture with entrepreneurial
agents. To date, its distribution network has reached a total of 11
provinces. Commenting on the acquisitions, CNinsure's Chairman and
Chief Executive Officer, Yinan Hu, said, 'We are pleased with the
achievements we have made so far in acquisition. Given the high
fragmentation and existence of many small players in the Chinese
insurance intermediary market, we believe tremendous opportunities
exist for us to pursue growth through acquisition. Under our
current acquisition strategy, all acquired entities will use
CNinsure's unified operating platform, including distributing
products designated by us and adopting unified financial internal
control, IT, training, branding and service systems. We believe
this strategy gives us a strong control of the acquired entities,
and facilitates a smooth integration of the acquired businesses
into our operations. We believe that the acquisition strategy will
not only contribute to realizing our short term goals but also
provide a strong momentum to our rapid growth in the long run.'
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 January 28,
2008, 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, Investor Relations
Officer of CNinsure Inc., +86-20-6122-2730, or ; Or Oasis Qiu of
Investor Relations, +86-20-6122-2732, or
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