CNinsure Announces Acquisition of Two Insurance Intermediaries
March 05 2008 - 4:30AM
PR Newswire (US)
GUANGZHOU, China, March 5 /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 of Shenzhen Huameng Insurance
Brokerage Co., Ltd. ("Huameng") and Fuzhou Guoxin Insurance Agency
Co., Ltd. ("Guoxin"). The transactions are expected to close by the
end of March 2008 subject to certain consents, authorizations and
other customary closing conditions. With the addition of Huameng
and Guoxin, CNinsure now has 5 insurance brokerages and 24
insurance agencies. Upon completion of the acquisitions, CNinsure
will hold 55% equity interest in Huameng and 70% equity interest in
Guoxin. It previously invested and held a 5% interest in each of
them. Huameng, which specializes in property and casualty
("P&C") insurance brokerage services, is based in Shenzhen, one
of the four special economic zones and one of the most affluent
cities in China. Guoxin, an insurance agency specialized in P&C
insurance distribution, is located in Fuzhou, capital city of the
Fujian province in southern China. It currently has approximately
200 sales professionals. Commenting on the acquisitions, CNinsure's
Chairman and Chief Executive Officer, Yinan Hu, said, "The
acquisitions of Huameng and Guoxin are good examples of our
expansion strategy. In the past few months, we have successfully
completed several acquisitions. This is in part attributable to the
enhanced brand recognition as a result of our IPO. Since January
2008, we've acquired majority interests in nine companies and set
up one joint venture. Through these transactions, we have entered
four new geographic markets, namely, Hubei, Zhejiang, Liaoning
provinces and Tianjin. We are optimistic about acquiring or
investing in additional companies and entering new geographic
markets in 2008 to further expand our distribution network." About
CNinsure Inc. CNinsure is a leading independent insurance agency
and brokerage company operating in China. CNinsure's distribution
network reaches many 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, as
well as other 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 March 05, 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, ; or Oasis Qiu of
Investor Relations, +86-20-6122-2732, or , both of CNinsure Inc.
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