CNinsure Announces Acquisition of Leading Insurance Agency and Expands its Business to Guangxi Province
May 05 2008 - 8:30AM
PR Newswire (US)
GUANGZHOU, China, May 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 agreement to acquire 60% equity interests of Guangxi
Xingfu Insurance Agency Co., Ltd. ("Xingfu"), a leading insurance
agency based in Guangxi Province. The acquisition also marks
CNinsure's footprint in the 13th province. Under the terms of the
agreement, CNinsure will make an initial cash payment within 10
working days after register change with relevant authority and a
deferred consideration, to be paid in 2009, is subject to
adjustment based on Xingfu's financial performance in the calendar
year 2008. The transaction is expected to close in the second
quarter of 2008 subject to certain consents, authorizations and
other customary closing conditions. Upon completion of the
transaction, Xingfu's management team will continue to lead the
company. Headquartered in Liuzhou, Guangxi Province, Xingfu is
mainly engaged in property and casualty insurance business. In
1999, it started distributing auto insurance on ancillary basis as
an auto service provider. Through nine years' efforts, it has
secured a leading position in Guangxi Province, ranked No. 1 in
Guangxi in 2006 and 2007 in terms of revenue, according to figures
released by the China Insurance Regulatory Commission. Commenting
on this acquisition, CNinsure's Chairman and Chief Executive
Officer, Yinan Hu, said, "The highly fragmented nature of China's
insurance intermediary market calls for consolidation. We believe
that CNinsure, with 10 years of operating history and supported by
capital from our IPO, is well positioned to capture the
consolidation opportunities in the insurance intermediary market."
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 the Chinese
insurance industry, and its ability to compete effectively against
its competitors. All information provided in this press release is
as of May 5, 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, IR Officer,
+86-20-6122-2777, or ; Oasis Qiu, +86-20-61222777-850, or
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