CNinsure to Expand Its Business to Jiangsu and Jilin Provinces
May 23 2008 - 4:07AM
PR Newswire (US)
GUANGZHOU, China, May 23 /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 with several individual entrepreneurial
agents to jointly establish Jiangsu Fanhua Lianchuang Insurance
Agency Co. Ltd. ('Lianchuang') and Jilin Fanhua Xincheng Insurance
Agency Co. Ltd. ('Xincheng'), which will expand its market presence
to Jiangsu and Jilin Provinces. CNinsure will hold 70% and 54% of
the equity interests in Chuanglian and Xincheng, respectively, both
of which will specialize in life insurance product distribution.
The two companies will start operations in July 2008, subject to
certain consents, authorizations and other customary conditions for
the establishment of insurance agencies. Mr. Lin Hai and Mr. Chen
Bojun, two insurance industry veterans, will be in charge of the
day-to-day management and business operations of Chuanglian and
Xincheng, respectively. After the establishment of the two joint
ventures, CNinsure's distribution network will reach 15 provinces.
Jiangsu Province in eastern China, where Chuanglian will be based,
is one of the most developed insurance markets in China, ranked No.
2 by insurance premium among all provinces in 2007. CNinsure
expects that the relatively mature nature of the market,
particularly the general familiarity and acceptance of insurance
intermediaries in the region, will pave the way for CNinsure's
entry. On the other hand, the insurance market in Jilin Province in
northeastern China, where Xincheng will be based, is still
under-developed and less competitive than more matured markets.
CNinsure believes that the Jilin market will offer significant room
for its expansion in the region. Commenting on the establishment of
the new companies, CNinsure's Chairman and Chief Executive Officer,
Yinan Hu said, 'As China's insurance market opens up to more
competition, we believe a further division of labor becomes
inevitable, which presents substantial opportunities to insurance
intermediaries like CNinsure. Against this backdrop, CNinsure has
increasingly seen a migration of insurance industry talents to our
platform, largely attributable to the appeal of CNinsure's
entrepreneurial business model. We believe that this trend will
continue and help further strengthen our leading position in the
intermediary sector.' 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 and provides 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 23, 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 ; Or Oasis
Qiu, +86-20-6122-2777 x850, or
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