CNinsure Announces Acquisition of Majority Interests in One More Adjuster
June 05 2008 - 4:00AM
PR Newswire (US)
GUANGZHOU, China, June 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 agreements to acquire majority interests in Shanghai
Teamhead Insurance Loss Surveyors & Adjusters Co., Ltd.
("Teamhead," previously known as "Tianheng Insurance Loss Surveyors
& Adjusters Co., Ltd."). CNinsure previously announced the
signing of an MOU with Teamhead for a proposed acquisition on April
15th, 2008. The acquisition reaffirms CNinsure's plan to combine
the networks, expertise and customer bases of Teamhead with those
of Fangzhong Insurance Loss Surveyors & Adjusters Co., Ltd.
("Fangzhong") and Khubon Insurance Loss Surveyors & Adjusters
Co., Ltd. ("Khubon"), another two adjusting firms acquired by
CNinsure in January 2008 and May 2008 respectively, to form one
large claims adjusting service network in China. Under the terms of
the agreements, CNinsure will purchase 51% of the equity interests
in Teamhead for RMB 24.9 million in total consideration. Meanwhile,
CNinsure and the existing shareholders of Teamhead will further
capitalize Teamhead with RMB5.1 million and RMB4.9 million
respectively, bringing the total registered capital up to RMB19
million. The agreements also provide that Teamhead's existing
shareholders will transfer some of their equity interests in
Teamhead back to CNinsure for nominal value if it fails to meet the
performance target in 2008. After the acquisition, the whole
management team of Teamhead will stay with the company. The
transaction is expected to close in June 2008 subject to certain
consents, authorizations and other customary closing conditions.
Teamhead was formed in Shanghai in 2002 as a result of a merger
between Haison Cargo Services Co., Ltd., a specialist in marine
accident investigation, and Shanghai Zhongheng Consulting Services
Co., Ltd., which specialized in the provision of marine
consultancy, survey and loss adjusting services. Combining the
expertise and experience of its two predecessors, Teamhead has
maintained a leading market position, particularly in the marine
& cargo insurance claims adjusting sector. It is the fifth
largest insurance surveyors & adjusters by revenue according to
the Insurance Intermediary Market Development Report published by
the China Insurance Regulatory Commission ("CIRC") in the first
quarter of 2008. Commenting on the acquisitions, CNinsure's
Chairman and Chief Executive Officer, Yinan Hu, said, "We are proud
to bring together three of the top 20 insurance surveyors &
adjusters into CNinsure. Teamhead, Khubon and Fangzhong, which
respectively enjoyed competitive edge in providing marine &
cargo, vehicle and property insurance survey and claims adjusting
services, will provide a solid foundation for CNinsure's expansion
into the claims adjusting sector. As insurance companies become
more and more aware of the value of insurance surveyors and
adjustors, we believe that CNinsure, as an early mover in pursuing
market consolidation in the insurance claims adjusting sector, will
have a better position to capitalize on the opportunities in this
expanding marketplace." 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 June 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, +86-20-6122-2777,
or ; Oasis Qiu, Investor Relations, +86-20-6122-2777 x850, or
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