GUANGZHOU, China, April 1 /PRNewswire-Asia-FirstCall/ -- CNinsure
Inc. (Nasdaq: CISG), (the "Company" or "CNinsure"), a leading
independent insurance intermediary company operating in
China, today announced the signing
of definitive agreements to acquire additional 41% equity interests
in Shandong Mintai Insurance Agency Co., Ltd. ("Shandong Mintai")
and Ningbo Baolian Insurance Agency Co., Ltd. ("Ningbo Baolian").
The transaction is expected to close in the second quarter of 2010,
subject to certain consents, authorizations and other customary
closing conditions.
CNinsure will acquire additional 41% equity interests in both
Mintai and Baolian, bringing its total shareholdings in these two
agencies to 51% from the 10% it previously held. Under the
agreements with the selling shareholders, the total considerations
for the acquisitions are subject to downward adjustment, and
CNinsure's shareholdings in the two agencies will be adjusted
upwards if the agencies fail to achieve certain operational and
financial targets. In addition, the selling shareholders also agree
that all of Mintai's and Baolian's net income from 2010 to 2014
will be distributed to CNinsure.
Commenting on the acquisition, chairman and chief executive
officer of the Company, Mr. Yinan
Hu, stated, "The addition of these two agencies will greatly
strengthen our capacity for insurance product distribution in
Shandong and Zhejiang provinces, help us further penetrate
into these two provinces and enhance our competitiveness."
About CNinsure Inc.
CNinsure is a leading independent insurance intermediary 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 insurance claims adjusting
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 and the Business Outlook section
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, its ability to
compete effectively against its competitors, quarterly variations
in its operating results caused by factors beyond its control and
macroeconomic conditions in China
and their potential impact on the sales of insurance products. All
information provided in this press release is as of April 1, 2010, 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
annual report on Form 20-F.
SOURCE CNinsure Inc.