GUANGZHOU, China, June 1 /PRNewswire-Asia-FirstCall/ -- CNinsure
Inc. (Nasdaq: CISG), a leading independent insurance intermediary
company operating in China, today
announced the establishment of an insurance brokerage business
unit, in an effort to expand its product offerings from retail to
commercial lines. The insurance brokerage team will focus on
providing property and casualty, liability, credit and guarantee,
cargo, employee benefits and specialty risk insurance and
reinsurance services to corporate clients.
Commenting on the establishment of the new business unit, Mr.
Yinan Hu, chairman and chief
executive officer of CNinsure, said, "We are excited to launch our
insurance brokerage services platform to capitalize on the growing
demand for commercial insurance by businesses from various
industries as China's economy
continues to grow. Premiums generated by insurance brokers in
China increased from RMB10.6 billion to RMB24.5 billion between 2006
and 2009, representing a CAGR of 32.4%, and grew 41.9%
year-over-year to RMB5.11 billion in
the first quarter of 2010. We believe our experience gained over
the past decade in the retail distribution of a variety of
insurance products and our extensive reach to customers through our
nationwide distribution network will enable us to take advantage of
the opportunities in the insurance brokerage market in China."
"Our operating platform and entrepreneurial agent program will
be the dual engines to drive the development of our insurance
brokerage business," Mr. Hu said. "By establishing our insurance
brokerage business unit as a separate profit center, we aim at
forging a world-class, unified brand and services platform for risk
management and business services that provides our clients with a
broader range of quality services. In addition, we intend to expand
our insurance brokerage team through selective acquisitions and
setting up joint ventures with entrepreneurial sales
professionals."
He concluded, "Our target is to increase the revenue
contribution from our insurance brokerage business to 10% of our
total net revenues within the next five years."
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 June 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.