GUANGZHOU, China, Sept. 28 /PRNewswire-Asia-FirstCall/ -- CNinsure
Inc. (Nasdaq: CISG), (the "Company" or "CNinsure"), a leading
independent insurance intermediary company operating in
China, today announced the
acquisition of an additional 46% equity interest in Shenyang Fangda
Insurance Agency Co., Ltd. ("Shenyang Fangda"), an insurance agency
primarily engaged in the distribution of property and casualty
("P&C") insurance products in Shenyang, Liaoning
Province. The transaction is expected to close in the fourth
quarter of 2010, subject to certain consents, authorizations and
other customary closing conditions. Upon completion of the
transaction, CNinsure's total shareholdings in Shenyang Fangda will
be increased to 51% from the 5% it previously held.
According to the agreements, the total consideration for the
acquisition is subject to downward adjustment, and CNinsure's
shareholdings in Shenyang Fangda will be adjusted upwards if the
agency fails to fulfill the guaranteed targets related to premiums
written and net income. In addition, the selling shareholder agrees
that all of Shenyang Fangda's net income from 2011 to 2015 will be
distributed to CNinsure.
Commenting on the acquisition, chairman and chief executive
officer of the Company, Mr. Yinan
Hu, stated, "The acquisition is a strategic move of the
Company to further penetrate in Liaoning
Province and enhance our capability for the distribution of
P&C insurance products in the region."
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
both domestic and foreign insurance companies operating in
China, and provides insurance
claims adjusting service 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 September 28, 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.
Copyright . 28 PR Newswire