CNinsure Announces Grant of Stock Options
March 12 2012 - 8:47AM
CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a
leading independent insurance intermediary company operating in
China, today announced that the board of directors of the Company
has approved the grant of options to purchase up to 96,645,000
ordinary shares to certain directors, officers, key employees and
sales agents, pursuant to the amended and restated 2007 Share
Incentive Plan, at an exercise price of US$0.30 per ordinary share.
These options will vest over a five-year period starting from May
31, 2012. As of the date of this announcement, outstanding and
exercised stock options have reached 136,874,658, which is the
maximum number of ordinary shares reserved for issuance under the
2007 Share Incentive Plan. The Company does not expect to adopt a
new share incentive plan before 2014.
Commenting on the option grant, Mr. Chunlin Wang, chief
executive officer of the Company, stated: "As a result of high
inflation and intensified competition within the insurance market,
the Chinese insurance industry has witnessed a drastic increase in
labor costs and faced significant challenges in stemming the
outflow of talent. We began feeling these pressures in 2011. To
cope with these challenges and ensure the Company's sustainable
growth over the long run, we have pushed forward an internal
operational restructuring and strategic transformation, which we
expect will take several years to implement. During this period,
retaining talent will be a crucial and challenging task. Therefore,
we think it is necessary to grant options to our key personnel to
align their interests closely with those of the Company and its
shareholders, so as to enable them to benefit from the growth of
the Company, increase the likelihood of the strategic
transformation's success and provide stronger returns to our
shareholders in the long term."
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 March 12, 2012, and CNinsure undertakes no
obligation to update any forward-looking statements to reflect
subsequent occurring events or circumstances, or 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.
CONTACT: Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2777 ext. 850
Email: qiusr@cninsure.net
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