GUANGZHOU, China, Jan. 4 /Xinhua-PRNewswire/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of a definitive agreement to acquire a 60% stake in Hubei East Century Insurance Agency Co., Ltd. (“East Century”). This represents CNinsure’s entry to Hubei, a province with GDP and premium income ranking 12th in the country in 2006.
The transaction is expected to close at the end of January 2008. With the acquisition of East Century, CNinsure’s distribution network now reaches 10 provinces in China.
East Century, based in Wuhan, the provincial capital, was founded in 2004 by a group of veterans each with ten years of insurance industry experience. It is the first local agency specializing in the distribution of life insurance products and the No. 1 professional insurance intermediary in Hubei in terms of life insurance premium. The company currently owns 5 branches and has a sales force of over 600 professionals. It has built strong business relationships with 13 insurance companies.
Commenting on this event, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu, said, “We are pleased to announce the strategic acquisition of Hubei East Century Insurance Agency Co., Ltd. The acquisition sits squarely within our strategy of expanding nation-wide distribution network and developing life business. With its geographic coverage in Hubei province and track record in life business, East Century clearly meets our strategic goal of acquiring businesses capable of giving us strong presence in a new market and contributing to the life business growth. We are confident that the addition of East Century will serve as a strong driving force behind CNinsure’s continued growth in the coming years.”
About CNinsure Inc.
CNinsure is a leading independent insurance agency and brokerage company operating in China. CNinsure’s distribution network reaches some 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-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 Chinese insurance industry, and its ability to compete effectively against its competitors. All information provided in this press release is as of January 04, 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.
For more information, please contact:
Phoebe Meng
IR Officer
Tel: +86-20-6122-2730
Email: mengyf@cninsure.net
