GUANGZHOU, China, Jan. 3 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of a definitive agreement with three entrepreneurs to jointly establish Zhejiang Fanhua Tongchuang Insurance Agency Co., Ltd., expanding its market presence to Zhejiang Province in eastern China. The new insurance agency, specializing in life insurance product distribution, will be 60% owned by CNinsure and 40% owned by three individual entrepreneurs.
The new company is based in Hangzhou, the capital city of Zhejiang, one of the most economically developed provinces in China: ranked 4th in GDP and 6th in total insurance premium among all 31 Chinese provinces in 2006. With the establishment of this new company, CNinsure’s distribution network now reaches nine provinces.
As former senior managers of leading Chinese insurance companies, the three entrepreneurial agents have rich experience in life insurance business and strong capabilities to lead a sales force with deep understanding of the local market. Attracted by CNinsure’s entrepreneurial agent program, they decided to jointly set up the new company with CNinsure. In the new company, they will be in charge of day-to-day management and business operation, while CNinsure will provide a strong operating platform and brand support. The new company is one step forward towards CNinsure’s dedication to further expanding in the country and growing life business.
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 3, 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.
