GUANGZHOU, China, Dec. 17 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc., (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of a definite agreement to acquire the remaining 45% stake in Fujian Xinheng Insurance Agency Co., Ltd. (“Xinheng”), following its acquisition, through one of its affiliated entities in China, of a 55% interest in the insurance agency in 2006 as part of its efforts to expand into the distribution of life insurance products.
The transaction, which is expected to close at the end of January 2008, will give CNinsure full control over Xinheng. Consideration payable by CNinsure is subject to adjustment based on Xinheng’s net profit for the calendar year of 2008.
Xinheng, an insurance agency specializing in the distribution of life insurance products based in Fuzhou, currently owns 7 branches with service network available in many major cities in Fujian province. It also offers a wide range of other insurance-related services, including the distribution of property and casualty insurance products, insurance premium collection, on-site loss assessment and claims settlement.
Commenting on this event, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu, said, “We are pleased to announce the acquisition of the remaining stake of Xinheng. Since 2006, it has shown robust growth and increasing market presence. After this acquisition, CNinsure will further increase investment of resources and expand penetration in the Fujian market so as to enhance the leading position of Xinheng in the region.”
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 December 17, 2007, 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.
