GUANGZHOU, China, July 18 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of a set of definitive agreements with several individual entrepreneurial agents to jointly establish a new insurance agency named Jiangxi Fanhua Insurance Agency Co., Ltd.(“Jiangxi Fanhua”), expanding its market presence to Jiangxi Province in central China. After the establishment of Jiangxi Fanhua, CNinsure’s distribution network will have reached 16 provinces.
Jiangxi Fanhua, 70% owned by CNinsure, will focus on life insurance product distribution. It is expected to start operations in September 2008 subject to certain consents, authorizations and other customary conditions. The new insurance agency will be led by two entrepreneurial agents who were both former senior managers of insurance companies. Both of them have been in the life insurance sector for over 20 years, during which they have maintained strong relationships with insurance companies in the region while getting access to a wide sales agent and customer base.
Commenting on this event, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu, said, “In view of the recurring fee nature of life insurance policies and the expected growing demand for life insurance products, CNinsure has treated life insurance business as a major focus since 2006. In 2008, we will continue to expand this line of business, including putting more efforts into recruiting senior entrepreneurial agents who are experienced in life insurance marketing. We believe the valuable experience of Jiangxi Fanhua’s new management will be instrumental to the growth of our life insurance business in the region.”
He continued, “The establishment of the new joint venture also marks our entry to the 16th province. While others see underdevelopment in Jiangxi’s insurance market, we see significant growth potential. Adding to the growth momentum is the support from the Jiangxi Insurance Regulatory Bureau for the development of the local insurance market.”
About CNinsure Inc.
CNinsure is a leading independent insurance agency and brokerage 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 and 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 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 July 17, 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 annual report on Form 20-F.
