CNinsure to Acquire Additional Interest in an Insurance Agency

2009-12-31 15:34 863

GUANGZHOU, China, Dec. 31 /PRNewswire-Asia/ -- CNinsure Inc. (Nasdaq: CISG), (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced the acquisition of an additional 41% equity interest in Hebei Fanlian Insurance Agency Co., Ltd. ("Hebei Fanlian"), an insurance agency primarily engaged in the distribution of property and casualty ("P&C") insurance products in Hebei Province. Following the completion of the transaction, CNinsure's total shareholdings in Hebei Fanlian will be increased to 51% from the 10% it previously held.

Pursuant to the terms of the acquisition, the selling shareholder of Fanlian is obligated to pay back part of the consideration, and transfer part of its equity interest in Hebei Fanlian to CNinsure at nominal value if Hebei Fanlian fails to fulfill the guaranteed targets relating to net income, number of sales agents and monthly premiums written. The transaction is expected to close in the first quarter of 2010, subject to certain consents, authorizations and other customary closing conditions.

Commenting on the acquisition, Mr. Yinan Hu, Chairman and CEO of CNinsure, stated, "Our partnership with Hebei Fanlian will greatly strengthen our capacity to distribute P&C insurance products. Hebei Fanlian, together with two of our existing operating entities in Hebei, will help us further penetrate into Hebei Province and enhance our competitiveness in this region."

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 both domestic and foreign insurance companies operating in China, and provides insurance claims adjusting service 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 December 31, 2009, 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.

Source: CNinsure Inc.
Related Stocks: