GUANGZHOU, China, May 23 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of definitive agreements with several individual entrepreneurial agents to jointly establish Jiangsu Fanhua Lianchuang Insurance Agency Co. Ltd. (“Lianchuang”) and Jilin Fanhua Xincheng Insurance Agency Co. Ltd. (“Xincheng”), which will expand its market presence to Jiangsu and Jilin Provinces.
CNinsure will hold 70% and 54% of the equity interests in Lianchuang and Xincheng, respectively, both of which will specialize in life insurance product distribution. The two companies will start operations in July 2008, subject to certain consents, authorizations and other customary conditions for the establishment of insurance agencies. Mr. Lin Hai and Mr. Chen Bojun, two insurance industry veterans, will be in charge of the day-to-day management and business operations of Lianchuang and Xincheng, respectively.
Commenting on the establishment of the new companies, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu said, “As China’s insurance market opens up to more competition, we believe a further division of labor becomes inevitable, which presents substantial opportunities to insurance intermediaries like CNinsure. Against this backdrop, CNinsure has increasingly seen a migration of insurance industry talents to our platform, largely attributable to the appeal of CNinsure’s entrepreneurial business model. We believe that this trend will continue and help further strengthen our leading position in the intermediary sector.”
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 other insurance-related services.
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