UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

CNINSURE INC.

21/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
People’s Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ     Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):o

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 24, 2009

Exhibit Index

Exhibit 99.1 — Press release

Exhibit 99.1

CNinsure Reports Third Quarter 2009 Unaudited Financial Results

GUANGZHOU, China, November 23, 2009 /Xinhua-PRNewswire/ — CNinsure Inc., (Nasdaq: CISG), (the “Company” or “CNinsure”), a leading independent insurance intermediary company operating in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.¹

Financial Highlights:

Highlights for Third Quarter 2009

•		Total net revenues: RMB297.8 million (US$43.6 million), representing an increase of 41.1% from the corresponding period of 2008, which exceeded the previous guidance of approximately 35% growth from the corresponding period of 2008.
•		Income from operations: RMB87.7 million (US$12.9 million), representing an increase of 54.4% from the corresponding period of 2008.
•		Net income attributable to the Company’s shareholders: RMB76.9 million (US$11.3 million), representing an increase of 47.3% from the corresponding period of 2008.
•		Basic and diluted net income per American Depositary Share (“ADS”): RMB1.686 (US$0.247) and RMB1.641 (US$0.240), respectively, representing an increase of 47.3% and 43.4%, respectively, from the corresponding period of 2008.

Commenting on the third quarter results, Yinan Hu, Chairman and CEO of CNinsure stated: “The Company continued to deliver strong financial results during the third quarter with total net revenues up 41.1% and net income attributable to the Company’s shareholders up 47.3% compared to the same period of last year, and we are encouraged to see a significant year-over-year growth of 95.3% in our life insurance business, which was mainly attributable to the growth of our Datong segment and the increase in renewal commissions.”

“The strong financial results once again proved the Company had successfully adopted effective measures to weather the financial crisis and capitalize on the opportunities to further enhance its competitiveness and solidify its leading position within the insurance intermediary industry. With a unified operating platform and an expanding distribution and service network in place, the Company stands to benefit from the steady recovery of China’s economy and the tightening regulation of the insurance industry and achieve faster development.”

Financial Results for the Third Quarter Ended September 30, 2009

Total net revenues for the third quarter ended September 30, 2009 were RMB297.8 million (US$43.6 million), representing an increase of 41.1% from RMB211.0 million for the corresponding period of 2008. The increase was primarily attributable to: (1) an increase in the number of our sales professionals and claims adjusters by 57.2% to 36,227 and 126.1% to 1,449, respectively, by the third quarter of 2009, with operations in 22 provinces as of September 30, 2009 compared to 15 provinces as of September 30, 2008, (2) newly acquired entities including the subsidiaries under the Datong segment, and (3) an increase in performance bonuses as a result of growth in sales volume.

Total operating costs and expenses were RMB210.1 million (US$30.8 million) for the third quarter of 2009, representing an increase of 36.3% from RMB154.2 million for the corresponding period of 2008.

Commissions and fees expenses were RMB139.7 million (US$20.5 million) for the third quarter of 2009, representing an increase of 26.7% from RMB110.3 million for the corresponding period of 2008. The increase was primarily due to sales volume growth.

Selling expenses were RMB14.8 million (US$2.2 million) for the third quarter of 2009, representing an increase of 261.0% from RMB4.1 million for the corresponding period of 2008. The increase was primarily due to the establishment of additional branches and companies under the Datong and Claims Adjusting segments and an increase in sales promotion expenses.

General and administrative expenses were RMB55.6 million (US$8.1 million) for the third quarter of 2009, representing an increase of 40.1% from RMB39.7 million for the corresponding period of 2008. The increase was primarily due to the following factors:

(1)

increases in headcounts, particularly the recruitment of more senior managers, and higher base salaries for the managerial and administrative staff;

(2)

increases in depreciation of fixed assets as a result of the operation of our upgraded IT system in affiliated entities;

(3)

increases in amortization of intangible assets as a result of the acquisitions that we made in 2008 and 2009; and

(4)

increases in office rental expense and telecom expense and expenses incurred by newly acquired entities and the expansion of distribution and service network.

As a result of the foregoing factors, income from operations was RMB87.7 million (US$12.9 million) for the third quarter of 2009, representing an increase of 54.4% from RMB56.8 million for the corresponding period of 2008. Operating margin was 29.5% for the third quarter of 2009 compared to 26.9% for the corresponding period of 2008.

Interest income for the third quarter of 2009 was RMB7.5 million (US$1.1 million), representing a decrease of 41.4% from RMB12.9 million for the corresponding period of 2008, primarily due to a decrease in bank deposit interest rates.

Income tax expense for the third quarter of 2009 was RMB21.4 million (US$3.1 million), representing an increase of 30.5% from RMB16.4 million for the corresponding period of 2008. The increase was primarily attributable to the increase of income from operations. Effective income tax rate was 22.4% for the third quarter of 2009 compared to 23.5% for the corresponding period of 2008.

Net income attributable to the Company’s shareholders was RMB76.9 million (US$11.3 million) for the third quarter of 2009, representing an increase of 47.3% from RMB52.2 million for the corresponding period of 2008.

Net margin was 25.8% for the third quarter of 2009, compared to 24.7% for the corresponding period of 2008.

Basic net income per ADS was RMB1.686 (US$0.247) for the third quarter of 2009, representing an increase of 47.3% from RMB1.144 for the corresponding period of 2008. Fully diluted net income per ADS was RMB1.641 (US$0.240) for the third quarter of 2009, representing an increase of 43.4% from RMB1.144 for the corresponding period of 2008.

As of September 30, 2009, the Company had RMB1.6 billion (US$230.0 million) in cash and cash equivalents.

Recent developments:

•		On October 18, 2009, Datong, the life insurance business segment of CNinsure, announced cooperation with Sino Life Insurance Co., Ltd. for exclusive distribution of “Fumantang”, a custom-designed participating whole life insurance product with critical illness benefit rider. Up to now, CNinsure has established partnerships with four insurance companies for exclusive distribution of five custom-designed insurance products.
•		On October 1, 2009, CNinsure announced that it entered into agreements to acquire 20.58% equity interest in China Financial Services Group Limited (“CFSG”), a consumer credit brokerage company specializing in the distribution of personal auto loans and residential mortgage loans, marking its expansion into the consumer financial services sector. The transaction has been approved by the boards of directors of both CFSG and CNinsure and was subsequently completed on November 1, 2009.

•		During the third quarter of 2009, CNinsure established two new life insurance agencies. As of September 30, 2009, its distribution and service network consisted of 47 insurance agencies, four insurance brokerages and four claims adjusting firms with 472 sales and services outlets operating in 22 provinces, compared to 33 insurance agencies, four insurance brokerages and three claims adjusting firms with 305 sales and service outlets operating in 15 provinces as of September 30, 2008. CNinsure had 36,227 sales agents and 1,449 professional claims adjustors as of September 30, 2009, compared to 23,042 sales agents and 641 professional claims adjustors as of September 30, 2008.
•		According to the Insurance Intermediary Market Development Report published by the CIRC, based on revenues in the third quarter of 2009, CNinsure had eight affiliated insurance agencies, one affiliated insurance brokerage, and three affiliated claims adjusting firms among China’s top 20 of their respective categories, each accounting for 11.93%, 1.09% and 12.44% of the total revenues of all insurance agencies, brokerages and claims adjusting firms, respectively, in China.
•		During the third quarter of 2009, net revenues from commissions and fees derived from Property and Casualty (“P&C”) Insurance, Life Insurance and Claims Adjusting businesses grew by 33.0%, 95.3% and 28.4% year-over-year, respectively, each contributing 68.2%, 19.8% and 12.0% of the total net revenues in the third quarter of 2009, respectively.
•		As of September 30, 2009, CNinsure had achieved the following in its IT platform construction: (1) the Core Business System and a financial and accounting system were installed in all affiliated subsidiaries of its Life Insurance and Datong segments, and most of the affiliated subsidiaries of its P&C Insurance and Claims Adjusting segments; (2) the human resources system, office automation system and E-learning system were put into use and the sales automation system was at user acceptance test stage; and (3) a module for data transmission with insurance companies and an image & workflow system were under construction.
•		On July 29, 2009, CNinsure announced strategic partnership with China United Property Insurance Company Limited for product distribution and outsourcing of claims adjusting services. This was the second strategic partnership agreement CNinsure has signed with property and casualty insurance companies at the group level.

Business Outlook

CNinsure expects its total net revenues to grow by approximately 26% for the fourth quarter 2009 and approximately 36% for the fiscal year 2009 compared to the corresponding period of 2008. This forecast reflects CNinsure’s current and preliminary view, which is subject to change.

Conference Call

The Company will host a conference call to discuss the third quarter 2009 results at

Time:

8:00 pm Eastern Standard Time on November 23, 2009 or 9:00 am Beijing/Hong Kong Time on November 24, 2009

The Toll Free dial-in numbers:
United States:		1866-549-1292
United Kingdom:		0808-234-6305
Canada:		1866-8691-825
Singapore:		800-852-3576
Taiwan:		0080-185-6004
China (Mainland):		400-681-6949
Hong Kong & Other Areas:		+852-3005-2050

Password: 618842#

A replay of the call will be available for three days as follows:

+852-3005-2020      (Hong Kong & other areas)
PIN number: 147257#

Additionally, a live and archived web cast of this call will be available at:

http://www.corpasia.net/us/CISG/irwebsite/index.php?mod=event

About CNinsure Inc.

CNinsure is a leading independent 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 domestic and foreign insurance companies operating in China, and provides insurance claims adjusting 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 November 23, 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.

CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

		As of December 31,				As of September 30,				As of September 30,
		20082 (As Adjusted)				2009				2009
		RMB				RMB				US$
ASSETS:
Current assets:
Cash and cash equivalents			1,510,432				1,570,007				229,997
Restricted cash			4,200				2,811				412
Accounts receivable, net			90,452				141,666				20,753
Insurance premium receivables			21				302				44
Other receivables			57,151				53,974				7,907
Deferred tax assets			1,808				4,556				667
Amounts due from related parties			207,595				19,775				2,897
Other current assets			5,224				6,817				999
Total current assets			1,876,883				1,799,908				263,676
Non-current assets:
Property, plant, and equipment, net			72,538				102,232				14,977
Goodwill			37,888				325,843				47,734
Intangible assets			53,518				84,279				12,346
Deferred tax assets			4,836				2,747				403
Investment in an affiliate			427				390				57
Other non-current assets			425				2,634				386
Total assets			2,046,515				2,318,033				339,579

CNINSURE INC.
Unaudited Condensed Consolidated Balance Sheets-(Continued)
(In thousands)

		As of December 31,				As of September 30,				As of September 30,
		20082 (As Adjusted)				2009				2009
		RMB				RMB				US$
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable			59,867				55,306				8,102
Insurance premium payables			4,200				2,811				412
Other payables and accrued expenses			73,712				96,310				14,109
Accrued payroll			15,336				21,531				3,154
Income tax payable			26,140				32,198				4,716
Amounts due to related parties			10,967				4,177				612
Total current liabilities			190,222				212,333				31,105
Non-current liabilities:
Long-term borrowings			—				20				3
Other tax liabilities			1,871				2,341				343
Deferred tax liabilities			8,351				19,773				2,897
Total liabilities			200,444				234,467				34,348
Common stock			7,036				7,036				1,031
Additional paid-in capital			1,666,723				1,603,270				234,870
Statutory reserves			71,237				71,237				10,436
Retained earnings			80,462				287,528				42,121
Accumulated other comprehensive loss			(73,810	)			(72,523	)			(10,624	)
Total CNinsure Inc. shareholders’ equity			1,751,648				1,896,548				277,834
Noncontrolling interests2			94,423				187,018				27,397
Total shareholders’ equity			1,846,071				2,083,566				305,231
Total liabilities and shareholders’ equity			2,046,515				2,318,033				339,579

CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for shares and per share and per ADS data)

		For The Three Months Ended												For The Nine Months Ended
		September 30,												September 30,
		20083												20083
		(As Adjusted)				2009				2009				(As Adjusted)				2009				2009
		RMB				RMB				US$				RMB				RMB				US$
Net revenues:
Commissions and fees			210,577				297,680				43,609				561,757				798,873				117,031
Other service fees			414				125				18				700				484				71
Total net revenues			210,991				297,805				43,627				562,457				799,357				117,102
Operating costs and expenses:
Commissions and fees			(110,322	)			(139,707	)			(20,466	)			(290,727	)			(402,731	)			(58,998	)
Selling expenses			(4,141	)			(14,799	)			(2,168	)			(11,105	)			(34,157	)			(5,004	)
General and administrative expenses			(39,739	)			(55,576	)			(8,142	)			(100,450	)			(146,437	)			(21,452	)
Total operating costs and expenses			(154,202	)			(210,082	)			(30,776	)			(402,282	)			(583,325	)			(85,454	)
Net income from operations			56,789				87,723				12,851				160,175				216,032				31,648
Other income , net:
Investment income			—				—				—				—				18,905				2,769
Interest income			12,851				7,528				1,103				36,553				26,103				3,824
Interest expense			(29	)			(1	)			—				(66	)			(4	)			(1	)
Others, net			135				78				11				127				1,035				152
Changes in fair value of contingent consideration payables			—				—				—				—				(5,946	)			(871	)
Net income before income taxes			69,746				95,328				13,965				196,789				256,125				37,521
Income tax expense			(16,385	)			(21,350	)			(3,128	)			(46,755	)			(67,289	)			(9,858	)
Share of loss of an affiliated company			(86	)			(10	)			(1	)			(1	)			(37	)			(5	)
Net income			53,275				73,968				10,836				150,033				188,799				27,658
Less: Net income (loss) attributable to the noncontrolling interests			1,069				(2,955	)			(433	)			2,156				(18,267	)			(2,676	)
Net income attributable to the Company’s shareholders			52,206				76,923				11,269				147,877				207,066				30,334

CNINSURE INC.
Unaudited Condensed Consolidated Statements of Operations-(Continued)
(In thousands, except for shares and per share and per ADS data)

		For The Three Months Ended												For The Nine Months Ended
		September 30,												September 30,
		20083												20083
		(As Adjusted)				2009				2009				(As Adjusted)				2009				2009
		RMB				RMB				US$				RMB				RMB				US$
Net income per share:
Basic			0.057				0.084				0.012				0.162				0.227				0.033
Diluted			0.057				0.082				0.012				0.162				0.224				0.033
Net income per ADS:
Basic			1.144				1.686				0.247				3.241				4.538				0.665
Diluted			1.144				1.641				0.240				3.241				4.476				0.656
Shares used in calculating net income per share and ADS:
Basic			912,497,726				912,497,726				912,497,726				912,497,726				912,497,726				912,497,726
Diluted			912,497,726				937,397,373				937,397,373				912,497,726				925,236,583				925,236,583

For more information, please contact:

Oasis Qiu
Investor Relations Manager
Tel: +86 (20) 6122-2777 x 850
Email: qiusr@cninsure.net

Source: CNinsure Inc.