CNinsure To Acquire Majority Interest in Insurance Adjusting Company-Acquisition Provides Platform to Enter China’s Insurance Adjusting Sector
GUANGZHOU, Dec 5, 2007 /Xinhua-PRNewswire/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of definitive agreements to acquire a 60% stake in Guangdong Fangzhong Insurance Surveyors & Loss Adjusters Co. Ltd. (“Fangzhong”), an insurance adjusting company based in Guangzhou.
Founded in 1999, Fangzhong was the first China Insurance Regulatory Commission (CIRC) -certified insurance adjusting firm in China with a comprehensive range of services available nationwide. Fangzhong offers various claims-related services, including pre-purchase inspection, appraisal and risk assessment; on-site inspection, loss assessment and adjustment as well as other services authorized by the CIRC. Headquartered in Guangzhou, Fangzhong has branches in both Henan and Fujian provinces and plans to establish subsidiaries in Beijing, Shenzhen, Nanjing, Changsha, Wuhan and Chengdu.
This is the first acquisition agreement entered into by CNinsure since its listing on the Nasdaq National Market on October 31, 2007. The transaction is expected to close in January 2008, subject to certain consents, authorizations and other customary closing conditions. Consideration payable by CNinsure and the respective ownership interests of the parties in Fangzhong is subject to adjustment based on the 3-year financial performance of Fangzhong following the closing of the acquisition.
Commenting on this event, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu, said, “We are very pleased to announce this strategic acquisition on Fangzhong. Through 8 years’ development, Fangzhong has built a strong technical system to support a nationwide network of commercial and automobile insurance adjusting services. Our combined nationwide after-sales service system will allow us to integrate the businesses and provide customers with an even more comprehensive service offering.”
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.
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" and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: uncertainties associated with the timing of the closing of the transaction; the possibility that the transaction may not close; CNinsure's ability to maintain its leading position in the market for independent insurance brokerage in China; the risk that CNinsure's profitability may be adversely affected in future periods for a variety of reasons, many of which may be beyond management's control; and other risks outlined in CNinsure's filings with the Securities and Exchange Commission, including its registration statement on Form F-1, as amended CNinsure does not undertake any obligation to update this forward-looking information, except as required under applicable law.