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GUANGZHOU, January 28, 2008 /Xinhua-PRNewswire/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the
acquisitions of majority interests in three insurance agencies: Tianjin Xianghe Insurance Agency Co., Ltd. ("Tianjin Xianghe"), Hebei Lianda Insurance Agency Co., Ltd. ("Hebei Lianda") and Beijing Xinyue
Insurance Agency Co., Ltd. ("Beijing Xinyue"). The transactions are expected to close in the first quarter of 2008. Following the investment in Tianjin Xianghe for a 5% stake in November 2007, CNinsure will now acquire an additional 65% stake, increasing its total holdings to 70%.
Tianjin Xianghe, which specializes in the distribution of property and casualty insurance products, is based in Tianjin and was founded by two industry experts with average of ten years of experience. It currently has 153 registered agents. By acquiring a majority interest in the agency, CNinsure now extends the reach of its distribution network to Tianjin, the economic hub in north China. CNinsure will also acquire 70% equity interests in Hebei Lianda and 51% interests in Beijing Xinyue, both of which focus on property and casualty insurance business. Hebei Lianda currently has 6 branches, 20 insurance service outlets and 220 sales agents in Hebei Province. Beijing Xinyue, based in Beijing, boasting 10 years' track record in property and casualty insurance distribution, has 163 sales agents. The addition of these two agencies will further broaden CNinsure’s distribution network and boost its sales capability in Hebei and Beijing, where it has already had sales presence.
Since its listing on Nasdaq in October 2007, CNinsure has acquired majority interests in four insurance agencies and one adjusting company, and incorporated a joint venture with entrepreneurial agents. To date, its distribution network has reached a total of 11 provinces.
Commenting on the acquisitions, CNinsure's Chairman and Chief Executive Officer, Yinan Hu, said, "We are pleased with the achievements we have made so far in acquisition. Given the high fragmentation and existence of many small players in the Chinese insurance intermediary market, we believe tremendous opportunities exist for us to pursue growth through acquisition. Under our current acquisition strategy, all acquired entities will use CNinsure's unified operating platform, including distributing products designated by us and adopting unified financial internal control, IT, training, branding and service systems. We believe this strategy gives us a strong control of the acquired entities, and facilitates a smooth integration of the acquired businesses into our operations. We believe that the acquisition strategy will not only contribute to realizing our short term goals but also provide a strong momentum to our rapid growth in the long run."
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," "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 January 28, 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 registration statement on Form F-1.