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GUANGZHOU, January 31, 2008 /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 majority interests in Changsha Lianyi Insurance Agency Co., Ltd. ("Lianyi") and Jiangmen Fanhua Zhicheng Insurance Agency Co., Ltd. ("Zhicheng"), in an efforts to further expand its distribution network in China. The transactions are expected to close in the first quarter of 2008. According to the agreements, CNinsure will acquire an additional 65% stake in each of Lianyi and Zhicheng, bringing its total holdings to 70% from the 5% it already holds in each of these two agencies.
Lianyi is based in Changsha, the capital city of Hunan Province, and Zhicheng is located in Jiangmen of Guangdong Province. The two agencies are both engaged in the distribution of property and casualty ("P&C") insurance products. Their management teams, as former senior officers in insurance companies, have extensive industry experience and proven leadership skills, with access to a wealth of sales agents and customers. Previously, CNinsure's sales presence in Hunan Province was only limited to life insurance products. The addition of Lianyi will present CNinsure with a strategic platform to launch P&C business in the region, and enable local agents to distribute a wide variety of P&C products. Separately, the acquisition of Zhicheng will further strengthen CNinsure's existing distribution network in Guangdong Province.
Commenting on the acquisitions, CNinsure's Chairman and Chief Executive Officer, Yinan Hu, said,"We are pleased to announce the acquisitions of Lianyi and Zhicheng. We believe our strong operating platform and enhanced brand recognition will help us attract more insurance intermediary players to join CNinsure, contributing to our nation-wide expansion and further enhancing CNinsure's leading position in the Chinese insurance intermediary industry."
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 31, 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.