CNinsure Establishing Joint Venture with Car Dealer to Further Penetrate Auto Insurance Distribution Channel |
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By: CNinsure Inc. Posted: 2008-04-30 03:24:40 |
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CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of a definitive agreement with Shandong Xin Guang Yuan Automobile Club Co, Ltd. ("Shandong Xin Guang Yuan"), to jointly set up Fanhua-Xin GuangYuan Insurance Agency Co., Ltd. in Shandong Province.
The transactions are expected to close in the first quarter of 2008 subject to certain consents, authorizations and other customary closing conditions. The new insurance agency, which specializes in auto insurance distribution, will be 51% owned by CNinsure and 49% owned by Shangdong Xin Guang Yuan. Shangdong Xing Guang Yuan, an auto dealer based in Jinan, the capital city of Shandong Province, holds a leading position in automobile sales and service in the province. It has 13 4S franchise stores (4S stands for Sale, Sparepart, Service and Survey) with an annual new car sales amounting to 2 billion yuan. Commenting on this establishment of the joint venture, Mr. Chunlin Wang, Vice President and Head of the Property and Casualty Insurance Business Unit, said, "We believe that both CNinsure and Shandong Xin Guang Yuan will benefit from the economies of scale by combining the strengths of both parties while focusing on each other's core competency. We will utilize CNinsure's operating platform, as well as Shandong Xin Guang Yuan's existing branded auto sales sites and its professional auto repair service. We believe that the new company, supported by the shared customer base and strengths of both parties, will play a key role in driving the expansion of our auto insurance business in Shandong Province." 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. 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 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, and its ability to compete effectively against its competitors. All information provided in this press release is as of April 30, 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. For more information, please contact: Phoebe Meng IR Officer Tel: +86-20-6122-2777 |
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