GUANGZHOU, China, Nov. 23 / PRNewswire-Asia-FirstCall/ -- 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      As of          As of
                                    31, 2008(2)   September 30,  September 30,
                                  (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


    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 interests(2)         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
                                                  September 30,
                                       2008(3)
                                   (As Adjusted)       2009           2009
                                         RMB            RMB            US$
    Net revenues:
    Commissions and fees               210,577        297,680         43,609
    Other service fees                     414            125             18
    Total net revenues                 210,991        297,805         43,627
    Operating costs and
     expenses:
    Commissions and fees              (110,322)      (139,707)       (20,466)
    Selling expenses                    (4,141)       (14,799)        (2,168)
    General and administrative
     expenses                          (39,739)       (55,576)        (8,142)
    Total operating costs and
     expenses                         (154,202)      (210,082)       (30,776)
    Net income from operations          56,789         87,723         12,851
    Other income, net:
      Investment income                     --             --             --
      Interest income                   12,851          7,528          1,103
      Interest expense                     (29)            (1)             -
      Others, net                          135             78             11
      Changes in fair value of
       contingent
       consideration payables               --             --             --
    Net income before income
     taxes                              69,746         95,328         13,965
    Income tax expense                 (16,385)       (21,350)        (3,128)
    Share of loss of an
     affiliated company                    (86)           (10)            (1)
    Net income                          53,275         73,968         10,836
    Less: Net income (loss)
     attributable to the
    noncontrolling interests             1,069         (2,955)          (433)
    Net income attributable to
     the Company's
     shareholders                       52,206         76,923         11,269



                                       For The Three Months Ended
                                              September 30,
                                      2008(3)
                                 (As Adjusted)          2009            2009
                                       RMB               RMB             US$
    Net income per share:
    Basic                             0.057            0.084           0.012
    Diluted                           0.057            0.082           0.012

    Net income per ADS:
    Basic                             1.144            1.686           0.247
    Diluted                           1.144            1.641           0.240
    Shares used in calculating net income per share
     and ADS:
    Basic                       912,497,726      912,497,726     912,497,726
    Diluted                     912,497,726      937,397,373     937,397,373





                                   For The Nine Months Ended
                                         September 30,
                            2008(3)
                        (As Adjusted)          2009                     2009
                              RMB               RMB                      US$
    Net revenues:
    Commissions
     and fees             561,757           798,873                  117,031
    Other service
     fees                     700               484                       71
    Total net
     revenues             562,457           799,357                  117,102
    Operating
     costs and
     expenses:
    Commissions
     and fees            (290,727)         (402,731)                 (58,998)
    Selling
     expenses             (11,105)          (34,157)                  (5,004)
    General and
     administrative
     expenses            (100,450)         (146,437)                 (21,452)
    Total
     operating
     costs and
     expenses            (402,282)         (583,325)                 (85,454)
    Net income
     from
     operations           160,175           216,032                   31,648
    Other income,
     net:
      Investment
       income                  --            18,905                    2,769
      Interest
       income              36,553            26,103                    3,824
      Interest
       expense                (66)               (4)                      (1)
      Others, net             127             1,035                      152
      Changes in
       fair value of
       contingent
       consideration
       payables                --            (5,946)                    (871)
    Net income
     before income
     taxes                196,789           256,125                   37,521
    Income tax
     expense              (46,755)          (67,289)                  (9,858)
    Share of loss
     of an
     affiliated
     company                   (1)              (37)                      (5)
    Net income            150,033           188,799                   27,658
    Less: Net
     income (loss)
     attributable
     to the
     noncontrolling
     interests              2,156           (18,267)                  (2,676)
    Net income
     attributable
     to the
     Company's
     shareholders         147,877           207,066                   30,334





                         For The Nine Months Ended
                               September 30,
                     2008(3)
                  (As Adjusted)    2009                 2009
                      RMB           RMB                  US$
    Net income
     per
     share:
    Basic           0.162         0.227                0.033
    Diluted         0.162         0.224                0.033
    Net income
     per ADS:
    Basic           3.241         4.538                0.665
    Diluted         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
    Diluted   912,497,726   925,236,583          925,236,583


    (1)  This announcement contains translations of certain Renminbi (RMB)
         amounts into U.S. dollars (US$) at specified rates solely for the
         convenience of the reader. Unless otherwise noted, all translations
         from RMB to U.S. dollars are made at a rate of RMB6.8262 to US$1.00,
         the effective noon buying rate as of September 30, 2009 in The City
         of New York for cable transfers of RMB as set forth in the H.10
         weekly statistical release of the Federal Reserve Board.


    (2)  Effective from January 1, 2009, the Company adopted Financial
         Accounting Standards Board (FASB) Accounting Standards Codification
         810 ("ASC 810") Non-controlling Interests, (formerly FASB Statement
         ("SFAS") No. 160, Non-controlling Interests in Consolidated Financial
         Statements). As a result, the presentation and disclosure
         requirements had applied retrospectively for all periods presented,
         requires noncontrolling interests to be separately presented as a
         component of stockholders' equity on the consolidated balance sheets.
         The balance sheet data as of December 31, 2008 were extracted from
         the Form 20-F for the year ended December 31, 2008, as adjusted to
         give the effect of the adoption of FASB ACS 810.

    (3)  Amounts were extracted from the current report on Form 6-K filed on
         November 25, 2008, as adjusted to give the effect of the adoption of
         SFAS ACS 810, Non-controlling Interests, (formerly SFAS No. 160).

SOURCE CNinsure Inc.

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