GUANGZHOU, China, June 1 /PRNewswire-Asia-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance intermediary company operating in China, today announced the establishment of an insurance brokerage business unit, in an effort to expand its product offerings from retail to commercial lines. The insurance brokerage team will focus on providing property and casualty, liability, credit and guarantee, cargo, employee benefits and specialty risk insurance and reinsurance services to corporate clients.
Commenting on the establishment of the new business unit, Mr. Yinan Hu, chairman and chief executive officer of CNinsure, said, "We are excited to launch our insurance brokerage services platform to capitalize on the growing demand for commercial insurance by businesses from various industries as China's economy continues to grow. Premiums generated by insurance brokers in China increased from RMB10.6 billion to RMB24.5 billion between 2006 and 2009, representing a CAGR of 32.4%, and grew 41.9% year-over-year to RMB5.11 billion in the first quarter of 2010. We believe our experience gained over the past decade in the retail distribution of a variety of insurance products and our extensive reach to customers through our nationwide distribution network will enable us to take advantage of the opportunities in the insurance brokerage market in China."
"Our operating platform and entrepreneurial agent program will be the dual engines to drive the development of our insurance brokerage business," Mr. Hu said. "By establishing our insurance brokerage business unit as a separate profit center, we aim at forging a world-class, unified brand and services platform for risk management and business services that provides our clients with a broader range of quality services. In addition, we intend to expand our insurance brokerage team through selective acquisitions and setting up joint ventures with entrepreneurial sales professionals."
He concluded, "Our target is to increase the revenue contribution from our insurance brokerage business to 10% of our total net revenues within the next five years."
About CNinsure Inc.
CNinsure is a leading independent insurance 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.
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 June 1, 2010, 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.
SOURCE CNinsure Inc.