CNinsure Intends to Invest in a New Life Insurance Company
GUANGZHOU, China, Dec 11, 2012 (GlobeNewswire via COMTEX) --
CNinsure Inc., (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that it has been invited by Guangdong Macro Co., Ltd. (Shenzhen: 000533) ("Guangdong Macro"), a leading supplier of gas appliance and electrical equipment for public power grids, to subscribe for equity interests in a life insurance company that Guangdong Macro plans to establish in Guangdong Province.
CNinsure intends to invest RMB50 million in cash to subscribe for 10% of the equity interests in the proposed new life insurance company through its wholly-own PRC subsidiary, CNinsure Insurance Sales Service Group Company Limited. Guangdong Macro has not yet submitted the application to establish the new life insurance company to the China Insurance Regulatory Commission, and any investment obligation that CNinsure agrees to will be conditional upon the establishment and regulatory approval of the new life insurance company.
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. 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, 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 the date hereof, and CNinsure undertakes no obligation to update any forward-looking statements. 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.
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SOURCE: CNinsure Inc.
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