CNinsure Inc. (NASDAQ:CISG), an independent insurance agency and brokerage company operating in China, announced the signing of a set of definitive agreements with several individual entrepreneurial agents to jointly establish a new insurance agency named Jiangxi Fanhua Insurance Agency Co. Ltd.(“Jiangxi Fanhua”), expanding its market presence to Jiangxi Province in central China. After the establishment of Jiangxi Fanhua, CNinsure’s distribution network will have reached 16 provinces.
Jiangxi Fanhua, 70 percent owned by CNinsure, will focus on life insurance product distribution. It is expected to start operations in September 2008 subject to certain consents, authorizations and other customary conditions. The new insurance agency will be led by two entrepreneurial agents who were both former senior managers of insurance companies. Both of them have been in the life insurance sector for over 20 years, during which they have maintained strong relationships with insurance companies in the region while getting access to a wide sales agent and customer base.
Commenting on this event, CNinsure’s Chairman and Chief Executive Officer, Yinan Hu, said, “In view of the recurring fee nature of life insurance policies and the expected growing demand for life insurance products, CNinsure has treated life insurance business as a major focus since 2006. In 2008, we will continue to expand this line of business, including putting more efforts into recruiting senior entrepreneurial agents who are experienced in life insurance marketing.”
He continued, “The establishment of the new joint venture also marks our entry to the 16th province. While others see underdevelopment in Jiangxi’s insurance market, we see significant growth potential. Adding to the growth momentum is the support from the Jiangxi Insurance Regulatory Bureau for the development of the local insurance market.”
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 and other insurance-related services.
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