GUANGZHOU, China, Oct. 17, 2012 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that it established CNinsure Sales Service Group Company Limited (the "Group Company") on October 10, 2012, after obtaining approval of its license by the China Insurance Regulatory Commission (the "CIRC"), the insurance regulator of the PRC, in September 2012. The Group Company is the first insurance sales service group company in China.
The Group Company, previously known as Shenzhen Fanhua Nanfeng Investment Holding Co., Ltd., a wholly-owned subsidiary of CNinsure, is expected to serve as the PRC holding company for all of CNinsure's affiliated insurance intermediary companies.
Commenting on the establishment of the Group Company, Mr. Chunlin Wang, chief executive officer of the Company, stated, "We wish to simplify our corporate structure and strengthen our corporate governance by removing the variable interest arrangements. The establishment of the Group Company offers an effective way for us to control our affiliated insurance intermediary companies through equity ownership instead of contractual arrangements. The Group Company concurrently has a controlling equity interest in a majority of CNinsure's affiliated insurance intermediary companies. Going forward, we plan to further restructure our group to control all of our affiliated insurance intermediary companies through equity ownership."CIRC's approval for CNinsure to establish the Group Company is an important milestone for Chinese insurance intermediary companies. We anticipate the formation of many more insurance intermediary group companies in China in the coming years. We believe this trend will provide tremendous opportunities for large insurance intermediary companies to consolidate the market and grow stronger, which will significantly drive the further development of the Chinese insurance intermediary sector over the long term." 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.