Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2010
Commission File Number: 001-33768
CNINSURE INC.
22/F, Yinhai Building
No. 299 Yanjiang Zhong Road
Guangzhou, Guangdong 510110
Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CNinsure Inc.
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By: |
/s/ Yinan Hu
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Name: |
Yinan Hu |
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Title: |
Chief Executive Officer |
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Date: July 30, 2010
Exhibit Index
Exhibit 99.1 Press Release
Exhibit 99.1
Exhibit 99.1
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IR-083 |
CNinsure Announces Expansion Into E-Commerce Insurance Business
GUANGZHOU, China, July 29, 2010/PRNewswire-Asia-FirstCall/ CNinsure Inc. (Nasdaq: CISG), (the
Company or CNinsure), a leading independent insurance intermediary company operating in China,
today announced the acquisition of majority equity interest in InsCom Holding Limited(InsCom),
which beneficially owns 100% equity interest in Shenzhen InsCom E-commerce Co., Ltd. (Shenzhen
InsCom), a leading independent online insurance service provider in China. The transaction is
expected to close in the fourth quarter of 2010, subject to certain consents, authorizations and
other customary closing conditions.
Headquartered in Shenzhen, a special economic zone in south China, Shenzhen InsCom currently
operates a widely recognized independent e-commerce insurance website in China that offers a
variety of insurance products online as well as the most up-to-date industry and regulatory
information.
Pursuant to the agreement with the selling shareholder, CNinsure will acquire 65.1% equity interest
in InsCom for RMB84 million. Meanwhile, as part of the corporate restructuring of InsCom,
CNinsures equity interests in six of its affiliated property & casualty insurance agencies will be
transferred to an affiliated subsidiary of InsCom in exchange for preference shares newly issued by
InsCom. With the preference shares, CNinsure is entitled to all of the profits of InsCom for a
certain period and reserves the right to require InsCom to redeem the preference shares.
Upon completion of the transaction, the operation of Shenzhen InsCom will come under the leadership
of Mr Chunlin Wang, head of CNinsures property & casualty insurance business unit, who will serve
as Chairman and CEO, and Mr Yuan Tian, the former Chairman and CEO of Shenzhen InsCom, who will be
the vice president.
Commenting on the acquisition, Mr. Yinan Hu, Chairman and CEO of CNinsure, stated, We are thrilled
to announce the strategic acquisition of InsCom. It is a milestone that marks our step forward into
the online insurance distribution business which we expect will enjoy flourishing growth in the
coming years as consumers are inspired by the convenience of buying daily commodities online and
begin to place their interests in shopping online for commodity-typed insurance products such as
auto insurance, accident insurance, homeowner insurance and travel insurance etc.
The change in consumption habits must come with changes in how insurance is sold. We expect that
the traditional way of insurance distribution that primarily relies on on-the-ground distribution
will be replaced by a multi-channel distribution system, which will create substantial room for the
development of online-sales and telemarketing. Bringing InsCom in-house is one of our proactive
strategies that respond to the emerging market trends.
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IR-083 |
Mr Hu continued, Upon acquisition, we will allocate resources to further strengthen InsComs
existing call center and e-commerce platform. In the meantime, we understand how essential it is
for online and offline integration. Therefore, we intend to combine the brand-new call center and
the reinforced e-commerce platform of InsCom with CNinsures nation-wide distribution and service
network established during its over ten-year operating history to supplement online sales with
ground support. With proper integration, and by sharing our customer base and technology
competencies, we expect the acquisition will generate compelling synergies for both parties. We are
also confident that CNinsure who can always adapt itself to market changes in a proactive manner
will be able to further entrench its leading position in the long run and maintain its stable and
sustainable development.
About CNinsure Inc.
CNinsure is a leading independent insurance intermediary company operating in China. CNinsures
distribution network reaches many of Chinas most economically developed regions and affluent
cities. The Company distributes a wide variety of property and casualty and life insurance products
underwritten by both domestic and foreign insurance companies operating in China, and provides
insurance claims adjusting service 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 managements
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 CNinsures
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 July 29, 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 CNinsures filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F.
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IR-083 |
For more information, please contact:
Oasis Qiu
Investor Relations Officer
Tel: +86-20-61222777-850
Email: qiusr@cninsure.net
Source: CNinsure Inc.