China In-Focus: CNinsure Buys E-Commerce Insurance Provider

Jul 30, 2010 (FinancialWire via COMTEX) -- (Comment on this article at http://www.financialwire.net/2010/07/30/cninsure-buys-e-commerce/)

July 30, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today's featured news.) -- CNinsure Inc. (NASDAQ:CISG), an insurance intermediary company operating in China, said it has acquired a majority equity interest in InsCom Holding Ltd., which beneficially owns 100% equity interest in Shenzhen InsCom E-commerce Co., Ltd., an independent online insurance service provider in China.

The transaction is scheduled to close in the fourth quarter of 2010, subject to certain consents, authorizations and other customary closing conditions.

Shenzhen InsCom operates an e-commerce insurance website that offers a range of insurance products online as well as industry and regulatory information.

Under the agreement with the selling shareholder, CNinsure will acquire 65.1% equity interest in InsCom for RMB84 million.

As part of a corporate restructuring of InsCom, CNinsure's equity interests in six of its affiliated property and 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 said it 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.

Once the deal closes, the operation of Shenzhen InsCom will come under the leadership of Chunlin Wang, head of CNinsure's property and casualty insurance unit, who will serve as chairman and CEO, and Yuan Tian, the former chairman and CEO of Shenzhen InsCom, who will be the vice president.

China-based CNinsure distributes a range 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.

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