Read Larry Connors' blog – Short Term Trading Strategies
Net income for the company was 60.6 million yuan, representing growth of 73.1% from the first quarter this year and an increase of 84.2% from the second quarter of 2007.
As of June 30, the company had 1.6 billion yuan in cash and cash equivalents.
To further expand its distribution network, CNinsure (Nasdaq: CISG | Quote | Chart | News | PowerRating) said it aims for organic growth, acquisitions and the establishment of joint ventures with entrepreneurial agents in the coming years.
During the second quarter, the company completed acquisitions of majority interests in two property and casualty insurance agencies, one life insurance agency and two claims adjusting companies, expanding its business to Guangxi province in southern China and Liaoning province in northern China.
In the quarter, those five acquired entities contributed a 8.4% of CNinsure?s total net revenue.
CNinsure said it further developed its sales network in China by establishing two life insurance agencies with entrepreneurial agents to expand into Jiangsu and Jilin provinces, the eastern and the northeastern parts of China, respectively.
Apart from expanding its business into new regions, a newly-added insurance claims adjusting business which the company touts as a value-added after-sales service to customers, has also supplied a new source of revenue to CNinsure and helped drive the growth of its property and casualty as well as life insurance businesses.
This followed the company?s acquisition of Guangdong Fangzhong Insurance Surveyors & Loss Adjusters Co. Ltd. in December 2007. CNinsure then acquired Khubon Insurance Surveyors & Loss Adjusters Co. Ltd. and Teamhead Insurance Surveyors & Loss Adjusters Co. Ltd., another two among China?s top 20 insurance adjusting firms, in order to merge these three companies to build one nationwide claims adjusting service network.
Though property and casualty insurance business remained the company?s biggest revenue contributor in the first half of 2008, its life insurance business and the newly added claims adjusting business also had positive performances.
Each of the above sectors contributed 77.6%, 15.8% and 6.6% of its total net revenue respectively, as compared with 88.7%, 11.3% and 0% respectively, in the same period of last year, said the company.
To strengthen its business cooperation with insurance companies, CNinsure signed an exclusive distribution agreement with Sino Life Insurance Company Ltd. for the sales of a refundable participating whole life insurance product to customers. This new life insurance product, underwritten by Sino Life Insurance and custom-designed by Swiss Re, provides accident, health care, annuity, pension and whole life insurance package to consumers.
In February, CNinsure signed a memorandum of understanding with Ping An Life Insurance Co., a member of the the second-largest insurer in China, for a strategic partnership in the distribution and design of certain insurance products, including accident, health, endowment and medical insurance policies.
By the end of June, CNinsure had established business relationships with 59 domestic and foreign insurance companies.
?We are particularly pleased that our business generated strong organic growth as we successfully executed our acquisition strategy in the second quarter," said Yinan Hu, chairman and chief executive of CNinsure, in a statement. "Of the 57.3% top-line growth, 67.1% was contributed by our existing operations and 32.9% by acquisitions, indicating a sound momentum for sustainable growth. We believe we are on the right track towards a well-balanced business structure, which will lay a solid foundation for our continued growth in the future.?
Looking ahead, the company is confident in its investments, which it said will further strengthen its leading position in the Chinese insurance intermediary market.
?We remain committed to expanding our distribution network through acquisitions, as well as building a scalable unified operating platform to achieve economies of scale and stronger profitability In the second half of 2008 and beyond," said Hu. "For the third quarter, we expect the total net revenues to be in the range of 205 million yuan and 215 million yuan.?
Founded in 1998 and headquartered in Guangzhou, China, CNinsure operated a distribution network of 264 sales and services outlets in 13 provinces and cities, including Beijing, Shanghai, Guangzhou and Shenzhen.
By the end of June, it had 20,243 sales professionals and 693 professional adjusters for its insurance claims adjusting business.
CNinsure's stock closed at $13.76 a share in New York on Sept. 2, down 52.1% from its 52-week high of $28.74 achieved in October 2007.
(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com)
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
