CNinsure Establishes CNinsure Sales Service Group Company

CNinsure

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