Trying to predict future growth for
CNinsureCISGwouldbe difficult.
That’s because the Chineseprovider
of insurance products has a track
record of growing via a furious pace
of acquisitions.
Fromits initial public offering in
October2007through April 2009, it
acquired stakes in or established29
companies.
CNinsure beganin 1999 by distributing
automobile insurance products.
In2002itadded property and
casualty insurance offerings. In
2006itexpanded into life insurance.
Last year it entered the claimsadjusting
business.
It’snosurprise that it’snowentering
yet anothernewsegment.
OnOct. 1, CNinsure announcedan
agreement tobuya stake in China
Financial ServicesGroup, aconsumer
credit brokerage company. This
represents CNinsure’s entry into
the financial services sector.
Asan intermediarycompany,
CNinsure doesn’tassume underwriting
risks. It distributes insurance
products underwritten by
other companies.
Earningsgrew35%,36%and42%
in the past three quarters.Revenue
jumped90%,62%and 34%.
Pretaxmarginwasabout35%in
2007-08,upfrom23%in 2006.
From2002to 2005, thecompany
either lostmoneyorwasjust