CUII China United Insurance Service Inc (CE)

ZHENGZHOU, China and TAIPEI, Taiwan, Nov. 18, 2013 /PRNewswire/ -- China United Insurance Service, Inc. (CUIS) (OTCBB: CUII), a leading insurance intermediary company with operations in the People's Republic of China and Taiwan, today reported financial results for the fiscal first quarter ended September 30, 2013.

On August 24, 2012, CUIS acquired Action Holding Financial Limited (AHFL), the holding company of Taiwan-based Law Insurance Broker Company, a dominant brokerage and insurance agency service business with 21 branches, three training centers and nearly 2,000 brokers in Taiwan.

For the fiscal first quarter, July 1 to September 30, 2013, the company reported revenues of $7.8 million; gross profit of $1.6 million; and operating expenses of $3.2 million, which included $1.9 million of general and administrative expenses, related to the acquisition its Taiwan operations. Net loss attributable to CUIS' shareholders was $1.0 million, or $0.03 per share. Comparative results for the prior-year period are not meaningful because of the acquisition of AHFL. Results of the operations for the three months ended September 30, 2012 included AHFL's results from the acquisition date, which included a bargain gain of $5.3 million.

"Results for the first quarter were impacted primarily by expenses associated with completing the acquisition of AHFL," said Chung-Mei Lo, Chief Executive Officer. "We are confident that the transaction, which helped to establish a foundation for future growth, along with our recently formed AIA International Limited Taiwan Branch partnership, will position the company for the long-term and facilitate the penetration of new markets and services.

"We are continuing to explore growth opportunities, including new partnerships with large insurance companies, to expand our offerings and our leadership position as one of the preeminent insurance intermediary companies in the region. We are also seeking additional M&A opportunities to  further strengthen our organization and  gain market share in Taiwan," Mr. Lo added.   

Earlier this year, Law Insurance Broker Co., Ltd., a subsidiary of CUIS was awarded the 2013 Taiwan Insurance Excellence Award, one of the most prestigious insurance industry awards granted in the country.

CUIS' strategic growth objectives include continuing its M&A activities, leveraging Taiwan's operational strength and enhancing efficiencies in China, along with recruiting motivated insurance agents, improving service quality, seeking good insurance products in the market, and investing in educating its agents to help customers make well-informed decisions and retentions.

About China United Insurance Service, Inc.
China United Insurance Service, Inc. was founded in 2010 with a vision to build one of the largest financial insurance service platforms in Asia and to become a multinational enterprise by leveraging the experience of its Taiwan operations and capitalizing on China's fast-growing insurance market. CUIS offers a broad range of products and services for individuals, families, and businesses, including: brokerage services for various types of life, health, personal accident, property and casualty insurance; insurance application assistance; claims advocacy; claims accounting preparation services; disaster and loss prevention; and risk assessment/risk management consulting services and the corresponding reinsurance brokerage services. In 2012, the company consolidated both Taiwan and China's operations. CUIS has assembled an experienced executive team, with more than 81 well-experienced managers in agency management to guide its more than 4,200 knowledgeable and professional agents. By offering innovative products, continuously improving the management system and selecting the best products to meet clients' needs, CUIS aspires to become one of Asia's leading financial insurance enterprises.  For more information on CUIS, please visit: http://cuis.asia/

Forward Looking Statement
Statements in this press release may be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements, and involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections of CUIS and the insurance industry.  Potential risks and uncertainties include, but are not limited to, those relating to CUIS' ability to attract and retain productive 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, and macroeconomic conditions in China and Taiwan and the potential impact on the sales of insurance products. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.  Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.

(Financial statements follow)

SOURCE China United Insurance Service, Inc.