) delivered operating net income of 8 cents per share in the
fourth quarter of 2013, lagging the Zacks Consensus Estimate by a
couple of cents. Earnings improved 60% year over year.
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The year-over-year improvement stemmed from strong performance at
the property and casualty insurance and claims adjusting
businesses. In addition, costs were controlled through effective
For 2013, operating net income came in at 32 cents on revenues of
$290.2 million. While the top line improved 10.8%, earnings moved
down by 26.4%.
Behind the Headlines
CNinsure generated total revenue of $83.2 million, up 15.6% year
over year. The outperformance was driven by higher net revenue at
the P&C insurance and claims adjusting business segments that
offset the decline in net revenue at the life insurance business
Higher revenues from P&C business segment was primarily
fueled by increases in both sales volume and commission rates
received from insurance underwriters.
Total operating costs and expenses increased 14% year over year
to $80.9 million.
Adjusted Earnings before Interest, Tax, Depreciation and
Amortization (EBITDA) increased 8.3% year over year to $6 million
with adjusted EBITDA margin contracting 50 basis points to 7.2%.
Interest income increased 8% year over year to $3.6 million in
the quarter, driven by increase in other receivables.
As of Dec 31, 2013, CNinsure had a distribution and service
network of 480 sales and services outlets operating in 27
provinces, up from 472 sales and service outlets operating in 26
provinces as of Dec 31, 2012.
CNinsure exited the quarter with cash and cash equivalents of
$378.1 million and cash from operations in 2013 amounted to $29.7
CNinsure projects 2014 total net revenue to increase 15% year
Performance of Other Insurance Brokers
Marsh & McLennan Cos. Inc.
) reported fourth-quarter 2013 operating earnings per share of 57
cents. The results were a penny higher than the Zacks Consensus
Estimate of 56 cents, and a nickel higher than the year-ago
quarter earnings of 52 cents.
) fourth-quarter operating earnings of $1.54 per share exceeded
the Zacks Consensus Estimate by a penny. The result also outpaced
the year-ago quarter's earnings by 21%.
Arthur J Gallagher & Co
) reported fourth-quarter operating net earnings of 48 cents a
share that missed the Zacks Consensus Estimate by a penny.
However, the result increased from the prior-year quarter number
CNinsure carries a Zacks Rank #2 (Buy).