) gained 13.26% to close at $7.26 after a stellar first-quarter
performance by the insurance broker. Net income of 14 cents per
share outpaced the Zacks Consensus Estimate by about 56% and
doubled year over year.
The improvement stemmed from strong performance at the insurance
brokerage business well supported by agency business, insurance and
claims adjusting business.
Behind the Headlines
CNinsure generated total revenue of $75 million, up 16.2% year over
year. The improvement was driven by higher net revenue at insurance
agency business, insurance brokerage business and claims adjusting
business that more than offset the decline in revenues from other
While higher revenues at insurance agency business were largely
backed by an increase in P&C insurance agency business, claims
adjusting business revenues benefitted from an improvement in
non-auto insurance-related, claims-adjusting business. Insurance
brokerage business revenues benefitted from a larger customer base.
Total operating costs and expenses increased 13.3% year over year
to $72.9 million.
Adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) increased 23.6% year over year to $6.2
million. Adjusted EBITDA margin expanded 50 basis points to 8.3%.
Interest income increased 3.2% year over year to $3.6 million in
the quarter, driven by an increase in receivables.
As of Mar 31, 2014, CNinsure had a distribution and service network
of 492 sales and services outlets operating in 28 provinces, up
from 481 sales and service outlets operating in 27 provinces as of
Mar 31, 2013.
CNinsure exited the quarter with cash and cash equivalents of
$356.7 million, down from $378.1 million as of Dec 31, 2013.
Cash from operations in the first quarter totaled $7.9 million.
CNinsure projects second quarter 2014 total net revenue to increase
14% year over year.
Zacks Rank and Other Picks
CNinsure carries a Zacks Rank #3 (Hold). Bottom line of insurance
Erie Indemnity Company
Arthur J Gallagher & Co
) among others, also outperformed their respective Zacks Consensus
Estimate in the first quarter. Notably, AON and Erie Indemnity are
better-ranked stocks with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
GALLAGHER ARTHU (AJG): Free Stock Analysis
AON PLC (AON): Free Stock Analysis Report
CNINSURE IN-ADR (CISG): Free Stock Analysis
ERIE INDEMNITY (ERIE): Free Stock Analysis
To read this article on Zacks.com click here.