Exhibit 99.1
June 23, 2009
Dear Shareholders (and friends) of AssuranceAmerica,
As of May 31 our MGA/Carrier operations have nearly 83,000 Policies in Force, up 13% from prior year. We also achieved improved claims performance for the first five months of 2009. Our average paid severity on material damage lines is down 9% year over year.
With Florida in a recession, revenues for our retail agencies were down 17% for May 2009 compared to May 2008, while expenses were down 31%. We continue to focus our retail efforts on additional revenue sources, as well as holding expenses in line.
Revenues and earnings for 2009 are generally developing as we expected; however, given the state of the economy, it may be late 2010 before we see the insurance cycle turning to a “hard” market. As always, we appreciate your support and patience with our company.
Following is our report on May’s results:
| May (Unaudited) | ||||||||||||||||||||||||||||
| Current Month | Year To Date | |||||||||||||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | |||||||||||||||||||||||
| (In $1,000) | % | (In $1,000) | % | |||||||||||||||||||||||||
| • | Gross Premiums Produced1* | $ | 9,997 | $ | 10,944 | (9 | )% | $ | 67,043 | $ | 64,322 | 4 | % | |||||||||||||||
| • | MGA/Carrier Gross Premiums Produced1,2 | $ | 7,645 | $ | 7,367 | 4 | % | $ | 49,331 | $ | 44,382 | 11 | % | |||||||||||||||
| • | MGA/Carrier Revenues2 | $ | 5,019 | $ | 4,683 | 7 | % | $ | 25,984 | $ | 24,135 | 8 | % | |||||||||||||||
| • | Retail Agencies Gross Premium Produced1,2* | $ | 3,377 | $ | 4,325 | (22 | )% | $ | 25,487 | $ | 29,022 | (12 | )% | |||||||||||||||
| • | Retail Agencies Group Revenues2* | $ | 589 | $ | 706 | (17 | )% | $ | 4,066 | $ | 4,579 | (11 | )% | |||||||||||||||
| • | Company Revenues* | $ | 5,422 | $ | 5,260 | 3 | % | $ | 28,650 | $ | 27,126 | 6 | % | |||||||||||||||
| • | Company Pre-Tax Income before stock option* | $ | 91 | $ | (203 | ) | 145 | % | $ | 1,641 | $ | 362 | 353 | % | ||||||||||||||
| • | Company Pre-Tax Income* | $ | 64 | $ | (228 | ) | 128 | % | $ | 1,509 | $ | 290 | 420 | % | ||||||||||||||
| 1 | Gross Premiums Produced is a non-GAAP financial metric used as the primary measure of the underlying growth of the company’s revenue stream. | |
| 2 | Before intercompany eliminations | |
| * | Current year financial data includes agency acquisitions that may not be included in prior year data |
To follow your stock, we suggest you go to http://finance.yahoo.com, symbol ASAM.OB.
Sincerely,
| /S/ Guy W. Millner | /S/ Joseph J. Skruck | |||
| Chairman and Chief Executive Officer | President and Chief Operating Officer |
This document is for informational purposes only and not intended for general distribution. It does not constitute an offer to sell, or a solicitation of an offer to buy securities in AssuranceAmerica Corporation. This document includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.