Exhibit 99.1
May 1, 2006
Dear Shareholders and other friends of AssuranceAmerica,
We are pleased to report to you our March and year-to-date results. Our year is off to a good start, with revenues up 97% and pre-tax earnings up 61%.
Our last week’s Annual meeting was very well attended, and we want to express our appreciation to the many of you who were able to join us.
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| | | March 2006 (Unaudited) | |
| | | Current Month | | | Year-to-Date | |
| | | 2006 | | | 2005 | | | Change | | | 2006 | | | 2005 | | | Change | |
| | | (In $1,000) | | | % | | | (In $1,000) | | | % | |
• Gross Premiums Produced1† | | $ | 14,549 | | | $ | 8,425 | | | | 73 | % | | $ | 46,984 | | | $ | 27,440 | | | | 71 | % |
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• MGA/Carrier Gross Premiums Produced1,2 | | $ | 8,061 | | | $ | 2,872 | | | | 181 | % | | $ | 26,313 | | | $ | 10,764 | | | | 144 | % |
• MGA/Carrier Revenues2 | | | 4,262 | | | | 1,750 | | | | 144 | % | | | 12,530 | | | | 5,385 | | | | 133 | % |
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• Retail Agencies Gross Premium Produced1, 2† | | | 8,321 | | | | 5,853 | | | | 42 | % | | | 25,856 | | | | 16,976 | | | | 52 | % |
• Retail Agencies Group Revenues2† | | | 1,277 | | | | 857 | | | | 49 | % | | | 3,748 | | | | 2,408 | | | | 56 | % |
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• Company Revenues† | | | 5,225 | | | | 2,622 | | | | 99 | % | | | 15,377 | | | | 7,807 | | | | 97 | % |
• Company Pre-Tax Income† | | | 421 | | | | 279 | | | | 51 | % | | | 1,198 | | | | 745 | | | | 61 | % |
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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 inter-company eliminations
†Current year financial data includes agency acquisitions that may not be included in prior year data.
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Thank you for your continued interest and confidence in AssuranceAmerica Corporation.
Sincerely,
| | | |
| | Lawrence (Bud) Stumbaugh |
| Chairman | | President and Chief Executive Officer |
This document is for informational purposes only and is 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. Historical results are not indicative of future performance.
5500 Interstate North Parkway — RiverEdge One — Suite 600 — Atlanta, Georgia 30328
770.933.8911 — fax 770.984.0173 —www.assuranceamerica.com
