EXHIBIT 99.2
September 27, 2006
Dear Shareholders (friends) of AssuranceAmerica,
The month of August continued to reflect growth in our consolidated revenues and pre-tax profit. The company took several steps earlier this year to improve our Loss Ratios, and these continue to help with our results. We added a former AllState Sales Manager to our team, and are placing additional emphasis on expanding into Texas.
Following are our August and year-to-date results.
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| | | | August 2006 (Unaudited) | | |
| | | | Current Month | | | | Year-to-Date | | |
| | | | 2006 | | | | 2005 | | | | Change | | | | 2006 | | | | 2005 | | | | Change | | |
| | | | (In $1,000) | | | | % | | | | (In $1,000) | | | | % | | |
| • Gross Premiums Produced1† | | | $ | 12,066 | | | | $ | 10,616 | | | | | 14 | % | | | $ | 104,934 | | | | $ | 72,879 | | | | | 44 | % | |
| • MGA/Carrier Gross Premiums Produced1,2 | | | $ | 7,130 | | | | $ | 6,268 | | | | | 14 | % | | | $ | 56,367 | | | | $ | 34,293 | | | | | 64 | % | |
| • MGA/Carrier Revenues2 | | | | 3,762 | | | | | 2,825 | | | | | 33 | % | | | | 30,346 | | | | | 16,820 | | | | | 80 | % | |
| • Retail Agencies Gross Premium Produced1, 2† | | | | 6,018 | | | | | 5,109 | | | | | 18 | % | | | | 59,298 | | | | | 41,760 | | | | | 42 | % | |
| • Retail Agencies Group Revenues2† | | | | 954 | | | | | 807 | | | | | 18 | % | | | | 8,732 | | | | | 6,302 | | | | | 39 | % | |
| • Company Revenues† | | | | 4,520 | | | | | 3,491 | | | | | 29 | % | | | | 37,182 | | | | | 22,750 | | | | | 63 | % | |
| • Company Pre-Tax Income† | | | | 288 | | | | | 131 | | | | | 191 | % | | | | 2,382 | | | | | 1,239 | | | | | 92 | % | |
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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. |
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2 | | Before inter-company eliminations |
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† | | 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,
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/s/ Guy W. Millner | | /s/ Lawrence Stumbaugh |
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Guy W. Millner | | 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