EXHIBIT 99.1
November 27, 2006
Dear Shareholders (friends) of AssuranceAmerica,
Our year to date Revenues and Profits continue to grow, up 54% and 29% respectively. We are pleased with the MGA/Carrier’s results in October, showing a 14% increase in revenues, but are not pleased with the revenue at the Retail level (essentially flat with last year).
Following are our October and year-to-date results.
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| | | | | October 2006 (Unaudited) | | |
| | | | | Current Month | | | | Year-to-Date | | |
| | | | | 2006 | | | | 2005 | | | | Change | | | | 2006 | | | | 2005 | | | | Change | | |
| | | | | (In $1,000) | | | | % | | | | (In $1,000) | | | | % | | |
| | • Gross Premiums Produced1† | | | $ | 10,500 | | | | $ | 9,662 | | | | | 9 | % | | | $ | 126,599 | | | | $ | 91,585 | | | | | 38 | % | |
| | • MGA/Carrier Gross Premiums Produced1, 2 | | | $ | 5,614 | | | | $ | 5,861 | | | | | (4 | )% | | | $ | 68,312 | | | | $ | 46,214 | | | | | 48 | % | |
| | • MGA/Carrier Revenues2 | | | | 3,483 | | | | | 3,043 | | | | | 14 | % | | | | 37,360 | | | | | 22,793 | | | | | 64 | % | |
| | • Retail Agencies Gross Premium Produced1, 2† | | | | 5,784 | | | | | 4,466 | | | | | 30 | % | | | | 70,917 | | | | | 50,732 | | | | | 40 | % | |
| | • Retail Agencies Group Revenues2† | | | | 874 | | | | | 881 | | | | | (1 | )% | | | | 10,568 | | | | | 7,855 | | | | | 35 | % | |
| | • Company Revenues † | | | | 4,200 | | | | | 3,632 | | | | | 16 | % | | | | 45,691 | | | | | 29,603 | | | | | 54 | % | |
| | • Company Pre-Tax Income † | | | | 71 | | | | | 197 | | | | | (64 | )% | | | | 2,638 | | | | | 2,038 | | | | | 29 | % | |
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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. |
To follow your stock and read the full text of our most recent press releases, we invite you to go to http://finance.yahoo.com, symbol ASAM.OB.
The company continues to enjoy the benefits of a growing non-standard auto insurance sector.
Thank you for your continued interest and confidence in AssuranceAmerica Corporation.
Sincerely,
| | | |
| /s/ Guy W. Millner | | /s/ 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
