Exhibit 99.1
August 20, 2007
Dear Shareholders (and friends) of AssuranceAmerica,
Our retail agency chain’s improvement plan has not yet taken effect to the degree we anticipate in the future. However, your MGA/Carrier’s growth is impressive and helped us gain consolidated top and bottom line increases over the same month of a year ago. Therefore, our consolidated revenue was up 12% and our pre-tax income after stock option expenses was up 106% in June.
Following is our report on our June and year-to-date results.
| June (Unaudited) | ||||||||||||||||||||||||
| Current Month | Full Year | |||||||||||||||||||||||
| 2007 | 2006 | Change | 2007 | 2006 | Change | |||||||||||||||||||
| (In $1,000) | % | (In $1,000) | % | |||||||||||||||||||||
• Gross Premiums Produced1* | $ | 10,958 | $ | 11,360 | (4 | )% | $ | 73,862 | $ | 79,713 | (7 | )% | ||||||||||||
• MGA/Carrier Gross Premiums Produced1,2 | $ | 8,167 | $ | 6,077 | 34 | % | $ | 53,920 | $ | 43,412 | 24 | % | ||||||||||||
• MGA/Carrier Revenues2 | $ | 4,462 | $ | 3,594 | 24 | % | $ | 26,465 | $ | 23,089 | 15 | % | ||||||||||||
• Retail Agencies Gross Premium Produced1,2* | $ | 4,780 | $ | 6,533 | (27 | )% | $ | 34,357 | $ | 44,968 | (24 | )% | ||||||||||||
• Retail Agencies Group Revenues2 * | $ | 741 | $ | 948 | (22 | )% | $ | 5,755 | $ | 6,864 | (16 | )% | ||||||||||||
• Company Revenues* | $ | 4,852 | $ | 4,316 | 12 | % | $ | 29,662 | 5 | % | ||||||||||||||
• Company Pre-Tax Income before stock option* | $ | 180 | $ | 74 | 143 | % | $ | 1,645 | $ | 28,364 | (12 | )% | ||||||||||||
| $ | 1,872 | |||||||||||||||||||||||
• Company Pre-Tax Income* | $ | 171 | $ | 83 | 106 | % | $ | 1,427 | $ | 1,711 | (17 | )% | ||||||||||||
| 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 |
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Thank you for your continued interest and confidence in AssuranceAmerica Corporation.
Sincerely,
| /s/ Guy W. Millner | /s/ Lawrence (Bud) Stumbaugh | |
| Guy W. Millner | Lawrence (Bud) Stumbaugh | |
| Chairman | President and Chief Executive Officer |