Exhibit 99.1
November 25, 2008
Dear Shareholders (and friends) of AssuranceAmerica,
Several items that should be of interest to you:
| • | In a difficult market, the Carrier/MGA continues to show revenue gains over prior periods. |
| • | We are pleased to have concluded our reinsurance treaties for next year and have added the ACE Tempest Re Group (a division of ACE Limited) to our list of reinsurers. |
| • | Senior claims management is taking a serious look at the claims process, and making substantial changes in the claims organization, as well as adding additional expertise in certain areas. These changes should result in a much improved 2009 result, but it is painful now. |
| • | Retail agencies have made substantial expense reductions (approximately 15%), and showing gains in ancillary product sales, with a 9% increase in October over September levels. Fee income is up 12% month over month. |
Let’s not forget over the past five years:
| v | Revenues have grown from $24 million to an estimated $63 million. |
| v | Gross premiums written have almost doubled. |
| v | Assets have increased from $36 million to $135 million |
With auto sales struggling, one would expect our revenue to be off, but as a company, we are up 5% for the month and 8% for the year.
Following is our report on October’s results.
| October (Unaudited) | ||||||||||||||||||||||||
| Current Month | Year To Date | |||||||||||||||||||||||
| 2008 | 2007 | Change | 2008 | 2007 | Change | |||||||||||||||||||
| (In $1,000) | % | (In $1,000) | % | |||||||||||||||||||||
• Gross Premiums Produced1* | $ | 10,604 | $ | 10,430 | 2 | % | $ | 120,947 | $ | 116,749 | 4 | % | ||||||||||||
• MGA/Carrier Gross Premiums Produced1,2 | $ | 7,649 | $ | 6,614 | 16 | % | $ | 82,575 | $ | 83,661 | (1 | )% | ||||||||||||
• MGA/Carrier Revenues2 | $ | 4,594 | $ | 4,324 | 6 | % | $ | 47,276 | $ | 44,331 | 7 | % | ||||||||||||
• Retail Agencies Gross Premium Produced1,2* | $ | 4,044 | $ | 4,916 | (18 | )% | $ | 53,032 | $ | 53,167 | (.3 | )% | ||||||||||||
• Retail Agencies Group Revenues2* | $ | 727 | $ | 779 | (7 | )% | $ | 8,366 | $ | 8,637 | (3 | )% | ||||||||||||
• Company Revenues* | $ | 5,127 | $ | 4,896 | 5 | % | $ | 53,069 | $ | 48,974 | 8 | % | ||||||||||||
• Company Pre-Tax Income before stock option* | $ | (466 | ) | $ | (334 | ) | (40 | )% | $ | (977 | ) | $ | 1,466 | (167 | )% | |||||||||
• Company Pre-Tax Income* | $ | (476 | ) | $ | (376 | ) | (27 | )% | $ | (1,029 | ) | $ | 1,096 | (194 | )% | |||||||||
| 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 and read the full text of our most recent press releases, we suggest you go to http://finance.yahoo.com, symbol ASAM.OB.
As always, we appreciate your continued support and interest in AssuranceAmerica Corporation.
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 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.