Exhibit 99.1
March 23, 2009
Dear Shareholders (and other friends) of AssuranceAmerica,
February was a record month for revenue and pre-tax profits. The records resulted from a 23% reduction year-over-year in Retail Agency expenses, and a 17% increase in Gross Premium Produced in our Carrier/MGA.
Our consolidated revenue increase of 6% was a pleasant surprise in light of the recessionary conditions experienced by our customer base. You have a motivated management group, with all hands focused on two of our 2009 challenges: (i) improving underwriting results and (ii) continuing to build new revenue sources in our agencies.
We hope you will join us on Thursday, April 30 at 11:00 a.m. for the Annual Shareholder Meeting and our traditional BBQ luncheon.
Following is our report on February’s results:
| February (Unaudited) | |||||||||||||||||||||||||||||||||||
| Current Month | Year To Date | ||||||||||||||||||||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||||||||||||||
| (In $1,000) | % | (In $1,000) | % | ||||||||||||||||||||||||||||||||
| • | Gross Premiums Produced1* | $ | 17,738 | $ | 15,132 | 17 | % | $ | 31,661 | $ | 29,419 | 8 | % | ||||||||||||||||||||||
| • | MGA/Carrier Gross Premiums Produced1,2 | $ | 13,052 | $ | 10,896 | 20 | % | $ | 23,286 | $ | 21,084 | 10 | % | ||||||||||||||||||||||
| • | MGA/Carrier Revenues2 | $ | 5,526 | $ | 5,178 | 7 | % | $ | 10,616 | $ | 10,055 | 6 | % | ||||||||||||||||||||||
| • | Retail Agencies Gross Premium Produced1,2* | $ | 6,958 | $ | 7,133 | (2 | )% | $ | 12,205 | $ | 13,419 | (9 | )% | ||||||||||||||||||||||
| • | Retail Agencies Group Revenues2* | $ | 1,063 | $ | 1,146 | (7 | )% | $ | 1,908 | $ | 2,165 | (12 | )% | ||||||||||||||||||||||
| • | Company Revenues* | $ | 6,189 | $ | 5,818 | 6 | % | $ | 11,847 | $ | 11,334 | 5 | % | ||||||||||||||||||||||
| • | Company Pre-Tax Income before stock option* | $ | 914 | $ | 448 | 104 | % | $ | 1,209 | $ | 708 | 71 | % | ||||||||||||||||||||||
| • | Company Pre-Tax Income* | $ | 904 | $ | 410 | 120 | % | $ | 1,189 | $ | 633 | 88 | % | ||||||||||||||||||||||
| 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, 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 | |
| Guy W. Millner | Joseph J. Skruck | |
| Chairman and Chief Executive Officer | President and Chief Operating Officer |
This document is for informational purposes only and 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.