AssuranceAmerica (ASAM) 8-K Results of Operations and Financial Condition

Exhibit 99.1

ASSURANCEAMERICA CORPORATION REPORTS RESULTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010.

ATLANTA-(BUSINESSWIRE-April 4, 2011-Atlanta-based ASSURANCEAMERICA CORPORATION (OTC BB: ASAM) today announced its audited financial results for the twelve months ended December 31, 2010.

Revenue for the twelve-month period of 2010 increased 4% to $69.9 million, compared to $67.0 million for the same period in 2009. The 2010 revenue includes a one-time gain of $3.5 million from extinguishment of debt. Excluding the one-time gain, revenue for the twelve-month period ending December 31, 2010 was 0.9% below the same period in 2009. Revenue in the wholesale division declined by $1.2 million due to soft market conditions and actions taken by the Company to reduce premium volume in unprofitable market segments. This reduction was partially offset by an increase of $0.6 million in the retail division revenues.

The Company’s income before income taxes for the twelve-month period ending December 31, 2010 was $1.9 million compared to $0.9 million for the same period in 2009. The 2010 income includes the $3.5 million gain on extinguishment of debt, partially offset by a $1.5 million goodwill impairment charge in the retail division. Excluding these extraordinary items, the 2010 income before income taxes is a loss of $57 thousand, a reduction of $1.0 million from 2009. The year-over-year reduction in earnings is primarily due to lower revenue in the wholesale division, as discussed above, and increased loss expense due to unfavorable loss development on prior year claims.

The Company’s net income for the twelve-month period ending December 31, 2010 was $0.9 million as compared to $0.4 million in 2009. The effect of the extraordinary items on the 2010 net income is a $2.2 million after-tax gain on the extinguishment of debt and a $0.7 million after-tax charge related to the goodwill impairment. Excluding these extraordinary items, 2010 resulted in an after-tax net loss of $0.6 million.

AssuranceAmerica focuses on the non-standard automobile insurance marketplace, primarily in Alabama, Arizona, Florida, Georgia, Indiana, Louisiana, Mississippi, South Carolina, Texas and Virginia. Its principal operating subsidiaries are TrustWay Insurance Agencies, LLC (“Agency”), which sells personal automobile insurance policies through its 50 retail agencies, AssuranceAmerica Managing General Agency, LLC (“MGA”), and AssuranceAmerica Insurance Company (“Carrier”).

Forward-Looking Statements

This press release contains certain statements that may be deemed to be “forward-looking statements”. All statements in this press release not dealing with historical results or current facts are forward-looking and are based on estimates, assumptions, and projections. Statements that include the words “assumes”, “believes,” “seeks,” “expects,” “may,” “should,” “intends,” “likely,” “targets,” “plans,” “anticipates,” “estimates” or the negative version of those words and similar statements of a future or forward-looking nature identify forward-looking statements.

The primary events or circumstances that could cause actual results to differ materially from those expected by AssuranceAmerica Corporation include determinations with respect to reserve adequacy, realized gains or losses on the investment portfolio including other-than-temporary impairments for credit losses, rising loss cost trends, actions of competitors and natural disasters. AssuranceAmerica Corporation undertakes no obligation to publicly update or revise any of the forward-looking statements. For a more detailed discussion of some of the foregoing risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see AssuranceAmerican Corporation filings with the Securities and Exchange Commission.

Contact:

AssuranceAmerica Corporation, Atlanta

Sheree S. Williams, Senior Vice President and Chief Financial Officer

(770) 952-0200 Ext. 6212

Mark Hain, General Counsel, Secretary, Executive Vice President

(770) 952-0200 Ext. 6259

ASSURANCEAMERICA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(000’S OMITTED)

	For the Years Ended December 31,
	2010			2009
Revenue:
Gross premiums written	$	100,922			107,249
Ceded premiums written		(67,795	)		(71,999	)
Net premiums written		33,127			35,250
Change in unearned premiums		245			(826	)
Net premiums earned		33,372			34,424
Commission income		20,932			21,641
Managing general agent fees		11,004			10,277
Gain on extinguishment of debt		3,510			0
Net investment income		647			670
Net investment losses on securities		18			(362	)
Other fee income		429			342
Total revenue		69,912			66,992
Expenses:
Losses and loss adjustment expenses		25,022			25,248
Selling, general, and administrative		39,504			38,872
Stock option expense		411			334
Depreciation and amortization expense		1,168			1,183
Goodwill impairment		1,519			0
Interest expense		354			458
Total operating expenses		67,978			66,095
Income before income taxes		1,934			897
Income tax provision expense		1,041			449
Net income	$	893			448
Earnings per common share:
Basic	$	0.014		$	0.007
Diluted	$	0.014		$	0.007
Weighted average shares outstanding-basis		65,467,508			65,120,526
Weighted average shares outstanding-diluted		65,917,793			65,284,661

AssuranceAmerica Corporation also makes available an investor supplement on our website. To access the supplemental financial information, go to www.assuranceamerica.com.

ASSURANCEAMERICA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31, 2010			December 31, 2009
ASSETS
Cash and cash equivalents	$	8,379,014		$	6,253,643
Cash restricted		1,802,990			1,800,000
Short-term investments		145,085			365,717
Long-term investments, at fair value (amortized cost $8,561,245 and $7,745,142)		8,630,776			7,518,144
Long-term investments, held to maturity at amortized cost (fair value $0 and $4,981,850)		0			1,015,374
Marketable equity securities, at fair value (cost $1,978,166 and $1,888,334)		2,243,235			1,918,841
Other long-term investments		727,288			0
Other securities		0			155,000
Investment income due and accrued		180,487			180,719
Receivable from insureds		33,120,082			35,173,717
Reinsurance recoverable (including $10,602,969 and $14,099,266 on paid losses)		34,013,415			43,809,125
Prepaid reinsurance premiums		23,643,822			25,098,051
Deferred acquisition costs		2,286,118			2,457,647
Property and equipment (net of accumulated depreciation of $5,135,550 and $4,344,673)		2,152,632			2,012,963
Other receivables		1,776,332			1,766,762
Prepaid expenses		660,028			510,558
Intangibles (net of accumulated amortization of $3,428,671 and $3,051,877)		5,969,215			7,509,934
Security deposits		109,543			105,315
Prepaid income tax		106,864			249,452
Deferred tax assets		1,837,551			2,909,229
Other assets		0			335,526
Total assets	$	127,784,477		$	141,145,717
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	8,797,715		$	8,551,370
Unearned premium		34,217,108			35,916,156
Unpaid losses and loss adjustment expenses		33,311,067			41,972,983
Reinsurance payable		29,426,944			28,523,284
Provisional commission reserve		3,289,272			3,599,289
Funds withheld from reinsurers		1,875,000			1,875,000
Revolving line of credit		1,500,000			1,500,000
Notes payable and related party debt		175,420			774,001
Junior subordinated debentures payable		0			4,981,850
Total liabilities		112,592,526			127,693,933
Commitments and Contingencies
Common stock, $.01 par value (authorized 120,000,000 and 80,000,000 outstanding 65,494,357 and 65,144,357)		654,943			651,443
Surplus-paid in		17,875,779			17,363,620
Accumulated deficit		(3,547,896	)		(4,440,473	)
Accumulated other comprehensive gains (losses):
Net unrealized gains (losses) on investment securities, net of taxes		209,125			(122,806	)
Total stockholders’ equity		15,191,951			13,451,784
Total liabilities and stockholders’ equity	$	127,784,477		$	141,145,717