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AssuranceAmerica Corporation Reports Results for the Three and Six Months Ended June 30, 2010

^{Published on 2010-08-31 13:40:28 - Market Wire}
 

ATLANTA--([ BUSINESS WIRE ])--Atlanta-based ASSURANCEAMERICA CORPORATION (OTC BB: ASAM) today announced its unaudited financial results for the three and six months ended June30, 2010.

Gross premiums written decreased 10% during the second quarter of 2010 compared to the same period in 2009, and decreased 6% in six months period in 2010 compared to the same period in 2009.

Revenues were $15.6 million and $33.8 million for the three and six months ended June 30, 2010, compared to revenues of $16.4 million and $34.2 million for the three and six months ended June 30, 2009.

The Company reported a net loss of $161 thousand for the second quarter, compared to net income of $182 thousand for the same period in 2009. The Companya™s net income was $0.7 million for the six month period ended June 30, 2010, compared to $1.0 million in 2009.

Guy W. Millner, Chairman and CEO, stated, aThe soft market of 2009 continues into 2010. Price increases are challenged by an economy in which many of our policyholders are unemployed. Our strategy is to continue to grow in states where pricing allows us a favorable margin and reduce writings where it doesna™t. Our Company continues to make the necessary investments so that we will be in a position to benefit once the market improves.a

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 (aAgencya), which sells personal automobile insurance policies through its 45 retail agencies, AssuranceAmerica Managing General Agency, LLC (aMGAa), and AssuranceAmerica Insurance Company (aCarriera).

Forward-Looking Statements

This press release, contains certain statements that may be deemed to be aforward-looking statementsa. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 aassumesa, abelieves,a aseeks,a aexpects,a amay,a ashould,a aintends,a alikely,a atargets,a aplans,a aanticipates,a aestimatesa 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. AssuranceCorpoation 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.