AssuranceAmerica Corporation Reports Positive
Net Income Results for Year-Ended December 31,
April 07, 2010 04:32 PM Eastern Daylight Time
ATLANTA--(EON: Enhanced Online News)--Atlanta-based ASSURANCEAMERICA CORPORATION (OTC
BB: ASAM) today announced its audited financial results for the twelve months ended December 31, 2009.
Revenues for the twelve-month period of 2009 increased 6% to $67.0 million, compared to $63.2 million in 2008
because of increased premium production within the Carrier/MGA wholesale division.
The Company’s income before income taxes for the twelve-month period ending December 31, 2009 were $0.9
million compared to a pre-tax loss of $4.6 million in 2008, which includes a goodwill impairment of $3.4 million.
Improved underwriting results in the Carrier/MGA wholesale division and benefits from cost reductions in the retail
division contributed to the positive results for the year.
The Company’s net income for the twelve month period ending December 31, 2009 were $0.4 million compared to
a net loss of $3.2 million in 2008, which includes an after-tax goodwill impairment of $2.4 million.
Joe Skruck, President and COO, states, “I’m very pleased that we were able to deliver improved results
despite continued tough operating conditions.During 2009, we made significant progress in strengthening
our claims handling capabilities, took appropriate rate and underwriting actions in our Carrier/MGA
operations and achieved cost savings in our retail operations.”
Gross Premiums Produced, which includes gross written premium in the Carrier/MGA wholesale division and
premiums for policies sold in the retail Agency subsidiary, increased 3% to $146.3 million for the twelve months
ended December 2009 compared to $141.7 million for the same period of 2008. The increase in gross premiums
produced was driven mainly by increased production within the Carrier/MGA operations, offset by lower premium
volume for the retail division. Management uses Gross Premiums Produced, a non-G