Kyle Garst, chief executive officer of Brooke Capital Corporation (AMEX: BCP) announced that Brooke Capital Corporation’s insurance agents have continued writing insurance premiums at an annualized pace exceeding $1 billion.
During the months of February and March, Brooke again allocated more than $10 million in monthly commissions to its franchisees. Based on an estimated average commission rate of 12.5 percent, Brooke franchisees wrote premiums at an annualized rate that exceeded $1 billion.
Although commissions during February and March 2008 were significantly higher than in those months in 2007, Garst noted that commission and premium growth is expected to level off in the future, as the company continues its “New Era” initiative of emphasizing franchise location quality and de-emphasizing franchise location growth.
Garst stated, “Although we will continue to recruit good insurance agents as franchisees and convert good insurance agencies into franchises, our push for quality will transform our organization, so that we spend fewer resources assisting lenders with poorly performing locations and more resources focusing on our core franchise services: our brand, our business model, our relationships with insurance companies, and our document and information system.”
About our company . . . Brooke Capital Corporation (AMEX: BCP) is an affiliate of Brooke Corporation (NASDAQ: BXXX) that operates a life insurance company and has agreed to acquire an auto insurance company. As the result of a recent merger with Brooke Franchise Corporation, the company’s insurance company business is supported by a network of independent insurance agency franchises. For more information, visit www.brookeagent.com.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from these indicated in the forward-looking statements: the uncertainty that our commission levels will remain the same as February and March levels, the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company’s products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, its ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by Brooke Capital Corporation with the Securities and Exchange Commission. A more complete description of Brooke’s business is provided in Brooke Capital Corporation’s most recent annual, quarterly and current reports, which are available from Brooke Capital Corporation without charge or at http://www.sec.gov.
Contact: Karen Haus Market Street Partners 415-445-3238 Email Contact
SOURCE: Brooke Capital Corporation