ASSURANCEAMERICA CORPORATION Announces August '06 Results Showing Continuing Profit Growth


announced its unaudited financial results for August 2006 and the eight

months ended August 31, 2006.

Revenues for the month of August 2006 increased 29% to $4.5 million,

compared to $3.5 million for the same month of 2005. Pretax earnings

increased 191% for August 2006 to $288,000, compared to $131,000 in

August 2005.

Revenues for the eight months of 2006 increased 63% to $37.2 million,

compared with $22.7 million for the same period of 2005. The Company

increased pretax earnings 92% for the first eight months of 2006 to $2.4

million, compared with $1.2 million in the same period last year.

Net income for the month of August increased 110% to $276,000, compared

with $131,000 in the same period of 2005. Net income for the first eight

months increased 39% to $1.7 million, compared with $1.2 million for the

same period of 2005. Net income in 2005 reflected no provision for

income taxes as the Company was able to fully utilize net operating tax

loss carry forwards.

Gross Premiums Produced (a non-GAAP financial measure), which includes

gross written premium in the Carrier/MGA’s underwriting operations plus

premiums for policies sold in the retail Agency subsidiary, increased

14% from $10.6 million in August 2005 to $12.0 million in August 2006.

Gross Premiums Produced increased 44% from $72.9 million for the eight

months ended August 31, 2005 to $104.9 million for the same period of

2006. Gross Premiums Produced is used by management as the primary

measure of the underlying growth of the Company’s revenue streams from

period to period.

In announcing August’s and year-to-date results, Lawrence (Bud)

Stumbaugh, President and CEO of AssuranceAmerica Corporation said, “Our

job involves far more than beating the competition. We must beat

ourselves; that is, have better results year over year for the same

period. We are proud that our pre-tax earnings year-to-date ’06

are 92% better than the same period ’05 as

that indicates we surpassed the right thing —

our own history!”

AssuranceAmerica focuses on the specialty automobile insurance

marketplace, primarily in Alabama, Florida, Georgia, South Carolina, and

Texas. 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


This press release 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, as discussed in the Company’s filings

with the U.S. Securities Exchange Commission (SEC). Historical results

are not indicative of future performance.