Atlanta-based ASSURANCEAMERICA CORPORATION (OTC BB: ASAM) today announced its unaudited financial results for the three months ended March 31, 2010.
Three Months Ended March 31, (in thousand, except per ratios) 2010 2009 Change Total revenue $ 18,176 $ 17,774 2 % Income before taxes $ 1,399 $ 1,346 4 % Net income $ 839 $ 817 3 % ——————————————————————————-
Revenues for the three month period ended March 31, 2010 increased 2% to $18.2 million, compared to $17.8 million in 2009 as a result of increased premiums earned and improved investment income results within the Carrier/MGA wholesale division.
The Company’s income before taxes for the three month period ending March 31, 2010 were $1.4 million compared to $1.3 million in 2009. The Company’s net income was $839 thousand for the three month period ended March 31, 2010 compared to $817 thousand in 2009.
Gross premiums produced, which includes gross written premium in the Carrier/MGA wholesale division and premiums for policies sold in the retail division, decreased 3% to $44.8 million for the three months ended March 31, 2010 compared to $46.0 million for the same period of 2009. The decrease in gross premiums produced was primarily driven by lower production within the Carrier/MGA and the retail division due to soft market conditions. Gross Premiums Produced, a non-GAAP financial measure, is used by management as the primary measure of the underlying growth of the Company’s revenue streams from period to period.
Joseph J. Skruck, President, stated, “Given the continued challenging market conditions, I am pleased with our results this quarter, which reflect our focus on maintaining strong underwriting discipline.”
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 43 retail agencies, AssuranceAmerica Managing General Agency, LLC (“MGA”), and AssuranceAmerica Insurance Company (“Carrier”).
This press release, contains certain statements that may be deemed to be “forward-looking statements”. 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 “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. AssuranceCorporation 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.
ASSURANCEAMERICA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (000’S OMITTED) For the Three Months Ended March 31, 2010 2009 Revenue: Gross premiums written $ 32,380 33,600 Ceded premiums written (22,026 ) (22,769 ) Net premiums written 10,354 10,831 Change in unearned premiums (1,922 ) (2,544 ) Net premiums earned 8,432 8,287 Commission income 6,390 6,681 Managing general agent fees 3,122 2,793 Net investment income 132 145 Net investment gains (losses) on securities 11 (239 ) Other fee income 89 107 Total revenue 18,176 17,774 Expenses: Losses and loss adjustment expenses 5,957 5,760 Selling, general, and administrative 10,354 10,154 Stock option expense 89 79 Depreciation and amortization expense 279 300 Interest expense 98 135 Total operating expenses 16,777 16,428 Income before income taxes 1,399 1,346 Income tax provision 560 529 Net income $ 839 817 Earnings per common share: Basic $ 0.013 0.013 Diluted $ 0.013 0.013 Weighted average shares outstanding-basis 65,385,468 65,047,708 Weighted average shares outstanding-diluted 65,948,319 64,147,708 ——————————————————————————-