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H I S T O R Y
Affirmative Insurance Holdings, Inc. ("the Company" or "Affirmative")
was formed in 1998. Through 2000 former management pursued a
strategy of distributing and underwriting non-standard personal
automobile insurance through the Internet and a call center. In late
2000, the Company was recapitalized.
During 2001 and 2002, Affirmative acquired six underwriting
and/or retail agencies currently operating in 11 states. In late 2003, the
Company acquired two non-standard automobile insurance companies from Vesta
Insurance Group, Inc.
In July 2004, Affirmative successfully completed an initial
public offering that raised $65.3 million in capital. In December 2004, the
Company raised an additional $30.0 million through a private placement of
30-year floating rate trust preferred securities, and contributed the proceeds
to the Company's policyholders' surplus.
In 2004, Affirmative expanded in Texas by opening seven new
retail stores and acquiring two more, giving the company further penetration
into existing as well as new market areas. In December 2004, the company
acquired the assets of 24 retail stores and a franchise operation with 42
franchise locations in Florida.
In early 2005, Affirmative acquired the assets of 12 retail
stores in Texas, 11 of which are in the Houston area. In July 2005, Affirmative
acquired an underwriting agency with operations in Michigan, further expanding
the company's geographic reach.
USAgencies, a
non-standard automobible insurance provider headquatered in Baton
Rouge, Louisiana, was acquired in Febuary of 2007. The company
has 92 sales offices in Louisiana, Illinois and Alabama sellings its
products directly to consumers through its own retail stores,
virtual call centers and internet site. In 2005, the company had gross written premium of approximately $157 million.
Affirmative's management team has focused on
integrating and growing the underwriting agency operations of each
of its acquisitions, consolidating the underwriting, policy
administration, claims handling and related functions and systems of
the acquired underwriting agencies under the direction of one senior
management team. Similarly, the sales strategy, operating policies,
marketing initiatives and performance targets of each of the
acquired retail operations have been coordinated under the direction
of Affirmative's centralized retail management
teams.
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