Atlanta-based AssuranceAmerica Corporation has acquired the assets of Cannon Insurance Agency of Riverdale, Georgia, a retail insurance agency producing approximately $7 million of annual premium volume, with emphasis on sales of non-standard auto insurance products. The assets were gained in exchange for 3.6 million shares of common stock.
In announcing the deal, Lawrence Stumbaugh, president and CEO of AssuranceAmerica, said, This acquisition will help us reach our goal of $65 million of retail premium volume in 2005 and company-wide premium volume of $100 million.
Steve Speir, former owner of Cannon Insurance Agency, will continue to run the business for AssuranceAmerica’s subsidiary TrustWay under the name Cannon-TrustWay Insurance Agency.
AssuranceAmerica focuses on the non-standard automobile insurance marketplace, primarily in Florida, Georgia and South Carolina. Its principal operating subsidiaries are TrustWay Insurance, which sells personal automobile insurance policies through its 32 retail agencies, AssuranceAmerica Managing General Agency, and AssuranceAmerica Insurance Company.