Affirmative Insurance Holdings poor results up to the end of September 2011 are being addressed in attempt to drive increases in total revenue and premium volume. For the first nine months of 2011, Affirmative Insurance Holdings reported a 46.3% decline in total revenue from US110.5 million during the first months of 2010 to only US$59.3 million for the same period 2011.

Affirmative Insurance Holdings Inc is a leading distributor and producer of non-standard personal automobile insurance and has found trading tough over the last few years. For the first nine months of 2011, the company made a loss of US$8.5 million compared to a loss of US$23.1 million up to the end of September 2010. The reduced level of premium volume is indicative of Affirmative Insurance Holdings aim of improving profitability and reducing risk.

Third quarter results were primarily driven by reduced premium volume in the company's largest US states. The group is seeking to improve profitability in the longer term and revenue generation continues to be the company's greatest short-term challenge.

Affirmative Insurance Holdings Inc is undertaking a number of key actions to address declining revenues and poor profitability. The company continues to review price competitiveness in its core markets on a state-by-state basis in addition to focusing on key marketing activities and agent quote generation on a more local scale. The Global economic situation is affecting revenues although the company is confident that it can compete effectively in this highly fragmented bespoke automotive insurance sector in the United States.

Increased prices in 2010 and 2011 have improved profitability slightly although this has had a marked impact on revenue totals over the same period. Over the first nine months of 2011, loss and loss adjustment decreased by a loss ratio of 72.8% compared with 81.5% in 2010. In addition, general and administrative expenses also decreased by US$20.8 million in the third quarter of 2011 to US$27.9 million compared to US$48.7 million for the same period in 2010.

Affirmative Insurance Holdings Inc provides personal automobile insurance policies for drivers who find it difficult to obtain insurance from standard automobile insurance companies.

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