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Affirmative Insurance’s Q2 Net Earning Slips

Total gross premiums written for the three months ended June 30, 2009 decreased 9.8%

Affirmative Insurance Holdings, a provider of non-standard personal automobile insurance policies, has reported a loss of $8 million from continuing operations for the three months ended June 30, 2009. This is in comparision to income from continuing operations of $2.9 million in the second quarter of 2008.

The net loss for the quarter, including the effects of discontinued operations, was $9 million, as compared to net income of $2.3 million in last year’s second quarter.

The total gross premiums written for the three months ended June 30, 2009 decreased 9.8% to $82.3 million, as compared to last year’s second quarter, primarily due to macroeconomic factors and the continued soft market conditions.

The net premiums earned increased by $0.7 million, or 0.7%, to $94.2 million for the three months ended June 30, 2009. The increase was primarily due to reduced dependence on reinsurance in 2009.

The net investment income declined by $1.1 million, or 30.4%, to $2.4 million for the three months ended June 30, 2009, as compared to $3.5 million in the second quarter of 2008.

The losses and loss adjustment expenses for the three months ended June 30, 2009 increased $11.7 million, or 16.6%, to 86.9% of net earned premium (the loss ratio), compared to a loss ratio of 75.1% in the second quarter of 2008.