SOURCE: Coach Industries

June 21, 2006 09:32 ET

Coach Industries Exceeds $5 Million in Annualized Premium Through Coach Insurance in First Month of Operations

COOPER CITY, FL -- (MARKET WIRE) -- June 21, 2006 -- Coach Industries Group, Inc. (OTCBB: CIGI) ("Coach") a holding company focused on providing financial services and specialty insurance products to Commercial Fleet Operators, announced today that during the first full month of operation, Coach Insurance Corporation, a wholly owned subsidiary of CIGI, processed in excess of $5.0 Million in annualized premium for Occupational and Accident Insurance to cover the more than 7,300 Independent Contractors supported by Subcontracting Concepts Inc (SCI), also a wholly owned subsidiary of CIGI.

Frank O'Donnell, Chairman and Chief Executive Officer of CIGI states, "This is a great example of the enterprise wide success we expect to achieve through our integrated, retention based strategy. We focus on provisioning value added products to our clients which will lead to improved margins for the company as we continue to drive business through our network."

O'Donnell continues, "In April of 2006 we announced the establishment of the captive, risk sharing arrangement anticipating writing over $6.0 million in premiums over the course of the year. We have underestimated the potential of this line of business. After only one month of offering this service to our Independent Contractors, we exceeded our initial expectations by reaching over $5.0 million in new premiums. Our team continues to demonstrate the ability to execute our plan by delivering results beyond expectations. This integrated product offering is a prime example of how we believe CIGI creates a competitive advantage over other financial services providers. In concert with our conservative approach to protect our investors, we will continue to reserve over 63% of premiums collected for Occupational and Accident Coverage. Strategic Resources Solutions, Inc., an independent third party consulting group, indicates that the industry average reserves for Occupational and Accident Coverage for Commercial Fleet Operators are below 61%. Historically, SCI has experienced a loss ratio of less than 50%. If we continue to professionally manage our claims through our defined process there is the opportunity to drive significant profitability and enhance shareholder value for the remainder of this year and beyond."

About Coach Industries Group, Inc.

Coach Industries Group, Inc. (OTCBB: CIGI) ("Coach") a holding company focused on providing financial services and specialty insurance products to Commercial Fleet Operators. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Investor Contact:
    Alliance Advisors, LLC
    Mark McPartland
    (914) 244-0062
    Email Contact