February 1, 2006
DCAP Reports on Acquistion and Investment. Investor Call Scheduled
Hewlett, New York—February 1, 2006—DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent storefront insurance agencies in the Northeast, today announced that it has made an investment in Commercial Mutual Insurance Company ("CMIC"). DCAP purchased all $3.75 million of the outstanding surplus notes of CMIC from Eagle Insurance Company. A New York - domiciled property and casualty insurer, CMIC provides various markets to its independent agents, including homeowner, commercial auto, physical damage and others. Incorporated in 1886 and located in Kingston, New York, CMIC counts DCAP and its affiliated entities as long term agent partners. "CMIC seeks sensible growth in its current and future lines of business, while maintaining a conservative approach," said John Reiersen, Chief Executive Officer of CMIC. "The growing business relationship between the two companies is an integral part of DCAP's new growth plan," said Barry Goldstein, DCAP's Chairman and CEO.
DCAP also announced that it has completed the purchase of four Rochester locations from Accurate Agency. "Geographically expanding our existing footprint to include Western New York State fits in with DCAP's new business plan. All of Accurate's staff has been absorbed into DCAP, and given the commonality in our approach to insurance sales, the transition has been very easy," added Jeanne Egan, DCAP's VP of Agency Operations.
DCAP will host its first conference call on March 1, 2006. "The purpose will be to acquaint investors with our new business plan and strategies," added Goldstein. Details of the call will be announced in a subsequent press release and on DCAP's website shortly (www.DCAPGROUP.com)