First Acceptance Corp. (OTC:FACO)

First Acceptance Corporation (OTC:FACO) ($3.18; $120.1M market cap) announced Q2 2025 results:

• Q2 2025 sales of $140.7 million vs. $157.7 million in the prior year
• Q2 2025 EPS: $0.21 vs. $0.15 in the prior year
• Favorable prior period loss and LAE development of $7.8 million in Q2 2025 (vs. unfavorable $4.8 million in Q2 2024)
• Revenues were reduced by ceded premiums earned of $24.9 million in Q2 and $48.2 million in H1 due to a new reinsurance agreement effective July 1, 2024
• Contingent commission adjustment of $1.8 million increased commission expense in Q2 due to 2024 accident year

"The three months ended June 30, 2025 marked our Company's tenth consecutive profitable quarter. During the current quarter, the Company's claims cost for imported auto parts was consistent with the first quarter, and as a result, physical damage loss severity levels appeared to be stabilizing. Additionally, bodily injury loss frequency declined favorably. Our positive year-to date financial results have increased our June 30, 2025, book value per common share to a record $4.85." – Ken Russell, President and CEO

First Acceptance Corporation provides non-standard auto insurance and related products, underwriting policies for high-risk drivers and offering additional insurance and telemedicine services through retail locations, call centers, and online channels.

First Acceptance Corporation (OTC:FACO) ($3.63; $138.6M market cap) announced Q1 2025 results:

• Q1 sales of $125.1 million vs. $145.3 million in the prior year

• Q1 EPS of $0.08 vs. $0.18 in the prior year

Noteworthy Disclosures:

• Revenues were reduced by $23.3 million due to ceded premiums earned under a new reinsurance agreement effective July 1, 2024.

• Prior period loss and LAE development was unfavorable at $0.2 million, compared to $3.9 million in the prior year.

Management Commentary:

 “Our first quarter financial results were impacted by increased physical damage loss severity. We believe this was largely attributable to marketplace price increases in anticipation of tariffs on imported vehicles, auto parts and vehicle components. While uncertainty about the future of these tariffs still lingers, we, along with the automobile insurance industry, will focus on monitoring these trends and will respond accordingly by modifying our underwriting standards and seeking regulatory approval to increase our pricing where appropriate,” said Ken Russell, President and Chief Executive Officer

First Acceptance Corporation is an insurance holding company headquartered in Nashville that underwrites non-standard personal automobile insurance through insurance companies known as the First Acceptance Insurance Group.

First Acceptance Corp. (OTC:FACO) ($3.10; $118.2M market cap) - reported fourth quarter 2024 results:

• Sales of $127.2 million vs $216.4 million in the prior year
• EPS of $0.21 vs $0.21. in the prior year

“In 2022, our financial results were negatively impacted by a nationwide increase in used car prices and vehicle repair costs resulting from post-pandemic market reactions and supply chain disruptions. However, since the end of 2022, the Company has experienced eight consecutive quarters of profitable operations. This turnaround was achieved primarily through growth in premiums written along with necessary regulatory rate increases and the continuous monitoring and adjusting of underwriting standards. Additionally, our investment management team was able to take advantage of favorable market and interest rate changes in concert with our continually increasing investable assets…

..Tangible book value per share increased from $0.85 at December 31, 2022 to $4.41 at December 31, 2024, primarily the result of diluted earnings per share of $1.92 in 2023 (or $0.51 excluding the after-tax gain on the sale of the insurance agency) and $0.69 in 2024.”

First Acceptance Corporation is an insurance holding company headquartered in Nashville that underwrites non-standard personal automobile insurance through insurance companies known as the First Acceptance Insurance Group.

First Acceptance Corp. (OTC:FACO) ($3.69; $139.5M market cap) - reported second quarter 2024 results:

• Sales of $157.6 million vs $112.6 million in the prior year
• EPS of $0.15 vs $0.08 in the prior year

"The quarter ended June 30, 2024 marks the Company's sixth consecutive profitable quarter reflecting a steady continuation of the favorable market trends we have experienced since the fourth quarter of 2022. Since then, premium growth has sustained across all our distribution channels through a combination of rate increases and increased production. Throughout, our loss ratio has remained within our expectations, as has our expense ratio, which was favorably impacted by the sale of our insurance agency operations in December 2023. Investment income has also grown to become a more significant component of our net income. Going forward, I remain confident that our Company is well positioned to continue this profitable success ".

First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States.

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Note that yesterday's Weekly GeoWire title wrote that the stock is selling below book value. We have revised that to near book value.