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First Acceptance Corporation Reports Operating Results for the Quarter Ended March 31, 2026

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First Acceptance Corporation (OTCQX:FACO) reported results for the quarter ended March 31, 2026. Revenues before ceded reinsurance rose 4% to $154.0 million; revenues after ceded reinsurance fell 5% to $118.4 million. Net income was $8.2 million; diluted EPS $0.22.

Management cited market softness, inflationary loss-cost impacts, and continued focus on pricing, underwriting, and strategic distribution opportunities.

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Positive

  • Revenues before ceded reinsurance +4% to $154.0M
  • Net income of $8.2M for Q1 2026
  • Diluted EPS of $0.22 in Q1 2026

Negative

  • Revenues after ceded reinsurance down 5% to $118.4M
  • Ceded premiums increased to $35.6M from $23.3M
  • Management cites market softness and inflationary loss-cost pressure

News Market Reaction – FACO

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1 alert
+1.20% News Effect

On the day this news was published, FACO gained 1.20%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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NASHVILLE, TN / ACCESS Newswire / May 5, 2026 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the quarter ended March 31, 2026. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Revenues before ceded reinsurance for the three months ended March 31, 2026 increased 4% to $154.0 million from $148.4 million in the same period in the prior year. Revenues for the three months ended March 31, 2026 and 2025, were reduced by ceded premiums earned of $35.6 million and $23.3 million, respectively. Revenues for the three months after ceded reinsurance ended March 31, 2026, decreased 5% to $118.4 million from $125.1 million in the same period in the prior year.

Income before income taxes for the three months ended March 31, 2026 was $10.2 million, compared with $3.8 million for the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 was $8.2 million, compared with $2.9 million for the three months ended March 31, 2025. Diluted net income per share was $0.22 for the three months ended March 31, 2026, compared with $0.08 for the for the three months ended March 31, 2025.

The Company's President and Chief Executive Officer, Ken Russell, commented, "We are proud of our first quarter results, which reflect continued execution against our vision and progress in strengthening the business. While we recognize ongoing pressures, including softening in certain markets and continued loss cost impacts from inflation and supply chain dynamics, we are confident that our operating model is positioning us to navigate both anticipated and evolving conditions. At the same time, we are actively evaluating additional strategic distribution opportunities to further scale the platform. We believe these efforts, alongside our disciplined approach to pricing and underwriting, position us well to enhance long-term value."

About First Acceptance Corporation

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. We primarily offer our own underwritten insurance policies through independent agents.

Additional information about First Acceptance Corporation can be found online at www.firstacceptance.com.

Forward-Looking Statements

This press release contains forward-looking statements. All statements made other than statements of historical fact are forward-looking statements. You can identify these statements from our use of the words "believe," "expect," "look," or the negative of these objective terms and similar expressions. These statements, which have been included in reliance on the "safe harbor" provisions of the federal securities laws, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by important factors, including, among others, the factors set forth under the caption "Risk Factors" in our Annual Report for the year ended December 31, 2025, filed by the Company with the OTCQX. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

First Acceptance Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)

Three Months Ended

March 31,

2026

2025

Revenues

$

118,376

$

125,087

Income before income taxes

$

10,177

$

3,780

Net income

$

8,190

$

2,906

Net income per diluted share

$

0.22

$

0.08

Average diluted shares outstanding

37,824

38,628

Loss Ratio

62.6

%

78.9

%

Expense Ratio

31.8

%

20.9

%

Combined Ratio

94.4

%

99.8

%

Book Value per Common Share

$

5.57

$

4.60

INVESTOR RELATIONS CONTACT:

Michael J. Bodayle
mbodayle@firstacceptance.com

SOURCE: First Acceptance Corp.



View the original press release on ACCESS Newswire

FAQ

What were First Acceptance (FACO) revenues for Q1 2026?

Total revenues before ceded reinsurance were $154.0 million. According to the company, after ceded reinsurance revenues were $118.4 million, reflecting higher ceded premiums that reduced reported net top-line.

How much net income did FACO report for the quarter ended March 31, 2026?

First Acceptance reported $8.2 million in net income for Q1 2026. According to the company, this compares with $2.9 million in the prior-year quarter and produced diluted EPS of $0.22.

Why did FACO's revenues fall after ceded reinsurance in Q1 2026?

Revenues after ceded reinsurance decreased due to higher ceded premiums, which rose to $35.6 million. According to the company, increased ceded premiums materially reduced net retained revenue versus the prior-year period.

What did FACO management say about operating conditions and outlook?

Management cited market softening and loss-cost impacts from inflation and supply-chain dynamics. According to the company, it is focusing on pricing, underwriting discipline, and strategic distribution opportunities to strengthen the business.

What is FACO doing about distribution and growth after Q1 2026 results?

The company is evaluating additional strategic distribution opportunities to scale the platform. According to the company, these efforts complement disciplined pricing and underwriting aimed at enhancing long-term value for shareholders.