First Acceptance Corporation Reports Operating Results for the Three and Six Months Ended June 30, 2022
First Acceptance Corporation (OTCQX:FACO) reported significant financial losses for the three and six months ended June 30, 2022. The company experienced a net loss of $3.6 million in Q2 2022, compared to a net income of $2.8 million in Q2 2021. For the first half of 2022, the net loss totaled $6.7 million, contrasting with a net income of $4.9 million in the same period last year. Premiums written increased by 24% year-over-year, despite facing challenges from the inflationary economy. The report also highlighted unfavorable loss developments and significant net losses on investments.
- Premiums written grew by 24% year-over-year.
- Overall severity of property damage claims is stabilizing.
- Net loss of $3.6 million for Q2 2022 compared to net income of $2.8 million in Q2 2021.
- Net loss for six months ended June 30, 2022 was $6.7 million versus net income of $4.9 million in the prior year.
- Unfavorable prior period loss and LAE development of $1.1 million in Q2 2022.
NASHVILLE, TN / ACCESSWIRE / August 2, 2022 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the three and six months ended June 30, 2022. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.
Loss before income taxes, for the three months ended June 30, 2022 was
Loss before income taxes, for the six months ended June 30, 2022 was
For the three months ended June 30, 2022, we recognized unfavorable prior period loss and LAE development of
Net loss for the three months ended June 30, 2022 included
President and Chief Executive Officer, Larry Willeford, commented, "Acceptance and its customers had to fight the challenges of the inflationary economy impacting the recent quarter. However, there was an increase in new business production and higher premium rates across all channels that contributed to growing quarterly premiums written by
About First Acceptance Corporation
We own and operate "Acceptance Insurance," an insurance agency headquartered in Nashville, Tennessee that sells insurance and related products underwritten and serviced by our own insurance companies (known as the First Acceptance Insurance Group) and through third-party carriers for which we receive a commission. We operate under an "Agency Model" in 15 states where we sell both our own underwritten insurance policies and those issued by third-party insurers for which we earn commissions.
Acceptance Insurance primarily sells non-standard personal automobile insurance through our own insurance companies and third-party carriers. Non-standard personal automobile insurance is sought after by individuals because of their inability or unwillingness to obtain standard insurance coverage due to various factors including their payment preference, failure to have maintained continuous insurance coverage, or their driving record. We also offer a variety of other commissionable third-party products such as roadside assistance and in most states, we also sell an insurance product for renters that we underwrite. We believe that our agency-focused operations provide us with a variety of insurance alternatives for our core customers as well as the ability to provide products that suit other potential customers.
Acceptance Insurance currently leases and operates 337 retail locations staffed with employee-agents. In addition to our retail locations, we are able to complete sales over the phone through employee-agents in our call center or through our consumer-based website and mobile platform. On a limited basis, we also sell our products through selected retail locations operated by independent agents.
Additional information about First Acceptance Corporation can be found online at www.acceptance.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," "trend," "focus," 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, 2020 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 Operations
(amounts in thousands, except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | $ | 70,024 | $ | 73,741 | $ | 137,667 | $ | 142,435 | ||||||||
(Loss) income before income taxes | $ | (4,890 | ) | $ | 3,614 | $ | (8,798 | ) | $ | 6,315 | ||||||
Net (loss) income | $ | (3,559 | ) | $ | 2,845 | $ | (6,694 | ) | $ | 4,934 | ||||||
Net (loss) income per diluted share | $ | (0.09 | ) | $ | 0.07 | $ | (0.18 | ) | $ | 0.13 | ||||||
Average diluted shares outstanding | 37,702 | 38,557 | 37,820 | 38,515 | ||||||||||||
Statutory Combined Ratio: | ||||||||||||||||
Loss | 74.9 | % | 68.0 | % | 76.9 | % | 66.2 | % | ||||||||
Expense | 29.5 | % | 27.4 | % | 28.7 | % | 28.6 | % | ||||||||
Combined | 104.4 | % | 95.4 | % | 105.6 | % | 94.8 | % |
INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
615.844.2885
SOURCE: First Acceptance Corporation
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https://www.accesswire.com/710546/First-Acceptance-Corporation-Reports-Operating-Results-for-the-Three-and-Six-Months-Ended-June-30-2022
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