First Acceptance Corporation Reports Operating Results for the Three and Nine Months Ended September 30, 2025

Rhea-AI Summary

First Acceptance Corporation (OTCQX:FACO) reported results for the quarter and nine months ended September 30, 2025. Q3 revenues were $140.7M, up 9% year‑over‑year. Nine‑month revenues before ceded reinsurance rose 6% to $482.3M, while revenues after ceded reinsurance fell 6% to $406.4M due to ceded premiums of $75.9M (nine months) versus $24.4M prior year. Q3 income before taxes was $13.2M and net income $10.2M (diluted EPS $0.27) versus $6.9M, $5.4M and $0.14 in Q3 2024. Nine‑month net income was $21.0M (diluted EPS $0.55) versus $18.1M ($0.46) prior year.

Management cited improved claims handling, leveling claim costs and pricing actions, noting earlier 2025 increases in physical damage severities have partially stabilized.

Positive

• Q3 revenue +9% to $140.7M
• Q3 net income $10.2M vs $5.4M prior year
• Q3 diluted EPS $0.27 vs $0.14 prior year
• Nine‑month revenue before reinsurance +6% to $482.3M
• Nine‑month net income $21.0M vs $18.1M prior year

Negative

• Revenues after ceded reinsurance down 6% to $406.4M (nine months)
• Ceded premiums $75.9M for nine months vs $24.4M prior year
• Industry physical damage loss severities increased since Q1 2025

NASHVILLE, TN / ACCESS Newswire / November 4, 2025 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the quarter ended September 30, 2025. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Revenues for the three months ended September 30, 2025 increased 9% to $140.7 million from $129.3 million in the same period in the prior year.

Revenues before ceded reinsurance for the nine months ended September 30, 2025 increased 6% to $482.3 million from $456.6 million in the same period in the prior year. Revenues for the nine months ended September 30, 2025 and 2024, were reduced by ceded premiums earned of $75.9 million and $24.4 million, respectively, from the new reinsurance contract that went into effect July 1, 2024. (There were nine months of reinsurance in 2025 compared to three months in 2024.) Revenues for the nine months after ceded reinsurance ended September 30, 2025, decreased 6% to $406.4 million from $432.2 million in the same period in the prior year.

Income before income taxes, for the three months ended September 30, 2025 was $13.2 million, compared with $6.9 million for the three months ended September 30, 2024. Net income for the three months ended September 30, 2025 was $10.2 million, compared with $5.4 million for the three months ended September 30, 2024. Diluted net income per share was $0.27 for the three months ended September 30, 2025, compared with $0.14 for the same period in the prior year.

Income before income taxes, for the nine months ended September 30, 2025, was $27.0 million, compared with $23.9 million for the nine months ended September 30, 2024. Net income for the nine months ended September 30, 2025, was $21.0 million, compared with $18.1 million for the nine months ended September 30, 2024. Diluted net income per share was $0.55 for the nine months ended September 30, 2025, compared with diluted $0.46 for the same period in the prior year.

The Company's President and Chief Executive Officer, Ken Russell, commented, "The Company continued its profitable results for the nine months ended September 30, 2025, strengthened by improvements from claims handling, leveling claims costs and strong underwriting and pricing actions. Although since the first quarter of 2025 the industry has experienced an increase in physical damage loss severities relating to increased costs for autos and parts, over the last two quarters there has been a partial stabilization of these costs. Additionally, enhancements and efficiencies in our claim handling operations have been implemented throughout 2025. Claim costs, lower than our first quarter expectations, recognized in the current quarter were also favorably influenced by a reduction in claims frequency. In addition to the favorable reduction in claim costs realized through September 30, 2025, management believes that revenues, investment returns and our fixed operating expenses continue to meet our expectations."

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 offer our own underwritten insurance policies primarily 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, 2024, 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								Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
Revenues		$	140,683			$	129,257			$	406,427			$	432,195
Income before income taxes		$	13,170			$	6,854			$	27,039			$	23,870
Net income		$	10,247			$	5,402			$	21,026			$	18,118
Net income per diluted share		$	0.27			$	0.14			$	0.55			$	0.46
Average diluted shares outstanding			37,552				39,120				37,940				39,021
Combined Ratio for Insurance Companies:
Loss			63.5	%			76.0	%			70.4	%			72.7	%
Expense			29.8	%			19.2	%			25.9	%			24.6	%
Combined			93.3	%			95.2	%			96.3	%			97.3	%
Book Value per Common Share										$	5.18			$	4.33

INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
mbodayle@firstacceptance.com

SOURCE: First Acceptance Corporation

View the original press release on ACCESS Newswire

FAQ

What were First Acceptance (FACO) revenues for Q3 2025?

First Acceptance reported Q3 2025 revenues of $140.7 million, up 9% year‑over‑year.

How much net income did FACO report for the three months ended September 30, 2025?

FACO reported Q3 net income of $10.2 million with diluted EPS of $0.27.

Why did First Acceptance's nine‑month revenues fall after ceded reinsurance in 2025?

Nine‑month revenues after ceded reinsurance fell 6% to $406.4M because ceded premiums totaled $75.9M versus $24.4M in the prior year.

What were FACO's nine‑month earnings and EPS through September 30, 2025?

For the nine months ended September 30, 2025 FACO reported net income $21.0M and diluted EPS $0.55.

Did management identify any trends affecting FACO's loss costs in 2025?

Management cited increased physical damage loss severities earlier in 2025 with partial stabilization over the last two quarters.

Where can investors find FACO's full quarterly report for Sep 30, 2025?

The company indicated the quarterly report is available on the OTC Markets disclosure page for FACO.