First Acceptance Corporation Reports Operating Results for the Quarter and Year Ended December 31, 2025

Rhea-AI Summary

First Acceptance Corporation (OTCQX:FACO) reported results for the quarter and year ended December 31, 2025. Net income was $30.2 million for 2025, up from $26.3 million in 2024, and diluted EPS rose to $0.80 from $0.67. Book value per share increased to $5.45 from $4.44.

Revenues before ceded reinsurance were $613.5 million in 2025; ceded premiums rose to $107.2 million due to a reinsurance contract effective July 1, 2024, and revenues after ceded reinsurance were $506.3 million.

Positive

• Net income increased 15% year-over-year to $30.2 million
• Diluted EPS rose to $0.80 from $0.67
• Book value per share increased from $4.44 to $5.45 (22.7% increase)

Negative

• Ceded premiums increased to $107.2 million from $47.4 million, reducing reported revenue
• Revenues after ceded reinsurance decreased to $506.3 million from $559.4 million (10% decline)
• Q4 revenues were reduced by a $17.0 million adjustment to fee income against insurance operating expenses

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NASHVILLE, TN / ACCESS Newswire / March 3, 2026 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the quarter and year ended December 31, 2025. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Income before income taxes for the three months ended December 31, 2025 was $11.5 million, compared with $9.5 million for the three months ended December 31, 2024. Net income for the three months ended December 31, 2025 was $9.2 million, compared with $8.2 million for the three months ended December 31, 2024. Diluted net income per share was $0.24 for the three months ended December 31, 2025, compared with $0.21 for the same period in the prior year.

Income before income taxes for the year ended December 31, 2025 was $38.5 million, compared with $33.4 million for the year ended December 31, 2024. Included in income before income taxes were $19.9 million and $18.4 million in investment income for the years ended December 31, 2025 and December 31, 2024, respectively. Net income for the year ended December 31, 2025 was $30.2 million, compared with $26.3 million for the year ended December 31, 2024. Diluted net income per share was $0.80 for the year ended December 31, 2025, compared with $0.67 for the same period in the prior.

Book value per common share increased from $4.44 at December 31, 2024 to $5.45 at December 31, 2025

Revenues before ceded reinsurance for the year ended December 31, 2025 increased 1% to $613.5 million from $606.8 million in the prior year. Revenues for the years ended December 31, 2025 and 2024 were reduced by ceded premiums earned of $107.2 million and $47.4 million, respectively, from the new reinsurance contract that went into effect July 1, 2024. (There were 12 months of reinsurance in 2025 compared to six months in 2024.) Revenues after ceded reinsurance for the year ended December 31, 2025 decreased 10% to $506.3 million from $559.4 million in the prior year.

Revenues for the three months ended December 31, 2025 were impacted by $17.0 million as the result of an adjustment to certain fee income against insurance operating expenses by the same amount. This adjustment had no impact to income before income taxes for the quarter. Revenues after reinsurance and this adjustment for the three months ended December 31, 2025 decreased to $99.9 million from $127.2 million in the same period in the prior year. This is inclusive of a year-over-year increase in ceded premium of $8.3 million, reducing revenue due to growth in the subject programs. Policies in force as of December 31, 2025 exceeded the amount as of December 31, 2024.

The Company's President and Chief Executive Officer, Ken Russell commented "The year ended December 31, 2025 marked the Company's third consecutive year of increased net income from our insurance operations. Despite a year beginning with uncertainty around tariffs, a marked increase in loss severity and a broadly challenged consumer economy, we managed to sustain and grow our profitability through our transition to an independent agency model with a predominantly variable cost structure. We look forward to continued profitability along with the continuation of our efforts to diversify our product distribution. The 15% increase in net income year-over-year and a tangible book value over $5.40 a share are a testament to the strength of our Company and how we are positioned to continue to capitalize on our growing independent agency distribution platform, disciplined underwriting execution, and scalable, variable-cost operating model."

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, 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								Year Ended
		December 31,								December 31,
		2025				2024				2025				2024
Revenues		$	99,913			$	127,231			$	506,340			$	559,427
Income before income taxes		$	11,482			$	9,548			$	38,521			$	33,418
Net income		$	9,200			$	8,173			$	30,226			$	26,291
Net income per diluted share		$	0.24			$	0.21			$	0.80			$	0.67
Average diluted shares outstanding			37,629				39,138				37,903				39,095
Combined Ratio for Insurance Companies:
Loss			63.4	%			76.7	%			68.8	%			73.6	%
Expense			30.2	%			16.9	%			26.9	%			22.1	%
Combined			93.6	%			93.6	%			95.7	%			95.7	%
Book Value per Common Share										$	5.45			$	4.44

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) net income and diluted EPS for full-year 2025?

FACO reported net income of $30.2 million and diluted EPS of $0.80 for 2025. According to the company, this compares with $26.3 million net income and $0.67 diluted EPS in 2024, reflecting a 15% increase in net income year-over-year.

How did First Acceptance's (FACO) book value per share change at December 31, 2025?

Book value per share increased to $5.45 from $4.44 at year-end. According to the company, this represents a tangible book value gain and supports management's comments on improved shareholder value.

Why did First Acceptance (FACO) report lower revenues after reinsurance in 2025?

Revenues after ceded reinsurance fell to $506.3 million in 2025. According to the company, the decline reflects a higher ceded premium of $107.2 million from a reinsurance contract effective July 1, 2024.

What impact did the reinsurance contract have on FACO's 2025 financials?

The reinsurance contract increased ceded premiums to $107.2 million, reducing net reported revenue. According to the company, 2025 included 12 months of reinsurance versus six months in 2024, amplifying the effect.

What caused the $17.0 million revenue adjustment in First Acceptance's Q4 2025 (FACO)?

A $17.0 million adjustment reclassified certain fee income against insurance operating expenses, reducing reported Q4 revenues. According to the company, this adjustment had no impact on income before income taxes for the quarter.

Did First Acceptance (FACO) report growth in insurance operations profitability in 2025?

Yes. FACO reported its third consecutive year of increased net income from insurance operations. According to the company, disciplined underwriting and a variable-cost agency model supported continued profitability despite market challenges.