First Acceptance Corporation reports recurring operating results for an insurance holding company that underwrites non-standard personal automobile insurance through the First Acceptance Insurance Group. Company updates focus on premium revenue, ceded reinsurance, underwriting profitability, loss and loss-adjustment expense trends, regulatory rate actions, and the economics of its independent-agent distribution model.
News also covers corporate governance developments, including board appointments and committee roles, alongside management commentary on pricing, claims severity, supply-chain effects, and distribution opportunities in personal auto insurance.
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First Acceptance Corporation (OTCQX:FACO) reported its financial results for the quarter and year ending December 31, 2022. For Q4, the company posted a net loss of $2.1 million, a significant reduction from $5.6 million in Q4 2021. The 2022 total net loss was $17.5 million, compared to $1.2 million in the previous year. The average diluted loss per share was $0.06 for Q4 2022, down from $0.15, while the annual figure was $0.46 compared to $0.03. Despite a 4.8 million unfavorable prior period loss development, management cited positive trends in cost reductions and premium rate increases. Ken Russell announced the promotion of Doug Jensen to a new executive role overseeing insurance operations.
AM Best has downgraded the Financial Strength Rating (FSR) of First Acceptance Corporation (FACO) and its subsidiaries to C++ (Marginal) from B (Fair). The Long-Term Issuer Credit Ratings (ICR) were also downgraded from bb (Fair) to b+ (Marginal). The outlook for the Long-Term ICR is now negative from stable, while the FSR outlook remains stable. This downgrade follows a significant erosion in First Acceptance’s balance sheet strength, attributed to increased physical damage loss costs and inflationary pressures affecting its operating performance.
First Acceptance Corporation (OTCQX:FACO) reported significant financial losses for Q3 and the first nine months of 2022. The company reported a net loss of $8.6 million for the three months ending September 30, 2022, compared to a $0.5 million loss in 2021. For the nine-month period, net loss totaled $15.3 million, a stark contrast to a $4.4 million income in the previous year. Underwriting losses were influenced by inflation and rising auto repair costs. The company is planning to implement premium rate increases to mitigate these challenges.
Acceptance Insurance (OTCQX: FACO) announced the unexpected death of President and CEO Larry Willeford at the age of 65 on October 5, 2022. Willeford had been with the company since 2016, taking the role of CEO in November 2021. His leadership was marked by accolades for workplace culture, including recognition by Forbes in 2022 as one of America’s Best Midsize Employers. Following his passing, Ken Russell, former CEO, will serve as interim leader to maintain operational continuity.