NASHVILLE, TN / ACCESSWIRE / May 7, 2024 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the quarter ended March 31, 2024. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.
Income before income taxes for the three months ended March 31, 2024 was $8.9 million, compared with $1.4 million for the three months ended March 31, 2023. Net income for the three months ended March 31, 2024 was $6.9 million, compared with $1.2 million for the three months ended March 31, 2023. Diluted net income per share was $0.18 for the three months ended March 31, 2024, compared with $0.03 for the for the three months ended March 31, 2023.
For the three months ended March 31, 2024, we recognized unfavorable prior period loss and LAE development of $3.9 million compared with $1.0 million for the same period in the prior year.
Revenues and net income for the three months ended March 31, 2024 and 2023 both included $0.5 million in net gains on investments.
The Company's President and Chief Executive Officer, Ken Russell, commented "The quarter ended March 30, 2024, was the first complete quarter for the Company's insurance companies to distribute their auto insurance products solely through their independent agency distribution channels. The market demand for our non-standard auto insurance products remained strong during the quarter with premiums continuing to increase across all channels. Loss ratios have remained stable and are consistent with our expectations. With the increase in total investments resulting from our continued profitability and the proceeds from the sale of our insurance agency in December 2023, as well as the increase in available investment rates, investment income has become a larger contributor to our net income. Management and I are pleased with the Company's continued increased overall operational profitability when compared to prior periods. We also believe that our Company is well positioned to continue the success we have realized over the past several quarters".
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.
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, 2023, 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, | ||||||||
| 2024 | 2023 | |||||||
Revenues | $ | 145,263 | $ | 97,909 | ||||
Income before income taxes | $ | 8,938 | $ | 1,418 | ||||
Net income | $ | 6,928 | $ | 1,158 | ||||
Net income per diluted share | $ | 0.18 | $ | 0.03 | ||||
Average diluted shares outstanding | 38,681 | 37,978 | ||||||
Loss Ratio | 70.0 | % | 75.2 | % | ||||
Expense Ratio | 26.2 | % | 27.2 | % | ||||
Combined Ratio | 96.2 | % | 102.4 | % | ||||
Book Value per Common Share | $ | 3.87 | $ | 1.78 | ||||
INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
mbodayle@firstacceptance.com
SOURCE: First Acceptance Corp.
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