NASHVILLE, TN / ACCESSWIRE / August 13, 2024 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the three and six months ended June 30, 2024. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.
Income before income taxes, for the three months ended June 30, 2024 was $8.1 million, compared with $4.2 million for the three months ended June 30, 2023. Net income for the three months ended June 30, 2024 was $5.8 million, compared $3.2 million for the three months ended June 30, 2023. Diluted net income per share was $0.15 for the three months ended June 30, 2024, compared with $0.08 for the same period in the prior year.
Income before income taxes, for the six months ended June 30, 2024 was $17.0 million, compared with $5.6 million for the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 was $12.7 million, compared with $4.3 million for the six months ended June 30, 2023. Diluted net income per share was $0.33 for the six months ended June 30, 2024, compared with $0.11 for the same period in the prior year.
For the three months ended June 30, 2024, we recognized unfavorable prior period loss and LAE development of $4.8 million, compared with favorable prior period loss and LAE development of $0.1 million for the same period in the prior year. For the six months ended June 30, 2024, we recognized $8.8 million of unfavorable prior period loss and LAE development compared with $0.7 million for the same period in the prior year.
The Company's President and Chief Executive Officer, Ken Russell, commented "The quarter ended June 30, 2024 marks the Company's sixth consecutive profitable quarter reflecting a steady continuation of the favorable market trends we have experienced since the fourth quarter of 2022. Since then, premium growth has sustained across all our distribution channels through a combination of rate increases and increased production. Throughout, our loss ratio has remained within our expectations, as has our expense ratio, which was favorably impacted by the sale of our insurance agency operations in December 2023. Investment income has also grown to become a more significant component of our net income. Going forward, I remain confident that our Company is well positioned to continue this profitable success ".
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 |
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| Six Months Ended |
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| June 30, |
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| June 30, |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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Revenues |
| $ | 157,675 |
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| $ | 112,645 |
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| $ | 302,939 |
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| $ | 210,555 |
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Income before income taxes |
| $ | 8,079 |
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| $ | 4,198 |
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| $ | 17,017 |
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| $ | 5,616 |
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Net income |
| $ | 5,789 |
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| $ | 3,154 |
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| $ | 12,717 |
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| $ | 4,312 |
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Net income per diluted share |
| $ | 0.15 |
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| $ | 0.08 |
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| $ | 0.33 |
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| $ | 0.11 |
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Average diluted shares outstanding |
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| 38,987 |
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| 38,211 |
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| 38,898 |
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| 38,119 |
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Combined Ratio for Insurance Companies: |
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Loss |
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| 72.4 | % |
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| 69.7 | % |
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| 71.3 | % |
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| 72.3 | % |
Expense |
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| 27.5 | % |
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| 30.5 | % |
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| 26.8 | % |
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| 29.0 | % |
Combined |
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| 99.9 | % |
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| 100.2 | % |
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| 98.1 | % |
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| 101.3 | % |
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Book Value per Common Share |
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| $ | 4.01 |
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| $ | 1.83 |
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INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
mbodayle@firstacceptance.com
SOURCE: First Acceptance Corporation
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