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

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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.

INVESTOR RELATIONS CONTACT:

Michael J. Bodayle

[email protected]

SOURCE: First Acceptance Corporation