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First Acceptance - FACO STOCK NEWS

Welcome to our dedicated page for First Acceptance news (Ticker: FACO), a resource for investors and traders seeking the latest updates and insights on First Acceptance stock.

Overview

First Acceptance Corporation operates as a specialized provider in the non-standard personal automobile insurance space, leveraging a dual-segment business model that encompasses insurance underwriting, retail operations, and complementary real estate and corporate functions. As a company headquartered in Nashville, Tennessee, it has established an extensive network of leased retail locations and a dedicated call center staffed by knowledgeable employee-agents, who focus on the distribution of non-standard auto insurance products and related commissionable offerings. Keywords such as "non-standard auto insurance," "underwriting expertise," and "independent agency distribution" underscore its market identity.

Business Segments and Operations

The Company’s operations are split into two principal segments:

  • Insurance Operations: This segment is primarily involved in underwriting and selling non-standard personal automobile insurance products. Licensed across a broad geographical footprint that spans over 20 states, its methodology integrates a combination of independent agency channels and direct retail presence. The use of independent agents enhances its reach and efficiency, ensuring that specialized insurance products are delivered to a diverse set of consumers who require tailored risk management solutions.
  • Real Estate and Corporate Segment: Complementing its core insurance business, this segment manages the disposition of foreclosed real estate assets held for sale and oversees corporate expense functions, including interest expense management. This integrated approach facilitates better capital allocation and balances the risk inherent in underwriting activities with the stability provided by divestment in real estate holdings.

Operational Excellence and Industry Position

First Acceptance Corporation distinguishes itself in the competitive non-standard insurance market by focusing on efficient risk management, disciplined underwriting standards, and a strong independent agency network. The Company’s strategic emphasis on enhancing underwriting processes and cost containment has been key to maintaining stable loss and expense ratios despite challenging market conditions. Additionally, the integration of ancillary products into its sales channels provides a diversified revenue stream that supports its overall operational profitability.

Distribution Model and Market Reach

The Company operates through a robust network of nearly 440 retail locations and a call center that together facilitate a broad distribution framework. Staffed by experienced employee-agents, these channels play a pivotal role in educating consumers and delivering non-standard auto insurance offerings in a competitive landscape. By leveraging a specialized independent agent model, First Acceptance Corporation achieves efficient market penetration while maintaining a focus on customer-specific needs in the non-standard segment.

Risk Management and Investment Strategies

In addition to its core insurance operations, First Acceptance Corporation places significant emphasis on robust risk management practices. The firm continuously refines its underwriting criteria and monitors claims development, ensuring that loss ratios remain within target thresholds. Complementary to these efforts, the Company actively manages its investment portfolio to capitalize on favorable market conditions. This dual focus on underwriting discipline and investment management enhances its ability to sustain profitability across a diverse operational landscape.

Competitive Landscape

Operating in the niche market of non-standard auto insurance, First Acceptance Corporation faces competition from other specialized insurers and traditional carriers with non-standard offerings. However, its unique combination of direct retail presence, specialized underwriting, and integrated real estate operations allows it to differentiate itself. Detailed attention to underwriting standards and strategic cost containment measures further position it as a distinctive entity within the insurance sector.

Conclusion

In summary, First Acceptance Corporation presents a multifaceted business model that merges the dynamic world of non-standard insurance with strategic real estate and corporate management. The Company’s rigorous underwriting practices, extensive independent agency distribution network, and effective risk management strategies contribute to its robust operational framework—a framework that reinforces its market position without resorting to time-sensitive data. Investors and market observers can glean valuable insights into how a specialized insurer adapts to a complex, evolving marketplace while maintaining operational integrity and efficiency.

Rhea-AI Summary

First Acceptance (OTCQX:FACO) reported its Q4 and full-year 2024 financial results. Q4 2024 income before taxes was $9.5M with net income of $8.2M, compared to $84.0M and $62.4M respectively in Q4 2023 (which included a $73.0M gain from insurance agency sale).

For full-year 2024, income before taxes reached $33.4M with net income of $26.3M. The company achieved record gross premiums written of $542.7M in 2024, a 101% increase from 2022. Investment income grew significantly from $3.9M in 2022 to $18.4M in 2024, while cash and invested assets increased to $407.8M.

Notable developments include a new reinsurance agreement effective July 1, 2024, resulting in $47.4M in ceded premiums earned. The company's tangible book value per share rose from $0.85 in 2022 to $4.41 in 2024, with diluted earnings per share of $0.67 for 2024.

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First Acceptance (OTCQX:FACO) has achieved recognition by being named to the 2025 OTCQX Best 50, a prestigious ranking that showcases top-performing companies on the OTCQX Best Market during 2024.

The OTCQX Best 50 ranking evaluates companies based on two key metrics with equal weighting: one-year total return and average daily dollar volume growth during the previous calendar year. This recognition highlights FACO's strong market performance in 2024.

The OTCQX Best Market is distinguished by its focus on established, investor-focused U.S. and global companies that must meet rigorous standards, including high financial requirements, adherence to best practice corporate governance, and demonstrated compliance with applicable securities laws.

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First Acceptance (OTCQX:FACO) reported its Q3 2024 financial results. Net income for Q3 2024 was $5.4 million ($0.14 per diluted share), down from $7.2 million ($0.19 per share) in Q3 2023. For the nine months ended September 30, 2024, net income increased to $18.1 million ($0.46 per share) from $11.5 million ($0.30 per share) year-over-year. The company recognized $3.3 million in unfavorable prior period loss development for Q3 2024. Revenues were impacted by $24.4 million in ceded premiums from a new reinsurance agreement effective July 1, 2024. The company reported strong revenue growth and its seventh consecutive profitable quarter.

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First Acceptance (OTCQX:FACO) reported strong financial results for Q2 2024. Income before taxes reached $8.1 million, up from $4.2 million in Q2 2023. Net income increased to $5.8 million from $3.2 million year-over-year. Diluted earnings per share rose to $0.15 from $0.08. For the first half of 2024, income before taxes was $17.0 million, compared to $5.6 million in H1 2023. Net income for H1 2024 reached $12.7 million, up from $4.3 million. The company recognized unfavorable prior period loss and LAE development of $4.8 million in Q2 2024. CEO Ken Russell highlighted six consecutive profitable quarters, sustained premium growth, and improved investment income as key factors in the company's performance.

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First Acceptance (OTCQX:FACO) announced the appointment of Ronald H. Davies to its Board of Directors, effective July 1, 2024. Mr. Davies will also serve on the Board's Audit and Risk Committees. This appointment brings the Board's total to eight directors, including six independent members. Mr. Davies has a rich background in non-standard automobile insurance, having served as President and CEO of Safe Auto Insurance Group from 2012 to 2021. He co-founded SureDeposit.com and held leadership roles at Progressive Insurance Company and Vivant Inc. He holds a BS from West Point and an MBA from Harvard Business School.

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First Acceptance (OTCQX:FACO) reported financial results for the quarter ended March 31, 2024. Income before taxes was $8.9M, net income was $6.9M, and diluted EPS was $0.18. Unfavorable loss development was $3.9M. Revenues and net income included $0.5M gains on investments. President commented on strong demand for non-standard auto insurance products and increased profitability from investments.

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First Acceptance Corporation (FACO) reports strong financial results for Q4 and full year 2023, with significant gains in income and net income per share. The company sold its subsidiary, generating a gain of $73.0 million. Organizational changes were announced to align with the transition to independent agent-based distribution, aiming for increased stockholder value and operational focus on underwriting results.
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AM Best has affirmed the Financial Strength Rating of C++ and the Long-Term Issuer Credit Ratings of 'b+' of the subsidiaries of First Acceptance Corporation (Delaware) [OTCQX: FACO]. The outlook for the FSR is stable while the outlook for the Long-Term ICR is negative. The ratings reflect First Acceptance's weak balance sheet strength, marginal operating performance, limited business profile, and marginal enterprise risk management. The stable outlook on the FSR reflects the expectation that risk-adjusted capitalization will be maintained at an acceptable level to support the balance sheet strength assessment and near-term business growth expectations.
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First Acceptance Corporation (FACO) has been named to the 2024 OTCQX Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year. The ranking is based on one-year total return and average daily dollar volume growth in the previous calendar year. This recognition highlights the company's strong financial performance and investor-focused approach.
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First Acceptance Corporation (FACO) announced the sale of its subsidiary, Acceptance Insurance Agency of Tennessee, Inc. to Alliant Insurance Services, Inc. for up to $120 million in cash. AITN sells non-standard automobile insurance through employee-agents in 13 states. The purchase agreement allows Confie and its affiliates to operate as independent agents for FACO's non-standard automobile insurance products written through AITN.
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FAQ

What is the current stock price of First Acceptance (FACO)?

The current stock price of First Acceptance (FACO) is $3.44 as of March 11, 2025.

What is the market cap of First Acceptance (FACO)?

The market cap of First Acceptance (FACO) is approximately 120.2M.

What is the primary business of First Acceptance Corporation?

First Acceptance Corporation is primarily engaged in underwriting and selling non-standard personal automobile insurance products, as well as managing related real estate and corporate functions.

How does the company distribute its insurance products?

The company uses a network of nearly 440 retail locations and a call center staffed by employee-agents who work through independent agency distribution channels to deliver its non-standard auto insurance products.

In which states does First Acceptance Corporation operate?

The Company is licensed in over 10 states and conducts its servicing and underwriting operations in approximately 10 states, with its broader market reach extending to over 20 states.

What are the two main segments of First Acceptance Corporation?

The business is divided into an insurance operations segment that focuses on underwriting non-standard personal auto insurance, and a real estate and corporate segment that handles foreclosed property dispositions and associated expenses.

How does First Acceptance manage risk within its operations?

The company emphasizes disciplined underwriting standards, continuous monitoring of claims development, and effective loss ratio management to control risk, complemented by strategic investment management.

What distinguishes First Acceptance from its competitors?

Its unique combination of a strong independent agency network, direct retail distribution, adherence to strict underwriting protocols, and integrated real estate operations sets it apart in the non-standard auto insurance market.

What role does investment income play in the company?

Investment income is an important component of the overall financial structure, bolstering profitability and offsetting underwriting risks through careful portfolio management and market opportunism.

How does the company maintain operational profitability?

By focusing on strategic cost containment, efficient claims handling, and leveraging its extensive independent agency network, First Acceptance Corporation sustains operational profitability despite market challenges.
First Acceptance

OTC:FACO

FACO Rankings

FACO Stock Data

120.18M
38.02M
0.64%
0.01%
Insurance - Specialty
Financial Services
Link
United States
Nashville