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First Acceptance Corporation Reports Operating Results for the Three and Nine Months Ended September 30, 2024

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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.

First Acceptance (OTCQX:FACO) ha riportato i risultati finanziari per il terzo trimestre del 2024. Il reddito netto per il terzo trimestre del 2024 è stato di 5,4 milioni di dollari (0,14 dollari per azione diluita), in calo rispetto ai 7,2 milioni di dollari (0,19 dollari per azione) nel terzo trimestre del 2023. Per i nove mesi terminati il 30 settembre 2024, il reddito netto è aumentato a 18,1 milioni di dollari (0,46 dollari per azione) rispetto agli 11,5 milioni di dollari (0,30 dollari per azione) dell'anno precedente. L'azienda ha registrato 3,3 milioni di dollari di sviluppo sfavorevole delle perdite relative a periodi precedenti per il terzo trimestre del 2024. I ricavi sono stati influenzati da 24,4 milioni di dollari in premi ceduti a seguito di un nuovo accordo di riassicurazione entrato in vigore il 1° luglio 2024. L'azienda ha riportato una forte crescita dei ricavi e il suo settimo trimestre consecutivo in utile.

First Acceptance (OTCQX:FACO) reportó sus resultados financieros del tercer trimestre de 2024. El ingreso neto para el tercer trimestre de 2024 fue de 5.4 millones de dólares (0.14 dólares por acción diluida), disminuyendo desde 7.2 millones de dólares (0.19 dólares por acción) en el tercer trimestre de 2023. Para los nueve meses que terminaron el 30 de septiembre de 2024, el ingreso neto aumentó a 18.1 millones de dólares (0.46 dólares por acción) desde 11.5 millones de dólares (0.30 dólares por acción) en el mismo periodo del año anterior. La compañía reconoció una pérdida desfavorable de 3.3 millones de dólares por desarrollos de periodos anteriores en el tercer trimestre de 2024. Los ingresos se vieron afectados por 24.4 millones de dólares en primas cedidas debido a un nuevo acuerdo de reaseguro efectivo a partir del 1 de julio de 2024. La empresa reportó un sólido crecimiento en sus ingresos y su séptimo trimestre consecutivo rentable.

퍼스트 어셉턴스(OTCQX:FACO)는 2024년 3분기 재무 결과를 보고했습니다. 2024년 3분기의 순이익은 540만 달러(희석 주당 0.14 달러)로, 2023년 3분기의 720만 달러(주당 0.19 달러)에서 감소했습니다. 2024년 9월 30일로 종료된 9개월 동안 순이익은 전년 동기 대비 1150만 달러(주당 0.30 달러)에서 1810만 달러(주당 0.46 달러)로 증가했습니다. 회사는 2024년 3분기에 대해 330만 달러의 불리한 이전 기간 손실 개발을 인식했습니다. 수익은 2024년 7월 1일부터 발효된 새로운 재보험 계약으로 인한 2440만 달러의 양도된 보험료 영향을 받았습니다. 회사는 강력한 수익 성장과 7분기 연속으로 수익성 있는 분기를 보고했습니다.

First Acceptance (OTCQX:FACO) a publié ses résultats financiers pour le troisième trimestre 2024. Le revenu net pour le troisième trimestre 2024 s'élevait à 5,4 millions de dollars (0,14 dollar par action diluée), en baisse par rapport à 7,2 millions de dollars (0,19 dollar par action) au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, le revenu net a augmenté à 18,1 millions de dollars (0,46 dollar par action) contre 11,5 millions de dollars (0,30 dollar par action) l'année précédente. La société a reconnu 3,3 millions de dollars de développement de pertes défavorables pour les périodes antérieures pour le troisième trimestre 2024. Les revenus ont été impactés par 24,4 millions de dollars de primes cédées en raison d'un nouvel accord de réassurance entrant en vigueur le 1er juillet 2024. L'entreprise a rapporté une forte croissance des revenus et son septième trimestre consécutif rentable.

First Acceptance (OTCQX:FACO) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht. Der Nettoertrag für das dritte Quartal 2024 betrug 5,4 Millionen Dollar (0,14 Dollar pro verwässerter Aktie), ein Rückgang von 7,2 Millionen Dollar (0,19 Dollar pro Aktie) im dritten Quartal 2023. Für die neun Monate bis zum 30. September 2024 stieg der Nettoertrag auf 18,1 Millionen Dollar (0,46 Dollar pro Aktie) von 11,5 Millionen Dollar (0,30 Dollar pro Aktie) im Vorjahr. Das Unternehmen erkannte 3,3 Millionen Dollar an ungünstiger Verlustentwicklung aus früheren Perioden für das dritte Quartal 2024 an. Die Einnahmen wurden durch 24,4 Millionen Dollar an abgegebenen Prämien aus einem neuen Rückversicherungsvertrag, der am 1. Juli 2024 in Kraft trat, beeinträchtigt. Das Unternehmen meldete ein starkes Umsatzwachstum und das siebte aufeinanderfolgende profitable Quartal.

Positive
  • Nine-month net income increased 57% to $18.1 million from $11.5 million YoY
  • Seventh consecutive quarter of profitable operations
  • Record levels of written premium and policies in force
  • $11.0 million reduction in commission expense for nine months due to contingent commission adjustment
Negative
  • Q3 2024 net income decreased 25% to $5.4 million from $7.2 million YoY
  • $24.4 million revenue reduction from ceded premiums due to new reinsurance agreement
  • $13.5 million unfavorable prior period loss development for nine months of 2024
  • Q3 2024 diluted EPS decreased to $0.14 from $0.19 YoY

NASHVILLE, TN / ACCESSWIRE / November 6, 2024 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the three and nine months ended September 30, 2024. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Income before income taxes, for the three months ended September 30, 2024 was $6.9 million, compared with $9.4 million for the three months ended September 30, 2023. Net income for the three months ended September 30, 2024 was $5.4 million, compared $7.2 million for the three months ended September 30, 2023. Diluted net income per share was $0.14 for the three months ended September 30, 2024, compared with $0.19 for the same period in the prior year.

Income before income taxes, for the nine months ended September 30, 2024 was $23.9 million, compared with $15.0 million for the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2024 was $18.1 million, compared with $11.5 million for the nine months ended September 30, 2023. Diluted net income per share was $0.46 for the nine months ended September 30, 2024, compared with $0.30 for the same period in the prior year.

For the three months ended September 30, 2024, we recognized unfavorable prior period loss and LAE development of $3.3 million, compared with $1.6 million for the same period in the prior year. For the nine months ended September 30, 2024, we recognized $13.5 million of unfavorable prior period loss and LAE development compared with $1.3 million for the same period in the prior year.

As a result of this unfavorable prior period loss and LAE development, we recognized reductions in commission expense from a contingent commission adjustment to an independent agent of $1.0 million and $11.0 million, for the three and nine months ended September 30, 2024, respectively.

Revenues for both the three and nine months ended September 30, 2024 were reduced by ceded premiums earned of $24.4 million from a new reinsurance agreement that was effective July 1, 2024.

The Company's President and Chief Executive Officer, Ken Russell, commented "Our revenues for the quarter continued to be strong, approaching record levels for the Company. Despite the recent storm activity in several of our market states, claim losses incurred from Hurricane Helena were not significant, and we do not anticipate that the fourth quarter will reflect a significant loss from Hurricane Milton. The Company continues to enjoy revenue growth and incurred claim losses within expected guidelines, resulting in our seventh consecutive quarter of profitable operating financial results. As we approach the end of our first fiscal year under a complete independent agent model of distribution, our written premium and policies in force continue to achieve record levels. I believe that we are well-situated to sustain this positive momentum."

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

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Revenues

$

129,257

$

133,626

$

432,195

$

344,181

Income before income taxes

$

6,854

$

9,396

$

23,870

$

15,012

Net income

$

5,402

$

7,204

$

18,118

$

11,517

Net income per diluted share

$

0.14

$

0.19

$

0.46

$

0.30

Average diluted shares outstanding

39,120

38,379

39,021

38,233

Combined Ratio for Insurance Companies:

Loss

76.0

%

69.1

%

72.7

%

70.6

%

Expense

19.2

%

23.8

%

24.6

%

26.8

%

Combined

95.2

%

92.9

%

97.3

%

97.4

%

Book Value per Common Share

$

4.33

$

1.98

INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
mbodayle@firstacceptance.com

SOURCE: First Acceptance Corporation



View the original press release on accesswire.com

FAQ

What was First Acceptance 's (FACO) net income for Q3 2024?

First Acceptance reported a net income of $5.4 million ($0.14 per diluted share) for Q3 2024.

How much did FACO's revenue decrease due to the new reinsurance agreement in Q3 2024?

FACO's revenues were reduced by $24.4 million in ceded premiums earned from a new reinsurance agreement effective July 1, 2024.

What was FACO's nine-month net income for 2024?

FACO's net income for the nine months ended September 30, 2024, was $18.1 million ($0.46 per diluted share).

How many consecutive profitable quarters has FACO reported as of Q3 2024?

First Acceptance reported its seventh consecutive quarter of profitable operating financial results.

FIRST ACCEPTANCE CORP

OTC:FACO

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128.47M
38.02M
0.64%
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Insurance - Specialty
Financial Services
Link
United States of America
Nashville