First Acceptance Corporation Reports Operating Results for the Quarter Ended March 31, 2023

NASHVILLE, TN / ACCESSWIRE / May 2, 2023 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the quarter ended March 31, 2023. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Income before income taxes for the three months ended March 31, 2023 was $1.4 million, compared with loss before income taxes of $3.9 million for the three months ended March 31, 2022. Net income for the three months ended March 31, 2023 was $1.2 million, compared with net loss of $3.1 million for the three months ended March 31, 2022. Diluted net income per share was $0.03 for the three months ended March 31, 2023, compared with diluted net loss per share of $0.08 for the for the three months ended March 31, 2022.

For the three months ended March 31, 2023, we recognized unfavorable prior period loss and LAE development of $1.0 million compared with $2.8 million for the same period in the prior year.

Revenues and net income for the three months ended March 31, 2023 included $0.5 million in net gains on investments, and revenues and net loss for the three months ended March 31, 2022 included $0.7 million in net gains on investments.

Interim President and Chief Executive Officer, Ken Russell, commented "The financial results for the recent quarter are an indication that we are beginning to realize the benefits of the recent actions taken by the Company to return to profitability. Premium rate increases and production growth across all distribution channels, notably our diversification with independent agents, have contributed to higher revenues. And as we anticipated, the rate increases, along with the added benefit of normalizing severity trends, have favorably impacted the loss ratio for the current accident period. Likewise, our late 2022 cost containment efforts and closures of underperforming stores have reduced our overall insurance operating expense ratio. I look forward with optimism that the Company can continue in this positive direction."

About First Acceptance Corporation

We own and operate "Acceptance Insurance," an insurance agency headquartered in Nashville, Tennessee that sells insurance and related products underwritten and serviced by our own insurance companies (known as the First Acceptance Insurance Group) and through third-party carriers for which we receive a commission. We operate under an "Agency Model" in 15 states where we sell both our own underwritten insurance policies and those issued by third-party insurers for which we earn commissions.