American Marconi Wireless News - First Acceptance Corporation Reports Operating Results for the Three and Six Months Ended June 30, 2025

Income before income taxes, for the three months ended June 30, 2025 was $10.1 million, compared with $8.1 million for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 was $7.9 million, compared with $5.8 million for the three months ended June 30, 2024. Diluted net income per share was $0.21 for the three months ended June 30, 2025, compared with $0.15 for the same period in the prior year.

Income before income taxes, for the six months ended June 30, 2025 was $13.9 million, compared with $17.0 million for the six months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $10.8 million, compared with $12.7 million for the six months ended June 30, 2024. Diluted net income per share was $0.28 for the six months ended June 30, 2025, compared with $0.33 for the same period in the prior year.

For the three months ended June 30, 2025, we recognized favorable prior period loss and LAE development of $7.8 million, compared with unfavorable prior period loss and LAE development of $4.8 million for the same period in the prior year. For the six months ended June 30, 2025, we recognized $4.5 million of favorable prior period loss and LAE development compared with unfavorable prior period loss and LAE development of $8.8 million for the same period in the prior year.As a result of this development, for the three and six months ended June 30, 2025, we recognized an increase in commission expense of $1.8 million from a contingent commission adjustment to an independent agent that was related to the 2024 accident year.

Revenues for the three and six months ended June 30, 2025 were reduced by ceded premiums earned of $24.9 million and $48.2 million, respectively, from a new reinsurance agreement that was effective July 1, 2024.

The Company's President and Chief Executive Officer, Ken Russell, commented, "The three months ended June 30, 2025 marked our Company's tenth consecutive profitable quarter. During the current quarter, the Company's claims cost for imported auto parts was consistent with the first quarter, and as a result, physical damage loss severity levels appeared to be stabilizing. Additionally, bodily injury loss frequency declined favorably. Our positive year-to date financial results have increased our June 30, 2025, book value per common share to a record $4.85."

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 solely offer our own underwritten insurance policies 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.

First Acceptance Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)

INVESTOR RELATIONS CONTACT:
Michael J. Bodayle
[email protected]

SOURCE: First Acceptance Corp.

View the original press release on ACCESS Newswire

Ch.Kahalev--AMWN