First Acceptance Corporation Reports Operating Results for the Three and Nine Months Ended September 30, 2026

YTD Net Income Increased from $21.0 Million to $24.2 Million

Company Records 15th Consecutive Profitable Quarter

NASHVILLE, TN / ACCESS Newswire / November 3, 2026 / First Acceptance Corporation (OTCQX:FACO) today reported its financial results for the three and nine months ended September 30, 2026. A quarterly report can be found at www.otcmarkets.com/stock/FACO/disclosure.

Ken Russell, Chief Executive Officer, commented, “The economic environment continues to grow more challenging for the consumers we serve. Worsening affordability pressures, persistent financial strain on households, and broader macroeconomic uncertainty are increasingly concerning. We believe these conditions will continue to test us and our industry and require heightened discipline and caution.”

Anthony Delaney, President and Chief Operations Officer of the Insurance Companies, added, “Despite these headwinds, our business continues to demonstrate resilience. While net revenue declined, gross premium before reinsurance increased, even as soft market conditions and heightened competition have pressured many of our peers. Our ability to sustain volume in this environment speaks to the strength of our distribution partnerships, disciplined underwriting, and adaptability of our operating model. We remain well capitalized, with sufficient capital to support potential growth while maintaining our disciplined approach to risk and investment. We are continuing to invest in our capabilities, strengthen our competitive position, and build a business designed not just to withstand challenging markets, but to emerge stronger from them.”

Third Quarter 2026 Highlights

Gross premiums earned were $142.7 million, compared with $141.2 million for the same period in the prior year.
The combined ratio for insurance companies increased to 96.0% from 93.3% for the same period in the prior year.
Net income decreased to $5.9 million from $10.2 million for the same period in the prior year. The year-over-year decrease was primarily driven by two items: an impact from the additional favorable prior-period loss development and related net contingent commissions expense in 2025 and additional net gains on investments recognized in the third quarter of 2025.
Diluted net income per share was $0.16, compared with $0.27 for the same period in the prior year.
Book value per common share at September 30, 2026 decreased to $5.74 from $5.80 at June 30, 2026. This decrease was driven by a sharp rise in interest rates, which reduced the fair value of investments in fixed maturities, net of tax, by $8.3 million, or $0.23 per share. With that said, higher reinvestment rates proved additive to net investment income.

Nine-Month 2026 Highlights

Gross premiums earned were $430.7 million, compared with $418.2 million for the same period in the prior year.
The combined ratio for insurance companies improved to 94.0% from 96.3% for the same period in the prior year.
Net income increased 15% to $24.2 million, compared with $21.0 million for the same period in the prior year.
Diluted net income per share was $0.64, compared with $0.55 for the same period in the prior year.
Book value per common share at September 30, 2026 increased to $5.74 from $5.45 at December 31, 2025.

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. Our mission is to provide automobile insurance for underserved and higher-risk drivers, especially those with limited liquidity or difficulty managing large upfront payments. We offer coverage designed around how our customers earn, spend, and manage their money. We primarily 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,” “continue,” “expand,” “expect,” “look,” “potential,” “strategy,” 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, 2025, 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,
	2026			2025			2026			2025
Revenues	$	117,904		$	127,133		$	359,417		$	392,877
Income before income taxes	$	7,376		$	13,170		$	30,448		$	27,039
Net income	$	5,889		$	10,247		$	24,155		$	21,026
Net income per diluted share	$	0.16		$	0.27		$	0.64		$	0.55
Average diluted shares outstanding		37,893			37,552			37,791			37,940

Combined Ratio for Insurance Companies:
Loss		68.7	%		63.5	%		67.1	%		70.4	%
Expense		27.3	%		29.8	%		26.9	%		25.9	%
Combined		96.0	%		93.3	%		94.0	%		96.3	%

Book Value per Common Share							$	5.74		$	5.18