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Sentiment · FY2026 Q2
First Acceptance Corporation, a non-standard personal auto insurer reporting on OTC Markets' Alternative Reporting Standard, posted much stronger earnings on an optically weak revenue line. Revenues after ceded reinsurance fell 5% to $118.4 million, but the decline reflects a deliberate step-up in quota-share reinsurance ceded (ceded premiums earned rose to $35.6 million from $23.3 million) rather than a shrinking book: revenues before ceding rose 4% to $154.0 million and before-reinsurance premiums earned grew 5% to $141.7 million on more policies in-force and rate increases. The combined ratio improved to 94.4% from 99.8% as the loss ratio fell to 62.6% from 78.9%. Net income rose to $8.2 million from $2.9 million and diluted EPS to $0.22 from $0.08. The gain leaned on $13.5 million of favorable prior-period reserve development versus $0.2 million unfavorable a year earlier, partly offset by a $6.6 million contingent commission expense, but excluding development the underlying loss ratio also improved to 75.5% from 78.7% on lower bodily injury severity and physical damage frequency. Management is earning in 2025 rate actions through 2026 against an elevated tariff-driven loss-cost environment and signs of competitive softening in the non-standard segment.
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Op margin | Net margin |
|---|---|---|---|---|---|---|
| FY2024 Q4 | $127M | -11.3% | $0.21 | -87.0% | 7.5% | 6.4% |
| FY2025 Q1 | $125M | -13.9% | $0.08 | -58.2% | 3.0% | 2.3% |
| FY2025 Q2 | $141M | -10.8% | $0.21 | +40.0% | 7.2% | 5.6% |
| FY2025 Q3 |
| $141M |
| +8.8% |
| $0.27 |
| +92.9% |
| 9.4% |
| 7.3% |
| FY2025 Q4 | $100M | -21.5% | $0.24 | +14.3% | 11.5% | 9.2% |
| FY2026 Q1 | $118M | -5.4% | $0.22 | +192.6% | 8.6% | 6.9% |
| FY2026 Q2 | $123M | -12.5% | $0.26 | +23.8% | 10.5% | 8.2% |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
FACO First Acceptance Corporation | 5 | -5.4% | |
| ALL Allstate | 7 | +4.2% | |
| CB Chubb Limited | 7 | +9.5% | |
| CINF Cincinnati Financial | 7 | +11.6% | |
| ERIE Erie Indemnity | 6 | +2.3% | |
| KMPR Kemper Corporation | 2 | -6.8% | |
| L Loews Corporation | 5 | +2.6% | |
| LMND Lemonade, Inc. | 9 | +55.0% | |
| MCY Mercury General Corporation | 8 | +10.5% | |
| PGR Progressive Corporation | 7 | +8.7% | |
| ROOT Root, Inc. | 8 | +12.6% | |
| TRV The Travelers Companies, Inc. | 5 | +1.0% | |
| WRB W. R. Berkley Corporation | 6 | +4.0% |