*10336202220100102*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

QUARTERLY STATEMENT

AS OF JUNE 30, 2022

OF THE CONDITION AND AFFAIRS OF THE

First Acceptance Insurance Company, Inc.

NAIC Group Code

03362

,

03362

NAIC Company Code

10336

Employer's ID Number

62-1613506

(Current Period)

(Prior Period)

Organized under the Laws of

Texas

, State of Domicile or Port of Entry

Texas

Country of Domicile

United States

Incorporated/Organized

07/12/1995

Commenced Business

10/07/1995

Statutory Home Office

6565 Hillcrest Avenue, Suite 600

,

Dallas, TX, US 75205

(Street and Number)

(City or Town, State, Country and Zip Code)

Main Administrative Office

3813 Green Hills Village Drive

Nashville, TN, US 37215

615-327-4888

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Mail Address

3813 Green Hills Village Drive

,

Nashville, TN, US 37215

(Street and Number or P.O. Box)

(City or Town, State, Country

and Zip Code)

Primary Location of Books and Records

3813 Green Hills Village Drive

Nashville, TN, US 37215

615-327-4888

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Internet Web Site Address

N/A

Statutory Statement Contact

Michael John Bodayle

615-844-2907

mbodayle@acceptance.com

(Name)

(Area Code) (Telephone Number) (Extension)

615-844-2806

(E-Mail Address)

(Fax Number)

OFFICERS

Name

Title

Name

Title

Larry Emmett Willeford

,

President

Michael John Bodayle

,

Treasurer

Michael John Bodayle

,

Secretary

,

,

OTHER OFFICERS

,

,

,

DIRECTORS OR TRUSTEES

Larry Emmett Willeford

Michael John Bodayle

Brian Scott Dickman

Gerald Joe Ford

Jeremy Blue Ford

Donald Joseph Edwards

William Andrew Shipp Jr.

State of

Tennessee

County of

Davidson

ss

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

Larry Emmett Willeford

Michael John Bodayle

Michael John Bodayle

President

Treasurer

Secretary

a. Is this an original filing?

Yes [X] No [ ]

Subscribed and sworn to before me this

b. If no:

day of

August, 2022

1.

State the amendment number

2.

Date filed

3. Number of pages attached

Jennifer L. Johnson, Director-Operations Services

March 7, 2023

STATEMENT AS OF JUNE 30, 2022 OF THE First Acceptance Insurance Company, Inc.

ASSETS

Current Statement Date

4

1

2

3

December 31

Net Admitted Assets

Prior Year Net

Assets

Nonadmitted Assets

(Cols. 1 - 2)

Admitted Assets

1.

Bonds

71,642,840

71,642,840

69,462,926

2.

Stocks:

2.1

Preferred stocks

0

1,000,000

2.2

Common stocks

45,161,337

45,161,337

48,325,640

3.

Mortgage loans on real estate:

3.1

First liens

0

0

3.2

Other than first liens

0

0

4. Real estate:

4.1 Properties occupied by the company (less

$

encumbrances)

0

0

4.2 Properties held for the production of income

(less $

encumbrances)

0

0

4.3 Properties held for sale (less

$

encumbrances)

0

0

5.

Cash ($

1,890,098 ),

cash equivalents ($

7,438,433

)

and short-term investments ($

0 )

9,328,531

9,328,531

16,955,824

6.

Contract loans (including $

premium notes)

0

0

7.

Derivatives

0

0

0

8.

Other invested assets

8,975,085

8,975,085

8,202,425

9.

Receivables for securities

0

0

10.

Securities lending reinvested collateral assets

0

0

11.

Aggregate write-ins for invested assets

0

0

0

0

12.

Subtotals, cash and invested assets (Lines 1 to 11)

135,107,793

0

135,107,793

143,946,815

13.

Title plants less $

charged off (for Title insurers

only)

0

0

14.

Investment income due and accrued

345,462

345,462

325,191

15.

Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of

collection

2,359,827

2,359,827

175,463

15.2 Deferred premiums, agents' balances and installments booked but

deferred and not yet due (including $

earned

but unbilled premiums)

42,994,998

42,994,998

31,668,739

15.3 Accrued retrospective premiums ($

) and

contracts subject to redetermination ($

)

0

0

16.

Reinsurance:

16.1 Amounts recoverable from reinsurers

17,356,126

17,356,126

6,071,720

16.2 Funds held by or deposited with reinsured companies

0

0

16.3 Other amounts receivable under reinsurance contracts

0

0

17.

Amounts receivable relating to uninsured plans

0

0

18.1 Current federal and foreign income tax recoverable and interest thereon

0

0

18.2 Net deferred tax asset

4,594,687

2,396,514

2,198,173

2,198,173

19.

Guaranty funds receivable or on deposit

0

0

20.

Electronic data processing equipment and software

300,675

300,675

393,540

21.

Furniture and equipment, including health care delivery assets

($

)

2,516,312

2,516,312

0

0

22.

Net adjustment in assets and liabilities due to foreign exchange rates

0

0

23.

Receivables from parent, subsidiaries and affiliates

6,684,210

6,684,210

7,075,858

24.

Health care ($

) and other amounts receivable

0

0

25.

Aggregate write-ins for other-than-invested assets

3,960,245

3,960,245

0

(2)

26.

Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

216,220,335

8,873,071

207,347,264

191,855,497

27.

From Separate Accounts, Segregated Accounts and Protected

Cell Accounts

0

0

28.

Total (Lines 26 and 27)

216,220,335

8,873,071

207,347,264

191,855,497

DETAILS OF WRITE-INS

1101.

0

0

1102.

0

0

1103.

0

0

1198.

Summary of remaining write-ins for Line 11 from overflow page

0

0

0

0

1199.

Totals (Lines 1101 through 1103 plus 1198) (Line 11 above)

0

0

0

0

2501.

Prepaid Expenses

3,831,108

3,831,108

0

0

2502.

Due From Vendors

16,883

16,883

0

0

2503.

Miscellaneous Receivables

112,254

112,254

0

0

2598.

Summary of remaining write-ins for Line 25 from overflow page

0

0

0

(2)

2599.

Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)

3,960,245

3,960,245

0

(2)

2

STATEMENT AS OF JUNE 30, 2022 OF THE First Acceptance Insurance Company, Inc.

LIABILITIES, SURPLUS AND OTHER FUNDS

1

2

Current

December 31,

Statement Date

Prior Year

1.

Losses (current accident year $

23,918,000 )

42,162,957

43,831,587

2.

Reinsurance payable on paid losses and loss adjustment expenses

13,879,057

4,936,682

3.

Loss adjustment expenses

10,275,929

11,110,360

4.

Commissions payable, contingent commissions and other similar charges

781,663

16,049

5.

Other expenses (excluding taxes, licenses and fees)

5,210,431

5,293,476

6.

Taxes, licenses and fees (excluding federal and foreign income taxes)

900,785

1,198,650

7.1Current federal and foreign income taxes (including $

on realized capital gains (losses))

0

7.2 Net deferred tax liability

0

8.

Borrowed money $

and interest thereon $

0

9.

Unearned premiums (after deducting unearned premiums for ceded reinsurance of $

33,095,709

and

including warranty reserves of $

and accrued accident and health experience rating refunds

including $

for

medical loss ratio rebate per the Public Health Service Act)

47,625,737

37,336,594

10.

Advance premium

138,321

164,775

11.

Dividends declared and unpaid:

11.1 Stockholders

0

11.2 Policyholders

0

12.

Ceded reinsurance premiums payable (net of ceding commissions)

2,182,011

862,920

13.

Funds held by company under reinsurance treaties

0

14.

Amounts withheld or retained by company for account of others

0

15.

Remittances and items not allocated

0

16.

Provision for reinsurance (including $

certified)

1,060,231

0

17.

Net adjustments in assets and liabilities due to foreign exchange rates

0

18.

Drafts outstanding

0

19.

Payable to parent, subsidiaries and affiliates

6,199,360

894,623

20.

Derivatives

0

0

21.

Payable for securities

0

22.

Payable for securities lending

0

23.

Liability for amounts held under uninsured plans

0

24.

Capital notes $

and interest thereon $

0

25.

Aggregate write-ins for liabilities

392,844

357,767

26.

Total liabilities excluding protected cell liabilities (Lines 1 through 25)

130,809,326

106,003,483

27.

Protected cell liabilities

0

28.

Total liabilities (Lines 26 and 27)

130,809,326

106,003,483

29.

Aggregate write-ins for special surplus funds

0

0

30.

Common capital stock

3,000,000

3,000,000

31.

Preferred capital stock

0

32.

Aggregate write-ins for other than special surplus funds

0

1

33.

Surplus notes

0

34.

Gross paid in and contributed surplus

85,781,781

85,657,787

35.

Unassigned funds (surplus)

(12,243,843)

(2,805,774)

36.

Less treasury stock, at cost:

36.1

shares common (value included in Line 30

$

)

0

36.2

shares preferred (value included in Line 31

$

)

0

37.

Surplus as regards policyholders (Lines 29 to 35, less 36)

76,537,938

85,852,014

38.

Totals (Page 2, Line 28, Col. 3)

207,347,264

191,855,497

DETAILS OF WRITE-INS

2501.

Unclaimed Checks

392,844

357,767

2502.

Rounding

0

2503.

0

2598.

Summary of remaining write-ins for Line 25 from overflow page

0

0

2599.

Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)

392,844

357,767

2901.

Rounding

0

2902.

0

2903.

0

2998.

Summary of remaining write-ins for Line 29 from overflow page

0

0

2999.

Totals (Lines 2901 through 2903 plus 2998) (Line 29 above)

0

0

3201.

Rounding

1

3202.

0

3203.

0

3298.

Summary of remaining write-ins for Line 32 from overflow page

0

0

3299.

Totals (Lines 3201 through 3203 plus 3298) (Line 32 above)

0

1

3

STATEMENT AS OF JUNE 30, 2022 OF THE First Acceptance Insurance Company, Inc.

STATEMENT OF INCOME

1

2

3

Current Year

Prior Year

Prior Year Ended

to Date

to Date

December 31

1.

Premiums earned:

UNDERWRITING INCOME

1.1

Direct (written $

80,816,268

)

67,560,841

67,636,990

133,910,892

1.2

Assumed (written $

39,316,423 )

35,132,625

38,941,926

74,732,972

1.3

Ceded (written $

49,254,403

)

42,104,321

43,697,356

85,543,984

1.4

Net (written $

70,878,288

)

60,589,145

62,881,560

123,099,880

2.

DEDUCTIONS:

Losses incurred (current accident year $

44,493,000 ):

2.1 Direct

43,243,307

34,753,045

79,677,697

2.2 Assumed

23,734,764

21,034,198

46,006,433

2.3 Ceded

27,448,951

22,823,021

51,448,589

3.

2.4 Net

39,529,120

32,964,222

74,235,541

Loss adjustment expenses incurred

7,069,770

8,662,339

17,093,888

4.

Other underwriting expenses incurred

22,813,451

22,102,750

43,894,811

5.

Aggregate write-ins for underwriting deductions

1

0

1

6.

Total underwriting deductions (Lines 2 through 5)

69,412,342

63,729,311

135,224,241

7.

Net income of protected cells

0

0

8.

Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)

(8,823,197)

(847,751)

(12,124,361)

9.

Net investment income earned

INVESTMENT INCOME

1,024,135

878,257

1,543,333

10.

Net realized capital gains (losses) less capital gains tax of $

253,762

(363,765)

6,130,762

11.

Net investment gain (loss) (Lines 9 + 10)

1,277,897

514,492

7,674,095

12.

OTHER INCOME

Net gain or (loss) from agents' or premium balances charged off

13.

(amount recovered $

amount charged off $

)

0

0

Finance and service charges not included in premiums

4,112,161

4,032,106

7,885,347

14.

Aggregate write-ins for miscellaneous income

0

1

0

15.

Total other income (Lines 12 through 14)

4,112,161

4,032,107

7,885,347

16.

Net income before dividends to policyholders, after capital gains tax and before all other federal

17.

and foreign income taxes (Lines 8 + 11 + 15)

(3,433,139)

3,698,848

3,435,081

Dividends to policyholders

0

0

18.

Net income, after dividends to policyholders, after capital gains tax and before all other federal

19.

and foreign income taxes (Line 16 minus Line 17)

(3,433,139)

3,698,848

3,435,081

Federal and foreign income taxes incurred

0

0

20.

Net income (Line 18 minus Line 19)(to Line 22)

(3,433,139)

3,698,848

3,435,081

21.

CAPITAL AND SURPLUS ACCOUNT

Surplus as regards policyholders, December 31 prior year

85,852,014

99,368,668

99,368,668

22.

Net income (from Line 20)

(3,433,139)

3,698,848

3,435,081

23.

Net transfers (to) from Protected Cell accounts

0

0

24.

Change in net unrealized capital gains or (losses) less capital gains tax of

25.

$

(3,128,943)

4,414,645

(800,227)

Change in net unrealized foreign exchange capital gain (loss)

0

0

26.

Change in net deferred income tax

0

(7,145)

(652,324)

27.

Change in nonadmitted assets

(1,815,756)

1,509,908

(463,504)

28.

Change in provision for reinsurance

(1,060,231)

1,657,061

1,657,061

29.

Change in surplus notes

0

0

30.

Surplus (contributed to) withdrawn from protected cells

0

0

31.

Cumulative effect of changes in accounting principles

0

0

32.

Capital changes:

32.1

Paid in

0

0

32.2

Transferred from surplus (Stock Dividend)

0

0

33.

32.3

Transferred to surplus

0

0

Surplus adjustments:

33.1

Paid in

123,994

105,969

207,259

33.2

Transferred to capital (Stock Dividend)

0

0

34.

33.3

Transferred from capital

0

0

Net remittances from or (to) Home Office

0

0

35.

Dividends to stockholders

(4,900,000)

(16,900,000)

36.

Change in treasury stock

0

0

37.

Aggregate write-ins for gains and losses in surplus

(1)

0

(1)

38.

Change in surplus as regards policyholders (Lines 22 through 37)

(9,314,076)

6,479,286

(13,516,655)

39.

Surplus as regards policyholders, as of statement date (Lines 21 plus 38)

76,537,938

105,847,954

85,852,014

0501.

DETAILS OF WRITE-INS

Rounding

1

0

1

0502.

0

0

0503.

0598.

Summary of remaining write-ins for Line 5 from overflow page

0

0

0

0599.

TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above)

1

0

1

1401.

Rounding

1

0

1402.

0

0

1403.

0

0

1498.

Summary of remaining write-ins for Line 14 from overflow page

0

0

0

1499.

TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)

0

1

0

3701.

Rounding

(1)

0

(1)

3702.

3703.

3798.

Summary of remaining write-ins for Line 37 from overflow page

0

0

0

3799.

TOTALS (Lines 3701 through 3703 plus 3798) (Line 37 above)

(1)

0

(1)

4

STATEMENT AS OF JUNE 30, 2022 OF THE First Acceptance Insurance Company, Inc.

CASH FLOW

1

2

3

Current Year

Prior Year

Prior Year Ended

To Date

To Date

December 31

1.

Cash from Operations

Premiums collected net of reinsurance

58,660,302

63,796,017

120,851,120

2.

Net investment income

836,866

903,259

1,882,828

3.

Miscellaneous income

4,112,161

4,032,107

7,885,347

4.

Total (Lines 1 to 3)

63,609,329

68,731,383

130,619,295

5.

Benefit and loss related payments

43,539,781

35,392,757

74,412,608

6.

Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts

0

0

0

7.

Commissions, expenses paid and aggregate write-ins for deductions

30,049,114

31,104,375

59,899,307

8.

Dividends paid to policyholders

0

0

0

9.

Federal and foreign income taxes paid (recovered) net of $

tax on capital

10.

gains (losses)

0

0

0

Total (Lines 5 through 9)

73,588,895

66,497,132

134,311,915

11.

Net cash from operations (Line 4 minus Line 10)

(9,979,566)

2,234,251

(3,692,620)

12.

Cash from Investments

Proceeds from investments sold, matured or repaid:

12.1

Bonds

7,587,669

12,471,275

20,258,312

12.2

Stocks

2,297,874

3,536,438

3,536,438

12.3

Mortgage loans

0

0

0

12.4

Real estate

0

0

0

12.5

Other invested assets

193,371

376,823

17,364,553

12.6

Net gains or (losses) on cash, cash equivalents and short-term investments

0

0

0

12.7

Miscellaneous proceeds

0

146,081

714,991

13.

12.8

Total investment proceeds (Lines 12.1 to 12.7)

10,078,914

16,530,618

41,874,294

Cost of investments acquired (long-term only):

13.1

Bonds

9,926,528

0

3,566,728

13.2

Stocks

898,841

0

0

13.3

Mortgage loans

0

0

0

13.4

Real estate

0

0

0

13.5

Other invested assets

750,000

6,542,656

9,323,389

13.6

Miscellaneous applications

0

0

714,992

14.

13.7

Total investments acquired (Lines 13.1 to 13.6)

11,575,369

6,542,656

13,605,109

Net increase (or decrease) in contract loans and premium notes

0

0

0

15.

Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)

(1,496,455)

9,987,962

28,269,185

16.

Cash from Financing and Miscellaneous Sources

Cash provided (applied):

16.1

Surplus notes, capital notes

0

0

0

16.2

Capital and paid in surplus, less treasury stock

123,994

105,969

207,259

16.3

Borrowed funds

0

0

0

16.4

Net deposits on deposit-type contracts and other insurance liabilities

0

0

16.5

Dividends to stockholders

0

4,900,000

16,900,000

16.6

Other cash provided (applied)

3,724,734

(228,288)

(8,600,859)

17.

Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5

plus Line 16.6)

3,848,728

(5,022,319)

(25,293,600)

18.

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)

(7,627,293)

7,199,894

(717,035)

19.

Cash, cash equivalents and short-term investments:

19.1

Beginning of year

16,955,824

17,672,859

17,672,859

19.2

End of period (Line 18 plus Line 19.1)

9,328,531

24,872,753

16,955,824

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

First Acceptance Corporation published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 19:35:05 UTC.