First Acceptance : Annual Statutory Basis Financial Statements - FAIC

*10336202120100100*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

ANNUAL STATEMENT

For the Year Ended December 31, 2021

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

[e-mail]

(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

ss

County of

Davidson

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	a. Is this an original filing?	Secretary
									Yes [ X ] No [ ]
Subscribed and sworn to before me					b. If no:
this		day of	February, 2022		1.	State the amendment number
								2.	Date filed
								3. Number of pages attached

Jennifer L. Johnson, Director-Operations Services

March 7, 2023

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company, Inc.

ASSETS

				Current Year		Prior Year
			1	2	3	4
					Net Admitted Assets	Net Admitted
			Assets	Nonadmitted Assets	(Cols. 1 - 2)	Assets
1.	Bonds (Schedule D)	69,462,926		69,462,926	86,434,330
2.	Stocks (Schedule D):
	2.1	Preferred stocks	1,000,000		1,000,000	1,066,400
	2.2	Common stocks	48,325,640		48,325,640	53,067,453

3. Mortgage loans on real estate (Schedule B):

3.1	First liens	0	0
3.2	Other than first liens	0	0

4. Real estate (Schedule A):

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 ($	4,027,736 , Schedule E-Part 1), cash equivalents
	($	12,928,088 , Schedule E-Part 2) and short-term
	investments ($	0	, Schedule DA)	16,955,824		16,955,824	17,672,860
6.	Contract loans (including $	premium notes)			0	0
7.	Derivatives (Schedule DB)		0		0	0
8.	Other invested assets (Schedule BA)		8,202,425		8,202,425	9,633,952
9.	Receivables for securities				0	0
10.	Securities lending reinvested collateral assets (Schedule DL)			0	0
11.	Aggregate write-ins for invested assets		0	0	0	0
12.	Subtotals, cash and invested assets (Lines 1 to 11)	143,946,815	0	143,946,815	167,874,995
13.	Title plants less $		charged off (for Title insurers
	only)					0	0
14.	Investment income due and accrued		325,191		325,191	392,192

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of

	collection	175,463		175,463	0
	15.2	Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	earned
	but unbilled premiums)	31,668,739		31,668,739	30,077,942
	15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)		0	0
16.	Reinsurance:
	16.1	Amounts recoverable from reinsurers	6,071,720		6,071,720	5,022,073
	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	3,215,209
19.	Guaranty funds receivable or on deposit			0	0
20.	Electronic data processing equipment and software	393,540		393,540	732,886

21. Furniture and equipment, including health care delivery assets

	($	)	425,998	425,998	0	0
22.	Net adjustment in assets and liabilities due to foreign exchange rates			0	0
23.	Receivables from parent, subsidiaries and affiliates	7,075,858		7,075,858	4,670,778
24.	Health care ($	) and other amounts receivable			0	0
25.	Aggregate write-ins for other-than-invested assets	4,270,403	4,270,405	(2)	0

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

198,948,414

7,092,917

191,855,497

211,986,075

27. From Separate Accounts, Segregated Accounts and Protected

	Cell Accounts			0	0
28.	Total (Lines 26 and 27)	198,948,414	7,092,917	191,855,497	211,986,075
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	4,214,520	4,214,520	0	0
2502.	Due From Vendors	0	0	0	0
2503.	Miscellaneous Receivables	55,885	55,885	0	0
2598.	Summary of remaining write-ins for Line 25 from overflow page	(2)	0	(2)	0
2599.	Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)	4,270,403	4,270,405	(2)	0

2

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company, Inc.

LIABILITIES, SURPLUS AND OTHER FUNDS

							1	2
							Current Year	Prior Year
1.	Losses (Part 2A, Line 35, Column 8)				43,831,587	43,930,689
2.	Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)	4,936,682	3,965,000
3.	Loss adjustment expenses (Part 2A, Line 35, Column 9)				11,110,360	10,064,840
4.	Commissions payable, contingent commissions and other similar charges			16,049	38,214
5.	Other expenses (excluding taxes, licenses and fees)				5,293,476	6,313,598
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)			1,198,650	695,446
7.1	Current 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 (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of
	$	25,945,768	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)						37,336,594	37,981,214
10.	Advance premium					164,775	173,664
11.	Dividends declared and unpaid:
	11.1 Stockholders						0
	11.2 Policyholders						0
12.	Ceded reinsurance premiums payable (net of ceding commissions)			862,920	691,911
13.	Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 20)		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) (Schedule F, Part 3, Column 78)		1,657,061
17.	Net adjustments in assets and liabilities due to foreign exchange rates				0
18.	Drafts outstanding						0
19.	Payable to parent, subsidiaries and affiliates				894,623	6,630,089
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				357,767	475,681
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)			106,003,483	112,617,407
27.	Protected cell liabilities						0
28.	Total liabilities (Lines 26 and 27)				106,003,483	112,617,407
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				1	0
33.	Surplus notes							0
34.	Gross paid in and contributed surplus				85,657,787	85,450,528
35.	Unassigned funds (surplus)				(2,805,774)	10,918,140
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) (Page 4, Line 39)			85,852,014	99,368,668
38.	Totals (Page 2, Line 28, Col. 3)				191,855,497	211,986,075
DETAILS OF WRITE-INS
2501.	Unclaimed Checks					357,767	203,849
2502.	Rounding							(1)
2503.	Agents' Balances Payable					271,833
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)				357,767	475,681
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	0
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)				1	0

3

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company, Inc.

STATEMENT OF INCOME

				1	2
				Current Year	Prior Year
1.		UNDERWRITING INCOME
Premiums earned (Part 1, Line 35, Column 4)		123,099,880	121,828,898
	DEDUCTIONS:
2.	Losses incurred (Part 2, Line 35, Column 7)		74,235,541	61,106,718
3.	Loss adjustment expenses incurred (Part 3, Line 25, Column 1)		17,093,888	17,793,903
4.	Other underwriting expenses incurred (Part 3, Line 25, Column 2)		43,894,811	43,838,348
5.	Aggregate write-ins for underwriting deductions		1	(2)
6.	Total underwriting deductions (Lines 2 through 5)		135,224,241	122,738,967
7.	Net income of protected cells				0
8.	Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)		(12,124,361)	(910,069)
		INVESTMENT INCOME
9.	Net investment income earned (Exhibit of Net Investment Income, Line 17)		1,543,333	2,064,804
10.	Net realized capital gains (losses) less capital gains tax of $	(Exhibit of Capital Gains (Losses))	6,130,762	(810,025)
11.	Net investment gain (loss) (Lines 9 + 10)		7,674,095	1,254,779
		OTHER INCOME
12.	Net gain (loss) from agents' or premium balances charged off (amount recovered $	amount
	charged off $	)			0
13.	Finance and service charges not included in premiums		7,885,347	7,742,723
14.	Aggregate write-ins for miscellaneous income		0	0
15.	Total other income (Lines 12 through 14)		7,885,347	7,742,723
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Lines 8 + 11 + 15)			3,435,081	8,087,433
17.	Dividends to policyholders				0
18.	Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Line 16 minus Line 17)			3,435,081	8,087,433
19.	Federal and foreign income taxes incurred			0
20.	Net income (Line 18 minus Line 19) (to Line 22)		3,435,081	8,087,433
		CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)	99,368,668	91,442,373
22.	Net income (from Line 20)			3,435,081	8,087,433
23.	Net transfers (to) from Protected Cell accounts			0
24.	Change in net unrealized capital gains or (losses) less capital gains tax of $		(800,227)	5,991,681
25.	Change in net unrealized foreign exchange capital gain (loss)			0
26.	Change in net deferred income tax			(652,324)	(1,790,360)
27.	Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Col. 3)		(463,504)	2,038,960
28.	Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)		1,657,061	(1,657,061)
29.	Change in surplus notes				0
30.	Surplus (contributed to) withdrawn from protected cells			0
31.	Cumulative effect of changes in accounting principles			0
32.	Capital changes:
	32.1 Paid in				0
	32.2 Transferred from surplus (Stock Dividend)			0
	32.3 Transferred to surplus				0
33.	Surplus adjustments:
	33.1 Paid in			207,259	255,642
	33.2 Transferred to capital (Stock Dividend)			0
	33.3 Transferred from capital				0
34.	Net remittances from or (to) Home Office			0
35.	Dividends to stockholders			(16,900,000)	(5,000,000)
36.	Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1)		0	0
37.	Aggregate write-ins for gains and losses in surplus		(1)	0
38.	Change in surplus as regards policyholders for the year (Lines 22 through 37)		(13,516,655)	7,926,295
39.	Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37)	85,852,014	99,368,668
DETAILS OF WRITE-INS
0501.	Rounding			1	(2)
0502.					0
0503.
0598.	Summary of remaining write-ins for Line 5 from overflow page		0	0
0599.	Totals (Lines 0501 through 0503 plus 0598) (Line 5 above)		1	(2)
1401.	Rounding				0
1402.					0
1403.					0
1498.	Summary of remaining write-ins for Line 14 from overflow page		0	0
1499.	Totals (Lines 1401 through 1403 plus 1498) (Line 14 above)		0	0
3701.	Rounding			(1)	0
3702.
3703.
3798.	Summary of remaining write-ins for Line 37 from overflow page		0	0
3799.	Totals (Lines 3701 through 3703 plus 3798) (Line 37 above)		(1)	0

4

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company, Inc.

CASH FLOW

				1	2
				Current Year	Prior Year
1.		Cash from Operations
Premiums collected net of reinsurance		120,851,120	123,918,497
2.	Net investment income		1,882,828	2,719,174
3.	Miscellaneous income		7,885,347	7,742,723
4.	Total (Lines 1 through 3)		130,619,295	134,380,394
5.	Benefit and loss related payments		74,412,608	72,027,779
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	0	0
7.	Commissions, expenses paid and aggregate write-ins for deductions		59,899,307	60,768,093
8.	Dividends paid to policyholders		0	0
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital gains (losses)	0	0
10.	Total (Lines 5 through 9)		134,311,915	132,795,872
11.	Net cash from operations (Line 4 minus Line 10)		(3,692,620)	1,584,522
12.		Cash from Investments
Proceeds from investments sold, matured or repaid:
	12.1	Bonds		20,258,312	15,128,678
	12.2	Stocks		3,536,438	12,948,507
	12.3	Mortgage loans		0	0
	12.4	Real estate		0	0
	12.5	Other invested assets		17,364,553	154,985
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments		0	0
	12.7	Miscellaneous proceeds		714,991	0
13.	12.8	Total investment proceeds (Lines 12.1 to 12.7)		41,874,294	28,232,171
Cost of investments acquired (long-term only):
	13.1	Bonds		3,566,728	17,800,931
	13.2	Stocks		0	300,000
	13.3	Mortgage loans		0	0
	13.4	Real estate		0	0
	13.5	Other invested assets		9,323,389	516,254
	13.6	Miscellaneous applications		714,992	19,764
14.	13.7	Total investments acquired (Lines 13.1 to 13.6)		13,605,109	18,636,950
Net increase (decrease) in contract loans and premium notes		0	0
15.	Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)		28,269,185	9,595,221
16.		Cash from Financing and Miscellaneous Sources
Cash provided (applied):
	16.1	Surplus notes, capital notes		0	0
	16.2	Capital and paid in surplus, less treasury stock		207,259	255,642
	16.3	Borrowed funds		0	0
	16.4	Net deposits on deposit-type contracts and other insurance liabilities			0
	16.5	Dividends to stockholders		16,900,000	5,000,000
17.	16.6	Other cash provided (applied)		(8,600,859)	(6,604,278)
Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)	(25,293,600)	(11,348,636)
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)	(717,035)	(168,893)
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year		17,672,859	17,841,752
	19.2	End of year (Line 18 plus Line 19.1)		16,955,824	17,672,859

5