First Acceptance : Quarterly Statutory Basis Financial Statements - FAIC

*10336202120100103*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

QUARTERLY STATEMENT

AS OF SEPTEMBER 30, 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

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	November, 2021			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 SEPTEMBER 30, 2021 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	68,022,784	68,022,784	86,434,330
2.	Stocks:
	2.1	Preferred stocks	1,000,000	1,000,000	1,066,400
	2.2	Common stocks	50,010,049	50,010,049	53,067,453
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 ($	5,564,744 ),
	cash equivalents ($		25,945,138	)
	and short-term investments ($	0 )	31,509,882		31,509,882	17,672,860
6.	Contract loans (including $		premium notes)			0	0
7.	Derivatives				0		0	0
8.	Other invested assets			11,779,717		11,779,717	9,633,952
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)	162,322,432	0	162,322,432	167,874,995
13.	Title plants less $			charged off (for Title insurers
	only)						0	0
14.	Investment income due and accrued		313,692		313,692	392,192
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of
	collection						0	0
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	earned
	but unbilled premiums)			35,158,591		35,158,591	30,077,942
	15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)			0	0
16.	Reinsurance:
	16.1 Amounts recoverable from reinsurers		17,666,018		17,666,018	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			4,124,561	993,658	3,130,903	3,215,209
19.	Guaranty funds receivable or on deposit				0	0
20.	Electronic data processing equipment and software	479,417	0	479,417	732,886
21.	Furniture and equipment, including health care delivery assets
	($		)		278,998	278,998	0	0
22.	Net adjustment in assets and liabilities due to foreign exchange rates			0	0
23.	Receivables from parent, subsidiaries and affiliates	8,571,094		8,571,094	4,670,778
24.	Health care ($		) and other amounts receivable			0	0
25.	Aggregate write-ins for other-than-invested assets	4,880,641	4,880,641	0	0
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)		233,795,444	6,153,297	227,642,147	211,986,075
27.	From Separate Accounts, Segregated Accounts and Protected
	Cell Accounts						0	0
28.	Total (Lines 26 and 27)			233,795,444	6,153,297	227,642,147	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				4,699,684	4,699,684	0	0
2502.	Due From Vendors				125,072	125,072	0	0
2503.	Miscellaneous Receivables		55,885	55,885	0	0
2598.	Summary of remaining write-ins for Line 25 from overflow page	0	0	0	0
2599.	Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)	4,880,641	4,880,641	0	0

2

STATEMENT AS OF SEPTEMBER 30, 2021 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 $	26,292,000 )				43,300,814	43,930,689
2.	Reinsurance payable on paid losses and loss adjustment expenses				15,456,409	3,965,000
3.	Loss adjustment expenses						10,967,138	10,064,840
4.	Commissions payable, contingent commissions and other similar charges			11,836	38,214
5.	Other expenses (excluding taxes, licenses and fees)				4,339,818	6,313,598
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)				1,108,164	695,446
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 $	28,154,326	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)		40,515,607	37,981,214
10.	Advance premium						154,767	173,664
11.	Dividends declared and unpaid:
	11.1 Stockholders							0
	11.2 Policyholders							0
12.	Ceded reinsurance premiums payable (net of ceding commissions)				3,212,440	691,911
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)			263,154	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				5,866,119	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					197,155	475,681
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)				125,393,421	112,617,407
27.	Protected cell liabilities							0
28.	Total liabilities (Lines 26 and 27)					125,393,421	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				0	0
33.	Surplus notes							0
34.	Gross paid in and contributed surplus					85,609,678	85,450,528
35.	Unassigned funds (surplus)						13,639,048	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)				102,248,726	99,368,668
38.	Totals (Page 2, Line 28, Col. 3)					227,642,147	211,986,075
	DETAILS OF WRITE-INS
2501.	Unclaimed Checks						197,155	203,849
2502.	Rounding						0	(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)				197,155	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							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)				0	0

3

STATEMENT AS OF SEPTEMBER 30, 2021 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 $	106,660,084	)		101,371,723	96,893,109	128,289,506
	1.2	Assumed (written $	56,629,884 )		57,623,250	59,489,186	78,200,153
	1.3	Ceded (written $	66,948,887	)		65,187,939	64,116,741	84,660,759
	1.4	Net (written $	96,341,081	)		93,807,034	92,265,554	121,828,900
2.			DEDUCTIONS:
Losses incurred (current accident year $	56,349,000 ):
	2.1 Direct				58,542,584	47,558,770	63,608,162
	2.2 Assumed				35,025,643	30,013,497	39,838,560
	2.3 Ceded				38,295,859	31,764,606	42,340,002
3.	2.4 Net				55,272,368	45,807,661	61,106,720
Loss adjustment expenses incurred			12,887,705	13,365,070	17,793,903
4.	Other underwriting expenses incurred			32,809,731	33,231,365	43,838,348
5.	Aggregate write-ins for underwriting deductions		1	(1)	(2)
6.	Total underwriting deductions (Lines 2 through 5)		100,969,805	92,404,095	122,738,969
7.	Net income of protected cells					0	0
8.	Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)		(7,162,771)	(138,541)	(910,069)
9.	Net investment income earned	INVESTMENT INCOME		1,273,431	1,554,447	2,064,804
10.	Net realized capital gains (losses) less capital gains tax of $		5,990,169	(801,325)	(810,025)
11.	Net investment gain (loss) (Lines 9 + 10)			7,263,600	753,122	1,254,779
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		5,999,642	5,830,191	7,742,723
14.	Aggregate write-ins for miscellaneous income		0	1	0
15.	Total other income (Lines 12 through 14)			5,999,642	5,830,192	7,742,723
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)		6,100,471	6,444,773	8,087,433
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)		6,100,471	6,444,773	8,087,433
Federal and foreign income taxes incurred				0	0
20.	Net income (Line 18 minus Line 19)(to Line 22)		6,100,471	6,444,773	8,087,433
21.			CAPITAL AND SURPLUS ACCOUNT
Surplus as regards policyholders, December 31 prior year		99,368,668	91,442,373	91,442,373
22.	Net income (from Line 20)				6,100,471	6,444,773	8,087,433
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.	$						772,863	3,187,695	5,991,681
Change in net unrealized foreign exchange capital gain (loss)			0	0
26.	Change in net deferred income tax			(1,122,450)	0	(1,790,360)
27.	Change in nonadmitted assets				476,116	(950,393)	2,038,960
28.	Change in provision for reinsurance			1,393,907	0	(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				159,150	211,884	255,642
	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)	0	(5,000,000)
36.	Change in treasury stock					0	0
37.	Aggregate write-ins for gains and losses in surplus		1	0	0
38.	Change in surplus as regards policyholders (Lines 22 through 37)		2,880,058	8,893,959	7,926,295
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)		102,248,726	100,336,332	99,368,668
0501.	DETAILS OF WRITE-INS
Rounding				1	(1)	(2)
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	(1)	(2)
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	0
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	0

4

STATEMENT AS OF SEPTEMBER 30, 2021 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		93,762,410	94,490,953	123,918,497
2.	Net investment income		1,409,283	2,119,211	2,719,174
3.	Miscellaneous income		5,999,642	5,830,192	7,742,723
4.	Total (Lines 1 to 3)		101,171,335	102,440,356	134,380,394
5.	Benefit and loss related payments		57,054,779	55,568,433	72,027,779
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		45,910,653	47,037,762	60,768,093
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)		102,965,432	102,606,195	132,795,872
11.	Net cash from operations (Line 4 minus Line 10)		(1,794,097)	(165,839)	1,584,522
12.		Cash from Investments
Proceeds from investments sold, matured or repaid:
	12.1	Bonds		18,176,010	12,112,571	15,128,678
	12.2	Stocks		3,536,438	2,948,507	12,948,507
	12.3	Mortgage loans		0	0	0
	12.4	Real estate		0	0	0
	12.5	Other invested assets		10,767,165	66,881	154,985
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments		0	0	0
	12.7	Miscellaneous proceeds		763,518	0	0
13.	12.8	Total investment proceeds (Lines 12.1 to 12.7)		33,243,130	15,127,959	28,232,171
Cost of investments acquired (long-term only):
	13.1	Bonds		0	7,669,543	17,800,931
	13.2	Stocks		0	0	300,000
	13.3	Mortgage loans		0	0	0
	13.4	Real estate		0	0	0
	13.5	Other invested assets		6,542,656	3,078,754	516,254
	13.6	Miscellaneous applications		605,210	1	19,764
14.	13.7	Total investments acquired (Lines 13.1 to 13.6)		7,147,866	10,748,298	18,636,950
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)		26,095,264	4,379,662	9,595,221
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		159,150	211,884	255,642
	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		4,900,000	0	5,000,000
	16.6	Other cash provided (applied)		(5,723,295)	(5,706,084)	(6,604,278)
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)		(10,464,145)	(5,494,200)	(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)	13,837,022	(1,280,377)	(168,893)
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year		17,672,859	17,841,752	17,841,752
	19.2	End of period (Line 18 plus Line 19.1)		31,509,882	16,561,375	17,672,859

5