First Acceptance Corporation (FAC) saw its loss narrow to $0.33 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.02 million, or $0.07 a share. Revenue during the quarter grew 16.54 percent to $102.12 million from $87.62 million in the previous year period. Net premium earned for the quarter increased 13.68 percent or $9.23 million to $76.74 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $102.44 million, or 133.49 percent of premium earned from $92.14 million or 136.49 percent of premium earned in the last year period. Operating loss for the quarter was $0.33 million, compared with an operating loss of $4.52 million in the previous year period. Property and casualty insurance division has booked premium of $76.74 million on net basis during the quarter, up 13.68 percent or $9.23 million from year-ago period.
Net investment income was at $1.19 million for the quarter, up 3.76 percent or $0.04 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved up marginally by 1.67 percent or $0.32 million to $19.29 million. The company has recorded a gain on investments of $4.90 million in the quarter compared with a loss of $0.01 million for the previous year period.
Recently-appointed president and chief executive officer, Ken Russell, commented "There have been extreme challenges within the automobile insurance industry over the last year, particularly in the non-standard sector. My goal is to return the Company to profitability by combating these obstacles through a focus on appropriate pricing and risk segmentation of our product and efficient processing of claims."
Liabilities outpace assets growthTotal assets increased 13.63 percent or $55.02 million to $458.54 million on Sep. 30, 2016. On the other hand, total liabilities were at $380.47 million as on Sep. 30, 2016, up 26.93 percent or $80.72 million from year-ago. Return on assets was at 0.16 percent in the quarter against a negative 0.49 percent in the last year period. Return on equity for the quarter stood at negative 0.43 percent as compared to a negative 2.91 percent for the previous year period.
Investments come downInvestments stood at $132.30 million as on Sep. 30, 2016, down 10.51 percent or $15.53 million from year-ago. Meanwhile, yield on investments went up 12 basis points to 0.90 percent in the quarter. Net premiums and other receivables increased 28.66 percent or $21.34 million over the year to $95.80 million on Sep. 30, 2016.
Total debt was almost stable over the past one year at $70.06 million on Sep. 30, 2016. Shareholders equity stood at $78.06 million as on Sep. 30, 2016, down 24.77 percent or $25.70 million from year-ago. As a result, debt to equity ratio went up 22 basis points to 0.90 percent in the quarter from 0.67 percent in the last year period.
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