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Claims Ratio % is the percentage of claims costs incurred in relation to the premiums earned.
First Acceptance's Claims Ratio % for the quarter that ended in Jun. 2026 was 69.80%
, which is higher than
62.60% for the pervious quarter ended in Mar. 2026.
First Acceptance's Claims Ratio % for the annual that ended in Dec. 2025 was 68.80%
, which is lower than
73.60% for the pervious year ended in Dec. 2024.
The historical rank and industry rank for First Acceptance's Claims Ratio % or its related term are showing as below:
FACO's Claims Ratio % is not ranked *
in the Insurance industry.
Industry Median: * Ranked among companies with meaningful Claims Ratio % only.
First Acceptance (OTCPK:FACO) Claims Ratio % Explanation
Claims Ratio % the percentage of claims costs incurred in relation to the premiums earned during the period. It is the equivalent of gross profit margin for an insurance company.
It's important to note that insurance is the business of managing risks and, to do that well, the insurer needs a thorough understanding of the incurred claims ratio. If the value is higher than expected or above established norms, then further investigation is required to figure out why that is (eg: fraud). If it is lower than expected, it could indicate irrelevant products or difficulties in claiming, possibly affecting customer satisfaction.
First Acceptance Claims Ratio % Related Terms
First Acceptance Claims Ratio % Historical Data
* Premium members only.
The historical data trend for First Acceptance's Claims Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Specialty subindustry, First Acceptance's Claims Ratio %, along with its competitors' market caps and Claims Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Acceptance (OTCPK:FACO) Claims Ratio % Calculation
Claims Ratio % is calculated as
Claims Ratio %
=
Total Claims
/
Total Premiums Earned
*
100%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequently Asked Questions
What does a Claims Ratio % of 69.80% mean?
First Acceptance (FACO) has a Claims Ratio % of 69.80% as of Jun. 2026. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on First Acceptance and its competitors.
Is First Acceptance's Claims Ratio % too high?
First Acceptance's current Claims Ratio % is 69.80%. Overall, First Acceptance has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Acceptance's Claims Ratio % compare to OSG and MBI?
First Acceptance's Claims Ratio % of 69.80% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Claims Ratio % for an Insurance company?
A good Claims Ratio % depends on the Insurance industry context. However, Claims Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Claims Ratio % mean?
A high Claims Ratio % can signal that a stock is expensive relative to its fundamentals. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on First Acceptance and its competitors. First Acceptance's current Claims Ratio % is 69.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Acceptance stock overvalued right now?
Based on GuruFocus' analysis, First Acceptance (FACO) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.68, compared to a current price of $5.97 — trading 27.6% above its estimated fair value. The current Claims Ratio % is 69.80%. First Acceptance's overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Claims Ratio % calculated?
Claims Ratio % is calculated from a company's financial statements. For First Acceptance (FACO), the current Claims Ratio % is 69.80% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Acceptance (FACO) Overvalued in 2026?
Based on GuruFocus' analysis, First Acceptance stock appears to be overvalued.
The current stock price of $5.97 is trading 27.6% above its estimated GF Value™ of $4.68.
GuruFocus considers First Acceptance to be Modestly Overvalued.
Key valuation signals for FACO:
Claims Ratio %: 69.80%
GF Value™: $4.68 vs. price of $5.97 (27.6% above fair value)
No single metric tells the full story. See the FACO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Acceptance Corp is engaged in the financial services sector. It is principally a retailer, servicer, and underwriter of non-standard personal automobile insurance. The company's operations generate revenue from selling non-standard personal automobile insurance products and related products in the United States. Its suite of products comprises auto insurance, renters, motorcycle, roadside assistance, and hospital insurance. the company also operates a real estate and corporate segment, which consists of the activities related to the disposition of foreclosed real estate held for sale, interest expenses associated with all debt, and other general corporate overhead expenses.
66GF Score
Get the complete analysis for FACO
Claims Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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