Analysts at A.M. Best say the financial health of Green Hills-based First Acceptance Corp. is stable enough to retain their 'B' financial strength rating — especially after a $13 million capital injection two months ago. But because of losses in recent years, the firm's outlook has shifted from 'positive' to 'stable.' A year ago, analyst Charles Huber and his colleagues said First Acceptance was still on a positive track.
The compensation committee of the First Acceptance board of directors has moved the bonus bar for the auto insurer's top executives. If the Green Hills-based company posts a quarterly pre-tax profit before special items, the five men will be paid a total of $398,000. Last year, the board had broader discretion over bonus payments, taking into account the execs' contribution to the company's bottom line as well as their leadership and individual departments.
It could take a little while for the new — and, for now, only — bonus system to be used: First Acceptance last posted a quarterly profit in the September quarter of 2010 and in the first six month of this year lost $12.6 million before taxes. The company's shares (Ticker: FAC) are off 13 percent this year.