EX-99

Exhibit 99


Press Release		Source: First Acceptance Corporation
		Contact: Michael Bodayle (615) 844-2885

First Acceptance Corporation Reports Operating Results for the Quarter and Six Months Ended December 31, 2008

NASHVILLE, TN, February 9, 2009/Businesswire-FirstCall/ — First Acceptance Corporation (NYSE: FAC) today reported its financial results for the second quarter and six months ended December 31, 2008 of its fiscal year ending June 30, 2009.

Operating Results

Revenues for the three months ended December 31, 2008 were $65.1 million, compared with $82.3 million in the same period last year. Loss before income taxes for the three months ended December 31, 2008 was $1.4 million, compared with income before income taxes of $33 thousand in the same period last year. Net loss for the three months ended December 31, 2008 was $1.0 million, or $0.02 per share on a diluted basis, compared with a net loss of $11.7 million, or $0.25 per share on a diluted basis, for the three months ended December 31, 2007.

Revenues for the six months ended December 31, 2008 were $136.7 million, compared with $169.5 million in the same period last year. Income before income taxes for the six months ended December 31, 2008 was $2.4 million, compared with $3.0 million in the same period last year. Net income for the six months ended December 31, 2008 was $0.8 million, or $0.02 per share on a diluted basis, compared with a net loss of $9.8 million, or $0.21 per share on a diluted basis, for the six months ended December 31, 2007.

The results for the three months ended December 31, 2008 included charges of $5.1 million, or $3.3 million after taxes ($0.07 per share on a diluted basis), in costs associated with the settlement of litigation described below. The results for the three months ended December 31, 2007 included an increase in the valuation allowance for our deferred tax asset of $11.6 million, or $0.24 per share on a diluted basis.

Premiums earned for the three months ended December 31, 2008 were $54.8 million, compared with $70.5 million for the three months ended December 31, 2007. Premiums earned for the six months ended December 31, 2008 were $116.7 million, compared with $145.3 million for the six months ended December 31, 2007. The decreases in premiums earned were primarily due to declines in policies written resulting from the weak economic conditions, rate increases taken in a number of states to improve underwriting profitability, and the closure of 53 poor performing stores since January 2007. At December 31, 2008, the number of policies in force was 159,557, compared with 203,008 at December 31, 2007. At December 31, 2008, we operated 424 stores, compared with 440 stores at December 31, 2007.

Approximately 69% of the $15.7 million decline in premiums earned for the three months ended December 31, 2008 and approximately 73% of the $28.6 million decline in premiums earned for the six months ended December 31, 2008 was in our Florida, Georgia, Texas and Tennessee markets. These states collectively accounted for 52% of premiums earned during both the three and six months ended
December 31, 2008, down from 56% for the same periods in the

prior year. Our premiums earned in these states were adversely affected by the weak economic conditions, as well as a decline in used car sales, which have historically been a significant contributor to new policy growth in these markets. Additionally, the decline in our Florida market was due to a January 1, 2008 rate increase to improve our underwriting profitability.

Loss and Loss Adjustment Expense Ratio. The loss and loss adjustment expense ratio was 68.5% for the three months ended December 31, 2008, compared with 77.1% for the three months ended December 31, 2007. The loss and loss adjustment expense ratio was 69.7% for the six months ended December 31, 2008, compared with 77.1% for the six months ended December 31, 2007. We experienced unfavorable development of approximately $0.3 million for the three months ended December 31, 2008 and favorable development of approximately $1.1 million for the six months ended December 31, 2008 for losses occurring prior to calendar year 2008. For the three and six months ended December 31, 2007, we did not experience any significant development for prior accident periods. In addition, we did not experience any significant weather-related losses during the three and six months ended December 31, 2008.

Excluding the development noted above, the loss and loss adjustment expense ratio for the three and six months ended December 31, 2008 was 68.0% and 70.6%, respectively. These improvements over the same periods last year were primarily the result of a revision in our estimate of the loss and loss adjustment expense ratio for calendar 2008 which improved from 76.5% at June 30, 2008 to 73.8% at December 31, 2008. We attribute this improvement to the impact of the rate increases taken in early calendar 2008 in our Florida, Illinois, Indiana, Texas and South Carolina markets and the continued improvement in our underwriting and claim handling practices.

Expense Ratio. Our expense ratio for the three months ended December 31, 2008 was 25.2%, compared with 23.0% for the same period in the prior year. Our expense ratio for the six months ended December 31, 2008 was 23.2%, compared with 21.3% for the six months ended December 31, 2007. These increases were primarily due to the declines in premiums earned discussed above.

Combined Ratio. The combined ratio decreased to 93.7% for the three months ended December 31, 2008 from 100.1% for the three months ended December 31, 2007. The combined ratio decreased to 92.9% for the six months ended December 31, 2008 from 98.4% for the six months ended December 31, 2007.

Litigation Settlement. As previously reported, we entered into a settlement agreement relating to the class action litigation pending against us in the State of Georgia, which was approved by the court in November 2008. In addition, during December 2008, we entered into a settlement agreement with the plaintiffs in similar litigation pending against us in the State of Alabama, which was approved by the court in February 2009. During the quarter ended June 30, 2008, we accrued $6.7 million for the costs of certain components of the settlements, including plaintiffs’ attorneys’ fees and expenses and estimated costs associated with the administration of the settlements. During the three and six months ended December 31, 2008, we paid $3.8 million in plaintiffs’ attorneys’ fees and expenses as stipulated in the Georgia litigation settlement agreement and $0.1 million and $0.2 million, respectively, in costs associated with the

administration of the settlements. We also reduced our estimated accrual for plaintiffs’ attorneys’ fees and expenses in Alabama from $2.5 million to $2.3 million as stipulated in the litigation settlement agreement. As previously reported, class members are entitled to receive premium credits or reimbursement certificates pursuant to the terms of the settlement agreements. Based upon our analysis of the premium credits available to these members, we have accrued, as of December 31, 2008, approximately $5.2 million for currently estimable costs associated with the utilization of available premium credits for the plaintiffs in the Georgia and Alabama litigation. We are still in discussions with our insurance carriers regarding coverage for the costs and expenses incurred relating to the litigation settlements and are not able currently to estimate the amount, if any, that we may receive from our insurance carriers.

About First Acceptance Corporation

First Acceptance Corporation provides non-standard private passenger automobile insurance, primarily through employee-agents. At December 31, 2008, we leased and operated 424 retail offices in 12 states. Our insurance company subsidiaries are licensed to do business in 25 states. Additional information about First Acceptance Corporation can be found online at www.firstacceptancecorp.com.

This press release contains forward-looking statements. These statements, which have been included in reliance on the “safe harbor” provisions of the federal securities laws, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by important factors, including, among others, the factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. Actual operations and results may differ materially from the results discussed in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2008			2007			2008			2007

Revenues:
Premiums earned	$	54,823		$	70,484		$	116,661		$	145,287
Commission and fee income		7,675			8,987			15,918			18,285
Investment income		2,608			2,859			5,331			5,886
Other		(26	)		11			(1,241	)		41

		65,080			82,341			136,669			169,499


Costs and expenses:
Losses and loss adjustment expenses		37,553			54,346			81,285			112,017
Insurance operating expenses		21,510			25,180			42,956			49,166
Other operating expenses		314			759			706			1,264
Litigation settlement		5,089			—			5,234			—
Stock-based compensation		514			354			1,009			678
Depreciation and amortization		455			380			924			748
Interest expense		1,033			1,289			2,190			2,630

		66,468			82,308			134,304			166,503


Income (loss) before income taxes		(1,388	)		33			2,365			2,996
Provision (benefit) for income taxes		(385	)		11,764			1,527			12,835

Net income (loss)	$	(1,003	)	$	(11,731	)	$	838		$	(9,839	)


Net income (loss) per share:
Basic and diluted	$	(0.02	)	$	(0.25	)	$	0.02		$	(0.21	)


Number of shares used to calculate net income (loss) per share:
Basic		47,658			47,618			47,656			47,617

Diluted		47,658			47,618			49,088			47,617

FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)


	December 31,		June 30,
	2008		2008
	(Unaudited)
ASSETS
Fixed maturities, available-for-sale at fair value	$	189,960	$	189,570
Cash and cash equivalents		23,556		38,646
Premiums and fees receivable, net		48,677		63,377
Deferred tax asset, net		16,247		17,593
Other assets		14,416		15,053
Deferred acquisition costs		4,113		4,549
Goodwill and identifiable intangible assets		144,442		144,442

TOTAL ASSETS	$	441,411	$	473,230


LIABILITIES AND STOCKHOLDERS’ EQUITY
Loss and loss adjustment expense reserves	$	93,803	$	101,407
Unearned premiums and fees		60,367		77,237
Notes payable and capitalized lease obligations		98		4,124
Debentures payable		41,240		41,240
Other liabilities		20,233		23,763

Total liabilities		215,741		247,771
Total stockholders’ equity		225,670		225,459

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	441,411	$	473,230


Book value per share	$	4.69	$	4.69

FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES
Supplemental Data
(Unaudited)

GROSS PREMIUMS EARNED BY STATE


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Premiums earned:
Georgia	$	12,344		$	15,135		$	25,772		$	31,238
Illinois		6,826			7,931			14,188			16,100
Florida		6,196			10,820			13,812			23,181
Texas		6,133			8,217			13,134			16,743
Alabama		5,888			7,034			12,460			14,538
South Carolina		4,491			5,650			9,941			11,290
Tennessee		3,800			5,168			8,215			10,690
Ohio		3,182			3,814			6,633			7,814
Pennsylvania		2,786			2,360			5,572			4,661
Indiana		1,298			1,806			2,861			3,774
Missouri		956			1,382			2,085			2,852
Mississippi		923			1,167			1,988			2,406

Total premiums earned	$	54,823		$	70,484		$	116,661		$	145,287


COMBINED RATIOS (INSURANCE COMPANIES)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Loss and loss adjustment expense		68.5	%		77.1	%		69.7	%		77.1	%
Expense		25.2	%		23.0	%		23.2	%		21.3	%

Combined		93.7	%		100.1	%		92.9	%		98.4	%


POLICIES IN FORCE

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Policies in force — beginning of period		170,555			212,511			194,079			226,974
Net decrease during period		(10,998	)		(9,503	)		(34,522	)		(23,966	)

Policies in force — end of period		159,557			203,008			159,557			203,008

FIRST ACCEPTANCE CORPORATION AND SUBSIDIARIES
Supplemental Data (continued)
(Unaudited)

NUMBER OF RETAIL LOCATIONS

Retail location counts are based upon the date that a location commenced or ceased writing business.


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Retail locations — beginning of period		429			458			431			462
Opened		—			1			1			2
Closed		(5	)		(19	)		(8	)		(24	)

Retail locations — end of period		424			440			424			440

RETAIL LOCATIONS BY STATE


	December 31,				September 30,				June 30,
	2008		2007		2008		2007		2008		2007
Alabama		25		25		25		25		25		25
Florida		39		40		39		41		40		41
Georgia		61		61		61		62		61		62
Illinois		81		80		81		81		80		81
Indiana		18		22		19		23		19		24
Mississippi		8		8		8		8		8		8
Missouri		12		16		13		16		14		15
Ohio		28		29		29		30		29		30
Pennsylvania		18		19		18		24		19		25
South Carolina		27		28		28		28		28		28
Tennessee		20		20		20		20		20		20
Texas		87		92		88		100		88		103

Total		424		440		429		458		431		462