GAINSCO, Inc. is a casualty and property insurance holding company headquartered in Dallas, TX and was incorporated on October 11, 1978. The Company focuses on non-standard personal automobile market, through GAINSCO Auto Insurance, and is into minimum-limits personal auto insurance business. The Company also sells casualty, property, general liability, and commercial insurance through its MGA Insurance Company subsidiary. The Company offers insurance policies only through its independent partner agents. Its agent network includes several locations, including Virginia, Texas, South Carolina, Oklahoma, New Mexico, Georgia, Florida, and Arizona. MGA Insurance Company, Inc. is located in Texas and sponsors the Bob Stallings™/No. 99 Red Dragon™ McLaren 650s GT3 GAINSCO racecar. Additionally, the Company owns and operates a Hyundai auto dealership franchise in Dallas, TX. The Company provides customer service and claims and in both Spanish and English.
The operation of GAINSCO Auto Insurance was initially chartered as an underwriter of Commercial risks. This setting were stopped and put in a run-off in 2002. The Company promoted its commercial insurance through managing general agents, with the block super-scribed letters “GA” and “GAINSCO” as its main logo identifiers. These were taken from the abbreviated version of the Company primary insurance subsidiary’s name at that time, General Agents Insurance Company of America, Inc. The said commercial insurance company was sold in 2007.
A purchase of a managing general agency and claims operation based in Florida that centers in the nonstandard personal automobile business in the late 1990s formed the foundation for GAINSCO’s insurance marketing emphasis today. The Company finished its capital restructuring in 2005 and set up its headquarters in Dallas, TX, which set the core for developing its business strategy.
Starting 2005, a newly made GAINSCO logo mark included a rising arrow in its name to symbolize a progressively upward company. It was in this period when the Company’s logo mark was first placed on a racecar owned by Robert Stallings – GAINSCO’s Chairman of the Board. Registered marks include Are You Driven® and GAINSCO Auto Insurance®.
GAINSCO’s insurance business since then has increased from a level of over $110 million gross premiums written in 2005 to nearly $230 million in 2015. Overall shareholders’ equity on a GAAP basis grew from nearly $58 million to more than $95 million over the same period. Additionally, it was during this period of time when the A.M. Best rating of the insurance subsidiary had amplified three times, moving from a financial strength rating of “B-” or “Vulnerable” to the current financial strength rating of “B++” or “Secure” with a promising outlook. GAINSCO’s decision to engage in the auto dealership business in late 2013 has given the Company additional avenue for expansion opportunities.
In early 2011, GAINSCO permitted the deliberate suspension of its obligation to file reports with the Security Exchange Commission as well as the voluntary common stock deregistration. The Company was qualified to suspend its reporting obligations as well as deregister its common stock for the reason that there were less than 300 holders of the Company’s common stock record. This decision resulted in reduced reporting burdens and expense savings.
The GAINSCO leadership team is deep in industry expertise and talent. GAINSCO’s Chairman – Robert Stallings, has a successful track record of building and managing companies that offer financial services and is actively involved in the organizational management and strategic leadership. CEO and President – Glenn Anderson, has enjoyed significant success over his thirty-year career in the insurance industry. GAINSCO’s insurance operations consist of approximately 400 employees with around 250 employees in its Dallas headquarters. A separate Miami office has about 80 employees; the balance of the employee population is field based across the multiple states of operation.
