GAINSCO Auto Insurance history

In order to accumulate enough capital so that he could accept more risk, and hence increase his profit, Macchia sold 70 percent of Gainsco to a Minneapolis-based company in 1979 for $2.5 million.

MGA Insurance Company, Inc.Licensed, admitted insurer in several statesState of Domicile: TexasCommenced Business: August 13, 1981

In 1982, the first year for which figures were available to the public, Gainsco had net income of $670,000 on revenues of $12.1 million.

During 1984, which was Gainsco's last unprofitable year, the company sharply curtailed its writing of personal lines of insurance.

Gainsco owned a 3.38-acre tract of land in Fort Worth in 1986 and a 10,000-square-foot building on the lot, from which its operations were conducted, although the company later moved its headquarters to a larger building in another part of Fort Worth.

Macchia held 12.7 percent of the company's stock in 1988.

By 1990 Gainsco's record of rising profits was beginning to attract the interest of the business press.

Gainsco enjoyed record results again in 1992, its net income rising to $13.2 million on total revenues of $85.7 million.

The majority of gross premiums in 1994 came from California, Florida, Kentucky, Louisiana, Pennsylvania, and Texas.

During 1996 Gainsco's net income dipped to $16 million on record revenues of $119 million.

In order to reduce its liability on individual risks and to protect against catastrophe claims, Gainsco was purchasing reinsurance from three companies in 1997.