ROCK
ISLAND, Ill., May 8, 2023
/PRNewswire/ -- ICC Holdings, Inc. (NASDAQ: ICCH)
(the Company), parent company of Illinois Casualty Company, a
regional, multi-line property and casualty insurance company
focusing exclusively on the food and beverage industry, today
reported unaudited results for the three months ended March 31, 2023.
FIRST QUARTER ENDED MARCH
31, 2023– FINANCIAL RESULTS
Net earnings totaled $1,579,000, or $0.54 per share, for the first quarter of
2023, compared to net loss of $160,000, or
$0.05 per share, for the first
quarter of 2022. The change in first quarter's net earnings as
compared to the same quarter last year was driven by continued
improvement in underwriting income and positive changes in net
unrealized gains and losses on equity securities. Book value
per share increased to $20.19 at March 31,
2023, from $19.16 at
December 31, 2022. This
increase in book value is due to net income and the positive
changes in market value of our fixed income holdings.
Direct premiums written increased by $1,249,000, or 6.4%, to $20,815,000 for the first quarter of 2023
from $19,566,000 for the same period in 2022. The first
quarter's growth is due to rate increases. Net premiums earned
increased by $1,784,000, or
11.1%, to $17,801,000 for the
three months ended March 31, 2023,
from $16,017,000 for the same
period in 2022. The growth in net premiums earned is driven
by the increased premium writings in the latter half of
2022.
For the first quarter of 2023, the Company ceded to reinsurers
$2,484,000 of earned premiums,
compared to $2,290,000 of earned
premiums for the first quarter of 2022. This increase is a
result of increased direct earned premiums.
Net investment income increased by $292,000, or 31.8%,
to $1,209,000 for the first
quarter of 2023, as compared to $917,000 for the same period in 2022.
The increase is the result of both an increase in
the interest rates earned on the investments in our portfolio
and an increase in the overall size of our investment holdings.
Net unrealized gains and losses on equity securities
increased $1,932,000 year over
year to $639,000 in
gains for the first quarter of 2023, compared
to losses of $1,293,000 for the same period in
2022.
Losses and settlement expenses increased by $853,000, or 8.4%, to $11,048,000 for the first quarter of 2023,
from $10,195,000 for the same
period in 2022. This increase is largely driven by spring
storms occurring in late March of 2023.
Policy acquisition costs and other operating
expenses increased by $578,000, or 10.0%, to $6,350,000 for the first quarter of 2023,
from $5,772,000 for the same
period in 2022. The changes are due to increases in
salaries and direct commission expense. Salaries are up
mainly due to increased costs associated with business growth.
Commissions increased as a result of increased premium.
Total assets increased by $5,645,000, or 2.9%, from $192,162,000 on December 31, 2022, to $197,807,000 on March
31, 2023. The investment portfolio, which consists of fixed
income securities, common stocks, preferred stock, property held
for investment, and other invested assets, increased by
$5,363,000, or 4.2%, from
$127,325,000 on December 31, 2022, to $132,688,000 on
March 31, 2023. This change was due
to purchases of fixed maturity securities and a positive
shift in the Treasury yield curve.
Total equity increased by $3,158,000, or 5.2%, from $60,441,000 as of December 31,
2022 to $63,599,000 as of
March 31, 2023. The main driver
of this increase was improved net income and the positive changes
in market value of our fixed income holdings.
FIRST QUARTER ENDED MARCH
31, 2023– FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as
losses and settlement expenses divided by net premiums earned) was
62.1% for the first quarter compared with 63.7% for the
same period of 2022.
The expense ratio (defined as the amortization of deferred
policy acquisition costs and underwriting and administrative
expenses divided by net premiums earned) was 35.7% for
the first quarter compared to 36.0% for the same period of
2022.
The Company's GAAP combined ratio (defined as the sum of the
losses and settlement expense ratio and the expense ratio) was
97.8% for the first quarter compared to 99.7%
for the same period of 2022.
MANAGEMENT COMMENTARY
"As the investment markets have started to stabilize in 2023,
they are no longer having a negative impact on the bottom
line. Net earnings for Q1 2023 are $1.6 million vs. a loss of $0.16 million for the same time last year.
Earnings per share are up $0.59 year over year. As a result, book
value per share is again over $20.
"Our core insurance business is strong with net earned
premiums up 11.1% over last year, while losses and
settlement expenses only increased 8.4%. The combined
ratio has improved from 99.7%, as of March 31, 2022, to 97.8% as of March 31, 2023. All of this is a
testament to the underwriting adjustments we implemented
over the last year and a half.
"We are very pleased to see an unusually strong first quarter,
as this is traditionally our weakest quarter. We anticipate a
robust year for the Company as we enter new markets with our
profitable underwriting approach," stated Arron Sutherland, President and Chief Executive
Officer.
ABOUT ICC HOLDINGS, INC.
ICC Holdings, Inc. is a vertically integrated company created to
facilitate the growth, expansion, and diversification of its
subsidiaries to maximize value to its stakeholders. The group of
companies consolidated under ICC Holdings, Inc. engages in diverse,
yet complementary business activities, including property and
casualty insurance, real estate, and information technology.
The Company's common shares trade on the NASDAQ Capital Market
under the ticker symbol "ICCH". For more information about ICC
Holdings, visit http://ir.iccholdingsinc.com.
FORWARD-LOOKING STATEMENTS
This press release, and oral statements made regarding the
subjects of this release, contains forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act
of 1995, or the Reform Act, which may include, but are not limited
to, statements regarding the Company's, plans, objectives,
expectations, and intentions and other statements contained in this
press release that are not historical facts, including statements
identified by words such as "believe," "plan," "seek," "expect,"
"intend," "estimate," "anticipate," "will," and similar
expressions. All statements addressing operating performance,
events, or developments that the Company expects or anticipates
will occur in the future, including statements relating to revenue
and profit growth; future responses to and effects of the COVID-19
pandemic, including their effects on claims activity and
the business operations of the Company and of our current and
potential customers; new theories of liability; judicial,
legislative, regulatory and other governmental developments,
including, but not limited to, liability related to business
interruption claims related to COVID-19; litigation tactics and
developments; product and segment expansion; regulatory approval in
connection with expansion; downturns and volatility in global
economies and equity and credit markets, including as a result of
inflation and supply chain disruptions and continued labor
shortages; interest rates and changes in rates could adversely
affect the Company's business and profitability; and market share,
as well as statements expressing optimism or pessimism about future
operating results, are forward-looking statements within the
meaning of the Reform Act. The forward-looking statements are based
on management's current views and assumptions regarding future
events and operating performance, and are inherently subject to
significant business, economic, and competitive uncertainties and
contingencies and changes in circumstances, many of which are
beyond the Company's control. The statements in this press release
are made as of the date of this press release, even if subsequently
made available by the Company on its website or otherwise. The
Company does not undertake any obligation to update or revise these
statements to reflect events or circumstances occurring after the
date of this press release.
Although the Company does not make forward-looking statements
unless it believes it has a reasonable basis for doing so, the
Company cannot guarantee their accuracy. The foregoing factors,
among others, could cause actual results to differ materially from
those described in these forward-looking statements. For a list of
other factors which could affect the Company's results, see the
Company's filings with the Securities and Exchange Commission,
"Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations," including "Forward-Looking
Information," set forth in the Company's Annual Report on Form 10-K
for the year ended December 31, 2022.
No undue reliance should be placed on any forward-looking
statements.
Contact Info: Arron K.
Sutherland, President and CEO
|
Illinois Casualty
Company
|
(309)
732-0105
|
arrons@ilcasco.com
|
225
20th Street, Rock Island, IL 61201
|
ICC Holdings, Inc.
and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
As of
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments and
cash:
|
|
|
|
|
|
|
|
|
Fixed maturity
securities (amortized cost of $106,652,848 at 3/31/2023 and
$104,580,681
at 12/31/2022)
|
|
$
|
97,481,837
|
|
|
$
|
93,388,971
|
|
Common stocks at fair
value
|
|
|
20,957,988
|
|
|
|
20,438,907
|
|
Preferred stocks at
fair value
|
|
|
2,858,411
|
|
|
|
2,772,605
|
|
Other invested
assets
|
|
|
5,073,580
|
|
|
|
4,722,137
|
|
Property held for
investment, at cost, net of accumulated depreciation of $653,586
at
3/31/2023 and $464,713 at 12/31/2022
|
|
|
6,316,139
|
|
|
|
6,002,233
|
|
Cash and cash
equivalents
|
|
|
2,422,295
|
|
|
|
3,139,986
|
|
Total investments and
cash
|
|
|
135,110,250
|
|
|
|
130,464,839
|
|
Accrued investment
income
|
|
|
791,303
|
|
|
|
791,812
|
|
Premiums and
reinsurance balances receivable, net of allowances for credit
losses of
$50,000 at 3/31/2023 and 12/31/2022
|
|
|
31,777,408
|
|
|
|
31,270,460
|
|
Ceded unearned
premiums
|
|
|
804,651
|
|
|
|
947,851
|
|
Reinsurance balances
recoverable on unpaid losses and settlement expenses, net of
allowances for credit losses of $104,000 at 3/31/2023 and $0 at
12/31/2022
|
|
|
14,355,652
|
|
|
|
13,610,295
|
|
Federal income
taxes
|
|
|
2,532,833
|
|
|
|
3,318,730
|
|
Deferred policy
acquisition costs, net
|
|
|
7,732,551
|
|
|
|
7,167,036
|
|
Property and
equipment, at cost, net of accumulated depreciation of $6,688,410
at
3/31/2023 and $6,590,602 at 12/31/2022
|
|
|
3,344,690
|
|
|
|
3,313,719
|
|
Other Assets, net of
allowances for credit losses of $51,000 at 3/31/2023 and $0 at
12/31/2022
|
|
|
1,357,172
|
|
|
|
1,277,469
|
|
Total assets
|
|
$
|
197,806,510
|
|
|
$
|
192,162,211
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Unpaid losses and
settlement expenses
|
|
$
|
72,866,600
|
|
|
$
|
67,614,063
|
|
Unearned
premiums
|
|
|
41,095,297
|
|
|
|
40,527,182
|
|
Reinsurance balances
payable
|
|
|
281,462
|
|
|
|
1,405,337
|
|
Corporate
debt
|
|
|
15,000,000
|
|
|
|
15,000,000
|
|
Accrued
expenses
|
|
|
4,122,442
|
|
|
|
6,072,020
|
|
Other
liabilities
|
|
|
842,180
|
|
|
|
1,102,678
|
|
Total
liabilities
|
|
|
134,207,981
|
|
|
|
131,721,280
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common
stock1
|
|
|
35,000
|
|
|
|
35,000
|
|
Treasury stock, at
cost2
|
|
|
(5,509,869)
|
|
|
|
(5,463,535)
|
|
Additional paid-in
capital
|
|
|
33,204,129
|
|
|
|
33,119,125
|
|
Accumulated other
comprehensive (loss), net of tax
|
|
|
(7,245,164)
|
|
|
|
(8,841,517)
|
|
Retained
earnings
|
|
|
45,166,018
|
|
|
|
43,701,233
|
|
Less: Unearned
Employee Stock Ownership Plan shares at cost3
|
|
|
(2,051,585)
|
|
|
|
(2,109,375)
|
|
Total
equity
|
|
|
63,598,529
|
|
|
|
60,440,931
|
|
Total liabilities and
equity
|
|
$
|
197,806,510
|
|
|
$
|
192,162,211
|
|
|
1
|
Par value $0.01;
authorized: 2023 – 10,000,000 shares and
2022 – 10,000,000 shares; issued: 2023 –
3,500,000 shares and 2022 –
3,500,000 shares; outstanding:
2023 – 3,150,759 and
2022 – 3,153,741 shares
|
2
|
2023
– 349,241 shares and
2022 – 346,259 shares
|
3
|
2023 – 205,156 shares
and 2022 – 210,935 shares
|
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
|
|
|
|
For the Three-Months
Ended
|
|
|
|
March
31,
|
|
|
|
2023
|
|
|
2022
|
|
Net premiums
earned
|
|
$
|
17,801,297
|
|
|
$
|
16,016,677
|
|
Net investment
income
|
|
|
1,209,415
|
|
|
|
917,081
|
|
Net realized investment
(losses) gains
|
|
|
(75,565)
|
|
|
|
207,585
|
|
Net unrealized gains
(losses) on equity securities
|
|
|
639,418
|
|
|
|
(1,292,692)
|
|
Other income
|
|
|
45,836
|
|
|
|
159,431
|
|
Consolidated
revenues
|
|
|
19,620,401
|
|
|
|
16,008,082
|
|
Losses and settlement
expenses
|
|
|
11,047,681
|
|
|
|
10,195,201
|
|
Policy acquisition
costs and other operating expenses
|
|
|
6,349,581
|
|
|
|
5,772,400
|
|
Interest expense on
debt
|
|
|
45,400
|
|
|
|
61,011
|
|
General corporate
expenses
|
|
|
193,675
|
|
|
|
189,415
|
|
Total
expenses
|
|
|
17,636,337
|
|
|
|
16,218,027
|
|
Earnings (loss) before
income taxes
|
|
|
1,984,064
|
|
|
|
(209,945)
|
|
Total income tax
expense (benefit)
|
|
|
405,520
|
|
|
|
(49,805)
|
|
Net earnings
(loss)
|
|
$
|
1,578,544
|
|
|
$
|
(160,140)
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
earnings (loss), net of tax
|
|
|
1,596,353
|
|
|
|
(4,969,069)
|
|
Comprehensive earnings
(loss)
|
|
$
|
3,174,897
|
|
|
$
|
(5,129,209)
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Basic net earnings
(loss) per share
|
|
$
|
0.54
|
|
|
$
|
(0.05)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
|
|
0.53
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,942,659
|
|
|
|
3,060,208
|
|
Diluted
|
|
|
2,956,273
|
|
|
|
3,072,176
|
|
View original
content:https://www.prnewswire.com/news-releases/icc-holdings-inc-reports-2023-first-quarter-results-301818871.html
SOURCE ICC Holdings, Inc.