FG Financial Group, Inc. Reports First Quarter Financial Results
FG Financial Group reported mixed results for Q1 2022, with a net loss of $4.3 million or $(0.66) per share, an increase from a loss of $0.3 million in Q1 2021. Net premiums earned surged to $2.5 million from $0.2 million year-over-year. However, net investment loss was $2.4 million, a decline from net investment income of $1.9 million last year. The company continues to manage its SPAC strategy, completing two IPOs, and has maintained a strong balance with $8.5 million in cash and total shareholders’ equity of $29.8 million. Dividend payments on preferred shares remain consistent.
- Net premiums earned increased significantly to $2.5 million from $0.2 million in Q1 2021.
- Completed two IPOs for FG Financial Group's SPAC platform, reflecting strategic growth.
- Maintained consistent dividend payments on preferred shares for 16 consecutive quarters.
- Net loss attributable to common shareholders increased to $4.3 million from $0.3 million in Q1 2021.
- Net investment loss of $2.4 million compared to net investment income of $1.9 million the prior year.
Company Continues to Execute on SPAC strategy with Two IPOs and Grows Reinsurance Premiums
Select 2022 First Quarter Financial Results and Highlights
Net loss attributable to common shareholders for the first quarter increased to
The Company’s 2022 first quarter financial results included:
-
Net premiums earned increased to
$2.5 million $0.2 million -
Net investment loss for the first quarter was
$2.4 million $1.9 million -
The Company paid the
8% Series A Preferred Share dividend of$0.45 million February 2018 . -
General and administrative expense decreased by
$0.3 million $1.7 million $2.0 million March 31, 2021 .
Balance Sheet Highlights
As of
-
Cash and cash equivalents of
$8.5 million -
Holdings totaling
$15.7 million $1.1 million $2.7 million $3.0 million $2.6 million $4.1 million -
Total shareholders’ equity of
$29.8 million
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or other variations thereon or comparable terminology. In particular, discussions and statements regarding the Company’s future business plans and initiatives, are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, and may impact our ability to implement and execute on our future business plans and initiatives. Management cautions that the forward-looking statements in this release are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation: market conditions and risks associated with our inability to identify and realize business opportunities, and the undertaking of any new such opportunities, general conditions in the global economy, including the impact of health and safety concerns from the current outbreak of the COVID-19 coronavirus; our lack of operating history or established reputation in the reinsurance industry; our inability to obtain or maintain the necessary approvals to operate reinsurance subsidiaries; risks associated with operating in the reinsurance industry, including inadequately priced insured risks, credit risk associated with brokers we may do business with, and inadequate retrocessional coverage; our inability to execute on our investment and investment management strategy, including our strategy to invest in the risk capital business of special purpose acquisition companies (SPACs); potential loss of value of investments; risk of becoming an investment company; fluctuations in our short-term results as we implement our new business strategy; risks of being unable to attract and retain qualified management and personnel to implement and execute on our business and growth strategy; failure of our information technology systems, data breaches and cyber-attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a publicly traded company; the requirements of being a public company and losing our status as a smaller reporting company or becoming an accelerated filer; any potential conflicts of interest between us and our controlling stockholders and different interests of controlling stockholders; potential conflicts of interest between us and our directors and executive officers; volatility or decline of the shares of FedNat Holding Company common stock received by us as consideration in the sale of our insurance business or limitations and restrictions with respect to our ownership of such shares; risks of being a minority stockholder of FedNat Holding Company; risks associated with our related party transactions and investments; and risks associated with our investments in SPACs, including the failure of any such SPAC to complete its initial business combination.
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ASSETS |
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Equity securities, at fair value (cost basis of |
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$ |
1,067 |
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$ |
1,421 |
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Other investments |
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14,633 |
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14,040 |
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Cash and cash equivalents |
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8,501 |
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15,542 |
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Deferred policy acquisition costs |
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699 |
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786 |
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Reinsurance balances receivable |
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3,773 |
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3,853 |
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Funds deposited with reinsured companies |
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4,442 |
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4,442 |
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Other assets |
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2,529 |
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745 |
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Total assets |
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$ |
35,644 |
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$ |
40,829 |
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LIABILITIES |
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Loss and loss adjustment expense reserves |
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$ |
1,955 |
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$ |
2,133 |
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Unearned premium reserves |
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3,238 |
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3,610 |
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Accounts payable |
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598 |
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502 |
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Other liabilities |
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51 |
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575 |
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Total liabilities |
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$ |
5,842 |
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$ |
6,820 |
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SHAREHOLDERS’ EQUITY |
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Series A Preferred Shares, |
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$ |
22,365 |
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$ |
22,365 |
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Common stock, |
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7 |
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6 |
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Additional paid-in capital |
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46,099 |
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46,037 |
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Accumulated deficit |
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(38,669 |
) |
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(34,399 |
) |
Total shareholders’ equity |
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29,802 |
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34,009 |
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Total liabilities and shareholders’ equity |
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$ |
35,644 |
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$ |
40,829 |
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Three months ended |
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2022 |
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2021 |
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Revenue: |
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Net premiums earned |
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$ |
2,473 |
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$ |
185 |
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Net investment income (loss) |
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(2,346 |
) |
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1,850 |
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Other income |
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25 |
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55 |
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Total revenue |
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152 |
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2,090 |
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Expenses: |
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Net losses and loss adjustment expenses |
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1,524 |
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106 |
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Amortization of deferred policy acquisition costs |
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712 |
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57 |
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General and administrative expenses |
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1,739 |
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2,039 |
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Total expenses |
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3,975 |
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2,202 |
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Loss from continuing operations before income taxes |
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(3,823 |
) |
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(112 |
) |
Income tax benefit |
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– |
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– |
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Net loss from continuing operations |
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$ |
(3,823 |
) |
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$ |
(112 |
) |
Discontinued operations: |
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Gain from sale of the Maison Business, net of taxes |
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– |
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145 |
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Net income (loss) |
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(3,823 |
) |
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33 |
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Loss attributable to noncontrolling interests |
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– |
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(1 |
) |
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Dividends declared on Series A Preferred Shares |
|
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447 |
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350 |
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Loss attributable to |
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$ |
(4,270 |
) |
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$ |
(316 |
) |
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Basic and diluted net income (loss) per common share: |
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Continuing operations |
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$ |
(0.66 |
) |
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$ |
(0.09 |
) |
Discontinued operations |
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– |
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0.03 |
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$ |
(0.66 |
) |
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(0.06 |
) |
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Weighted average common shares outstanding: |
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Basic and diluted |
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6,477,568 |
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4,992,989 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005935/en/
INVESTOR RELATIONS:
IMS Investor Relations
(203) 972-9200
fgfinancial@imsinvestorrelations.com
Source:
FAQ
What were FG Financial Group's Q1 2022 earnings results?
How did FG Financial Group's net premiums change in Q1 2022?
What is the current dividend status of FG Financial Group?
What is the total shareholders’ equity for FG Financial Group as of March 31, 2022?
How many IPOs did FG Financial Group complete in Q1 2022?
