ICC Holdings, Inc. Reports 2023 Second Quarter and Six Months Results
- Positive financial results for Q2 and six months ended June 30, 2023
- Significant increase in net earnings and direct premiums written
- Improvement in underwriting income and investment income
- Increase in total assets by 6.8% to $205,292,000 on June 30, 2023
- None.
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2023– FINANCIAL RESULTS
Net earnings totaled
Direct premiums written increased by
For the second quarter of 2023, the Company ceded to reinsurers
Net investment income increased by
Net unrealized gains and losses on equity securities increased
Losses and settlement expenses decreased by
Policy acquisition costs and other operating expenses increased by
Total assets increased by
Total equity increased by
SECOND QUARTER ENDED JUNE 30, 2023– FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as losses and settlement expenses divided by net premiums earned) was
The expense ratio (defined as the amortization of deferred policy acquisition costs and underwriting and administrative expenses divided by net premiums earned) was
The Company's GAAP combined ratio (defined as the sum of the losses and settlement expense ratio and the expense ratio) was
MANAGEMENT COMMENTARY
"I'm pleased to announce that our June 30, 2023,combined ratio improved both quarter-to-date and year-to-date. We continue to lower exposure to higher risk classes of business. Specific strategies have included reduced limits, increased pricing, and coverage language changes. In addition, we have targeted historically underperforming territories, improved risk quality, targeted rate changes, and upgraded our agency distribution network in those geographies.
"In addition to improving underwriting conditions, the Company continues to enjoy favorable investment market returns. Our investment income has continued to grow at a double-digit rate as a result of the Fed's continued interest rate moves. Furthermore, our equity portfolio continues to see significant improvement from last year.
"We remain bullish on our outlook both for 2023 and beyond," 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.
ICC Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Investments and cash: | ||||||||
Fixed maturity securities (amortized cost of | $ | 98,953,186 | $ | 93,388,971 | ||||
Common stocks at fair value | 20,963,949 | 20,438,907 | ||||||
Preferred stocks at fair value | 2,799,819 | 2,772,605 | ||||||
Other invested assets | 8,051,118 | 4,722,137 | ||||||
Property held for investment, at cost, net of accumulated depreciation of | 5,732,339 | 6,002,233 | ||||||
Cash and cash equivalents | 3,534,468 | 3,139,986 | ||||||
Total investments and cash | 140,034,879 | 130,464,839 | ||||||
Accrued investment income | 856,953 | 791,812 | ||||||
Premiums and reinsurance balances receivable, net of allowances for credit losses of | 33,097,154 | 31,270,460 | ||||||
Ceded unearned premiums | 754,514 | 947,851 | ||||||
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for credit losses of | 14,501,900 | 13,610,295 | ||||||
Federal income taxes | 3,202,556 | 3,318,730 | ||||||
Deferred policy acquisition costs, net | 8,082,500 | 7,167,036 | ||||||
Property and equipment, at cost, net of accumulated depreciation of | 3,329,784 | 3,313,719 | ||||||
Other Assets, net of allowances for credit losses of | 1,431,491 | 1,277,469 | ||||||
Total assets | $ | 205,291,731 | $ | 192,162,211 | ||||
Liabilities: | ||||||||
Unpaid losses and settlement expenses | $ | 76,584,383 | $ | 67,614,063 | ||||
Unearned premiums | 43,523,072 | 40,527,182 | ||||||
Reinsurance balances payable | 639,215 | 1,405,337 | ||||||
Corporate debt | 15,000,000 | 15,000,000 | ||||||
Accrued expenses | 5,026,129 | 6,072,020 | ||||||
Other liabilities | 1,164,892 | 1,102,678 | ||||||
Total liabilities | 141,937,691 | 131,721,280 | ||||||
Equity: | ||||||||
Common stock1 | 35,000 | 35,000 | ||||||
Treasury stock, at cost2 | (5,572,098) | (5,463,535) | ||||||
Additional paid-in capital | 33,141,277 | 33,119,125 | ||||||
Accumulated other comprehensive (loss), net of tax | (8,009,493) | (8,841,517) | ||||||
Retained earnings | 45,752,507 | 43,701,233 | ||||||
Less: Unearned Employee Stock Ownership Plan shares at cost3 | (1,993,153) | (2,109,375) | ||||||
Total equity | 63,354,040 | 60,440,931 | ||||||
Total liabilities and equity | $ | 205,291,731 | $ | 192,162,211 | ||||
1 Par value |
2 2023 – 362,772 shares and 2022 – 346,259 shares |
3 2023 – 199,313 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 | ||||||||
June 30, | ||||||||
2023 | 2022 | |||||||
Net premiums earned | $ | 18,494,053 | $ | 17,024,642 | ||||
Net investment income | 1,246,759 | 952,189 | ||||||
Net realized investment gains | 144,012 | 536,809 | ||||||
Net unrealized gains (losses) on equity securities | 702,014 | (3,804,511) | ||||||
Other income | 63,878 | 88,226 | ||||||
Consolidated revenues | 20,650,716 | 14,797,355 | ||||||
Losses and settlement expenses | 12,214,486 | 13,808,605 | ||||||
Policy acquisition costs and other operating expenses | 7,444,806 | 6,002,808 | ||||||
Interest expense on debt | 45,904 | 42,241 | ||||||
General corporate expenses | 202,537 | 184,503 | ||||||
Total expenses | 19,907,733 | 20,038,157 | ||||||
Earnings (loss) before income taxes | 742,983 | (5,240,802) | ||||||
Income tax expense (benefit): | ||||||||
Current | 226,581 | (154,212) | ||||||
Deferred | (70,087) | (957,823) | ||||||
Total income tax expense (benefit) | 156,494 | (1,112,035) | ||||||
Net earnings (loss) | $ | 586,489 | $ | (4,128,767) | ||||
Earnings per share: | ||||||||
Basic: | ||||||||
Basic net earnings (loss) per share | $ | 0.20 | $ | (1.35) | ||||
Diluted: | ||||||||
Diluted net earnings (loss) per share | 0.20 | $ | (1.34) | |||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 2,941,856 | 3,069,430 | ||||||
Diluted | 2,969,288 | 3,082,000 | ||||||
For the Six-Months Ended | ||||||||
June 30, | ||||||||
2023 | 2022 | |||||||
Net premiums earned | $ | 36,295,350 | $ | 33,041,319 | ||||
Net investment income | 2,456,174 | 1,869,270 | ||||||
Net realized investment gains | 68,447 | 744,394 | ||||||
Net unrealized gains (losses) on equity securities | 1,341,432 | (5,097,203) | ||||||
Other income | 109,714 | 247,657 | ||||||
Consolidated revenues | 40,271,117 | 30,805,437 | ||||||
Losses and settlement expenses | 23,262,167 | 24,003,806 | ||||||
Policy acquisition costs and other operating expenses | 13,794,387 | 11,775,208 | ||||||
Interest expense on debt | 91,304 | 103,252 | ||||||
General corporate expenses | 396,211 | 373,918 | ||||||
Total expenses | 37,544,069 | 36,256,184 | ||||||
Earnings (loss) before income taxes | 2,727,048 | (5,450,747) | ||||||
Total income tax expense (benefit) | 562,014 | (1,161,840) | ||||||
Net earnings (loss) | $ | 2,165,034 | $ | (4,288,907) | ||||
Earnings per share: | ||||||||
Basic: | ||||||||
Basic net earnings (loss) per share | $ | 0.74 | $ | (1.40) | ||||
Diluted: | ||||||||
Diluted net earnings (loss) per share | $ | 0.73 | $ | (1.40) | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 2,942,543 | 3,061,119 | ||||||
Diluted | 2,969,975 | 3,073,689 | ||||||
Contact Info: Arron K. Sutherland, President and CEO
Illinois Casualty Company
(309) 732-0105
arrons@ilcasco.com
225 20th Street,
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SOURCE ICC Holdings, Inc.
FAQ
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