ICC Holdings, Inc. Reports 2022 Second Quarter and Six Months Results
SECOND QUARTER AND SIX MONTHS ENDED
Net loss totaled
Direct premiums written grew by
For the second quarter of 2022, the Company ceded to reinsurers
Net realized investment gains net of other-than-temporary impairment losses were
Net investment income increased by
Losses and settlement expenses increased by
Policy acquisition costs and other operating expenses increased by
Total assets decreased by 3.6% from
SECOND QUARTER AND SIX MONTHS ENDED
The Company's losses and settlement expense ratio (defined as losses and settlement expenses divided by net premiums earned) was 81.1% and 72.6% for the second quarter and six months ended
The expense ratio (defined as the amortization of deferred policy acquisition costs and underwriting and administrative expenses divided by net premiums earned) was 35.3% and 35.6% for the second quarter and six months ended
The Company's GAAP combined ratio (defined as the sum of the losses and settlement expense ratio and the expense ratio) was 116.4% and 108.3% for the second quarter and six months ended
MANAGEMENT COMMENTARY
"The first half of 2022 has seen a lot of volatility in the markets, which led to decreased overall earnings for the Company. Our earned premiums are up significantly in the first half of 2022 vs. 2021 due to our strategic vision for growing renewal business through rate increases. Our expense ratio continues its downward trend as a result of our operational efficiencies. We are positioning ourselves well for continued success despite market fluctuations.
"Our losses and settlement expense are up markedly for the first half of 2022 vs. 2021 mainly due to some late reporting claims from 2021 and a large settlement on a 2020 claim. We continue to be very selective with the new business we acquire and renewals we allow while providing our clients with the best-in-class insurance coverage in the food and beverage industry. We are ensuring our ability to pay future claims with the growth of our renewal business.
"We are laser focused on the profitability of our current operations while we continue to search for new revenue opportunities," stated
ABOUT
The Company's common shares trade on the NASDAQ Capital Market under the ticker symbol "ICCH". For more information about
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, as well the distribution and effectiveness of COVID-19 vaccines, including their effects on our business operations and claims activity; 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
ICC Holdings, Inc. and Subsidiaries |
||||||
Condensed Consolidated Balance Sheets |
||||||
As of |
||||||
|
|
|||||
2022 |
2021 |
|||||
(Unaudited) |
||||||
Assets |
||||||
Investments and cash: |
||||||
Fixed maturity securities (amortized cost of |
$ |
92,371,500 |
$ |
105,841,543 |
||
Common stocks at fair value |
18,092,308 |
23,608,197 |
||||
Preferred stocks at fair value |
3,033,312 |
2,780,450 |
||||
Other invested assets |
3,792,362 |
3,086,568 |
||||
Property held for investment, at cost, net of accumulated depreciation of |
5,581,481 |
5,509,114 |
||||
Cash and cash equivalents |
8,041,975 |
4,606,378 |
||||
Total investments and cash |
130,912,938 |
145,432,250 |
||||
Accrued investment income |
707,190 |
659,413 |
||||
Premiums and reinsurance balances receivable, net of allowances for uncollectible |
29,759,983 |
27,199,804 |
||||
Ceded unearned premiums |
981,211 |
967,022 |
||||
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of |
15,526,114 |
14,521,219 |
||||
Federal income taxes |
3,324,334 |
195,694 |
||||
Deferred policy acquisition costs, net |
7,156,770 |
6,538,844 |
||||
Property and equipment, at cost, net of accumulated depreciation of |
3,206,245 |
3,144,218 |
||||
Other assets |
1,327,125 |
1,343,504 |
||||
Total assets |
$ |
192,901,910 |
$ |
200,001,968 |
||
Liabilities and Equity |
||||||
Liabilities: |
||||||
Unpaid losses and settlement expenses |
$ |
70,381,083 |
$ |
61,834,809 |
||
Unearned premiums |
39,512,116 |
36,212,266 |
||||
Reinsurance balances payable |
813,069 |
1,368,294 |
||||
Corporate debt |
15,000,000 |
18,455,342 |
||||
Accrued expenses |
4,640,904 |
5,441,611 |
||||
Other liabilities |
1,047,109 |
1,030,870 |
||||
Total liabilities |
131,394,281 |
125,298,054 |
||||
Equity: |
||||||
Common stock1 |
35,000 |
35,000 |
||||
|
(3,192,640) |
(3,155,399) |
||||
Additional paid-in capital |
32,939,978 |
32,965,136 |
||||
Accumulated other comprehensive earnings, net of tax |
(6,041,174) |
2,920,027 |
||||
Retained earnings |
39,993,988 |
44,282,895 |
||||
Less: Unearned Employee Stock Ownership Plan shares at cost3 |
(2,227,523) |
(2,343,745) |
||||
Total equity |
61,507,629 |
74,703,914 |
||||
Total liabilities and equity |
$ |
192,901,910 |
$ |
200,001,968 |
||
1Par value |
||||||
22022 –210,442 shares and 2021 –208,875 shares |
||||||
32022 –222,752 shares and 2021 –234,374 shares |
ICC Holdings, Inc. and Subsidiaries |
||||||
Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) |
||||||
For the Three-Months Ended |
||||||
|
||||||
2022 |
2021 |
|||||
Net premiums earned |
$ |
17,024,642 |
$ |
12,732,807 |
||
Net investment income |
952,189 |
783,718 |
||||
Net realized investment gains |
536,809 |
349,906 |
||||
Net unrealized (losses) gains on equity securities |
(3,804,511) |
728,819 |
||||
Other income |
88,226 |
91,318 |
||||
Consolidated revenues |
14,797,355 |
14,686,568 |
||||
Losses and settlement expenses |
13,808,605 |
8,664,280 |
||||
Policy acquisition costs and other operating expenses |
6,002,808 |
5,047,023 |
||||
Interest expense on debt |
42,241 |
58,014 |
||||
General corporate expenses |
184,503 |
196,133 |
||||
Total expenses |
20,038,157 |
13,965,450 |
||||
(Loss) earnings before income taxes |
(5,240,802) |
721,118 |
||||
Total income tax (benefit) expense |
(1,112,035) |
158,450 |
||||
Net (loss) earnings |
$ |
(4,128,767) |
$ |
562,668 |
||
Other comprehensive (loss) earnings, net of tax |
(3,992,132) |
1,080,987 |
||||
Comprehensive (loss) earnings |
$ |
(8,120,899) |
$ |
1,643,655 |
||
Earnings per share: |
||||||
Basic: |
||||||
Basic net (loss) earnings per share |
$ |
(1.35) |
$ |
0.18 |
||
Diluted: |
||||||
Diluted net (loss) earnings per share |
$ |
(1.34) |
$ |
0.18 |
||
Weighted average number of common shares outstanding: |
||||||
Basic |
3,069,430 |
3,051,010 |
||||
Diluted |
3,082,000 |
3,064,455 |
ICC Holdings, Inc. and Subsidiaries |
||||||
Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) |
||||||
For the Six-Months Ended |
||||||
|
||||||
2022 |
2021 |
|||||
Net premiums earned |
$ |
33,041,319 |
$ |
24,781,520 |
||
Net investment income |
1,869,270 |
1,585,124 |
||||
Net realized investment gains |
744,394 |
536,615 |
||||
Net unrealized (losses) gains on equity securities |
(5,097,203) |
1,605,135 |
||||
Other income |
247,657 |
138,034 |
||||
Consolidated revenues |
30,805,437 |
28,646,428 |
||||
Losses and settlement expenses |
24,003,806 |
16,466,986 |
||||
Policy acquisition costs and other operating expenses |
11,775,208 |
9,514,601 |
||||
Interest expense on debt |
103,252 |
111,716 |
||||
General corporate expenses |
373,918 |
360,117 |
||||
Total expenses |
36,256,184 |
26,453,420 |
||||
(Loss) earnings before income taxes |
(5,450,747) |
2,193,008 |
||||
Total income tax (benefit) expense |
(1,161,840) |
468,401 |
||||
Net (loss) earnings |
$ |
(4,288,907) |
$ |
1,724,607 |
||
Other comprehensive loss, net of tax |
(8,961,201) |
(1,145,535) |
||||
Comprehensive (loss) earnings |
$ |
(13,250,108) |
$ |
579,072 |
||
Earnings per share: |
||||||
Basic: |
||||||
Basic net (loss) earnings per share |
$ |
(1.40) |
$ |
0.57 |
||
Diluted: |
||||||
Diluted net (loss) earnings per share |
$ |
(1.40) |
$ |
0.57 |
||
Weighted average number of common shares outstanding: |
||||||
Basic |
3,061,119 |
3,037,738 |
||||
Diluted |
3,073,689 |
3,051,183 |
||||
Contact Info: Arron K. Sutherland, President and CEO
(309) 732-0105
[email protected]
View original content:https://www.prnewswire.com/news-releases/icc-holdings-inc-reports-2022-second-quarter-and-six-months-results-301602576.html
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