ROCK ISLAND, Ill., May 11, 2021 /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, 2021.
FIRST QUARTER ENDED MARCH 31,
2021 – FINANCIAL RESULTS
Net earnings totaled $1,162,000,
or $0.38 per share, for the first
quarter of 2021, compared to a net loss of $1,973,000, or $0.65 per share, for the first quarter of 2020.
The first quarter's net earnings compared to the net loss for the
same quarter last year was driven by strong performance in the
equity investment markets. Book value per share decreased 1.4% to
$21.76 at March 31, 2021 from $22.07 at December 31,
2020. This change in book value reflects a drop in our
investment portfolio's fixed income security values resulting from
rising interest rates during the first quarter.
Direct premiums written grew by $377,000, or 2.5%, to $15,172,000 for the first quarter of 2021 from
$14,795,000 for the same period in
2020. The first quarter growth reflects a conservative rebound in
the food and beverage industry across the states we serve.
Consistent with our industry's premium earnings cycle, net premiums
earned decreased by 7.4%, or $965,000, to $12,049,000 for the first quarter of 2021 from
$13,014,000 for the same period in
2020.
For the first quarter of 2021, the Company ceded to reinsurers
$2,472,000 of earned premiums,
compared to $2,394,000 of earned
premiums for the first quarter of 2020. Higher cessions in 2021
reflect the impact of increased property catastrophe costs.
Net realized investment gains net of other-than-temporary
impairment losses were $187,000 for
the first quarter of 2021 compared to gains of $96,000 for the same period in 2020. The first
quarter's changes from prior year reflect typical rebalancing
activities within the Company's investment portfolio.
Net investment income decreased by $34,000, or 4.1%, to $801,000 for the first quarter of 2021, as
compared to $835,000 for the same
period in 2020. The change is attributable to a decrease in the
bond portfolio's investment income as reinvestment rates decreased
significantly in 2020.
Losses and settlement expenses decreased by $39,000, or 0.5%, to $7,803,000 for the first quarter of 2021, from
$7,842,000 for the same period in
2020. This nearly no-change position year over year is consistent
with our pre-COVID-19 claims activity through the first half of
March 2020, and the Company has not
paid any business interruption claims related to COVID-19 thus
far.
Policy acquisition costs and other operating expenses decreased
by $297,000, or 6.2%, to $4,468,000 for the first quarter of 2021 from
$4,765,000 for the same period in
2020 due to a decrease in compensation and benefit-related
expenses.
Total assets decreased by 0.6% from $183,939,000 at December
31, 2020 to $182,744,000 at
March 31, 2021. Our investment
portfolio, which consists of fixed income securities, common
stocks, preferred stock, property held for investment, and other
invested assets, decreased by 0.4% from $129,322,000 at December
31, 2020 to $128,850,000 at
March 31, 2021.
FIRST QUARTER ENDED MARCH 31,
2021 – FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as
losses and settlement expenses divided by net premiums earned) was
64.8% for the first quarter ended March 31,
2021, compared with 60.3% for the same period of 2020. The
increase in our losses and settlement expense ratio is a direct
result of lower earned premiums in the first quarter of 2021
compared to prior year's first quarter.
The expense ratio (defined as the amortization of deferred
policy acquisition costs and underwriting and administrative
expenses divided by net premiums earned) was 37.1% for the first
quarter ended March 31, 2021,
compared to 36.6% for the same period of 2020. This was driven by
the 7.4% decrease in net earned premiums discussed earlier.
The Company's GAAP combined ratio (defined as the sum of the
losses and settlement expense ratio and the expense ratio) was
101.8% for the first quarter ended March 31,
2021, compared to 96.9% for the same period of 2020.
MANAGEMENT COMMENTARY
"The Company welcomed in the new year with positive premium
growth and lower losses in its first quarter. As many states
relaxed their pandemic-related mandates during the first quarter,
we bolstered our underwriting efforts, capitalizing on our
cross-departmental expertise to support aggressive and quality
growth in our book of business without increasing employee head
count.
"We are cautiously optimistic about the year ahead. While
experiencing strong premium growth and managing claims risks, we
are also maintaining a diligent approach in assessing the
investment portfolio's interest rate sensitivity. Thus far, our
success with top-line growth in the first quarter contributed to a
positive $0.38 earnings per share and
a nearly 15% growth in book value per share over the same period
last year.
"While we keep the focus on the core business, we continue to
invest time and energy on our proprietary technology which supports
enterprise-wide operational efficiencies. I'm happy to say that the
business climate in our niche is improving as the public becomes
more comfortable visiting restaurants and taverns. We foresee a
gradual increase in premium growth and look forward to continued
successes in 2021," 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 in order 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, 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; 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, 2020.
No undue reliance should be placed on any forward-looking
statements.
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
March 31,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Investments and
cash:
|
|
|
|
|
|
|
Fixed maturity
securities (amortized cost - $97,695,883 at 3/31/2021 and
$98,753,027 at 12/31/2020)
|
|
$
|
101,865,040
|
|
$
|
105,740,566
|
Common stocks at fair
value
|
|
|
18,404,167
|
|
|
14,724,814
|
Preferred stocks at
fair value
|
|
|
1,654,530
|
|
|
1,683,892
|
Other invested
assets
|
|
|
1,777,792
|
|
|
1,772,867
|
Property held for
investment, at cost, net of accumulated depreciation of $464,847 at
3/31/2021 and $465,364 at 12/31/2020
|
|
|
5,148,152
|
|
|
5,399,826
|
Cash and cash
equivalents
|
|
|
5,556,479
|
|
|
6,598,842
|
Total investments and
cash
|
|
|
134,406,160
|
|
|
135,920,807
|
Accrued investment
income
|
|
|
700,153
|
|
|
660,793
|
Premiums and
reinsurance balances receivable, net of allowances for
uncollectible amounts of $150,000 at 3/31/2021 and
12/31/2020
|
|
|
22,598,051
|
|
|
23,506,171
|
Ceded unearned
premiums
|
|
|
861,914
|
|
|
860,905
|
Reinsurance balances
recoverable on unpaid losses and settlement expenses, net of
allowances for uncollectible amounts of $0 at 3/31/2021 and
12/31/2020
|
|
|
14,011,159
|
|
|
13,019,865
|
Federal income
taxes
|
|
|
338,908
|
|
|
372,986
|
Deferred policy
acquisition costs, net
|
|
|
5,721,277
|
|
|
5,429,620
|
Property and
equipment, at cost, net of accumulated depreciation of $6,196,657
at 3/31/2021 and $6,079,728 at 12/31/2020
|
|
|
2,818,244
|
|
|
2,860,331
|
Other
assets
|
|
|
1,287,738
|
|
|
1,307,794
|
Total
assets
|
|
$
|
182,743,604
|
|
$
|
183,939,272
|
Liabilities and
Equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Unpaid losses and
settlement expenses
|
|
$
|
61,807,968
|
|
$
|
61,575,666
|
Unearned
premiums
|
|
|
30,467,894
|
|
|
29,788,834
|
Reinsurance balances
payable
|
|
|
347,506
|
|
|
371,195
|
Corporate
debt
|
|
|
13,462,614
|
|
|
13,465,574
|
Accrued
expenses
|
|
|
3,021,753
|
|
|
3,472,511
|
Income taxes -
deferred
|
|
|
910,957
|
|
|
1,231,271
|
Other
liabilities
|
|
|
944,113
|
|
|
1,290,532
|
Total
liabilities
|
|
|
110,962,805
|
|
|
111,195,583
|
Equity:
|
|
|
|
|
|
|
Common
stock1
|
|
|
35,000
|
|
|
35,000
|
Treasury stock, at
cost2
|
|
|
(3,095,065)
|
|
|
(3,153,838)
|
Additional paid-in
capital
|
|
|
32,765,565
|
|
|
32,780,436
|
Accumulated other
comprehensive earnings, net of tax
|
|
|
3,293,569
|
|
|
5,520,091
|
Retained
earnings
|
|
|
41,302,055
|
|
|
40,140,115
|
Less: Unearned
Employee Stock Ownership Plan shares at cost3
|
|
|
(2,520,325)
|
|
|
(2,578,115)
|
Total
equity
|
|
|
71,780,799
|
|
|
72,743,689
|
Total liabilities and
equity
|
|
$
|
182,743,604
|
|
$
|
183,939,272
|
|
1Par
value $0.01; authorized: 2021 – 10,000,000 shares and 2020 –
10,000,000 shares; issued: 2021 – 3,500,000 shares and 2020 –
3,500,000 shares; outstanding: 2021 – 3,295,255 and 2020 –
3,291,125 shares
|
22021 – 204,745 shares and 2020
– 208,875 shares
|
32021 – 252,032 shares and 2020
– 257,811 shares
|
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three-Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2020
|
Net premiums
earned
|
|
$
|
12,048,713
|
|
$
|
13,013,989
|
Net investment
income
|
|
|
801,406
|
|
|
835,400
|
Net realized
investment gains
|
|
|
186,709
|
|
|
95,632
|
Net unrealized gains
(losses) on equity securities
|
|
|
876,316
|
|
|
(3,689,347)
|
Other
income
|
|
|
46,716
|
|
|
50,198
|
Consolidated
revenues
|
|
|
13,959,860
|
|
|
10,305,872
|
Losses and settlement
expenses
|
|
|
7,802,706
|
|
|
7,842,082
|
Policy acquisition
costs and other operating expenses
|
|
|
4,467,578
|
|
|
4,764,974
|
Interest expense on
debt
|
|
|
53,702
|
|
|
35,328
|
General corporate
expenses
|
|
|
163,982
|
|
|
174,421
|
Total
expenses
|
|
|
12,487,968
|
|
|
12,816,805
|
Earnings (loss)
before income taxes
|
|
|
1,471,892
|
|
|
(2,510,933)
|
Total income tax
expense (benefit)
|
|
|
309,951
|
|
|
(537,637)
|
Net earnings
(loss)
|
|
$
|
1,161,941
|
|
$
|
(1,973,296)
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax
|
|
|
(2,226,522)
|
|
|
(1,710,846)
|
Comprehensive
loss
|
|
$
|
(1,064,581)
|
|
$
|
(3,684,142)
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net earnings
(loss) per share
|
|
$
|
0.38
|
|
$
|
(0.65)
|
Diluted:
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
|
$
|
0.38
|
|
$
|
(0.65)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,034,233
|
|
|
3,016,062
|
Diluted
|
|
|
3,044,479
|
|
|
3,020,458
|
|
|
|
|
|
Contact
Info: Arron K. Sutherland, President and
CEO
|
|
|
Illinois Casualty
Company
|
|
|
(309)
732-0105
|
|
|
arrons@ilcasco.com
|
|
|
225 20th
Street, Rock Island, IL 61201
|
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SOURCE ICC Holdings, Inc.