ROCK ISLAND, Ill., Aug. 10, 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 six months ended
June 30, 2021.
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2021 – FINANCIAL RESULTS
Net earnings totaled $563,000, or
$0.18 per share, for the second
quarter of 2021, compared to net earnings of $782,000 or $0.26
per share, for the second quarter of 2020. The change in second
quarter's net earnings as compared to the same quarter last year
was driven primarily by a decrease in unrealized equity investment
gains for those three months. For the six months ended June 30, 2021, the Company reported net earnings
of $1,725,000, or $0.57 per share, compared to a net loss of
$1,191,000, or $0.39 per share, for the same period in 2020. The
increase in earnings reflects a more positive year with higher
premium earnings, lower losses, and higher unrealized equity
investment gains year-over-year. Book value per share increased to
$22.31 at June
30, 2021 from $22.07 at
December 31, 2020. This positive
change in book value reflects continued earnings from our insurance
operations along with favorable gains in our investment
portfolio.
Direct premiums written grew by $3,604,000, or 24.2%, to $18,516,000 for the second quarter of 2021 from
$14,912,000 for the same period in
2020. For the six months ended June 30,
2021, direct premiums written grew by $3,982,000, or 13.4%, to $33,688,000 compared to $29,706,000 for the same period in 2020. The
second quarter's growth reflects the continued rebound within the
food and beverage industry across the states we serve. Consistent
with our industry's premium earnings cycle, net premiums earned
grew by 11.9% or $1,358,000 to
$12,733,000 for the three months
ended June 30, 2021 from $11,375,000 for the same period in 2020. Net
premiums earned grew by 1.6% to $24,782,000 for the six months ended June 30, 2021, from $24,389,000 for the same period in 2020.
For the second quarter of 2021, the Company ceded to reinsurers
$2,817,000 of earned premiums,
compared to $3,167,000 of earned
premiums for the second quarter of 2020. For the six months ended
June 30, 2021, the Company ceded
earned premiums of $5,289,000,
compared to $5,561,000 for the same
period in 2020. The Company ceded less reinsurance in 2021 due to
the reinstatement costs incurred in 2020 from property catastrophe
events.
Net realized investment gains net of other-than-temporary
impairment losses were $350,000 for
the second quarter of 2021 compared to losses of $439,000 for the same period in 2020. For the six
months ended June 30, 2021, net
realized gains net of other-than-temporary impairment losses was
$537,000, compared to losses of
$343,000 for the same period in 2020.
The current mid-year gains reflect more positive investment market
activity in a post-COVID-19 environment, on top of typical
rebalancing activities within the Company's investment
portfolio.
Net investment income decreased by $125,000, or 13.8%, to $784,000 for the second quarter of 2021, as
compared to $909,000 for the same
period in 2020. For the six months ended June 30, 2021, net investment income decreased
$159,000, or 9.1%, to $1,585,000, from $1,744,000 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 $544,000, or 5.9%, to $8,664,000 for the second quarter of 2021, from
$9,208,000 for the same period in
2020. Losses and settlement expenses decreased by $584,000, or 3.4%, to $16,467,000 for the six months ended June 30, 2021, from $17,051,000 for the same period in 2020. Claims
activity for 2021 continues to be more positive than prior year and
mirrors our pre-COVID-19 claims experience. The Company has
not paid any business interruption claims related to COVID-19 thus
far.
Policy acquisition costs and other operating expenses increased
by $793,000, or 18.6%, to
$5,047,000 for the second quarter of
2021 from $4,254,000 for the same
period in 2020 attributable to an increase in contingent
commissions and a minor uptick in other operating expenses. Policy
acquisition costs and other operating expenses increased by
$496,000, or 5.5%, to $9,515,000 for the six months ended June 30, 2021, from $9,019,000 for the same period in 2020.
Total assets increased by 6.6% from $183,939,000 at December
31, 2020, to $196,110,000 at
June 30, 2021. Our investment
portfolio, which consists of fixed income securities, common
stocks, preferred stock, property held for investment, and other
invested assets, increased by 7.6% from $129,322,000 at December
31, 2020, to $139,131,000 at
June 30, 2021, from allocating
additional resources to our investment portfolio coupled with
favorable market appreciation.
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2021 – FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as
losses and settlement expenses divided by net premiums earned) was
68.0% and 66.4% for the second quarter and six months ended
June 30, 2021, respectively, compared
with 80.9% and 69.9% for the same periods of 2020.
The expense ratio (defined as the amortization of deferred
policy acquisition costs and underwriting and administrative
expenses divided by net premiums earned) was 39.6% and 38.4% for
the second quarter and six months ended June
30, 2021, respectively, compared to 37.4% and 37.0% for the
same periods of 2020.
The Company's GAAP combined ratio (defined as the sum of the
losses and settlement expense ratio and the expense ratio) was
107.7% and 104.8% for the second quarter and six months ended
June 30, 2021, respectively, compared
to 118.3% and 106.9% for the same periods of 2020,
respectively.
MANAGEMENT COMMENTARY
"The Company's results for the first half of 2021 have set the
stage for continued success. The first quarter's positive outlook
carried through to the second quarter primarily due to a return to
pre-COVID policy renewal activity and a continuation of lower loss
experience.
"As expected, we experienced favorable premium growth in nearly
every state over the first six months of the year, which has
contributed to the Company's $0.57
earnings per share and our ability to maintain nearly 10% growth in
book value per share over the same period last year.
"A.M. Best Company's recent upgrade of the Company's financial
strength and Long-Term Issuer Credit Ratings, reflects the
Company's strong capitalization coupled with unique expertise in
our niche. Our quest for operational efficiencies and advantageous
investments supports the strategic positioning necessary to weather
market fluctuations. We aim to carry the momentum of 2021's first
half into the remainder of the year," 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
|
|
|
June 30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Investments and
cash:
|
|
|
|
|
|
|
Fixed maturity
securities (amortized cost - $105,311,993 at 6/30/2021 and
$98,753,027 at 12/31/2020)
|
|
$
|
110,849,488
|
|
$
|
105,740,566
|
Common stocks at fair
value
|
|
|
20,013,057
|
|
|
14,724,814
|
Preferred stocks at
fair value
|
|
|
1,685,275
|
|
|
1,683,892
|
Other invested
assets
|
|
|
1,580,837
|
|
|
1,772,867
|
Property held for
investment, at cost, net of accumulated depreciation of
$408,351 at 6/30/2021 and $465,364 at 12/31/2020
|
|
|
5,003,116
|
|
|
5,399,826
|
Cash and cash
equivalents
|
|
|
3,998,488
|
|
|
6,598,842
|
Total investments and
cash
|
|
|
143,130,261
|
|
|
135,920,807
|
Accrued investment
income
|
|
|
656,211
|
|
|
660,793
|
Premiums and
reinsurance balances receivable, net of allowances for
uncollectible amounts of $150,000 at 6/30/2021 and
12/31/2020
|
|
|
24,859,066
|
|
|
23,506,171
|
Ceded unearned
premiums
|
|
|
943,245
|
|
|
860,905
|
Reinsurance balances
recoverable on unpaid losses and settlement expenses,
net of allowances for uncollectible amounts of $0 at 6/30/2021 and
12/31/2020
|
|
|
15,917,703
|
|
|
13,019,865
|
Federal income
taxes
|
|
|
193,911
|
|
|
372,986
|
Deferred policy
acquisition costs, net
|
|
|
6,081,798
|
|
|
5,429,620
|
Property and
equipment, at cost, net of accumulated depreciation of
$6,038,689 at 6/30/2021 and $6,079,728 at 12/31/2020
|
|
|
3,080,594
|
|
|
2,860,331
|
Other
assets
|
|
|
1,246,916
|
|
|
1,307,794
|
Total
assets
|
|
$
|
196,109,705
|
|
$
|
183,939,272
|
Liabilities and
Equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Unpaid losses and
settlement expenses
|
|
$
|
63,858,229
|
|
$
|
61,575,666
|
Unearned
premiums
|
|
|
33,400,351
|
|
|
29,788,834
|
Reinsurance balances
payable
|
|
|
841,328
|
|
|
371,195
|
Corporate
debt
|
|
|
18,460,329
|
|
|
13,465,574
|
Accrued
expenses
|
|
|
3,863,743
|
|
|
3,472,511
|
Income taxes -
deferred
|
|
|
1,194,709
|
|
|
1,231,271
|
Other
liabilities
|
|
|
998,843
|
|
|
1,290,532
|
Total
liabilities
|
|
|
122,617,532
|
|
|
111,195,583
|
Equity:
|
|
|
|
|
|
|
Common
stock1
|
|
|
35,000
|
|
|
35,000
|
Treasury stock, at
cost2
|
|
|
(3,108,653)
|
|
|
(3,153,838)
|
Additional paid-in
capital
|
|
|
32,788,441
|
|
|
32,780,436
|
Accumulated other
comprehensive earnings, net of tax
|
|
|
4,374,556
|
|
|
5,520,091
|
Retained
earnings
|
|
|
41,864,722
|
|
|
40,140,115
|
Less: Unearned
Employee Stock Ownership Plan shares at cost3
|
|
|
(2,461,893)
|
|
|
(2,578,115)
|
Total
equity
|
|
|
73,492,173
|
|
|
72,743,689
|
Total liabilities and
equity
|
|
$
|
196,109,705
|
|
$
|
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 –3,294,623 and 2020 –3,291,125
shares
|
22021 –205,377 shares and 2020
–208,875 shares
|
32021 –246,189 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
|
|
|
June 30,
|
|
|
2021
|
|
2020
|
Net premiums
earned
|
|
$
|
12,732,807
|
|
$
|
11,374,746
|
Net investment
income
|
|
|
783,718
|
|
|
908,550
|
Net realized
investment gains (losses)
|
|
|
349,906
|
|
|
(438,619)
|
Net unrealized gains
on equity securities
|
|
|
728,819
|
|
|
2,709,763
|
Other
income
|
|
|
91,318
|
|
|
69,069
|
Consolidated
revenues
|
|
|
14,686,568
|
|
|
14,623,509
|
Losses and settlement
expenses
|
|
|
8,664,280
|
|
|
9,208,484
|
Policy acquisition
costs and other operating expenses
|
|
|
5,047,023
|
|
|
4,254,266
|
Interest expense on
debt
|
|
|
58,014
|
|
|
56,721
|
General corporate
expenses
|
|
|
196,133
|
|
|
125,335
|
Total
expenses
|
|
|
13,965,450
|
|
|
13,644,806
|
Earnings before
income taxes
|
|
|
721,118
|
|
|
978,703
|
Total income tax
expense
|
|
|
158,450
|
|
|
196,738
|
Net
earnings
|
|
$
|
562,668
|
|
$
|
781,965
|
|
|
|
|
|
|
|
Other comprehensive
earnings, net of tax
|
|
|
1,080,987
|
|
|
3,524,729
|
Comprehensive
earnings
|
|
$
|
1,643,655
|
|
$
|
4,306,694
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net earnings per
share
|
|
$
|
0.18
|
|
$
|
0.26
|
Diluted:
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
|
0.18
|
|
$
|
0.26
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,051,010
|
|
|
3,029,693
|
Diluted
|
|
|
3,064,455
|
|
|
3,036,116
|
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Six-Months
Ended
|
|
|
June 30,
|
|
|
2021
|
|
2020
|
Net premiums
earned
|
|
$
|
24,781,520
|
|
$
|
24,388,735
|
Net investment
income
|
|
|
1,585,124
|
|
|
1,743,950
|
Net realized
investment gains (losses)
|
|
|
536,615
|
|
|
(342,987)
|
Net unrealized gains
(losses) on equity securities
|
|
|
1,605,135
|
|
|
(979,584)
|
Other
income
|
|
|
138,034
|
|
|
119,267
|
Consolidated
revenues
|
|
|
28,646,428
|
|
|
24,929,381
|
Losses and settlement
expenses
|
|
|
16,466,986
|
|
|
17,050,566
|
Policy acquisition
costs and other operating expenses
|
|
|
9,514,601
|
|
|
9,019,240
|
Interest expense on
debt
|
|
|
111,716
|
|
|
92,049
|
General corporate
expenses
|
|
|
360,117
|
|
|
299,756
|
Total
expenses
|
|
|
26,453,420
|
|
|
26,461,611
|
Earnings (loss)
before income taxes
|
|
|
2,193,008
|
|
|
(1,532,230)
|
Total income tax
expense (benefit)
|
|
|
468,401
|
|
|
(340,899)
|
Net earnings
(loss)
|
|
$
|
1,724,607
|
|
$
|
(1,191,331)
|
|
|
|
|
|
|
|
Other comprehensive
(loss) earnings, net of tax
|
|
|
(1,145,535)
|
|
|
1,813,883
|
Comprehensive
earnings
|
|
$
|
579,072
|
|
$
|
622,552
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net earnings
(loss) per share
|
|
$
|
0.57
|
|
$
|
(0.39)
|
Diluted:
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
|
$
|
0.57
|
|
$
|
(0.39)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,037,738
|
|
|
3,019,788
|
Diluted
|
|
|
3,051,183
|
|
|
3,026,210
|
Contact
Info: Arron K. Sutherland, President and
CEO
|
Illinois Casualty
Company
|
(309)
732-0105
|
arrons@ilcasco.com
|
225
20th Street, Rock Island, IL 61201
|
View original
content:https://www.prnewswire.com/news-releases/icc-holdings-inc-reports-2021-second-quarter-and-six-months-results-301352684.html
SOURCE ICC Holdings, Inc.