ROCK ISLAND, Ill., Nov. 9, 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 nine months
ended September 30, 2021.
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2021 – FINANCIAL RESULTS
Net earnings totaled $424,000, or
$0.14 per share, for the third
quarter of 2021, compared to net earnings of $404,000, or $0.13
per share, for the third quarter of 2020. The change in third
quarter's net earnings as compared to the same quarter last year
was driven primarily by an increase in net premiums earned offset
in part by a decrease in unrealized equity investment gains for
those three months. For the nine months ended September 30, 2021, the Company reported net
earnings of $2,149,000, or
$0.71 per share, compared to a net
loss of $787,000, or $0.26 per share, for the same period in 2020. The
significant increase in net earnings reflects a healthy increase in
premium earnings, decreased losses, and higher realized and
unrealized gains from equity investments year-over-year. Book value
per share increased to $22.27 at
September 30, 2021, from $22.07 at December 31,
2020, as a result of current period positive and sustained
growth in our core business operations.
Direct premiums written grew by $3,823,000, or 26.3%, to $18,357,000 for the third quarter of 2021 from
$14,534,000 for the same period in
2020. For the nine months ended September
30, 2021, direct premiums written grew by $7,805,000, or 17.6%, to $52,045,000 compared to $44,240,000 for the same period in 2020. The
third quarter's growth closely mirrored the second quarter's
results. We continued to capitalize on the food and beverage
industry's rebound across the states we serve. Net premiums earned
grew by 12.3% or $1,546,000 to
$14,079,000 for the three months
ended September 30, 2021, from
$12,533,000 for the same period in
2020. Net premiums earned grew by 5.3% to $38,861,000 for the nine months ended
September 30, 2021, from $36,922,000 for the same period in 2020. The
increase in net premiums earned for each of the period comparisons
reflects increased premium writings period-to-date in 2021.
For the third quarter of 2021, the Company ceded to reinsurers
$2,798,000 of earned premiums,
compared to $2,344,000 of earned
premiums for the third quarter of 2020. For the nine months ended
September 30, 2021, the Company ceded
earned premiums of $8,087,000,
compared to $7,905,000 for the same
period in 2020. Current year's cessions reflect typical claims
experience without the impact of prior period's reinstatement costs
brought on by property catastrophe events.
Net realized investment gains net of other-than-temporary
impairment losses were $287,000 for
the third quarter of 2021 compared to losses of $59,000 for the same period in 2020. For the nine
months ended September 30, 2021, net
realized gains net of other-than-temporary impairment losses were
$824,000, compared to losses of
$402,000 for the same period in 2020.
The current period gains are primarily attributed to a turnaround
in the equity markets which were hampered in the prior period by
economic challenges as a result of COVID-19. In addition, our
investment portfolio's ordinary rebalancing activities in the
current period contributed to more favorable results.
Net investment income decreased by $77,000, or 8.5%, to $824,000 for the third quarter of 2021, as
compared to $901,000 for the same
period in 2020. For the nine months ended September 30, 2021, net investment income
decreased $236,000, or 8.9%, to
$2,409,000, from $2,645,000 for the same period in 2020. Our bond
portfolio, which is sensitive to interest rate changes, experienced
a significant decrease in reinvestment rates during 2020 which is
driving lower investment income in 2021.
Losses and settlement expenses decreased by $48,000, or 0.5%, to $8,815,000 for the third quarter of 2021, from
$8,863,000 for the same period in
2020. Losses and settlement expenses decreased by $632,000, or 2.4%, to $25,282,000 for the nine months ended
September 30, 2021, from $25,914,000 for the same period in 2020. The
current period's favorable claims activity reflects a significant
decline in catastrophic events compared to 2020. Thus far, we have
not paid any business interruption claims related to COVID-19.
Policy acquisition costs and other operating expenses increased
by $721,000, or 15.3%, to
$5,443,000 for the third quarter of
2021 from $4,722,000 for the same
period in 2020. These costs also increased by $1,215,000, or 8.8%, to $14,957,000 for the nine months ended
September 30, 2021, from $13,742,000 for the same period in 2020.
Contingent commissions, a key component of policy acquisition
costs, are the primary driver for the increased costs and are
directly correlated with our positive written premium growth in
2021.
Total assets increased by 6.2% from $183,939,000 at December
31, 2020, to $195,306,000 at
September 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 8.0% from $129,322,000 at December
31, 2020, to $139,680,000 at
September 30, 2021.
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2021 – FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as
losses and settlement expenses divided by net premiums earned) was
62.6% and 65.1% for the third quarter and nine months ended
September 30, 2021, respectively,
compared with 70.7% and 70.2% for the same periods of 2020,
respectively.
The expense ratio (defined as the amortization of deferred
policy acquisition costs and underwriting and administrative
expenses divided by net premiums earned) was 38.7% and 38.5% for
the third quarter and nine months ended September 30, 2021, respectively, compared to
37.7% and 37.2% for the same periods of 2020, respectively.
The Company's GAAP combined ratio (defined as the sum of the
losses and settlement expense ratio and the expense ratio) was
101.3% and 103.5% for the third quarter and nine months ended
September 30, 2021, respectively,
compared to 108.4% and 107.4% for the same periods of 2020,
respectively.
MANAGEMENT COMMENTARY
"We are very pleased to share, once again, positive results for
the third quarter of 2021. These past nine months are a testament
to the Company's disciplined and strategic underwriting, loss
control, and claims operations.
"Favorable premium growth reported in prior quarters continued
into the third quarter and reflects year-to-date growth in every
state within our market. Our premium writings have outpaced our
claims, an outcome that speaks to the Company's front-end
commitment to write quality insurance risks. The combination of
healthy operations and unrealized equity investment gains continues
to support favorable earnings per share.
"The positivity we've experienced this year is fueling exciting
initiatives on the horizon. Our sights are set on finishing this
year strong and setting the stage for new business growth in 2022,"
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
|
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Investments and
cash:
|
|
|
|
|
|
|
Fixed maturity
securities (amortized cost of $103,846,072 at 9/30/2021
and $98,753,027 at 12/31/2020)
|
|
$
|
108,521,574
|
|
$
|
105,740,566
|
Common stocks at fair
value
|
|
|
22,066,048
|
|
|
14,724,814
|
Preferred stocks at
fair value
|
|
|
1,803,285
|
|
|
1,683,892
|
Other invested
assets
|
|
|
1,837,430
|
|
|
1,772,867
|
Property held for
investment, at cost, net of accumulated depreciation of
$427,818
at 9/30/2021 and $465,364 at 12/31/2020
|
|
|
5,451,710
|
|
|
5,399,826
|
Cash and cash
equivalents
|
|
|
2,639,480
|
|
|
6,598,842
|
Total investments and
cash
|
|
|
142,319,527
|
|
|
135,920,807
|
Accrued investment
income
|
|
|
713,585
|
|
|
660,793
|
Premiums and
reinsurance balances receivable, net of allowances for
uncollectible
amounts of $150,000 at 9/30/2021 and 12/31/2020
|
|
|
26,162,183
|
|
|
23,506,171
|
Ceded unearned
premiums
|
|
|
957,508
|
|
|
860,905
|
Reinsurance balances
recoverable on unpaid losses and settlement expenses,
net of allowances for uncollectible amounts of $0 at 9/30/2021 and
12/31/2020
|
|
|
14,476,233
|
|
|
13,019,865
|
Federal income
taxes
|
|
|
104,751
|
|
|
372,986
|
Deferred policy
acquisition costs, net
|
|
|
6,284,156
|
|
|
5,429,620
|
Property and
equipment, at cost, net of accumulated depreciation of
$6,113,613
at 9/30/2021 and $6,079,728 at 12/31/2020
|
|
|
3,085,985
|
|
|
2,860,331
|
Other
assets
|
|
|
1,202,170
|
|
|
1,307,794
|
Total
assets
|
|
$
|
195,306,098
|
|
$
|
183,939,272
|
Liabilities and
Equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Unpaid losses and
settlement expenses
|
|
$
|
61,290,612
|
|
$
|
61,575,666
|
Unearned
premiums
|
|
|
34,920,950
|
|
|
29,788,834
|
Reinsurance balances
payable
|
|
|
1,176,193
|
|
|
371,195
|
Corporate
debt
|
|
|
18,458,022
|
|
|
13,465,574
|
Accrued
expenses
|
|
|
4,246,487
|
|
|
3,472,511
|
Income taxes -
deferred
|
|
|
964,625
|
|
|
1,231,271
|
Other
liabilities
|
|
|
878,347
|
|
|
1,290,532
|
Total
liabilities
|
|
|
121,935,236
|
|
|
111,195,583
|
Equity:
|
|
|
|
|
|
|
Common
stock1
|
|
|
35,000
|
|
|
35,000
|
Treasury stock, at
cost2
|
|
|
(3,119,646)
|
|
|
(3,153,838)
|
Additional paid-in
capital
|
|
|
32,875,761
|
|
|
32,780,436
|
Accumulated other
comprehensive earnings, net of tax
|
|
|
3,693,581
|
|
|
5,520,091
|
Retained
earnings
|
|
|
42,288,985
|
|
|
40,140,115
|
Less: Unearned
Employee Stock Ownership Plan shares at cost3
|
|
|
(2,402,819)
|
|
|
(2,578,115)
|
Total
equity
|
|
|
73,370,862
|
|
|
72,743,689
|
Total liabilities and
equity
|
|
$
|
195,306,098
|
|
$
|
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 –3,293,961 and 2020 –3,291,125
shares
|
22021 –206,039 shares and 2020
–208,875 shares
|
32021 –240,282 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
|
|
|
September
30,
|
|
|
2021
|
|
2020
|
Net premiums
earned
|
|
$
|
14,079,395
|
|
$
|
12,532,967
|
Net investment
income
|
|
|
823,912
|
|
|
900,950
|
Net realized
investment gains (losses)
|
|
|
287,455
|
|
|
(59,333)
|
Net unrealized
(losses) gains on equity securities
|
|
|
(212,136)
|
|
|
981,779
|
Other income
(loss)
|
|
|
58,590
|
|
|
(36,333)
|
Consolidated
revenues
|
|
|
15,037,216
|
|
|
14,320,030
|
Losses and settlement
expenses
|
|
|
8,814,522
|
|
|
8,863,053
|
Policy acquisition
costs and other operating expenses
|
|
|
5,442,542
|
|
|
4,722,485
|
Interest expense on
debt
|
|
|
62,379
|
|
|
58,724
|
General corporate
expenses
|
|
|
171,105
|
|
|
171,860
|
Total
expenses
|
|
|
14,490,548
|
|
|
13,816,122
|
Earnings before
income taxes
|
|
|
546,668
|
|
|
503,908
|
Total income tax
expense
|
|
|
122,405
|
|
|
99,919
|
Net
earnings
|
|
$
|
424,263
|
|
$
|
403,989
|
|
|
|
|
|
|
|
Other comprehensive
(loss) earnings, net of tax
|
|
|
(680,975)
|
|
|
440,838
|
Comprehensive (loss)
earnings
|
|
$
|
(256,712)
|
|
$
|
844,827
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net earnings per
share
|
|
$
|
0.14
|
|
$
|
0.13
|
Diluted:
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
|
0.14
|
|
$
|
0.13
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,068,199
|
|
|
3,030,571
|
Diluted
|
|
|
3,083,867
|
|
|
3,039,658
|
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine-Months
Ended
|
|
|
September
30,
|
|
|
2021
|
|
2020
|
Net premiums
earned
|
|
$
|
38,860,915
|
|
$
|
36,921,702
|
Net investment
income
|
|
|
2,409,036
|
|
|
2,644,900
|
Net realized
investment gains (losses)
|
|
|
824,070
|
|
|
(402,320)
|
Net unrealized gains
on equity securities
|
|
|
1,392,999
|
|
|
2,195
|
Other
income
|
|
|
196,624
|
|
|
82,934
|
Consolidated
revenues
|
|
|
43,683,644
|
|
|
39,249,411
|
Losses and settlement
expenses
|
|
|
25,281,508
|
|
|
25,913,619
|
Policy acquisition
costs and other operating expenses
|
|
|
14,957,143
|
|
|
13,741,725
|
Interest expense on
debt
|
|
|
174,095
|
|
|
150,773
|
General corporate
expenses
|
|
|
531,222
|
|
|
471,616
|
Total
expenses
|
|
|
40,943,968
|
|
|
40,277,733
|
Earnings (loss)
before income taxes
|
|
|
2,739,676
|
|
|
(1,028,322)
|
Total income tax
expense (benefit)
|
|
|
590,806
|
|
|
(240,980)
|
Net earnings
(loss)
|
|
$
|
2,148,870
|
|
$
|
(787,342)
|
|
|
|
|
|
|
|
Other comprehensive
(loss) earnings, net of tax
|
|
|
(1,826,510)
|
|
|
2,254,721
|
Comprehensive
earnings
|
|
$
|
322,360
|
|
$
|
1,467,379
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net earnings
(loss) per share
|
|
$
|
0.71
|
|
$
|
(0.26)
|
Diluted:
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
|
$
|
0.70
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,042,035
|
|
|
3,023,794
|
Diluted
|
|
|
3,057,704
|
|
|
3,032,881
|
|
|
|
|
|
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-third-quarter-and-nine-months-results-301420547.html
SOURCE ICC Holdings, Inc.