ROCK
ISLAND, Ill., May 9, 2022
/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,
2022.
FIRST QUARTER ENDED MARCH 31,
2022 – FINANCIAL RESULTS
Direct premiums written grew by $4,394,000, or 29.0%, to $19,566,000 for the first quarter of 2022 from
$15,172,000 for the same period in
2021. The first quarter growth reflects increased rate taken on
renewals coupled with new business. Net premiums earned grew by
$3,968,000, or 32.9%, to $16,017,000 for the three months ended
March 31, 2022, from $12,049,000 for the same period in 2021. The
increase in net premiums earned is consistent with prior year's
increased premium writings coupled with less earned premium ceded
to reinsurers.
Net loss totaled $160,000, or
$0.05 per share, for the first
quarter of 2022, compared to net earnings of $1,162,000, or $0.38 per share, for the first quarter of 2021.
The change in first quarter's net loss as compared to the same
quarter last year was driven primarily from an increase in
unrealized equity losses prompted by increased Treasury yields and
widening of corporate bond rate spreads. Book value per share
decreased to $21.16 at March 31, 2022, from $22.69 at December 31,
2021, as a result of both the current quarter's net loss and
a significant decrease in comprehensive income driven by a large
decline in our fixed security portfolio.
For the first quarter of 2022, the Company ceded to reinsurers
$2,290,000 of earned premiums,
compared to $2,472,000 of earned
premiums for the first quarter of 2021. The slight decrease in the
premium cessions reflects lower ceding rates by about 4.5% offset
in part by increased direct premiums.
Net investment income increased by $116,000, or 14.5%, to $917,000 for the first quarter of 2022, as
compared to $801,000 for the same
period in 2021. Our bond portfolio, which is sensitive to interest
rate changes, experienced an increase in interest income received
during the first quarter.
Losses and settlement expenses increased by $2,392,000, or 30.7%, to $10,195,000 for the first quarter of 2022, from
$7,803,000 for the same period in
2021. The current quarter's increase in losses is commensurate with
growth in earned premium.
Policy acquisition costs and other operating expenses increased
by $1,304,000, or 29.2%, to
$5,772,000 for the first quarter of
2022 from $4,468,000 for the same
period in 2021. Direct commissions, a key component of policy
acquisition costs, increased 31.5% compared to a 28.6% increase in
written premiums and reflect a necessary cost of organic growth.
These commissions are expensed as premiums are earned and therefore
the increase in first quarter's acquisition costs is consistent
with 2022's earned premium growth. In addition, the Company
provided non-executive employees cost of living adjustments in
recognition of inflation's current impact on employees.
Total assets decreased by 0.7% from $200,002,000 at December
31, 2021, to $198,610,000 at
March 31, 2022. Our investment
portfolio, which consists of fixed income securities, common
stocks, preferred stock, property held for investment, and other
invested assets, decreased by 3.0% from $140,826,000 at December
31, 2021, to $136,572,000 at
March 31, 2022.
FIRST QUARTER ENDED MARCH 31,
2022 – FINANCIAL RATIOS
The Company's losses and settlement expense ratio (defined as
losses and settlement expenses divided by net premiums earned) was
63.7% for the first quarter compared with 64.8% for the same period
of 2021.
The expense ratio (defined as the amortization of deferred
policy acquisition costs and underwriting and administrative
expenses divided by net premiums earned) was 36.0% for the first
quarter compared to 37.1% for the same period of 2021.
The Company's GAAP combined ratio (defined as the sum of the
losses and settlement expense ratio and the expense ratio) was
99.7% for the first quarter compared to 101.8% for the same period
of 2021.
MANAGEMENT COMMENTARY
"We are very pleased with generating positive operating results
thus far in 2022. The first quarter's premium writings have set the
stage for another exciting year, outpacing a typical first quarter
by about 20%. The focus has been on retaining business of existing
policyholders and ensuring the Company has adequate renewal rates
to support future loss experience.
"Our positive growth in quality insurance policies continues to
be instrumental in reducing our loss ratio as demonstrated in the
first quarter compared to the same quarter last year. The equity
and bond market declines experienced by the insurance industry,
outpaced the Company's first quarter profits. As the markets
continue to react to inflationary pressures, we are committed to
maintaining investment portfolio diversity and exploring new
investment property opportunities.
"The Company's geographic expansion efforts have gained traction
and a selected handful of potential new states are currently
undergoing a healthy dose of scrutiny. We are positioned to provide
ICC expertise to more policyholders in the coming 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; 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, 2021.
No undue reliance should be placed on any forward-looking
statements.
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
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|
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|
|
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|
As of
|
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|
|
|
|
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|
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March 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
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(Unaudited)
|
|
|
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|
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Assets
|
|
|
|
|
|
|
|
|
|
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Investments and cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities
(amortized cost of $104,466,061 at 3/31/2022 and
$102,145,223 at
12/31/2021)
|
|
$
|
101,872,420
|
|
$
|
105,841,543
|
|
|
|
|
|
|
Common stocks at fair
value
|
|
|
22,795,115
|
|
|
23,608,197
|
|
|
|
|
|
|
Preferred stocks at fair
value
|
|
|
2,858,036
|
|
|
2,780,450
|
|
|
|
|
|
|
Other invested
assets
|
|
|
3,175,674
|
|
|
3,086,568
|
|
|
|
|
|
|
Property held for investment,
at cost, net of accumulated depreciation of
$504,718 at
3/31/2022 and $464,713 at 12/31/2021
|
|
|
5,871,484
|
|
|
5,509,114
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
4,580,287
|
|
|
4,606,378
|
|
|
|
|
|
|
Total investments and cash
|
|
|
141,153,016
|
|
|
145,432,250
|
|
|
|
|
|
|
Accrued investment income
|
|
|
726,561
|
|
|
659,413
|
|
|
|
|
|
|
Premiums and reinsurance balances receivable, net of
allowances for
uncollectible amounts of $100,000 at 3/31/2022
and 12/31/2021
|
|
|
27,410,129
|
|
|
27,199,804
|
|
|
|
|
|
|
Ceded unearned premiums
|
|
|
948,000
|
|
|
967,022
|
|
|
|
|
|
|
Reinsurance balances recoverable on unpaid losses and
settlement expenses,
net of allowances for uncollectible amounts of
$0 at 3/31/2022 and 12/31/2021
|
|
|
16,088,694
|
|
|
14,521,219
|
|
|
|
|
|
|
Federal income taxes
|
|
|
631,825
|
|
|
195,694
|
|
|
|
|
|
|
Deferred policy acquisition costs, net
|
|
|
7,156,770
|
|
|
6,538,844
|
|
|
|
|
|
|
Property and equipment, at cost, net of accumulated
depreciation of
$6,302,395 at 3/31/2022 and $6,243,055 at
12/31/2021
|
|
|
3,189,728
|
|
|
3,144,218
|
|
|
|
|
|
|
Other assets
|
|
|
1,305,288
|
|
|
1,343,504
|
|
|
|
|
|
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Total assets
|
|
$
|
198,610,011
|
|
$
|
200,001,968
|
|
|
|
|
|
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Liabilities and
Equity
|
|
|
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|
|
|
|
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Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement
expenses
|
|
$
|
67,407,376
|
|
$
|
61,834,809
|
|
|
|
|
|
|
Unearned premiums
|
|
|
37,509,068
|
|
|
36,212,266
|
|
|
|
|
|
|
Reinsurance balances
payable
|
|
|
503,656
|
|
|
1,368,294
|
|
|
|
|
|
|
Corporate debt
|
|
|
18,452,288
|
|
|
18,455,342
|
|
|
|
|
|
|
Accrued expenses
|
|
|
4,174,785
|
|
|
5,441,611
|
|
|
|
|
|
|
Income taxes -
deferred
|
|
|
—
|
|
|
954,862
|
|
|
|
|
|
|
Other liabilities
|
|
|
872,609
|
|
|
1,030,870
|
|
|
|
|
|
|
Total liabilities
|
|
|
128,919,782
|
|
|
125,298,054
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock1
|
|
|
35,000
|
|
|
35,000
|
|
|
|
|
|
|
Treasury stock, at
cost2
|
|
|
(3,122,492)
|
|
|
(3,155,399)
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
|
32,989,963
|
|
|
32,965,136
|
|
|
|
|
|
|
Accumulated other comprehensive
earnings, net of tax
|
|
|
(2,049,042)
|
|
|
2,920,027
|
|
|
|
|
|
|
Retained earnings
|
|
|
44,122,755
|
|
|
44,282,895
|
|
|
|
|
|
|
Less: Unearned Employee Stock
Ownership Plan shares at cost3
|
|
|
(2,285,955)
|
|
|
(2,343,745)
|
|
|
|
|
|
|
Total equity
|
|
|
69,690,229
|
|
|
74,703,914
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
198,610,011
|
|
$
|
200,001,968
|
|
|
|
|
|
|
|
1Par
value $0.01; authorized: 2022 – 10,000,000 shares and 2021 –
10,000,000 shares; issued: 2022 – 3,500,000 shares and 2021 –
3,500,000 shares; outstanding: 2022 –3,293,811 and 2021 –3,291,852
shares
|
22022 –206,189 shares and 2021
–208,875 shares
|
32022 –228,595 shares and 2021
–234,374 shares
|
ICC Holdings, Inc.
and Subsidiaries
|
Condensed
Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
|
|
|
|
|
|
|
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For the Three-Months
Ended
|
|
|
March 31,
|
|
|
2022
|
|
2021
|
Net premiums
earned
|
|
$
|
16,016,677
|
|
$
|
12,048,713
|
Net investment
income
|
|
|
917,081
|
|
|
801,406
|
Net realized investment
gains
|
|
|
207,585
|
|
|
186,709
|
Net unrealized (losses)
gains on equity securities
|
|
|
(1,292,692)
|
|
|
876,316
|
Other income
|
|
|
159,431
|
|
|
46,716
|
Consolidated revenues
|
|
|
16,008,082
|
|
|
13,959,860
|
Losses and settlement
expenses
|
|
|
10,195,201
|
|
|
7,802,706
|
Policy acquisition
costs and other operating expenses
|
|
|
5,772,400
|
|
|
4,467,578
|
Interest expense on
debt
|
|
|
61,011
|
|
|
53,702
|
General corporate
expenses
|
|
|
189,415
|
|
|
163,982
|
Total expenses
|
|
|
16,218,027
|
|
|
12,487,968
|
(Loss) earnings before
income taxes
|
|
|
(209,945)
|
|
|
1,471,892
|
Total income tax
(benefit) expense
|
|
|
(49,805)
|
|
|
309,951
|
Net (loss)
earnings
|
|
$
|
(160,140)
|
|
$
|
1,161,941
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax
|
|
|
(4,969,069)
|
|
|
(2,226,522)
|
Comprehensive
loss
|
|
$
|
(5,129,209)
|
|
$
|
(1,064,581)
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Basic net (loss) earnings per
share
|
|
$
|
(0.05)
|
|
$
|
0.38
|
Diluted:
|
|
|
|
|
|
|
Diluted net (loss) earnings per
share
|
|
$
|
(0.05)
|
|
$
|
0.38
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
3,060,208
|
|
|
3,034,233
|
Diluted
|
|
|
3,072,176
|
|
|
3,044,479
|
|
|
|
|
|
|
|
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-2022-first-quarter-results-301543282.html
SOURCE ICC Holdings, Inc.