ROCK
ISLAND, Ill., Aug. 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 six months ended June 30, 2022.
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2022 – FINANCIAL RESULTS
Net loss totaled $4,129,000, or
$1.35 per share, for the second
quarter of 2022, compared to net earnings of $563,000 or $0.18
per share, for the second quarter of 2021. The change in second
quarter's net earnings as compared to the same quarter last year
was driven primarily by an increase in unrealized equity investment
losses for those three months in 2022. For the six months ended
June 30, 2022, the Company reported
net loss of $4,289,000, or
$1.40 per share, compared to net
earnings of $1,725,000, or
$0.57 per share, for the same period
in 2021. The decrease in earnings is also primarily driven by an
increase in unrealized investment losses. Book value per share
decreased to $18.70 at June 30, 2022 from $22.69 at December 31,
2021. This negative change in book value is due to
$5,097,000 in net unrealized losses
from equity securities in 2022 and $8,961,000 in other comprehensive loss, which is
driven by the rising interest rate environment.
Direct premiums written grew by $2,713,000, or 14.7%, to $21,229,000 for the second quarter of 2022 from
$18,516,000 for the same period in
2021. For the six months ended June 30,
2022, direct premiums written grew by $7,107,000, or 21.1%, to $40,795,000 compared to $33,688,000 for the same period in 2021. The
second quarter's growth reflects an increase in renewal premiums.
Net premiums earned grew by 33.7% or $4,291,000 to $17,024,000 for the three months ended
June 30, 2022, from $12,733,000 for the same period in 2021. Net
premiums earned grew by 33.3% to $33,041,000 for the six months ended June 30, 2022, from $24,782,000 for the same period in 2021. The
growth in net premiums earned is due to the increase in direct
premiums earned coupled with reduced ceded earned premiums.
For the second quarter of 2022, the Company ceded to reinsurers
$2,233,000 of earned premiums,
compared to $2,817,000 of earned
premiums for the second quarter of 2021. For the six months ended
June 30, 2022, the Company ceded
earned premiums of $4,523,000,
compared to $5,289,000 for the same
period in 2021. The Company ceded less reinsurance in 2022 due to
our more favorable pricing.
Net realized investment gains net of other-than-temporary
impairment losses were $537,000 for
the second quarter of 2022 compared to gains of $350,000 for the same period in 2021. For the six
months ended June 30, 2022, net
realized gains net of other-than-temporary impairment losses was
$744,000, compared to gains of
$537,000 for the same period in 2021.
The gains reflect our rebalancing activities within the Company's
investment portfolio.
Net investment income increased by $168,000, or 21.4%, to $952,000 for the second quarter of 2022, as
compared to $784,000 for the same
period in 2021. For the six months ended June 30, 2022, net investment income increased
$284,000, or 17.9%, to $1,869,000, from $1,585,000 for the same period in 2021. These
increases are the result of an increase in our investment
portfolio's investment income, which is due to increased rates on
our fixed income portfolio and an increase in overall size of our
equity holdings.
Losses and settlement expenses increased by $5,145,000, or 59.4%, to $13,809,000 for the second quarter of 2022, from
$8,664,000 for the same period in
2021. Losses and settlement expenses increased by $7,537,000, or 45.8%, to $24,004,000 for the six months ended June 30, 2022, from $16,467,000 for the same period in 2021. This
increase is due to our increase in earned premium coupled with new
information on several prior accident year's claims.
Policy acquisition costs and other operating expenses increased
by $956,000, or 18.9%, to
$6,003,000 for the second quarter of
2022 from $5,047,000 for the same
period in 2021. Policy acquisition costs and other operating
expenses increased by $2,260,000, or
23.8%, to $11,775,000 for the six
months ended June 30, 2022, from
$9,515,000 for the same period in
2021. The increases for both periods are attributable to an
increase in direct commissions and an increase in salaries.
Total assets decreased by 3.6% from $200,002,000 on December
31, 2021, to $192,902,000 on
June 30, 2022. Our investment
portfolio, which consists of fixed income securities, common
stocks, preferred stock, property held for investment, and other
invested assets, decreased by 12.8% from $140,826,000 on December
31, 2021, to $122,871,000 on
June 30, 2022, which was attributable
to the volatility in the markets and our planned increase in
cash.
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2022 – FINANCIAL RATIOS
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
June 30, 2022, compared with 68.0%
and 66.4% for the same periods 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 35.3% and 35.6% for
the second quarter and six months ended June
30, 2022, compared to 39.6% and 38.4% 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
116.4% and 108.3% for the second quarter and six months ended
June 30, 2022, compared to 107.7% and
104.8% for the same period of 2021.
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 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
|
|
|
|
|
|
|
As of
|
|
|
June
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Investments and
cash:
|
|
|
|
|
|
|
Fixed maturity
securities (amortized cost of $100,018,472 at 6/30/2022 and
$102,145,223 at 12/31/2021)
|
|
$
|
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
$521,315 at 6/30/2022 and $464,713 at 12/31/2021
|
|
|
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
amounts of $100,000 at 6/30/2022 and 12/31/2021
|
|
|
29,759,983
|
|
|
27,199,804
|
Ceded unearned
premiums
|
|
|
981,211
|
|
|
967,022
|
Reinsurance balances
recoverable on unpaid losses and settlement expenses, net of
allowances for uncollectible amounts of $0 at 6/30/2022 and
12/31/2021
|
|
|
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 $6,378,208
at
6/30/2022 and $6,243,055 at 12/31/2021
|
|
|
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
|
Treasury stock, at
cost2
|
|
|
(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 $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 –3,289,558 and 2021 –3,291,852
shares
|
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
|
|
|
June
30,
|
|
|
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
|
|
|
June
30,
|
|
|
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
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-second-quarter-and-six-months-results-301602576.html
SOURCE ICC Holdings, Inc.