ICPH ICPEI Holdings Inc

TORONTO, May 18, 2022 /CNW/ - ICPEI Holdings Inc. (the "Company") (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $1.7 million for the quarter ended March 31, 2022 and $1.1 million in the same period of 2021.

Serge Lavoie, Chief Executive Officer, commented "We continue to build on our impressive growth last year with premiums increasing by 54% during the quarter compared to the same period last year and a combined ratio of 88.4% for Q1 2022." ICPEI was granted licenses to write commercial business in Newfoundland and Labrador in January and Alberta in April 2022.

Highlights

Direct premiums written of $17.5 million in this quarter represent a 54% growth over the same period in 2021. Personal Lines increased by 47% and Commercial Lines increased by 60% in this period when compared to the same period last year. The growth is in line with our strategy to expand geographically in Quebec and Ontario and the commercial line of business.

• Underwriting income of $1.9 million in this quarter increased by 80% compared to the same period in 2021. Our growth in commercial business is contributing the majority of our underwriting income.
• Combined ratio improved from 90.4% in the first quarter of 2021 to 88.4% in this quarter.
• EPS increased by 83% to $0.11 in this quarter when compared to the same period in 2021.
• Issued 440,415 common shares of the Company through a non-brokered Private Placement for $0.85 million.
• Closing book value per share of $1.88 compared to $1.84 at the end of 2021. The EPS increased by $0.11 in the quarter, however due to unrealized losses in the investments reflected through Other Comprehensive Income resulted in the net change of $0.04 per share.

Underwriting Results

Capital Management

The Minimum Capital Test ("MCT") ratio of ICPH's subsidiary, The Insurance Company of Prince Edward Island (ICPEI) as at March 31, 2022 was 332%, which comfortably exceeds the supervisory target of 150%.

COVID-19 Pandemic Update

Currently, COVID-19 did not have any significant impact on the premiums, collections, investments or other operational activities of the Company, but the impact remains uncertain as the pandemic continues to evolve.

Non-IFRS Financial Measures

The Company uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. The Company analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio. Return on Equity ("ROE") is based on trailing twelve months net income attributable to shareholders on continued operations divided by average total equity. Book value per share ("BVPS") is calculated by dividing total equity by the number of common shares outstanding.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of the Company. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "would", "should", "could", "trend", "predict", "likely", "potential" or "continue" or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond the Company's control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About ICPEI Holdings Inc.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property and casualty insurance industry through its wholly owned subsidiary The Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance products exclusively through the broker channel.

The Company's name was changed from EFH Holdings Inc. to ICPEI Holdings Inc. after receiving approval from shareholders on July 15, 2021. It trades on the TSX Venture Exchange under the symbol ICPH effective August 20, 2021 and prior to December 23, 2020 it traded on the Toronto Stock Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please visit www.icpeiholdings.ca

SOURCE ICPEI Holdings Inc.