THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2024 “ FINANCIAL RESULTS
Net earnings totaled
Direct premiums written increased by
For the third quarter of 2024, the Company ceded to reinsurers
Net investment income increased by
Net unrealized gains and losses on equity securities increased
Losses and settlement expenses increased by
Policy acquisition costs and other operating expenses increased by
Total assets increased by
Total equity increased by
THIRD QUARTER ENDED
The Company’s losses and settlement expense ratio (defined as losses and settlement expenses divided by net premiums earned) was 65.1% and 65.8% for the third quarter and nine months ended
The expense ratio (defined as the amortization of deferred policy acquisition costs and underwriting and administrative expenses divided by net premiums earned) was 33.6% and 37.0% for the third quarter and nine months ended
The Company’s GAAP combined ratio (defined as the sum of the losses and settlement expense ratio and the expense ratio) was 98.7% and 102.8% for the third quarter and nine months ended
MANAGEMENT COMMENTARY
“We have seen year-over-year improvement in both our losses and settlement expense ratio and underwriting expense ratio. Losses and settlement expenses are down due to our continued rate strengthening, tighter risk selection, and the introduction of Charlee.ai to improve efficiency and hasten claim resolution. Underwriting expenses are down despite the
“Investment conditions improved greatly in Q3 leading to more positive investment results in net income and earnings per share. We are seeing marked reversals in our unrealized losses from prior years market fluctuations.
“The merger has been moving forward as anticipated. The vote on the merger is planned for late November. We still expect a Q4 2024 closing,” stated
ABOUT ICC HOLDINGS, INC.
ICC Holdings, Inc. is a vertically integrated company created to facilitate the growth, expansion, and diversification of its subsidiaries 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, including their effects on claims activity and the business operations of the Company and of our current and potential customers; 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
ICC Holdings, Inc. and Subsidiaries |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
As of |
||||||||
|
|
|||||||
2024 |
2023 |
|||||||
(Unaudited) |
||||||||
Assets: |
||||||||
Investments and cash: |
||||||||
Fixed maturity securities (amortized cost of |
$ |
114,743,833 |
$ |
110,955,697 |
||||
Common stocks at fair value |
14,470,556 |
12,191,621 |
||||||
Preferred stocks at fair value |
2,924,056 |
2,896,296 |
||||||
Other invested assets, net of allowances for credit losses of |
13,958,375 |
8,898,409 |
||||||
Property held for investment, at cost, net of accumulated depreciation of |
5,904,718 |
5,910,864 |
||||||
Cash and cash equivalents |
11,011,618 |
1,478,135 |
||||||
Total investments and cash |
163,013,156 |
142,331,022 |
||||||
Accrued investment income |
1,042,274 |
915,156 |
||||||
Premiums and reinsurance balances receivable, net of allowances for credit losses of |
38,062,859 |
37,220,433 |
||||||
Ceded unearned premiums |
774,949 |
755,099 |
||||||
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of |
12,519,808 |
12,736,579 |
||||||
Federal income taxes |
2,544,027 |
2,775,366 |
||||||
Deferred policy acquisition costs, net |
9,178,039 |
8,552,459 |
||||||
Property and equipment, at cost, net of accumulated depreciation of |
3,271,851 |
3,325,322 |
||||||
Other assets, net of allowances for credit losses of |
2,520,452 |
2,405,577 |
||||||
Total assets |
$ |
232,927,415 |
$ |
211,017,013 |
||||
Liabilities: |
||||||||
Unpaid losses and settlement expenses |
$ |
83,582,487 |
$ |
71,919,585 |
||||
Unearned premiums |
51,295,631 |
47,259,637 |
||||||
Reinsurance balances payable |
1,020,657 |
1,132,301 |
||||||
Corporate debt |
15,000,000 |
15,000,000 |
||||||
Accrued expenses |
7,696,366 |
7,442,617 |
||||||
Other liabilities |
1,228,786 |
1,259,324 |
||||||
Total liabilities |
159,823,927 |
144,013,464 |
||||||
Equity: |
||||||||
Common stock1 |
35,000 |
35,000 |
||||||
Treasury stock, at cost2 |
(5,727,278) |
(5,710,324) |
||||||
Additional paid-in capital |
33,597,942 |
33,330,846 |
||||||
Accumulated other comprehensive (loss), net of tax |
(4,506,518) |
(6,621,336) |
||||||
Retained earnings |
51,403,889 |
47,844,368 |
||||||
Less: Unearned Employee Stock Ownership Plan shares at cost3 |
(1,699,547) |
(1,875,005) |
||||||
Total equity |
73,103,488 |
67,003,549 |
||||||
Total liabilities and equity |
$ |
232,927,415 |
$ |
211,017,013 |
1 Par value |
ICC Holdings, Inc. and Subsidiaries |
||||||||
Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) |
||||||||
For the Three-Months Ended |
||||||||
|
||||||||
2024 |
2023 |
|||||||
Net premiums earned |
$ |
21,711,407 |
$ |
19,233,517 |
||||
Net investment income |
1,556,776 |
1,342,258 |
||||||
Net realized investment gains |
437,258 |
199,928 |
||||||
Net unrealized gains (losses) on investments |
613,594 |
(1,062,332) |
||||||
Other income |
56,380 |
51,000 |
||||||
Consolidated revenues |
24,375,415 |
19,764,371 |
||||||
Losses and settlement expenses |
14,144,203 |
13,436,464 |
||||||
Policy acquisition costs and other operating expenses |
7,301,724 |
7,029,218 |
||||||
Interest expense on debt |
46,409 |
46,409 |
||||||
General corporate expenses |
264,275 |
220,092 |
||||||
Total expenses |
21,756,611 |
20,732,183 |
||||||
Earnings (loss) before income taxes |
2,618,804 |
(967,812) |
||||||
Total income tax expense (benefit) |
566,613 |
(198,850) |
||||||
Net earnings (loss) |
$ |
2,052,191 |
$ |
(768,962) |
||||
Other comprehensive earnings (loss), net of tax |
3,234,962 |
(3,025,254) |
||||||
Comprehensive earnings (loss) |
$ |
5,287,153 |
$ |
(3,794,216) |
||||
Earnings per share: |
||||||||
Basic: |
||||||||
Basic net earnings (loss) per share |
$ |
0.69 |
$ |
(0.26) |
||||
Diluted: |
||||||||
Diluted net earnings (loss) per share |
$ |
0.69 |
$ |
(0.26) |
||||
Weighted average number of common shares outstanding: |
||||||||
Basic |
2,964,743 |
2,945,199 |
||||||
Diluted |
2,986,401 |
2,968,808 |
For the Nine-Months Ended |
||||||||
|
||||||||
2024 |
2023 |
|||||||
Net premiums earned |
$ |
62,331,966 |
$ |
55,528,867 |
||||
Net investment income |
4,536,992 |
3,798,432 |
||||||
Net realized investment gains |
584,925 |
268,375 |
||||||
Net unrealized gains on investments |
2,134,454 |
279,100 |
||||||
Other income |
46,283 |
160,714 |
||||||
Consolidated revenues |
69,634,620 |
60,035,488 |
||||||
Losses and settlement expenses |
41,034,199 |
36,698,631 |
||||||
Policy acquisition costs and other operating expenses |
23,046,544 |
20,823,605 |
||||||
Interest expense on debt |
138,218 |
137,713 |
||||||
General corporate expenses |
870,968 |
616,304 |
||||||
Total expenses |
65,089,929 |
58,276,253 |
||||||
Earnings before income taxes |
4,544,691 |
1,759,235 |
||||||
Total income tax expense |
985,170 |
363,164 |
||||||
Net earnings |
$ |
3,559,521 |
$ |
1,396,071 |
||||
Other comprehensive earnings (loss), net of tax |
2,114,818 |
(2,193,230) |
||||||
Comprehensive earnings (loss) |
$ |
5,674,339 |
$ |
(797,159) |
||||
Earnings per share: |
||||||||
Basic: |
||||||||
Basic net earnings per share |
$ |
1.20 |
$ |
0.47 |
||||
Diluted: |
||||||||
Diluted net earnings per share |
$ |
1.20 |
$ |
0.47 |
||||
Weighted average number of common shares outstanding: |
||||||||
Basic |
2,954,852 |
2,945,686 |
||||||
Diluted |
2,976,510 |
2,969,295 |
||||||
Contact Info: |
Illinois Casualty Company |
(309) 732-0105 |
arrons@ilcasco.com |
225 20th Street, |