ICC Holdings, Inc. Reports 2024 Third Quarter and Nine Months Results

    Date:

    ROCK ISLAND, Ill., Nov. 4, 2024 /PRNewswire/ — ICC Holdings, Inc. 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 and nine months ended September 30, 2024.

    ICC Holdings, Inc. Logo (PRNewsfoto/ICC Holdings, Inc.)

    THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2024 FINANCIAL RESULTS

    Net earnings totaled $2,052,000, or $0.69 per share, for the third quarter of 2024, compared to a net loss of $769,000, or $0.26 per share, for the third quarter of 2023. For the nine months ended September 30, 2024, the Company reported net earnings of $3,560,000, or $1.20 per share, compared to net earnings of $1,396,000, or $0.47 per share, for the same period in 2023. Book value per share increased to $23.29 at September 30, 2024, from $21.35 at December 31, 2023. These changes for the nine months ended September 30, 2024, were driven by improvements to our core insurance business and the improving investment markets.

    Direct premiums written increased by $3,167,000, or 12.9%, to $27,662,000 for the third quarter of 2024, from $24,495,000 for the same period in 2023. For the nine months ended September 30, 2024, direct premiums written increased by $7,888,000, or 11.4%, to $76,788,000 compared to $68,900,000 for the same period in 2023. Net premiums earned increased by $2,477,000, or 12.9%, to $21,711,000 for the three months ended September 30, 2024, from $19,234,000 for the same period in 2023. Net premiums earned increased by $6,803,000, or 12.3%, to $62,332,000 for the nine months ended September 30, 2024, from $55,529,000 for the same period in 2023. The growth for both periods is due to rate increases and an increase in policies in force.

    For the third quarter of 2024, the Company ceded to reinsurers $3,479,000 of earned premiums, compared to $2,878,000 of earned premiums for the third quarter of 2023. For the nine months ended September 30, 2024, the Company ceded earned premiums of $10,515,000, compared to $8,066,000 for the same period in 2023. The drivers of this increase include additional direct written premium in the current year plus the addition of a ceding allowance on our first property and casualty reinsurance contracts.

    Net investment income increased by $215,000, or 16.0%, to $1,557,000 for the third quarter of 2024, as compared to $1,342,000 for the same period in 2023. For the nine months ended September 30, 2024, net investment income increased by $739,000, or 19.5%, to $4,537,000 from $3,798,000 for the same period in 2023. The increase is the result of continued re-investing of net proceeds at rates far greater than we are disposing of them and market improvements.

    Net unrealized gains and losses on equity securities increased $1,676,000 year over year to $614,000 in gains for the third quarter of 2024, compared to losses of $1,062,000 for the same period in 2023. Net unrealized gains on equity securities increased year over year to $2,134,000 in gains as of September 30, 2024, compared to gains of $279,000 as of September 30, 2023. These increases reflect the overall gains in the equity markets in 2024. 

    Losses and settlement expenses increased by $708,000, or 5.3%, to $14,144,000 for the third quarter of 2024, from $13,436,000 for the same period in 2023. This increase was driven by increased Businessowner’s Liability claims. Losses and settlement expenses increased by $4,335,000, or 11.8%, to $41,034,000 for the nine months ended September 30, 2024, from $36,699,000 for the same period in 2023. This increase was driven by increased Liquor Liability claims. 

    Policy acquisition costs and other operating expenses increased by $273,000, or 3.9%, to $7,302,000 for the third quarter of 2024, from $7,029,000 for the same period in 2023. Policy acquisition costs and other operating expenses increased by $2,223,000, or 10.7%, to $23,047,000 for the nine months ended September 30, 2024, from $20,824,000 for the same period in 2023. This increase was due to increases in legal and consulting fees, as well as agency commissions. Legal and consulting expenses are up $1,000,000 due to the past proxy contest and the pending merger. Commissions increased as expected as a direct result of higher written premiums. 

    Total assets increased by $21,910,000, or 10.4%, from $211,017,000 on December 31, 2023, to $232,927,000 on September 30, 2024. The investment portfolio, which consists of fixed income securities, common stocks, preferred stocks, property held for investment, and other invested assets, increased by $11,149,000, or 7.9%, from $140,853,000 on December 31, 2023, to $152,002,000 on September 30, 2024. This increase was due mainly to our increased investment holdings. 

    Total equity increased by $6,099,000, or 9.1%, from $67,004,000 as of December 31, 2023, to $73,103,000 as of September 30, 2024. The main drivers of this increase were our net earnings and unrealized gains on our fixed income portfolio.

    THIRD QUARTER ENDED SEPTEMBER 30, 2024 – FINANCIAL RATIOS

    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 September 30, 2024, compared with 69.9% and 66.1% for the same periods in 2023.

    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 September 30, 2024, compared to 36.5% and 37.5% for the same periods in 2023.

    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 September 30, 2024, compared to 106.4% and 103.6% for the same periods in 2023.

    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 $1.0M spent on the merger and successful proxy contest as a result of operational efficiencies.  As a result, our combined ratio is lower than last year.

    “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 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 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 December 31, 2023. 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,

    2024

    2023

    (Unaudited)

    Assets:

    Investments and cash:

    Fixed maturity securities (amortized cost of $120,448,405 at 9/30/2024 and $119,336,041

    at 12/31/2023)

    $

    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 $310,000 at 9/30/2024 and

    $39,000 at 12/31/2023

    13,958,375

    8,898,409

    Property held for investment, at cost, net of accumulated depreciation of $719,900 at

    9/30/2024 and $682,402 at 12/31/2023

    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

    $130,000 at 9/30/2024 and $143,000 at 12/31/2023

    38,062,859

    37,220,433

    Ceded unearned premiums

    774,949

    755,099

    Reinsurance balances recoverable on unpaid losses and settlement expenses, net of

    allowances for credit losses of $80,000 at 9/30/2024 and $82,000 at 12/31/2023

    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 $7,381,278 at

    9/30/2024 and $6,990,076 at 12/31/2023

    3,271,851

    3,325,322

    Other assets, net of allowances for credit losses of $2,000 at 9/30/2024 and $5,000 at

    12/31/2023

    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

    Par value $0.01; authorized: 2023 10,000,000 shares and 2022 10,000,000 shares; issued: 2023 3,500,000 shares and 2022 3,500,000 shares; outstanding: 2023 – 3,138,580 and 2022 – 3,138,976 shares

    2 2023 – 361,420 shares and 2022 – 361,024 shares

    3 2023 – 175,844 shares and 2022 – 187,498 shares

     

    ICC Holdings, Inc. and Subsidiaries

    Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited)

    For the Three-Months Ended

    September 30,

    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

    September 30,

    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: Arron K. Sutherland, President and CEO

    Illinois Casualty Company

    (309) 732-0105

    arrons@ilcasco.com

    225 20th Street, Rock Island, IL 61201

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/icc-holdings-inc-reports-2024-third-quarter-and-nine-months-results-302295732.html

    SOURCE ICC Holdings, Inc.

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