UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549



 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

May 21, 2019

Date of Report (Date of earliest event reported)

 

ICC Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).



Emerging growth company ☒



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Securities registered pursuant to Section 12(b) of the Act:



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Item 7.01Regulation FD Disclosure



On May 21, 2019, the presentation attached as Exhibit 99.1 hereto will be presented at ICC Holdings, Inc.’s annual meeting of shareholders. The full text of the presentation is attached hereto as Exhibit 99.1 and is incorporated herein by reference.



Item 9.01Financial Statements and Exhibits.



(d)Exhibits:

 





SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 



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Annual Shareholders Meeting May 21, 2019

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FORWARD-LOOKING STATEMENTS As a reminder, we will be presenting certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, during this presentation which may include, but are not limited to, statements regarding the Company’s, plans, objectives, expectations and intentions and other statements contained in this presentation that are not historical facts. 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 presentation are made as of the date of this presentation, 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 presentation. 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. Certain factors could cause actual results to differ materially from those described in these forward-looking statements. For a list of factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations,” including “Forward-Looking Information,” set forth in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2019. No undue reliance should be placed on any forward-looking  statements.

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CONTENTS   Results Examined   Growth   Key Initiatives

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RESULTS EXAMINED Income Statement   For the  Quarter Ended    Year Ended    March 31, 2019           December 31, 2018  December 31, 2017    Net premiums earned 12,445,914 $47,116,961 $44,213,271Net investment income  795,373    2,890,266   2,632,498 Net realized investment (losses) gains (47,426) 975,993 1,064,577 Other-than-temporary impairment losses  (16,178) (57,316) Net unrealized gains on equity securities 1,840,418 Other income (53,887)  196,649 325,127 Consolidated revenues  14,980,392  51,163,691  48,178,157   Losses and settlement expenses  9,607,290 31,262,462 29,009,833Policy acquisition costs and other operating expenses  4,850,186 18,214,983 17,307,700 Interest expense on debt 32,014  140,877 225,379 General corporate expenses 143,161 545,986 555,109 Total expenses 14,632,651 50,164,308  47,098,021 Earnings before income taxes 347,741  999,383  1,080,136  Total income tax expense 58,993 106,087 372,285 Net earnings 288,748 893,296 707,851      Other comprehensive earnings (loss) , net of tax 1,474,209 (3,808,045) 706,414       Comprehensive earnings (loss) 1,762,957 (2,914,749) 1,414,265    Unaudited

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RESULTS EXAMINEDCombined Ratio By Product Line 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% ICC Holdings Net Combined Ratio By Product BP BL   LL  WC   UL Total 12/31/2017             12/31/2018             3/31/2019             Goal

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RESULTS EXAMINED Combined Ratio By State 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% ICC Holdings Net Combined Ratio by State IA           IL           IN         MN       MO        WI         OH         KS         CO         MI         PA       Total 12/31/2017           12/31/2018           3/31/2019           Goal

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RESULTS EXAMINED Catastrophic Claim Activity CAT Event Criteria Annual Avg. During 08-17 (10 Years) Annual Avg. During 13-17(5 Years)             2017               2018               2019Number of occurrence CAT events (over $500k)                  0.8                    0.6                     2                     2                     1 Ceded losses from CAT occurrence treaty                       $143,911            $78,444           $91,860         $826,404      $2,296,944Number of CAT events subject to aggregate CAT treaty (over $50k)                                                                  8.1                    9.8                    12                   18                    4Number claims in CAT events                                               148                   151                  199                 192                 120Ceded losses subject to CAT aggregate treaty               $1,364,898       $1,485,575      $1,983,046     $2,140,241      $668,201Ceded losses from CAT aggregate treaty                        $397,816          $369,382         $483,046        $640,241             $0Retained losses from all CAT events                              $1,232,323       $1,495,540      $2,100,000     $2,400,000      $868,201Reinstatement Premium                                                     $4,680              $4,652             $9,461          $120,900        $459,278Retained losses from all CAT events and reinstatement premium   

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RESULTS EXAMINED Balance Sheet     As of   March 31, 2019   December 31, 2018      December 31, 2017    Assets    Unaudited Investments and cash: Fixed maturity securities  89,927,455  88,981,159   89,605,073 Common stocks   13,701,398   11,843,223    8,534,109 Preferred stocks   3,867,429Other invested assets               243,200  154,200    Property held for investment, at cost, net of accumulated depreciation  3,560,838                       3,586,273     3,126,566Cash and cash equivalents   6,409,153  4,644,784    6,876,519    Total investments and cash  113,842,044   109,209,639  112,009,696    Accrued investment income 681,569 648,321                          687,453 Premiums and reinsurance balances receivable, net  22,081,040    21,404,344 19,013,262 Ceded unearned premiums 783,694    796,065 274,972Reinsurance balances recoverable on unpaid losses and settlement expenses, net 15,108,689  6,735,964  10,029,834Current federal income taxes 999,614 847,271    573,147Net deferred federal income taxes  253,642 1,021,398 349,258 Federal income taxes       1,253,256  1,868,669 922,405 Deferred policy acquisition costs, net 5,243,470  5,247,188 4,592,415 Property and equipment, at cost, net of accumulated depreciation of    3,229,627  3,332,810   3,503,904 Other assets   1,046,815 1,040,193  1,301,420 Total assets  163,270,204  150,283,193    152,335,361 Liabilities and Equity Liabilities: Unpaid losses and settlement expenses   61,017,342  51,447,440   51,074,126 Unearned premiums  29,983,133 29,972,623 26,555,582 Reinsurance balances payable                                                                                                          4,544,231 993,004 327,483 Corporate debt 3,484,606  3,484,606  4,339,208 Accrued expenses                                                                                                                             2,570,332  4,536,218 4,274,002 Other liabilities  1,217,501 1,256,003 1,663,415  Total liabilities                                                                                                                                 102,817,145 91,689,894 88,233,816  Equity: Common stock  35,000   35,000 35,000 Treasury stock, at cost  (3,001,395) (2,999,995) Additional paid-in capital 32,545,836 32,505,423  32,333,290 Accumulated other comprehensive earnings, net of tax 1,259,530   (1,580,976) 2,227,069 Retained earnings                                                                                                                           32,603,153   33,680,702    32,787,406 Less: Unearned Employee Stock Ownership Plan shares at cost                                                 (2,989,065) (3,046,855)  (3,281,220)    Total equity 60,453,059 58,593,299  64,101,545   Total liabilities and equity  

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RESULTS EXAMINED Historical Book Value Per Share $18.40 $18.30 $18.20 $18.10 $18.00 $17.90 $17.80 $17.70 $17.60 $17.50 $17.40

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CONTENTS   Results Examined   Growth  Key Initiatives

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GROWTH  Positive Premium Growth $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,0002010     2011     2012     2013     2014     2015     2016     2017     2018    2019 Projected

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GROWTH Geographic Expansion Currently Doing Business Licensed Only Application to be Filed

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CONTENTS   Results Examined   Growth   Key Initiatives

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STRATEGIC INITIATIVES Efficiency Customer Experience Online Rating Auto-Renewal of Insurance Policies Real-Time Interface Rate Adequacy Improved Profitability

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STRATEGIC INITIATIVES Average Premium Per Policy Average Premium by Line of Business Avg. BP Premium has increased by 40% while Avg. Exposure has increased by 12% since 2011 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2011                      2012                      2013                      2014                      2015                      2016                      2017                      2018                   2019 Ql- Avg. BP Premium         - Avg LL Premium         - Avg. UL Premium         -Avg. WC Premium        -Avg Bldg & BPP Limit $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

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QUESTIONS?

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THANK YOU!

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