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 18, 2021

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:

 

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

 

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

 

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

 

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

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



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. ☐ 





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Item 7.01Regulation FD Disclosure.



On May 18, 2021, 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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ICC Holdings, Inc. ICC Holdings Annual Shareholders Meeting May 18, 2021 Illinois Casualty Company ICC Realty estrella Innovative Solutions 1 

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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. 2021. No undue reliance should be placed on any forward-looking statements. ICC Holdings 2 

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CONTENTS  COVID-19 Update Results Examined Geographic Footprint ICC Holdings 3 

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COVID-19 Update • Early response • Addressed customer needs with billing deferral program • Utilized expertise with delivery coverage to address increased market demand • Seamless transition to complete offsite work modes, no loss of key employees • Utilized FHLB relationship and PPP loan program to raise $11.6M of low-cost capital • No disruption to the loss control or claims handling processes • Claim experience • 1.296 claims reported and 2 lawsuits pending. 5 dismissed • $73k of LAE to date, initial projection of $300k remains reasonable • Virus and communicable disease exclusions in place on all policies • Going forward • Actively monitoring all legal and legislative developments • Billing and written premium are back on track in 2021 • Industry is bouncing back and ICC is perfectly positioned to be the carrier of choice for the segment ICC HOLDINGS 4 

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Results Examined Income Statement For the 3monthsended For the Twelve-Months Ended For the 3 months ended March 31, Unaudited For the Twelve Months Ended December 31, Audited 2021 2020 2019 Net premiums earned $ 12,048,713 $ 49,689,202 $ 52,841,766 Net investment income 801,406 3,497,702 3,185,153 Net realized investment gains 186,709 (245,323) 1,200,765 Net unrealized gains (losses) on equity securities 876,316 2,167,417 2350,513 Gain on extinguishment of debt — 1,641,299 — Other income 46,716 (231,024) (53,297) Consolidated revenues 13,959,860 56,519,273 59324,900 Losses and settlement expenses 7,802,706 32,561,988 33,714337 Policy acquisition costs and other operating expense; 4,467,578 18,529,446 20320,005 Interest expense on debt 53,702 207,719 128,790 General corporate expenses 163,982 641,763 579,708 Total expenses 12,487,968 51,940,916 54,443,340 Earnings before income taxes \A 71,892 4,578,357 5,081,560 Income tax expense: Current 38,405 537,078 568393 Deferred 271,546 509,915 218,322 Total income tax expense 309,951 1,046,993 787,215 Net earnings $ 1,161,941 $ 3,531,364 $ 4,294,345 Other comprehensive loss, net of tax (2,226,522) 2,566,155 3,168,615 Comprehensive (loss) earnings $ (1,064,581) $ 6,097,519 $ 7,462,960 ICC Holdings 5 

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RESULTS EXAMINED Average Premium Per Policy Average Premium per Policy by Line of Business Average BP premium increased by 5.2% and 6.0% in 2018 and 2019 years. In 2020, average BP premium still increased 1.3% while liability exposure decreased 9.2% $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 2016 $6,093 $731,794 $,4218 $705,384 $2,434 $1,774 2017 $2,379 $5,975 $734,108 $3,923 $702,641 $2,379 $1,676 2017 $6,287 $779,931 $716,093 $3,224 $2,384 $1,609 2018 $6,665 $830,668 $726,333 $3,084 $2,434 $1,539 2019 $6,749 $754,589 $741,282 $2,161 $2,632 $1,440 200 BP LL UL WC Avg. Bldg and BPP Limit per Policy Avg. Food and Liquor Sales per Policy $1,000,000 $950,000 $900,000 $850,000 $800,000 $750,000 $700,00 $650,000 $600,000 $550,000 $500,000 ICC Holdings 6 

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RESULTS EXAMINED Combined Ratio by Product Line 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% BP BL LL WC UL Total 12/31/2017 12/31/2018 12/31/2019 12/31/2020 3/31/2021 Goal ICC Holdings 7 

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RESULTS EXAMINED Combined Ratio by State Net Statutory Basis 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% IA IL IN MN MO WI OH KS CO MI PA AZ Total 12/31/2017 12/31/2018 12/31/2019 12/31/2020 3/31/201 Goal ICC Holdings 8 

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Results Examined Property CAT Activity Number of occurrence CAT events (over $500k for years 2015-19, over $1M for 2020) Ceded losses from CAT occurrence treaty Number of CAT events subject to aggregate CAT treaty (over $50k from 2015-19, over $100k in 2020) Number claims in CAT events Ceded losses subject to CAT aggregate treaty Ceded losses from CAT aggregate treaty Retained losses from all CAT events Reinstatement Premium Total Retained Losses and Reinstatement Premium Actual Combined Ratio Combined Ratio - w/out CAT occ losses 2015 2016 2017 2018 2019 0 0 2 2 3 $0 $0 $91,860 $909,202 $2,267,635 5 14 12 19 23 49 123 199 198 293 $141,042 $939,366 $2,113,770 $2,553,903 $3,387,744 $0 SO S613.770 Si.053.903 SI 200.000 *— ■ # — i r # — • —g — r $391,042 $0 $1,639,366 $0 $2,100,000 $2,450,000 $9,293 $133,498 $3,337,744 $440,096 IMI $391,042 $1,639,366 $2,109,293 $2,583,498 $3,777,840 95.1% 95.1% 94.8% 94.8% 101.9% 101.0% 101.8% 101.3% 99.3% 97.1% 9 364 $4,214,931 $2,015,587 $3,099,344 $941,379 $4,040,723 101.6% 97.5% ICC Holdings 9 

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RESULTS EXAMINED Balance Sheet Assets Investments and cash: Fixed Maturity Common stocks at fair value Preferred stocks at fair value Other invested assets Property held for investment net of depreciation Cash and cash equivalents Total investments and cash Accrued investment income Premiums and reinsurance balances receivable Ceded unearned premiums Reinsurance balances recoverable on unpaid losses and settlement expenses income taxes - current income taxes - deferred Deferred policy acquisition costs, net Property and equipment, at cost, net of accumulated depreciation Other assets Total assets Liabilities and Equity Liabilities: Unpaid losses and settlement expenses Unearned premiums Reinsurance balances payable Corporate debt Accrued expenses income taxes - deferred Other liabilities Total liabilities Equity: Common stock Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive earnings, net of tax Retained earnings Less: Unearned Employee Stock Ownership Plan shares at cost* Total equity Total liabilities and equity AS Of 31-Mar December 31, December 31, 2021 2020 2019 (Unaudited) (Audited) $ 101,865,040 18,404,167 1,654,530 1,777,792 5,148,152 5,556.479 $ 105,740,566 14,724,814 1,683,892 1,772,867 5,399,826 6.598.842 $ 92,087,572 14,448,773 877,900 4,353,713 6.626.585 134,406,160 135,920,807 118,394,543 700,153 22,598,051 861,914 660,793 23,506,171 860,905 646,504 22,368,526 822,818 14,011,159 338,908 13,019,865 372,986 11,036,170 192,559 5,721,277 5,429,620 5,269,256 2,818,244 1,287,738 2,860,331 1,307,794 3,033,348 1,239,794 i 182,743,604  ‬ 183,939.272 . 5 163,003.518‬ $ 61,807,968 $ 61,575,666 $ 56,838,307 30,467,894 29,788,834 30,392,817 347,506 371,195 374,998 13,462,614 13,465,574 3,475,088 3,021,753 3,472,511 4,216,988 910,957 1,231,271 39,213 944,113 1,290,532 1,324,273 110,962,805 111,195,583 96,661,684 35,000 35,000 35,000 (3,095,065) (3,153,838) (3,146,576) 32,765,565 32,780,436 32,703,209 3,293,569 5,520,091 2,953,936 41,302,055 40,140,115 36,608,750 (2,520,325) (2,578.115) (2,812.485) 71,780,799 72,743,689 66,341,834 s 182.743.604 S 183.939.272 S 163.003.518 ICC Holdings 9 

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Results Examined Liquidity and Financial Flexibility Legal Entity ICC Holdings, Inc. Illinois Casualty Company Illinois Casualty Company Illinois Casualty Company (l) 1. Debt maturing in May 2021 will rollover to a five-year term 2. Effective Cost: 3. Reinvestment Rate: Original Amount Rate (2) Due $3.5M 3.65% Mar-22 $6.0M 1.40% Mar-25 $4.0M 0.00% May-21 $4.0M 0.74% May-26 Y/E 2020: 1.56% Y/E 2021: 1.78% 3.58% ICC Holdings 11 

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Results Examined Consistent Reserving Loss and DCC Reserve Development First Year Ultimate Current Ultimate $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 ICC Holdings 12 

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Results Examined Historical Book Value Per Share 17.00 18.00 19.00 20.00 21.00 22.00 23.00 2017 Q1 18.18 2017 Q2 2017 Q3 18.21 2017 Q4 18.31 2018 Q1 17.80 2018 Q2 17.76 2018 Q3 17.95 2018 Q4 17.74 2019 Q1 18.28 2019 Q2 18.84 2019 Q3 19.08 2019 Q4 20.13 2020 Q1 18.99 2020 Q2 20.37 2020 Q3 20.66 2020 Q4 22.08 2020 Q1 21.78 ICC HOLDINGS 13 

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Geographic Footprint Licensed & Active Licensed Only ICC HOLDINGS 14 

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QUESTIONS? ICC HOLDINGS 15 

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THANK YOU! 16 ICC HOLDINGS

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