ROCK ISLAND, Ill., Nov. 6, 2018 /PRNewswire/ -- ICC Holdings, Inc. (NASDAQ: 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 preliminary, unaudited results for the third quarter and nine months ended September 30, 2018.

THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2018 – FINANCIAL RESULTS

Net loss totaled $209,000 or $0.07 per share for the third quarter of 2018, compared to a net loss of $349,000 or $0.11 per share for the third quarter of 2017. For the nine months ended September 30, 2018, the Company reported net earnings of $259,000 or $0.08 per share, compared to $265,000 or $0.08 per share for the same period in 2017.

Direct premiums written grew by $2,054,000, or 14.5%, to $16,171,000 for the third quarter of 2018 from $14,117,000 for the same period in 2017. For the nine months ended September 30, 2018, direct premiums written grew by $6,056,000, or 14.9%, to $46,583,000 from $40,527,000 for the same period in 2017. Net premiums earned grew by 8.5% to $12,138,000 for the third quarter of 2018 from $11,191,000 for the same period in 2017. Net premiums earned grew by 6.7% to $34,920,000 for the nine months ended September 30, 2018 from $32,740,000 for the same period in 2017.

For the third quarter of 2018, the Company ceded to reinsurers $2,969,000 of earned premiums, compared to $2,051,000 of earned premiums for the third quarter of 2017. For the nine months ended September 30, 2018 the Company ceded $7,949,000 of earned premiums to reinsurers compared to $5,993,000 of earned premiums for the same period in 2017.

Net realized investment gains net of other-than-temporary impairment losses were $15,000 compared to a loss of $2,000 for the third quarter of 2018 and 2017, respectively. For the nine months ended September 30, 2018, net realized investment gains net of other-than-temporary impairment losses, increased by $701,000 to $1,087,000 from $386,000 for the same period in 2017. The nine months ended September 30, 2018 increase is a result of the Company liquidating common stock securities as a result of changing equity managers during the first quarter of 2018.

Net investment income increased by $48,000, or 7.0%, to $736,000 for the third quarter of 2018, as compared to $688,000 for the same period in 2017. For the nine months ended September 30, 2018, net investment income grew $275,000, or 14.9%, to $2,124,000 from $1,849,000 for the same period in 2017. The growth in net investment income for the nine months ended September 30, 2018 was primarily due to investing the IPO proceeds for the entire year in 2018 as compared to a partial year in 2017.

Losses and settlement expenses increased by $549,000, or 6.8%, to $8,612,000 for the third quarter of 2018, from $8,063,000 for the same period in 2017. Losses and settlement expenses increased by $2,871,000, or 13.3% to $24,398,000 for the nine months ended September 30, 2018, from $21,527,000 for the same period in 2017. Although the Company experienced increased weather-related loss activity, Businessowners Property results improved $520,000 for the nine months ended September 30, 2018 compared to the same period in 2017. Losses and settlement expenses increased for the third quarter and nine months ended September 30, 2018, primarily due to weaker Businessowners Liability, and Workers Compensation results.

Policy acquisition costs and other operating expenses increased by $132,000, or 3.0%, to $4,476,000 for the third quarter of 2018 from $4,344,000 for the same period in 2017. Policy acquisition costs and other operating expenses increased by $290,000, or 2.3%, to $13,089,000 for the nine months ended September 30, 2018 from $12,799,000 for the same period in 2017. The primary driver is an increase in self-funded employee medical expenses of $405,000 for the nine months ended September 30, 2018 as compared to the same period in 2017.

Total assets increased by 0.6% from $152,335,000 at December 31, 2017 to $153,251,000 at September 30, 2018 or uncollectible amounts. This was offset by the Company's $3,000,000 stock repurchase in September 2018. Our investment portfolio, which consists of fixed maturity securities, common stocks, preferred stocks, and property held for investment, increased by 0.9% from $105,133,000 at December 31, 2017, to $106,078,000 at September 30, 2018.

THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2018 – FINANCIAL RATIOS

The Company's losses and settlement expense ratio (defined as losses and settlement expenses divided by net premiums earned) was 71.0% and 69.9% in the third quarter and nine months ended September 30, 2018, respectively, compared with 72.0% and 65.8% in the same periods of 2017, respectively.

The expense ratio (defined as the amortization of deferred policy acquisition costs and underwriting and administrative expenses divided by net premiums earned) was 36.9% and 37.5% in the third quarter and nine months ended September 30, 2018, respectively, compared to 38.8% and 39.1% in the same periods of 2017, respectively.

The Company's GAAP combined ratio (defined as the sum of the losses and settlement expense ratio and the expense ratio) was 107.8% and 107.4% in the third quarter and nine months ended September 30, 2018, respectively, compared to 110.9% and 104.8% in the same periods of 2017, respectively.

MANAGEMENT COMMENTARY

"Continued premium growth outpaced related policy acquisition costs. Management is pleased to report lower expense ratios following the implementation of company-wide expense reduction and efficiency initiatives. While this has contributed to a 1.6% decrease in the expense ratio for the nine months ended September 30, 2018 compared to the same period in 2017, the Company experienced continued elevated loss and losses and settlement expenses during the third quarter. The Company recognizes continued legal environment challenges and in response, underwriting management has implemented a targeted rate strengthening strategy designed to return the Company to historic levels of profitability," 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 in order 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, product and segment expansion, regulatory approval in connection with expansion, 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, 2017. No undue reliance should be placed on any forward-looking statements.

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SOURCE ICC Holdings, Inc.