Financial Performance - Net premiums earned for the three months ended June 30, 2024, increased to $20,398,193, up from $18,494,053 in the same period of 2023, representing an increase of approximately 10.3%[5] - Consolidated revenues for the three months ended June 30, 2024, were $22,177,097, compared to $20,650,716 for the same period in 2023, reflecting a growth of about 7.4%[5] - The net loss for the three months ended June 30, 2024, was $731,876, compared to net earnings of $586,489 in the same period of 2023, marking a significant decline[5] - Net earnings decreased to $1,507,329 for the six months ended June 30, 2024, down from $2,165,034 in the same period of 2023, a decline of 30.4%[6] - The company reported net cash provided by operating activities of $7,889,760, up 1.2% from $7,797,459 in the prior year[10] Expenses and Losses - Total expenses for the three months ended June 30, 2024, rose to $23,086,617, compared to $19,907,733 in the prior year, indicating an increase of approximately 16.4%[5] - Losses and settlement expenses increased to $26,889,996 for the six months ended June 30, 2024, compared to $23,262,167 in the prior year, an increase of 28.4%[6] - The company incurred direct losses of $14,420,431 for the three-month period ended June 30, 2024, up from $12,633,975 in the same period of 2023, representing an increase of about 14.1%[54] - The company experienced unfavorable development of $2,735,000 in incurred losses for the six months ended June 30, 2024, compared to $1,261,000 in 2023, primarily due to additional information on prior year accident claims[58] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $219,840,011, an increase from $211,017,013 as of December 31, 2023, representing a growth of about 4.2%[4] - Total liabilities as of June 30, 2024, were $152,226,334, compared to $144,013,464 at the end of 2023, reflecting an increase of approximately 5.5%[4] - The net unpaid losses and settlement expenses at the end of June 2024 were $66,811,000, compared to $61,981,000 at the end of June 2023, indicating a rise of approximately 7.4%[57] Equity and Shareholder Information - The company’s total equity as of June 30, 2024, was $67,613,677, slightly up from $67,003,549 as of December 31, 2023, indicating a modest increase of about 0.9%[4] - The weighted average number of common shares outstanding for the three months ended June 30, 2024, was 2,962,944, compared to 2,941,856 in the same period of 2023[5] - Basic net earnings per share decreased to $0.51 for the six months ended June 30, 2024, down from $0.74 in the same period of 2023, a decline of 30.4%[6] Investment Performance - The company reported net unrealized gains on investments of $246,970 for the three months ended June 30, 2024, down from $702,014 in the same period of 2023[5] - The company reported net investment income of $2,980,216 for the six months ended June 30, 2024, up from $2,456,174 in the same period of 2023, an increase of 21.2%[6] - The total fair value of fixed maturity securities as of June 30, 2024, was $109,696,001, down from an amortized cost of $119,495,174, resulting in unrealized losses of $10,186,908[30] Cash Flow and Financing - The company reported net cash used in investing activities of $5,755,289, a decrease of 19.3% from $7,135,740 in 2023[10] - The company had $15,000,000 in outstanding debt as of June 30, 2024, with a borrowing capacity of $48.2 million from the Federal Home Loan Bank of Chicago[51] - The company has a line of credit balance of $0 as of June 30, 2024, with $4.0 million of available credit[52] Risk Factors - The company faces various risks including adverse economic changes, which could lower demand for insurance products and negatively impact investment results, potentially affecting revenue and profitability[25] - The unrealized losses in the fixed income portfolio are attributed to rising interest rates, but management believes the portfolio will recover its amortized cost basis[33]
ICC(ICCH) - 2024 Q2 - Quarterly Report