Financial Performance - Net premiums earned increased to $20,222,366 for Q1 2024, up 7.5% from $17,801,297 in Q1 2023[10] - Consolidated revenues rose to $23,082,107 in Q1 2024, representing a 17.5% increase compared to $19,620,401 in Q1 2023[10] - Net earnings for Q1 2024 were $2,239,205, a 41.9% increase from $1,578,545 in Q1 2023[10] - Basic net earnings per share improved to $0.76 in Q1 2024, compared to $0.54 in Q1 2023[10] - Net earnings for the three-month period ended March 31, 2024, were $2,239,205, compared to $1,578,545 for the same period in 2023, representing an increase of approximately 42%[16] - Net investment income increased by $231,000, or 19.1%, to $1,440,000 for the three months ended March 31, 2024, compared to $1,209,000 for the same period in 2023[109] Assets and Liabilities - Total assets grew to $216,433,017 as of March 31, 2024, up from $211,017,013 at the end of 2023, reflecting a 2.0% increase[9] - Total liabilities increased to $147,747,606 as of March 31, 2024, compared to $144,013,464 at December 31, 2023, marking a 1.9% rise[9] - Retained earnings reached $50,083,573 as of March 31, 2024, up from $47,844,368 at the end of 2023, indicating a 2.6% increase[9] - Cash and cash equivalents significantly increased to $7,026,999 as of March 31, 2024, compared to $1,478,135 at December 31, 2023[9] Investment Performance - The company recognized a net unrealized loss on investments of $1,273,890 for the three months ended March 31, 2024, compared to a loss of $639,418 in the same period of 2023[16] - For the three months ended March 31, 2024, net unrealized gains on equity securities and limited partnership investments were $1,273,890, compared to $639,418 for the same period in 2023[41] - The total unrealized losses on fixed maturity securities were primarily due to rising interest rates, with management believing the portfolio will recover its amortized cost basis[39] - The company reported a net realized gain of $1,167 from fixed maturity securities for the three months ended March 31, 2024, compared to a loss of $40,520 in the same period of 2023[34] Expenses and Costs - Losses and settlement expenses for Q1 2024 were $12,336,928, up from $11,047,681 in Q1 2023, reflecting an increase of 11.6%[10] - Policy acquisition costs and other operating expenses increased by $1,313,000, or 20.7%, to $7,663,000 for the three months ended March 31, 2024, from $6,350,000 for the same period in 2023[113] - Income tax expense increased to $596,000 for the three months ended March 31, 2024, from $406,000 for the same period in 2023[117] Cash Flow - Net cash provided by operating activities increased significantly to $5,064,884 in Q1 2024 from $2,341,477 in Q1 2023, marking a growth of about 116%[16] - The company reported a net cash increase of $5,548,864 in cash and cash equivalents at the end of the period, compared to a decrease of $717,691 in the prior year[16] Debt and Borrowing - The outstanding debt of the company remained stable at $15,000,000 as of March 31, 2024, consistent with the previous year[57] - The company has a borrowing capacity of $48.2 million with the Federal Home Loan Bank of Chicago, of which $15.0 million has been utilized[58] - The weighted average interest rate on the utilized loans from the Federal Home Loan Bank is 1.21%[58] Market and Premiums - Total premiums written in Illinois accounted for approximately 21.7% of the total premium for Q1 2024, down from 23.0% in Q1 2023[19] - Direct premiums written increased by $2,921,000, or 14.0%, to $23,736,000 for the three months ended March 31, 2024, compared to $20,815,000 for the same period in 2023[106] - Net written premium increased by $1,931,000, or 10.4%, to $20,444,000 for the three months ended March 31, 2024, from $18,513,000 for the same period in 2023[106] Comprehensive Income - Other comprehensive loss for Q1 2024 was $(640,112), contrasting with other comprehensive earnings of $1,596,353 in Q1 2023[10] - The company reported comprehensive loss earnings of $(640,112) for Q1 2024, compared to comprehensive earnings of $1,596,353 in Q1 2023[25] Regulatory and Strategic Outlook - The Company does not anticipate any significant changes in its operational strategy or market expansion plans in the near term, focusing instead on optimizing existing operations[80] - The Company had no capital or operating loss carryforwards, indicating a stable tax position[71]
ICC(ICCH) - 2024 Q1 - Quarterly Report