ICC Holdings: A Strong Quarter and Nine Months Performance

ICC Holdings, Inc. (NASDAQ: ICCH) recently reported its 2024 third quarter and nine months results, showcasing a robust financial performance driven by core insurance business improvements and market improvements. The company, a regional, multi-line property and casualty insurance company focusing on the food and beverage industry, demonstrated growth in key areas, including direct premiums written, net premiums earned, and net investment income.


Direct premiums written increased by 12.9% to $27.7 million for the third quarter of 2024, compared to the same period in 2023. Over the nine months, direct premiums written grew by 11.4% to $76.8 million. This growth is attributed to rate increases and an increase in policies in force, indicating ICC Holdings' ability to attract and retain customers while effectively managing pricing strategies.

Net premiums earned also saw a significant increase, rising by 12.9% to $21.7 million for the third quarter and by 12.3% to $62.3 million over the nine months. This growth reflects ICC Holdings' expanding customer base and higher revenue potential, boding well for future financial performance.

Net investment income has also seen a substantial boost, increasing by 16.0% to $1.6 million for the third quarter and by 19.5% to $4.5 million over the nine months. This growth is driven by market improvements and the reinvestment of net proceeds at higher rates, demonstrating ICC Holdings' ability to capitalize on market opportunities and generate consistent returns.


However, ICC Holdings also faced increased losses and settlement expenses, particularly for Businessowner's Liability and Liquor Liability claims. The increase in these expenses can be attributed to more claims being reported due to the growth in policies in force and higher claim costs resulting from rate increases. The pending merger and past proxy contest have also contributed to higher legal and consulting fees, impacting overall expenses.

Despite these challenges, ICC Holdings' net earnings for the nine months ended September 30, 2024, rose by 156.1% to $3.6 million, or $1.20 per share, compared to the same period in 2023. This strong performance is a testament to the company's core insurance business and investment markets, which have improved significantly, offsetting the impact of higher operating expenses and claims.

In conclusion, ICC Holdings' 2024 third quarter and nine months results demonstrate the company's ability to generate stable profits and cash flows, making it an attractive investment option for those seeking consistent, inflation-protected income. As the company continues to grow and adapt to market conditions, investors can expect a long-term, stable income approach that leverages diversification and market opportunities to secure steady returns.