ICC : ICC Holdings Annual Shareholders Meeting May 18, 2021 Illinois Casualty Company ICC Realty estrella Innovative Solutions 1 (Form 8-K)

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



Forward-Looking StatementsAs 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



CONTENTSCOVID-19 Update Results Examined Geographic Footprint ICC Holdings 3



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



Results ExaminedIncome Statement For the 3monthsended Forthe Twelve-Months EndedFor the 3 months ended March 31, UnauditedFor the Twelve Months Ended December 31, Audited202120202019Net premiums earned$12,048,713$49,689,202$52,841,766Net investment income801,4063,497,7023,185,153Net realized investment gains186,709(245,323)1,200,765Net unrealized gains (losses) on equity securities876,3162,167,4172350,513Gain on extinguishment of debt-1,641,299-Other income46,716(231,024)(53,297)Consolidated revenues13,959,86056,519,27359324,900Losses and settlement expenses7,802,70632,561,98833,714337Policy acquisition costs and other operating expense;4,467,57818,529,44620320,005Interest expense on debt53,702207,719128,790General corporate expenses163,982641,763579,708Total expenses12,487,96851,940,91654,443,340Earnings before income taxesA 71,8924,578,3575,081,560Income tax expense:Current38,405537,078568393Deferred271,546509,915218,322Total income tax expense309,9511,046,993787,215Net earnings$1,161,941$3,531,364$4,294,345Other comprehensive loss, net of tax(2,226,522)2,566,1553,168,615Comprehensive (loss) earnings$(1,064,581)$6,097,519$7,462,960 ICC Holdings 5



RESULTS EXAMINEDAverage 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



RESULTS EXAMINEDCombined 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



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



Results Examined Property CAT ActivityNumber of occurrence CAT events (over $500k for years 2015-19, over $1M for 2020)Ceded losses from CAT occurrence treatyNumber of CAT events subject to aggregate CAT treaty (over $50k from 2015-19, over $100k in 2020)Number claims in CAT eventsCeded losses subject to CAT aggregate treatyCeded losses from CAT aggregate treatyRetained losses from all CAT events Reinstatement PremiumTotal Retained Losses and Reinstatement PremiumActual Combined RatioCombined Ratio - w/out CAT occ losses2015201620172018201900223$0$0$91,860$909,202$2,267,63551412192349123199198293$141,042$939,366$2,113,770 $2,553,903$3,387,744$0SOS613.770 Si.053.903 SI 200.000*-■#-ir# -• -g- r$391,042$0$1,639,366$0$2,100,000 $2,450,000 $9,293$133,498$3,337,744$440,096IMI$391,042 $1,639,366 $2,109,293 $2,583,498$3,777,84095.1%95.1%94.8%94.8%101.9%101.0%101.8%101.3%99.3%97.1%9364$4,214,931$2,015,587$3,099,344$941,379$4,040,723101.6%97.5%ICC Holdings 9



RESULTS EXAMINEDBalance SheetAssetsInvestments and cash:Fixed Maturity Common stocks at fair value Preferred stocks at fair value Other invested assetsProperty held for investment net of depreciation Cash and cash equivalents Total investments and cash Accrued investment income Premiums and reinsurance balances receivable Ceded unearned premiumsReinsurance balances recoverable on unpaid losses andsettlement expensesincome taxes - currentincome taxes - deferredDeferred policy acquisition costs, netProperty 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 capitalAccumulated other comprehensive earnings, net of tax Retained earningsLess: Unearned Employee Stock Ownership Plan shares at cost* Total equityTotal liabilities and equityAS Of31-MarDecember 31,December 31,202120202019(Unaudited)(Audited)$101,865,04018,404,1671,654,5301,777,7925,148,1525,556.479$105,740,56614,724,8141,683,8921,772,8675,399,8266.598.842$92,087,57214,448,773877,9004,353,7136.626.585134,406,160135,920,807118,394,543700,15322,598,051861,914660,79323,506,171860,905646,50422,368,526822,81814,011,159338,90813,019,865372,98611,036,170192,5595,721,2775,429,6205,269,2562,818,2441,287,7382,860,3311,307,7943,033,3481,239,794i182,743,604‬183,939.272. 5163,003.518‬$61,807,968$61,575,666$56,838,30730,467,89429,788,83430,392,817347,506371,195374,99813,462,61413,465,5743,475,0883,021,7533,472,5114,216,988910,9571,231,27139,213944,1131,290,5321,324,273110,962,805111,195,58396,661,68435,00035,00035,000(3,095,065)(3,153,838)(3,146,576)32,765,56532,780,43632,703,2093,293,5695,520,0912,953,93641,302,05540,140,11536,608,750(2,520,325)(2,578.115)(2,812.485)71,780,79972,743,68966,341,834s182.743.604S183.939.272S163.003.518ICC Holdings 9

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Results Examined Liquidity and Financial FlexibilityLegal EntityICC Holdings, Inc.Illinois Casualty Company Illinois Casualty Company Illinois Casualty Company (l)1.Debt maturing in May 2021 will rollover to a five-year term2.Effective Cost:3.Reinvestment Rate:Original AmountRate (2)Due$3.5M3.65%Mar-22$6.0M1.40%Mar-25$4.0M0.00%May-21$4.0M0.74%May-26Y/E 2020: 1.56%Y/E 2021: 1.78%3.58%ICC Holdings 11



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



Results ExaminedHistorical 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



Geographic Footprint Licensed & Active Licensed Only ICC HOLDINGS 14



QUESTIONS? ICC HOLDINGS 15



THANK YOU! 16 ICC HOLDINGS