Highlights
Direct premiums written of
- Underwriting income of
$1.9 million in this quarter increased by 80% compared to the same period in 2021. Our growth in commercial business is contributing the majority of our underwriting income. - Combined ratio improved from 90.4% in the first quarter of 2021 to 88.4% in this quarter.
- EPS increased by 83% to
$0.11 in this quarter when compared to the same period in 2021. - Issued 440,415 common shares of the Company through a non-brokered Private Placement for
$0.85 million . - Closing book value per share of
$1.88 compared to$1.84 at the end of 2021. The EPS increased by$0.11 in the quarter, however due to unrealized losses in the investments reflected through Other Comprehensive Income resulted in the net change of$0.04 per share.
3 months ended | ||
($ THOUSANDS except per share amounts) | 2022 | 2021 |
Direct written and assumed premiums | 17,467 | 11,374 |
Net earned premiums | 16,029 | 10,703 |
Net claims incurred | 7,712 | 5,404 |
Net acquisition costs | 4,283 | 2,580 |
Operating expenses(1) | 2,171 | 1,686 |
Corporate expense(1) | 361 | 236 |
Underwriting income (2) | 1,863 | 1,033 |
Investment income | 223 | 674 |
Impact of change in discount rate on claims | 582 | (5) |
Net income before income taxes | 2,307 | 1,466 |
Income tax expense | 657 | 377 |
Net income | 1,650 | 1,089 |
Net income attributed to: | ||
Shareholders of the Company | 1,650 | 773 |
Non-controlling interest | - | 316 |
Earnings per share (EPS) | ||
Basic | ||
Diluted | ||
Book value per share (BVPS)(3) | ||
Return on Equity (ROE)(4) | 29.9% | 8.6% |
(1) | Sum of Operating expenses and Corporate expense equal Operating Costs on Consolidated Statements of Income and Comprehensive Income. |
(2) | Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. |
(3) | Book value per share is calculated by dividing shareholder's equity by the number of common shares outstanding. |
(4) | Return on Equity is twelve months rolling net income attributable to shareholders on continued operations divided by average shareholder's equity. |
Underwriting Results
Underwriting Income ($ THOUSANDS) | 3 Months ended | 3 Months ended |
Personal Lines | 332 | 208 |
Commercial Lines | 1,531 | 825 |
Key Ratios | ||
Loss Ratio | 48.1% | 50.5% |
Expense Ratio | 40.3% | 39.9% |
Combined Ratio | 88.4% | 90.4% |
Loss Ratios | ||
Personal Lines | 56.7% | 57.0% |
Commercial Lines | 38.2% | 39.2% |
Capital Management
The Minimum Capital Test ("MCT") ratio of ICPH's subsidiary,
COVID-19 Pandemic Update
Currently, COVID-19 did not have any significant impact on the premiums, collections, investments or other operational activities of the Company, but the impact remains uncertain as the pandemic continues to evolve.
Non-IFRS Financial Measures
The Company uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. The Company analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio. Return on Equity ("ROE") is based on trailing twelve months net income attributable to shareholders on continued operations divided by average total equity. Book value per share ("BVPS") is calculated by dividing total equity by the number of common shares outstanding.
Forward-looking Information
This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of the Company. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "would", "should", "could", "trend", "predict", "likely", "potential" or "continue" or the negative thereof and similar variations.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond the Company's control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.
About
Founded in 1998,
The Company's name was changed from
Neither
For more information, please visit www.icpeiholdings.ca
SOURCE
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