Breaking Down ICC Holdings, Inc. (ICCH) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you been following ICC Holdings, Inc. (ICCH) and wondering about its financial stability and future prospects? As of the third quarter of 2024, ICCH reported a 2.92% return on average invested assets, surpassing its average ROI of 1.45%. With a recent acquisition by Mutual Capital Group for $23.50 per share in a deal valued at $73.8 million expected to close in Q4 2024, and Q3 2024 net earnings of $2.05 million ($0.69 per share), it's crucial to understand the key factors driving its performance. Delve into this analysis to uncover essential insights and make informed decisions about ICCH.

ICC Holdings, Inc. (ICCH) Revenue Analysis

Understanding the revenue streams of ICC Holdings, Inc. (ICCH) is crucial for investors seeking insights into the company's financial health and stability. The company primarily generates revenue through premium income from its insurance operations.

Primary Revenue Sources:

• Commercial property insurance
• Commercial liability coverage
• Personal automobile insurance
• Homeowners insurance policies

Year-over-Year Revenue Growth:

ICC Holdings Inc. (ICCH) has demonstrated notable revenue growth over the past few years. According to the latest financial reports, the company's revenue for the trailing twelve months (TTM) ending September 30, 2024, was $92.54 million. This represents a 14.09% increase year-over-year.

Here's a look at the historical revenue and growth rates:

Contribution of Business Segments:

ICC Holdings, Inc. operates through three primary insurance-focused business segments:

• Specialty Property and Casualty Insurance
• Commercial Insurance
• Personal Insurance

Analysis of Changes in Revenue Streams:

ICC Holdings, Inc. has shown a consistent increase in revenue, driven by factors such as rate increases and expanded business operations. For instance, in the first quarter of 2024, direct premiums written increased by 14.0% to $23.736 million. Net premiums earned also rose by 13.6% to $20.222 million. These increases reflect the company's ability to grow its premium base and maintain a steady revenue stream.

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ICC Holdings, Inc. (ICCH) Profitability Metrics

Analyzing the profitability of ICC Holdings, Inc. (ICCH) involves looking at several key metrics that provide insights into the company's financial health. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time.

For the fourth quarter of 2024, ICC Holdings reported net earnings of $1.61 million, or $0.54 per share, compared to $2.86 million, or $0.97 per share, in the same period of 2023. For the full year 2024, net earnings were $5.17 million, or $1.75 per share, up from $4.26 million, or $1.44 per share, in 2023. The increase in annual earnings was driven by higher premiums and positive changes in net unrealized gains on equity securities.

Here's a look at some key profitability metrics and trends:

• Net Earnings: ICC Holdings reported net earnings of $2.05 million ($0.69 per share) for Q3 2024, compared to a net loss of $769,000 in Q3 2023.
• Direct Premiums Written: Increased by 12.9% to $27.66 million.
• Net Investment Income: Grew by 16% to $1.56 million.
• Book Value Per Share: Improved to $23.29 from $21.35 at the end of 2023.
• Total Assets: Increased by 10.4% to $232.93 million.

In the first quarter of 2024, ICC Holdings' net earnings totaled $2,239,000, or $0.76 per share. The company's losses and settlement expense ratio was 61.0% for the three months ended March 31, 2024, compared with 62.1% for the same period in 2023. The expense ratio was 37.9% for the three months ended March 31, 2024, compared to 35.7% for the same period in 2023.

The GAAP combined ratio, a key indicator of underwriting profitability, was 98.9% for the three months ended March 31, 2024, compared to 97.8% for the same period in 2023.

Here is a summary of ICC Holdings' Financial Ratios:

ICC Holdings combines operational efficiency with strategic market positioning by utilizing independent agents, which optimizes distribution and ensures specialized knowledge is effectively communicated to potential clients. This localized marketing, coupled with centralized underwriting operations, fosters a balance between regional expertise and standardization of service delivery.

To gain more insights into the company's values and direction, refer to Mission Statement, Vision, & Core Values of ICC Holdings, Inc. (ICCH).

ICC Holdings, Inc. (ICCH) Debt vs. Equity Structure

Understanding how ICC Holdings, Inc. (ICCH) manages its debt and equity is crucial for investors assessing the company’s financial stability and growth potential. This involves looking at the levels of debt the company holds, comparing its debt-to-equity ratio against industry benchmarks, and noting any recent activity in debt markets.

As of the fiscal year 2024, ICC Holdings, Inc. (ICCH) showcases a strategic approach to balancing debt and equity. While specific figures for long-term and short-term debt for 2024 are not available, analyzing the broader financial strategy provides insights into their approach. It is important to check the latest financial statements for the most up-to-date information.

The debt-to-equity ratio is a key metric to evaluate ICC Holdings, Inc.'s (ICCH) financial leverage. While the exact 2024 ratio requires updated financial data, this ratio generally indicates the proportion of debt and equity used to finance the company's assets. A lower ratio typically suggests less risk, as it implies the company relies more on equity than debt. Investors should compare this ratio to industry averages to determine whether ICC Holdings, Inc. (ICCH) is more or less leveraged than its peers.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact ICC Holdings, Inc.'s (ICCH) financial health. Keep an eye on announcements regarding new debt, changes in credit ratings from agencies like Standard & Poor's or Moody's, or efforts to refinance existing debt, as these can affect the company's borrowing costs and financial flexibility.

ICC Holdings, Inc. (ICCH) strategically uses a mix of debt and equity to fund its operations and growth. The balance between these two funding sources is vital. Too much debt can increase financial risk, while too little debt might indicate that the company is not taking advantage of potential leverage to enhance returns. Evaluating this balance helps investors understand how efficiently ICC Holdings, Inc. (ICCH) is managing its capital structure.

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ICC Holdings, Inc. (ICCH) Liquidity and Solvency

Assessing the financial health of ICC Holdings, Inc. (ICCH) requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term liabilities. Analyzing key financial ratios and cash flow trends provides insights into ICCH's financial stability.

Liquidity Ratios:

The current and quick ratios are essential metrics for evaluating a company's liquidity. The current ratio measures a company's ability to pay off its current liabilities with its current assets. The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative measure of liquidity.

For the fiscal year 2024, a review of ICCH's financial statements will show the specific values for these ratios. Generally, a current ratio of 1.5 to 2.0 and a quick ratio of 1.0 or higher are considered healthy, indicating sufficient liquidity to cover short-term obligations. Any deviations from these benchmarks would warrant further investigation into the company's asset and liability management.

Working Capital Trends:

Monitoring working capital trends is crucial for assessing ICCH's operational efficiency and short-term financial health. Working capital, calculated as the difference between current assets and current liabilities, represents the funds available for day-to-day operations.

An increasing working capital balance typically indicates improved liquidity and operational efficiency, while a decreasing balance may signal potential challenges in managing short-term obligations. Analyzing the components of working capital, such as accounts receivable, accounts payable, and inventory levels, can provide further insights into the drivers of these trends.

Cash Flow Statements Overview:

The cash flow statement provides a comprehensive view of ICCH's cash inflows and outflows from operating, investing, and financing activities. Analyzing the trends in these cash flows can reveal important information about the company's financial performance and sustainability.

• Operating Cash Flow: Positive operating cash flow indicates that ICCH is generating sufficient cash from its core business operations to fund its activities and meet its obligations.
• Investing Cash Flow: This section reflects cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). Significant investments in PP&E may indicate growth initiatives, while divestitures may signal strategic shifts.
• Financing Cash Flow: This section includes cash flows related to debt, equity, and dividends. Analyzing financing cash flows can provide insights into ICCH's capital structure and dividend policy.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, it's important to identify any potential liquidity concerns or strengths for ICC Holdings, Inc. (ICCH). For example, a consistently low current ratio, declining working capital, or negative operating cash flow may raise concerns about the company's ability to meet its short-term obligations.

Conversely, a strong current ratio, increasing working capital, and positive operating cash flow would indicate a healthy liquidity position. Additionally, it's important to consider any contingent liabilities or off-balance-sheet obligations that could impact ICCH's liquidity in the future.

For more detailed insights, you can read this article: Breaking Down ICC Holdings, Inc. (ICCH) Financial Health: Key Insights for Investors.

ICC Holdings, Inc. (ICCH) Valuation Analysis

Assessing whether ICC Holdings, Inc. (ICCH) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. A thorough examination of these elements provides investors with a clearer perspective on the company's intrinsic value relative to its current market price. For a broader view, you might find valuable insights in this related article: Breaking Down ICC Holdings, Inc. (ICCH) Financial Health: Key Insights for Investors.

To determine whether ICC Holdings, Inc. (ICCH) is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation, relative to industry peers or historical averages.
• Price-to-book (P/B) Ratio: The P/B ratio measures the market capitalization of a company against its book value of equity. A P/B ratio below 1.0 could suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s useful for evaluating companies with varying capital structures.

Analyzing ICC Holdings, Inc. (ICCH)'s stock price trends over the past year or longer provides context on market sentiment and overall performance:

• Review historical stock charts to identify patterns, trends, and significant price movements.
• Compare ICC Holdings, Inc. (ICCH)'s stock performance against industry benchmarks or competitor stocks to gauge relative performance.

If applicable, dividend yield and payout ratios offer insights into the company's capital allocation strategy and attractiveness to income-seeking investors:

• Dividend Yield: Calculated as the annual dividend per share divided by the stock price, it indicates the return on investment from dividends alone.
• Payout Ratio: This ratio represents the percentage of earnings paid out as dividends. A sustainable payout ratio suggests the company can maintain its dividend payments.

Keep in mind that analyst consensus can offer a summarized view of professional opinions on the stock’s valuation:

• Check reputable financial websites for analyst ratings, price targets, and recommendations (buy, hold, or sell).
• Consider the source and track record of the analysts providing the opinions.

To illustrate, let's consider a hypothetical valuation scenario for ICC Holdings, Inc. (ICCH) using sample data. Please note that this data is purely illustrative and does not reflect the actual financials of ICC Holdings, Inc. (ICCH).

Based on this hypothetical data, ICC Holdings, Inc. (ICCH) might be considered undervalued. However, always conduct thorough due diligence and consider various factors before making investment decisions.

ICC Holdings, Inc. (ICCH) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of ICC Holdings, Inc. (ICCH). These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in the company's filings.

Here's a breakdown of key risk areas:

• Industry Competition: The insurance industry is highly competitive. ICC Holdings, Inc. faces competition from national and regional carriers, as well as mutual companies, which could impact its ability to maintain market share and profitability.
• Regulatory Changes: Insurance companies are subject to extensive state and federal regulations. Changes in these regulations, such as those related to capital requirements, reserve requirements, or permitted investments, could adversely affect ICC Holdings, Inc.'s financial condition and results of operations.
• Market Conditions: Economic downturns, fluctuations in interest rates, and other market conditions can impact the demand for insurance products and the returns on the company's investment portfolio. For example, low interest rates can reduce investment income, while a recession can lead to decreased premium revenue.

Operational, financial, and strategic risks are often highlighted in ICC Holdings, Inc.'s earnings reports and filings. These may include:

• Underwriting Risk: The risk that the company's underwriting practices may not adequately assess and price the risks it assumes, leading to higher-than-expected claims and losses.
• Investment Risk: The risk that the company's investment portfolio may suffer losses due to market volatility, credit risk, or other factors.
• Reserving Risk: The risk that the company's reserves for future claims may be inadequate, leading to future losses and financial strain.

While specific mitigation strategies are not always publicly detailed, insurance companies typically employ various techniques to manage these risks, such as:

• Diversification: Diversifying their business across different geographic regions and lines of insurance to reduce their exposure to any single risk.
• Reinsurance: Purchasing reinsurance to transfer a portion of their risk to other insurance companies.
• Risk Management Programs: Implementing comprehensive risk management programs to identify, assess, and mitigate risks throughout the organization.

Understanding these risks is crucial for investors assessing the financial health and future prospects of ICC Holdings, Inc. (ICCH). For a deeper dive, check out: Breaking Down ICC Holdings, Inc. (ICCH) Financial Health: Key Insights for Investors

ICC Holdings, Inc. (ICCH) Growth Opportunities

For ICC Holdings, Inc. (ICCH), several factors could drive future expansion. These encompass strategic actions, industry trends, and the company's inherent advantages.

Key growth drivers for ICC Holdings, Inc. (ICCH) may include:

• Product Innovations: Development and introduction of new insurance products or services that cater to emerging market needs or address specific customer segments.
• Market Expansions: Extending the company's reach into new geographic areas or demographic groups, potentially through partnerships or acquisitions.
• Acquisitions: Strategic acquisitions of complementary businesses to expand market share, product offerings, or geographic presence.

Predicting future revenue growth and earnings requires a thorough analysis of the company's financial statements, market conditions, and industry trends. While specific projections demand detailed financial modeling, some broad considerations include:

Strategic initiatives and partnerships that could fuel future growth:

• Technology Investments: Implementing advanced technologies to improve operational efficiency, enhance customer experience, and develop innovative products.
• Strategic Alliances: Forming partnerships with other companies to expand distribution networks, access new markets, or offer bundled services.
• New Distribution Channels: Exploring alternative distribution channels, such as online platforms or independent agents, to reach a wider customer base.

ICC Holdings, Inc. (ICCH) competitive advantages that could position the company for growth:

• Established Market Presence: A strong foothold in its existing markets, providing a solid foundation for expansion.
• Strong Brand Reputation: A positive brand image, fostering customer loyalty and attracting new business.
• Efficient Operations: Streamlined processes and cost-effective operations, enhancing profitability and competitiveness.

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