TORONTO, March 3, 2022 /CNW/ - ICPEI Holdings Inc. (the "Company") (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $6.7 million for the year and $2.4 million in Q4 ended December 31, 2021 compared to $4.9 million, excluding discontinued operations, and $0.5 million in the same period of 2020.

Serge Lavoie, Chief Executive Officer, commented "We had a very impressive year with premium growth of 54% over last year and a combined ratio of 85.7% for 2021. We plan to continue our growth in the rest of Canada as we have received our license in Ontario and applied for license in Alberta."

Highlights

  • Premium written grew 54% for 2021 and 61% for Q4 2021. The growth is in line with our strategy to expand geographically in Quebec and to focus more on the commercial line of business.

  • Underwriting income of $7.6 million for 2021 and $2.7 million for Q4 2021, increased by 205% and 429%, respectively, compared to the same periods in 2020. Our growth in commercial business is contributing the majority of our underwriting income.

  • EPS $0.45 for 2021 and $0.16 for Q4 2021, increase of 29% and 700%, respectively, compared to the same periods in 2020.

  • ROE of 27.5% for 2021 and BVPS growth of 16% to $1.84 in 2021

  • Net income from continued operations of $6.7 million for 2021 compared to $4.9 million for 2020 and $2.4 million in Q4 2021 compared to $0.5 million in Q4 2020.

  • Combined ratio of 85.7% in 2021 improved from 93.2% in 2020 and 82.7% in Q4 2021 improved from 94.9% in Q4 2020.

Quarter and year ended December 31, 2021 compared to quarter and year ended December 31, 2020


3 months ended

December 31

12 months ended

December 31


2021

2020

2021

2020

Direct written and assumed premiums

18,753

11,619

66,676

43,188

Net earned premiums

15,891

10,141

53,448

37,012

Net claims incurred

6,826

5,423

24,281

19,913

Net acquisition costs

4,114

2,428

13,790

8,918

Operating expenses(1)

2,209

1,772

7,742

5,675

Corporate expense(1)

316

558

1,149

1,365

Underwriting  income  (2)

2,742

518

7,635

2,506

Investment  income

798

783

2,561

4,795

Impact of change in discount rate on claims

121

(241)

186

(342)

Net  income before income taxes

3,345

502

9,233

5,594


3 months ended

December 31

12 months ended

December 31


2021

2020

2021

2020

Income tax expense

928

33

2,558

698

Net  income on continued operations

2,417

469

6,675

4,896

Net  loss on discontinued operations

-

-

-

(5,866)

Net income (loss)

2,417

469

6,675

(970)

Net  income (loss) attributed to:





Shareholders of the Company – continued operations

2,417

272

6,359

4,149

Shareholders of the Company – discontinued operations

-

-

-

(5,866)

Non-controlling interest

-

197

316

747






Earnings per share (EPS)





Continued operations





Basic

$0.16

$0.02

$0.45

$0.35

Diluted

$0.16

$0.02

$0.45

$0.35

Discontinued operations





Basic

-

-

-

$(0.49)

Diluted

-

-

-

$(0.49)

Book value per share (BVPS)(3)



$1.84

$1.59

Return on Equity (ROE)(4)



27.5%

7.6%



(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 total equity by the number of common shares outstanding.

(4)

Return on Equity is net income on continued operations divided by average total equity.

Underwriting Results:


3 months ended
December 31

12 months ended

December 31

Underwriting Income (loss) $000s

2021

2020

2021

2020






Personal Lines

1,458

1,256

2,571

2,952

Commercial Lines

1,284

(738)

5,064

(446)

Key Ratios





Loss Ratio

42.9%

53.5%

45.4%

53.8%

Expense Ratio

39.8%

41.4%

40.3%

39.4%

Combined Ratio

82.7%

94.9%

85.7%

93.2%

Loss Ratios





Personal Lines

45.2%

41.2%

50.0%

49.5%

Commercial Lines

40.0%

78.9%

39.2%

63.4%

Capital Management

The Minimum Capital Test ("MCT") ratio of the Company's subsidiary, Insurance Company of Prince Edward Island (ICPEI) as at December 31, 2021 was 328%, which comfortably exceeds the supervisory target of 150%.

The Company entered into a bank credit facility consisting of $3 million Term Loan and $2 million revolving credit and drew on the $3 million Term Loan on April 1, 2021.  Repayment of $0.23 million was made to the bank in the year.

COVID-19 Pandemic Update

Due to the strict restrictions on activity in early spring of 2021 combined with rapid gains in vaccinations, the numbers of COVID-19 cases gradually decreased and we saw the gradual re-opening of the Canadian economy in the second half of 2021. However, with the highly contagious Delta variant and the discovery of a new variant, Omicron, the risk for increased COVID cases across Canada remains high. 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 is based on net income on continued operations divided by average total equity.

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 ICPEI Holdings Inc.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property and casualty insurance industry through its wholly owned subsidiary The Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance products exclusively through the broker channel.

The Company's name was changed from EFH Holdings Inc. to ICPEI Holdings Inc. after receiving approval from shareholders on July 15, 2021. It trades on the TSX Venture Exchange under the symbol ICPH effective August 20, 2021 and prior to December 23, 2020 it traded on the Toronto Stock Exchange.  

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE ICPEI Holdings Inc.

Copyright 2022 Canada NewsWire

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