Executive Summary

Q4 2024 EPS was $0.54 vs $0.96 in Q4 2023, as consolidated revenues grew 4.5% YoY to $23.935M on stronger net premiums earned (+10.3% YoY), but higher expenses and lower net unrealized gains weighed on earnings .
Insurance underwriting metrics were mixed: GAAP combined ratio was 96.3% vs 93.7% a year ago, while the loss ratio was broadly stable YoY (56.2% vs 55.6%); the expense ratio rose to 40.1% (from 38.1%) due to merger/proxy costs .
Growth remained solid: direct premiums written rose 9.4% YoY to $26.361M; net investment income increased 21.1% YoY to $1.672M on reinvestment at higher yields . Book value per share improved to $22.86 (from $21.35 at 12/31/23) .
No formal quantitative guidance was provided; management is “very optimistic about 2025” and highlighted ex-merger/proxy FY combined ratio of 99.7% (1.3 pts better vs 2023) .
Wall Street (S&P Global) consensus estimates were unavailable in our system for ICCH; estimate-based beat/miss analysis could not be performed (see Estimates Context).

What Went Well and What Went Wrong

What Went Well
- Premium and earned premium growth: Direct premiums written +9.4% YoY to $26.361M; net premiums earned +10.3% YoY to $22.267M, driven by rate increases and higher policies in force .
- Investment income tailwind: Net investment income +21.1% YoY to $1.672M on redeployments at higher rates; management also noted equity market gains supporting unrealized gains for the full year .
- Operational efficiency and tone: CEO emphasized improving operational efficiencies and a FY 2024 ex-merger/proxy combined ratio of 99.7% (1.3 pts lower than 2023); “very optimistic about 2025” .
What Went Wrong
- EPS and YoY profitability: Q4 diluted EPS fell to $0.54 from $0.96 in Q4 2023 despite higher revenues; net earnings declined to $1.608M from $2.861M YoY .
- Expense pressure: Expense ratio rose to 40.1% (from 38.1% YoY) with policy acquisition/operating expenses up 16.1% to $8.935M, citing merger and proxy contest costs .
- Investment mark-to-market in the quarter: Q4 recognized net unrealized losses of $0.084M vs gains of $0.857M in Q4 2023, with underperformance in healthcare, materials, and construction equities .

Financial Results

Revenue, EPS, and profit vs prior periods (oldest → newest)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Consolidated Revenues ($USD)	$22,906,639	$22,177,097	$24,375,415	$23,934,595
Net Earnings ($USD)	$2,860,824	$(731,876)	$2,052,191	$1,608,276
Diluted EPS ($)	$0.96	$(0.24)	$0.69	$0.54

Insurance margin metrics (oldest → newest)

Ratio	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Losses & Settlement Expense Ratio	55.6%	71.3%	65.1%	56.2%
Expense Ratio	38.1%	39.6%	33.6%	40.1%
GAAP Combined Ratio	93.7%	110.9%	98.7%	96.3%

Operating KPIs (oldest → newest)

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Direct Premiums Written ($M)	$24.091	$25.391	$27.662	$26.361
Net Premiums Earned ($M)	$20.188	$20.398	$21.711	$22.267
Net Investment Income ($M)	$1.381	$1.540	$1.557	$1.672
Earned Premiums Ceded ($M)	$2.637	$3.665	$3.479	$3.585
Losses & Settlement Expenses ($M)	$11.231	$14.553	$14.144	$12.504
Policy Acquisition & Other OpEx ($M)	$7.698	$8.082	$7.302	$8.935

Additional balance sheet datapoints

Book value per share: $22.86 at 12/31/24 (vs $21.35 at 12/31/23) .
Total equity: $71.746M at 12/31/24 (vs $67.004M at 12/31/23) .
Total assets: $235.360M at 12/31/24 (vs $211.017M at 12/31/23) .

Segment breakdown: Not disclosed in the Q4 press release; narrative highlights liquor liability and businessowner’s liability as key claim drivers without quantified segment revenues .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
N/A	N/A	N/A	No formal quantitative guidance provided; CEO noted optimism for 2025 and highlighted FY ex-merger/proxy combined ratio of 99.7% (1.3 pts better YoY)	N/A

Earnings Call Themes & Trends

Note: We could not locate a Q4 2024 earnings call transcript in the document catalog; themes are synthesized from the Q2–Q4 press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Premium growth and rates	Strong premium growth from targeted rate increases and policy count expansion	Continued growth; NPE +12.9% YoY	DPW +9.4% YoY; NPE +10.3% YoY as rates and policies in force rise	Positive, sustained
Loss trends/liquor liability	Higher losses driven by Liquor Liability and Business Owner’s Property	Higher losses YoY, notably Businessowner’s Liability; Liquor Liability YTD	Prior-year Liquor Liability development a key driver of higher losses/settlement expenses	Persistent headwind
Expense control/one-offs	Higher legal/consulting (proxy/merger); ex-one-off expense ratio improvement	$1.0M merger/proxy costs offset by efficiencies; lower expense ratio YoY	Expense ratio 40.1%; merger/proxy spend elevated OpEx	One-offs fading post-deal; near-term pressure
Technology/AI in claims	Not highlighted	Introduced Charlee.ai to improve efficiency and claim resolution	Not specifically updated in Q4 PR	Early deployment; monitor impact
Investment income/yields	NII +23.5% YoY on higher reinvestment yields	NII +16.0% YoY; equity unrealized gains reversing losses	NII +21.1% YoY; full-year unrealized equity gains higher, Q4 quarter saw small unrealized loss	Tailwind from rates; quarterly market noise
Reinsurance dynamics	Higher cessions; addition of ceding allowance	Higher cessions; continued allowance impact	Continued elevated cessions YoY	Structurally higher cession rate
Merger/proxy process	Proceeding as planned; Q4 close targeted	Vote planned late Nov; expecting Q4 close	Merger/proxy expenses mentioned; no new timeline in PR	De-emphasized in Q4 PR

Management Commentary

“As our premiums grew in 2024, so to did our operational efficiencies. Our combined ratio excluding merger and resolved proxy contest expenses was 99.7%, or 1.3% lower than our 2023 combined ratio… Our loss and settlement expense ratio remains stable at 63.3% despite a challenging liquor liability market…” — Arron Sutherland, President & CEO .
“Increased rates and holdings expanded our net investment income. In addition, improvements in the equity markets increased our unrealized gains on investments.” — Arron Sutherland .
“As we continue to build on our solid foundation, I am very optimistic about 2025.” — Arron Sutherland .
Prior quarter context: “Losses and settlement expenses are down due to our continued rate strengthening, tighter risk selection, and the introduction of Charlee.ai to improve efficiency and hasten claim resolution.” — Arron Sutherland (Q3 PR) .

Q&A Highlights

We did not locate a Q4 2024 earnings call transcript; no Q&A highlights are available from primary sources.

Estimates Context

S&P Global/Capital IQ consensus estimates could not be retrieved for ICCH due to missing company mapping in our SPGI interface; therefore, beat/miss vs Street cannot be assessed from S&P Global in this environment. If you have access to broker estimates, we can reconcile actuals to those figures.

Key Takeaways for Investors

Underwriting improved sequentially vs Q2’s elevated combined ratio; Q4 combined ratio of 96.3% reflects stable loss ratio and ongoing premium growth, though expense ratio remained elevated given merger/proxy costs .
Earnings were pressured YoY by higher operating expenses and lower Q4 unrealized investment marks, despite stronger earned premiums and higher net investment income; diluted EPS $0.54 vs $0.96 YoY .
Growth trajectory intact: DPW +9.4% YoY and NPE +10.3% YoY underscore pricing power and policy expansion in the food & beverage niche .
Claims mix remains a watch item: liquor liability development continues to be a driver of losses; sustained rate action and risk selection are key mitigants .
Balance sheet strengthened in 2024: book value/share rose to $22.86; equity and assets expanded on earnings and portfolio growth .
Investment income provides a durable tailwind into 2025 given higher reinvestment yields, though quarterly equity marks can add noise .
No formal guidance; CEO’s optimistic tone and ex-one-off combined ratio improvement suggest potential for continued margin normalization post-merger/proxy expense normalization .

Supporting detail (selected):

Q4 consolidated revenues $23.935M; net earnings $1.608M; diluted EPS $0.54 .
Q4 combined ratio 96.3% (loss ratio 56.2%, expense ratio 40.1%) .
DPW $26.361M (+9.4% YoY); NPE $22.267M (+10.3% YoY); NII $1.672M (+21.1% YoY) .

Sources: Q4 2024 8-K/press release and financial statements ; Q3 2024 press release/8-K ; Q2 2024 press release/8-K .

ICC Holdings, Inc. (ICCH)·Q4 2024 Earnings Summary