ICPEI Holdings Inc. Reports 2022 Annual Financial Results

TORONTO, February 24, 2023 – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) today announced net income of $1.6 million for the year ended December 31, 2022, and a net loss of $1.7 million in the fourth quarter of 2022.

Serge Lavoie, Chief Executive Officer, commented “We had an impressive premium growth of 54% over last year and managed to generate an underwriting income of $3.1 million for the year despite the impact of Hurricane Fiona in the Maritimes provinces. Our previously announced plan of arrangement is proceeding well and subject to the satisfaction or waiver of customary closing conditions, we look forward to completing the arrangement shortly.”

 

Highlights

  • In 2022, total premiums written of $102.4 million is an increase of 54% over last year and $29.4 million in the fourth quarter represent a 57% growth over the same period in 2021, driven by the growth of business in Quebec and Ontario.
  • The business mix for 2022 is Commercial Lines of 52% and Personal Lines 48% compared to Commercial Lines of 46% and Personal Lines 54% in the same period last year. The growth is in line with our strategy to expand our business in commercial lines.
  • A Combined ratio of 96.1% for the year resulting in an underwriting income of $3.1 million. Hurricane Fiona and adverse development in claims related to accident years prior to 2020 had a significant impact on the results in the year.
  • Adverse development in claims related to prior years in the amount of $2.4 million and expenses of the Company’s going private transaction of $1.5 million negatively impacted the results in the fourth quarter of 2022.

For 2022, investment income was $1.0 million compared to $2.6 million last year and in the fourth quarter of 2022, investment income was $0.7 million compared to $0.8 million in the same period last year. With increasing interest rates during the year, the valuation of the investment portfolio decreased as a majority of the portfolio is in fixed income securities and is marked to market. On the positive side, the expected yield in our investment portfolio has increased to 4.90% at the end of 2022 from 2.09% at the end of 2021.