EFH EFH Holdings Inc

TORONTO, Aug. 19, 2021 /CNW/ - ICPEI Holdings Inc. (the "Company") (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $2.0 million for the quarter ended June 30, 2021 compared to $0.9 million in the same period of 2020.

The Company received shareholders' approval to change its name to ICPEI Holdings Inc. from EFH Holdings Inc. on July 15, 2021 and it has also received approval to change its name on the TSX Venture Exchange and its stock symbol on the TSXV to "ICPH" effective August 23, 2021.

Highlights

• Net income per share of $0.14 per share this quarter compared to $0.05 per share in the second quarter of 2020.
  
  
• A combined ratio of 81.2% this quarter compared to 92.1% in the second quarter of 2020.
  
  
• A 54% increase in Direct Written Premiums over the same period in 2020 to $18.1 million. Personal lines increased by 28% and commercial lines increased by 104% in this period when compared to the same period last year.
  
  
• Successful completion of purchase of 25% non-controlling interest making The Insurance Company of Prince Edward Island ("ICPEI") a 100% subsidiary.
  
  
• Issued 2,735,600 common shares of the Company through a non-brokered private placement at a price of $1.42 per share for $3.9 million.
  
  
• ICPEI was granted a license and began to write commercial business in Ontario in May 2021.
  
  
• Closing book value per share of $1.63 compared to $1.65 at the end of the first quarter of 2021. The slight decrease from the last quarter is the result of decrease of $0.17 book value per share from purchase of non-controlling interest, issuance of common shares, offset by growth in equity from comprehensive income in the second quarter of 2021.

Underwriting Results:

Capital Management

The Minimum Capital Test ("MCT") ratio of the Company's subsidiary, Insurance Company of Prince Edward Island (ICPEI) as at June 30, 2021 was 322%, which comfortably exceeds the supervisory target of 150%.

The Company also 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.

COVID-19 Pandemic Update

Due to the strict restrictions on activity in early spring combined with rapid gains in vaccinations, the numbers of COVID-19 cases have gradually decreased and this should pave the way for the opening up of the Canadian economy in the second half of 2021. However, the risk of COVID-19 still remains but varies between and within communities and regions. Currently, COVID-19 did not have any significant impact on the results of the Company, but the impact remains uncertain as the pandemic evolves.

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.

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 property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through The Insurance Company of Prince Edward Island. 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.

For more information, please visit www.efh.ca

SOURCE ICPEI Holdings Inc.