10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

_______________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended Mach 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from to .

Commission File Number: 001-38046

ICC Holdings, Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Pennsylvania (State or other jurisdiction of incorporation or organization)	81-3359409 (I.R.S. Employer Identification No.)
225 20th Street,  Rock Island,  Illinois (Address of principal executive offices)	61201 (Zip Code)

(309)  793-1700

(Registrant’s telephone number, including area code)

_______________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ICCH	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ☐	Accelerated filer   ☐
Non-accelerated filer     ☒	Smaller reporting company   ☒
	Emerging growth company   ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐     No ☒

The number of shares of the registrant’s common stock outstanding as of May3, 2021 was 3,298,355.

Table of Contents

		Page
PART I
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2021 (unaudited) and December 31, 2020	3
	Condensed Consolidated Statements of Earnings and Comprehensive Earnings for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)	4
	Condensed Consolidated Statements of Stockholders Equity for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Three-Month Periods Ended March 31, 2021 and 2020 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	31
PART II
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Default Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
Signatures		34

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

ICC Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

	As of
	March 31,		December 31,
	2021		2020
		(Unaudited)
Assets
Investments and cash:
Fixed maturity securities (amortized cost - $97,695,883 at 3/31/2021 and$98,753,027 at 12/31/2020)	$	101,865,040	$	105,740,566
Common stocks at fair value		18,404,167		14,724,814
Preferred stocks at fair value		1,654,530		1,683,892
Other invested assets		1,777,792		1,772,867
Property held for investment, at cost, net of accumulated depreciation of $464,847 at 3/31/2021 and $465,364 at 12/31/2020		5,148,152		5,399,826
Cash and cash equivalents		5,556,479		6,598,842
Total investments and cash		134,406,160		135,920,807
Accrued investment income		700,153		660,793
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $150,000 at 3/31/2021 and 12/31/2020		22,598,051		23,506,171
Ceded unearned premiums		861,914		860,905
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 3/31/2021 and 12/31/2020		14,011,159		13,019,865
Federal income taxes		338,908		372,986
Deferred policy acquisition costs, net		5,721,277		5,429,620
Property and equipment, at cost, net of accumulated depreciation of $6,196,657 at 3/31/2021 and $6,079,728 at 12/31/2020		2,818,244		2,860,331
Other assets		1,287,738		1,307,794
Total assets	$	182,743,604	$	183,939,272
Liabilities and Equity
Liabilities:
Unpaid losses and settlement expenses	$	61,807,968	$	61,575,666
Unearned premiums		30,467,894		29,788,834
Reinsurance balances payable		347,506		371,195
Corporate debt		13,462,614		13,465,574
Accrued expenses		3,021,753		3,472,511
Income taxes - deferred		910,957		1,231,271
Other liabilities		944,113		1,290,532
Total liabilities		110,962,805		111,195,583
Equity:
Common stock1		35,000		35,000
Treasury stock, at cost2		(3,095,065)		(3,153,838)
Additional paid-in capital		32,765,565		32,780,436
Accumulated other comprehensive earnings, net of tax		3,293,569		5,520,091
Retained earnings		41,302,055		40,140,115
Less: Unearned Employee Stock Ownership Plan shares at cost3		(2,520,325)		(2,578,115)
Total equity		71,780,799		72,743,689
Total liabilities and equity	$	182,743,604	$	183,939,272

1Par value $0.01; authorized: 2021 - 10,000,000 shares and 2020 – 10,000,000 shares; issued: 2021 – 3,500,000 shares and 2020 – 3,500,000 shares; outstanding: 2021–3,295,255 and 2020 - 3,291,125 shares.

22021 – 204,745 shares and 2020 – 208,875 shares

32021  –252,032 shares and 2020  –257,811 shares

See accompanying notes to consolidated financial statements.

~  3  ~

ICC Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited)

	For the Three-Months Ended
	March 31,
	2021		2020
Net premiums earned	$	12,048,713	$	13,013,989
Net investment income		801,406		835,400
Net realized investment gains		186,709		95,632
Net unrealized gains (losses) on equity securities		876,316		(3,689,347)
Other income		46,716		50,198
Consolidated revenues		13,959,860		10,305,872
Losses and settlement expenses		7,802,706		7,842,082
Policy acquisition costs and other operating expenses		4,467,578		4,764,974
Interest expense on debt		53,702		35,328
General corporate expenses		163,982		174,421
Total expenses		12,487,968		12,816,805
Earnings (loss) before income taxes		1,471,892		(2,510,933)
Total income tax expense (benefit)		309,951		(537,637)
Net earnings (loss)	$	1,161,941	$	(1,973,296)
Other comprehensive loss, net of tax		(2,226,522)		(1,710,846)
Comprehensive loss	$	(1,064,581)	$	(3,684,142)
Earnings per share:
Basic:
Basic net earnings (loss) per share	$	0.38	$	(0.65)
Diluted:
Diluted net earnings (loss) per share	$	0.38	$	(0.65)
Weighted average number of common shares outstanding:
Basic		3,034,233		3,016,062
Diluted		3,044,479		3,020,458

See accompanying notes to consolidated financial statements.

~  4  ~

ICC Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

	Common stock		Treasury stock			Unearned ESOP		Additional paid-in capital		Retained earnings		Accumulated other comprehensive earnings (loss)			Total equity
Balance, January 1, 2020	$	35,000		$	(3,146,576)	$	(2,812,485)	$	32,703,209	$	36,608,750		$	2,953,936	$	66,341,834
Net (loss)		—			—		—		—		(1,973,296)			—		(1,973,296)
Other comprehensive loss, net of tax		—			—		—		—		—			(1,710,846)		(1,710,846)
Restricted stock unit expense		—			99,467		—		(62,540)		—			—		36,927
ESOP compensation expense		—			—		58,272		17,496		—			—		75,768
Balance, March 31, 2020	$	35,000		$	(3,047,109)	$	(2,754,213)	$	32,658,165	$	34,635,454		$	1,243,090	$	62,770,387

	Common stock		Treasury stock			Unearned ESOP		Additional paid-in capital		Retained earnings		Accumulated other comprehensive earnings (loss)		Total equity
Balance, January 1, 2021	$	35,000	$	(3,153,838)		$	(2,578,115)	$	32,780,436	$	40,140,115	$	5,520,091	$	72,743,689
Purchase of treasury stock		—		(19,174)			—		—		—		—		(19,174)
Net earnings		—		—			—		—		1,161,941		—		1,161,941
Other comprehensive loss, net of tax		—		—			—		—		—		(2,226,522)		(2,226,522)
Restricted stock unit expense		—		77,947	1		—		(39,831)		—		—		38,116
ESOP compensation expense		—		—			57,790		24,960		—		—		82,750
Balance, March 31, 2021	$	35,000	$	(3,095,065)		$	(2,520,325)	$	32,765,565	$	41,302,055	$	3,293,569	$	71,780,799

1Amount represents restricted stock units that have fully vested in the period

See accompanying notes to consolidated financial statements.

~  5  ~

ICC Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three-Month Periods Ended March 31,
	2021		2020
Cash flows from operating activities:
Net earnings (loss)	$	1,161,941	$	(1,973,296)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities
Net realized investment gains		(186,709)		(95,632)
Net unrealized (gains) losses on equity securities		(876,316)		3,689,347
Depreciation		159,680		167,079
Deferred income tax		271,546		(776,673)
Amortization of bond premium and discount		67,997		46,198
Stock-based compensation expense		120,866		112,695
Change in:
Accrued investment income		(39,360)		(49,265)
Premiums and reinsurance balances receivable		908,120		145,030
Ceded unearned premiums		(1,009)		16,232
Reinsurance balances payable		(23,689)		(22,323)
Reinsurance balances recoverable		(991,294)		(282,252)
Deferred policy acquisition costs		(291,657)		(111,309)
Unpaid losses and settlement expenses		232,302		1,435,349
Unearned premiums		679,060		(575,696)
Accrued expenses		(450,758)		(1,249,696)
Current federal income tax		34,078		3,497
Other		(292,180)		(316,700)
Net cash provided by operating activities		482,618		162,585
Cash flows from investing activities:
Purchases of:
Fixed maturity securities, available-for-sale		(2,494,500)		(5,105,043)
Common stocks		(3,310,389)		(592,329)
Preferred stocks		(81,953)		(1,548,172)
Other invested assets		—		(821,500)
Property held for investment		(30,018)		(28,573)
Property and equipment		(80,497)		(108,096)
Proceeds from sales, maturities and calls of:
Fixed maturity securities, available-for-sale		3,484,432		3,802,593
Common stocks		687,015		524,818
Preferred stocks		78,469		91,838
Property held for investment		243,588		—
Property and equipment		1,007		3,835
Net cash used in investing activities		(1,502,846)		(3,780,629)
Cash flows from financing activities:
Proceeds from loans		—		6,000,000
Repayments of borrowed funds		(2,961)		(2,522)
Purchase of treasury stock		(19,174)		—
Net cash (used in) provided by financing activities		(22,135)		5,997,478
Net (decrease) increase in cash and cash equivalents		(1,042,363)		2,379,434
Cash and cash equivalents at beginning of year		6,598,842		6,626,585
Cash and cash equivalents at end of period	$	5,556,479	$	9,006,019
Supplemental information:
Interest paid	$	52,600	$	35,300

See accompanying notes to consolidated financial statements.

~  6  ~

Notes to Unaudited Condensed Consolidated Financial Statements

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.     DESCRIPTION OF BUSINESS

ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to the “Company,” “we,” “us,” and “our” refer to the consolidated group. On a stand-alone basis ICC Holdings, Inc. is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc.; ICC Realty, LLC, a real estate services and holding company; Beverage Insurance Agency, Inc., a non-insurance subsidiary; Estrella Innovative Solutions, Inc., an outsourcing company; and Illinois Casualty Company (ICC), an operating insurance company that is the parent company of ICC Properties, LLC, a real estate series limited liability company.  Both ICC and ICC Properties, LLC are Illinois domiciled companies.

We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers’ compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, and Wisconsin and markets through independent agents. Approximately 24.8% and 26.5% of the premium is written in Illinois for the three months ended March 31, 2021 and 2020, respectively. The Company operates as a single segment.

B.     PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q.  Accordingly, they do not include all the disclosures required by GAAP for complete financial statements.  As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, for the year ended December 31, 2020 (the “2020 10-K”). Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2021, and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates.

C.     SIGNIFICANT ACCOUNTING POLICIES

The Company reported its significant accounting policies in the 2020 10-K.

D.     PROSPECTIVE ACCOUNTING STANDARDS

For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the 2020 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies later in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable.

~  7  ~

E.     PROPERTY AND EQUIPMENT

Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2021 and2020, the Company recognized no impairments.  Property and equipment are summarized as follows:

	As of
	March 31,		December 31,
	2021		2020
Automobiles	$	530,723	$	530,722
Furniture and fixtures		488,642		491,766
Computer equipment and software		4,046,770		3,971,272
Home office		3,948,766		3,946,299
Total cost		9,014,901		8,940,059
Accumulated depreciation		(6,196,657)		(6,079,728)
Net property and equipment	$	2,818,244	$	2,860,331

F.     COMPREHENSIVE EARNINGS

Comprehensive earnings (loss) include net earnings (loss) plus unrealized (gains) losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21% tax rate. Other comprehensive earnings, as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax (benefit) of  $(591,860) and $(454,782) for the three months ended March 31, 2021 and 2020, respectively.

The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale securities:

	Three-Months Ended March 31,
	2021		2020
Beginning balance	$	5,520,091	$	2,953,936
Other comprehensive loss before reclassification		(2,225,503)		(1,526,960)
Amount reclassified from accumulated other comprehensive loss		(1,019)		(183,886)
Net current period other comprehensive loss		(2,226,522)		(1,710,846)
Ending balance	$	3,293,569	$	1,243,090

The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements.

	Three-Month Periods Ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Other comprehensive loss, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding losses arising during the period	$	(2,817,092)	$	591,589	$	(2,225,503)	$	(1,932,861)	$	405,901	$	(1,526,960)
Reclassification adjustment for gains included in net earnings		(1,290)		271		(1,019)		(232,767)		48,881		(183,886)
Total other comprehensive loss	$	(2,818,382)	$	591,860	$	(2,226,522)	$	(2,165,628)	$	454,782	$	(1,710,846)

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The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented:

Amounts Reclassified from
Accumulated Other Comprehensive Earnings
	Three-Month Periods Ended
Details about Accumulated Other	March 31,				Affected Line Item in the Statement
Comprehensive Earnings Component	2021		2020		where Net Earnings is Presented
Unrealized (gains) on AFS investments:
	$	(1,290)	$	(232,767)	Net realized investment (gains)
		271		48,881	Income tax expense
Total reclassification adjustment, net of tax	$	(1,019)	$	(183,886)

G.     RISKS AND UNCERTAINTIES

Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The ongoing COVID-19 pandemic has resulted in, and could continue to result in, significant disruptions in economic activity and financial markets. The cumulative effects of COVID-19 on the Company, and the effect of any other public health outbreak, cannot be predicted, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company.

2.     INVESTMENTS

The Company’s investments are primarily composed of fixed income debt securities and common and preferred stock equity securities. We carry our equity securities at fair value and categorize all our fixed maturity debt securities as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company’s investments. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has no investment securities for which fair value is determined using Level 3 inputs as defined in Note 3 – Fair Value Disclosures. Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does not differ significantly from trade date accounting.

Available-for-Sale Fixed Maturity and Equity Securities

The following tables are a summary of the proceeds from sales, maturities, and calls of AFS fixed maturity and equity securities and the related gross realized gains and losses.

	For the Three-Months Ended March 31,
							Net Realized
	Proceeds		Gains		Losses		Gains (Losses)
2021
Fixed maturity securities	$	3,484,432	$	1,319	$	(29)	$	1,290
Common stocks		687,015		212,361		(32,397)		179,964
Preferred stocks		78,469		5,455		—		5,455
2020
Fixed maturity securities	$	3,802,593	$	233,693	$	(926)	$	232,767
Common stocks		524,818		47,126		(173,499)		(126,373)
Preferred stocks		91,838		—		(10,762)		(10,762)

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The amortized cost and estimated fair value of fixed income securities at March 31, 2021, by contractual maturity, are shown as follows:

	Amortized Cost		Fair Value
Due in one year or less	$	1,849,923	$	1,888,670
Due after one year through five years		20,417,844		21,645,715
Due after five years through 10 years		15,114,224		16,148,886
Due after 10 years		21,536,839		22,722,744
Asset and mortgage backed securities without a specific due date		38,561,248		39,224,101
Redeemable preferred stocks		215,805		234,923
Total fixed maturity securities	$	97,695,883	$	101,865,040

Expected maturities may differ from contractual maturities due to call provisions on some existing securities.

The following table is a schedule of cost or amortized cost and estimated fair values of investments in securities classified as available for sale at March 31, 2021 and December 31, 2020:  

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2021
Fixed maturity securities:
U.S. Treasury	$	1,352,581	$	1,364,297	$	23,227	$	(11,511)
MBS/ABS/CMBS		38,561,248		39,224,101		977,305		(314,452)
Corporate		40,104,876		42,735,613		2,835,297		(204,560)
Municipal		17,461,373		18,306,106		955,785		(111,052)
Redeemable preferred stock		215,805		234,923		19,118		—
Total fixed maturity securities	$	97,695,883	$	101,865,040	$	4,810,732	$	(641,575)

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2020
Fixed maturity securities:
U.S. Treasury	$	1,352,758	$	1,385,406	$	33,336	$	(688)
MBS/ABS/CMBS		40,509,172		41,743,304		1,367,411		(133,279)
Corporate		39,186,671		43,580,743		4,429,000		(34,928)
Municipal		17,488,621		18,788,674		1,316,358		(16,305)
Redeemable preferred stock		215,805		242,439		26,634		—
Total fixed maturity securities	$	98,753,027	$	105,740,566	$	7,172,739	$	(185,200)

All the Company’s collateralized securities carry an average credit rating of AA+ by one or more major rating agencies and continue to pay according to contractual terms. Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are residential mortgage backed securities with fair values of $14,865,024and $16,220,343 and commercial mortgage backed securities of $12,452,036 and $12,721,455 atMarch 31, 2021 and December 31, 2020, respectively.  

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ANALYSIS

The following tables are also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of March 31, 2021 and December 31, 2020. The tables segregate the securities based on type, noting the fair value, cost or amortized cost, and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position.

	March 31, 2021						December 31, 2020
			12 Months						12 Months
	< 12 Months		& Greater		Total		< 12 Months		& Greater		Total
Fixed Maturity Securities:
U.S. Treasury
Fair value	$	689,063	$	—	$	689,063	$	299,391	$	—	$	299,391
Amortized cost		700,574		—		700,574		300,078		—		300,078
Unrealized loss		(11,511)		—		(11,511)		(688)		—		(688)
MBS/ABS/CMBS
Fair value		7,512,704		1,820,824		9,333,528		7,120,339		2,010,434		9,130,773
Amortized cost		7,711,500		1,936,480		9,647,980		7,236,360		2,027,692		9,264,052
Unrealized loss		(198,796)		(115,656)		(314,452)		(116,021)		(17,258)		(133,279)
Corporate
Fair value		6,201,266		233,125		6,434,391		1,739,691		—		1,739,691
Amortized cost		6,390,010		248,941		6,638,951		1,774,619		—		1,774,619
Unrealized loss		(188,744)		(15,816)		(204,560)		(34,928)		—		(34,928)
Municipal
Fair value		3,457,673		245,545		3,703,218		756,678		—		756,678
Amortized cost		3,565,111		249,159		3,814,270		772,984		—		772,984
Unrealized loss		(107,438)		(3,614)		(111,052)		(16,306)		—		(16,306)
Total
Fair value		17,860,706		2,299,494		20,160,200		9,916,099		2,010,434		11,926,533
Amortized cost		18,367,195		2,434,580		20,801,775		10,084,041		2,027,692		12,111,733
Unrealized loss	$	(506,489)	$	(135,086)	$	(641,575)	$	(167,942)	$	(17,258)	$	(185,200)

The fixed income portfolio contained 43 securities in an unrealized loss position as of March 31, 2021. Of these 43 securities, 6 have been in an unrealized loss position for 12 consecutive months or longer and represent $135,086 in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management’s analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest.

There were no other-than-temporary impairment losses recognized in net earnings during the first three months ended March 31, 2021. For all fixed income securities at a loss at March 31, 2021, management believes it is probable that the Company will receive all contractual payments in the form of principal and interest. In addition, the Company is not required to, nor does it intend to sell these investments prior to recovering the entire amortized cost basis for each security, which may be at maturity. The fixed income securities in an unrealized loss position were not other-than-temporarily impaired at March 31, 2021 and December 31, 2019.

UNREALIZED GAINS AND LOSSES ON EQUITY SECURITIES

Net unrealized gains for the three months ended March 31, 2021 for equity securities held as of March 31, 2021  were$876,316. Net unrealized (losses) for the three months ended March 31, 2020 for equity securities held as of March 31, 2020 were $(3,689,347).

Other Invested Assets

Other invested assets include membership in the Federal Home Loan Bank of Chicago (FHLBC), which occurred in February 2018. Our $200,000investment in FHLBC stock is carried at cost. Due to the nature of our membership in the FHLBC, the carrying amount approximates fair value.

In addition, other invested assets include privately held investments of $204,400, and notes issued. Two of the notes, issued for $625,000 and $650,000 on July 30, 2019 and January 28, 2020, respectively,  bear interest at 6.5% and are amortized over 20 years with a balloon payment due July 30, 2029. A third note issued for $94,000 on October 30, 2020, bears interest at 6.0% and is amortized over 29 years with monthly payments due beginning July 31, 2021. As of March 31, 2021, this note has

~  11  ~

$4,000 in accrued escrow and interest receivable. The Company had no allowance recorded related to uncollectible notes receivables at March 31, 2021 and December 31, 2020.

3.     FAIR VALUE DISCLOSURES

Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. The fair value of certain financial instruments is determined based on their underlying characteristics and relevant transactions in the marketplace. GAAP guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance also describes three levels of inputs that may be used to measure fair value.

The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level:

· Level 1 is applied to valuations based on readily available, unadjusted quoted prices in active markets for identical assets.

· Level 2 is applied to valuations based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.

· Level 3 is applied to valuations that are derived from techniques in which one or more of the significant inputs are unobservable. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value.

As a part of the process to determine fair value, management utilizes widely recognized, third-party pricing sources to determine fair values. Management has obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy.

Corporate, Agencies, and Municipal Bonds—The pricing vendor employs a multi-dimensional model which uses standard inputs including (listed in order of priority for use) benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, as well as industry and economic events. All bonds valued using these techniques are classified as Level 2. All Corporate, Agencies, and Municipal securities are deemed Level 2.

Mortgage-backed Securities (MBS), Collateralized Mortgage Obligations (CMO), Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS)—The pricing vendor evaluation methodology includes principally interest rate movements and new issue data. Evaluation of the tranches (non-volatile, volatile, or credit sensitivity) is based on the pricing vendors’ interpretation of accepted modeling and pricing conventions. This information is then used to determine the cash flows for each tranche, benchmark yields, pre-payment assumptions and to incorporate collateral performance. To evaluate CMO volatility, an option adjusted spread model is used in combination with models that simulate interest rate paths to determine market price information. This process allows the pricing vendor to obtain evaluations of a broad universe of securities in a way that reflects changes in yield curve, index rates, implied volatility, mortgage rates, and recent trade activity. MBS, CMBS, CMO and ABS with corroborated and observable inputs are classified as Level 2. All MBS, CMBS, CMO and ABS holdings are deemed Level 2.

U.S. Treasury Bonds, Common Stocks and Exchange Traded Funds—U.S. treasury bonds and exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices). All common stock holdings are deemed Level 1.

Preferred Stock—Preferred stocks do not have readily observable prices, but do have quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices and are classified as Level 2. All preferred stock holdings are deemed Level 2.

Due to the relatively short-term nature of cash and cash equivalents, their carrying amounts are reasonable estimates of fair value. Other invested assets as well as debt obligations are carried at face value and given that there is no readily available market for these to trade in, management believes that face value accurately reflects fair value.

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Assets measured at fair value on a recurring basis as of March 31, 2021, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,364,297	$	—	$	—	$	1,364,297
MBS/ABS/CMBS		—		39,224,101		—		39,224,101
Corporate		—		42,735,612		—		42,735,612
Municipal		—		18,306,106		—		18,306,106
Redeemable preferred stocks		—		234,923		—		234,923
Total fixed maturity securities		1,364,297		100,500,743		—		101,865,040
Equity securities
Common stocks		18,404,167		—		—		18,404,167
Perpetual preferred stocks		—		1,654,530		—		1,654,530
Total equity securities		18,404,167		1,654,530		—		20,058,697
Total marketable investments measured at fair value	$	19,768,464	$	102,155,273	$	—	$	121,923,737

Assets measured at fair value on a recurring basis as of December 31, 2020, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,385,406	$	—	$	—	$	1,385,406
MBS/ABS/CMBS		—		41,743,304		—		41,743,304
Corporate		—		43,580,743		—		43,580,743
Municipal		—		18,788,674		—		18,788,674
Redeemable preferred stocks		—		242,439		—		242,439
Total fixed maturity securities		1,385,406		104,355,160		—		105,740,566
Equity securities
Common stocks		14,724,814		—		—		14,724,814
Perpetual preferred stocks		—		1,683,892		—		1,683,892
Total equity securities		14,724,814		1,683,892		—		16,408,706
Total marketable investments measured at fair value	$	16,110,220	$	106,039,052	$	—	$	122,149,272

As noted in the previous tables, the Company did not have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2021 and December 31, 2020. Additionally, there were no securities transferred in or out of Levels 1 or 2 during the three-month periods ended March 31, 2021 and 2020.

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4.     DEBT

Debt Obligation

ICC Holdings, Inc. secured a loan with a commercial bank in March 2017 in the amount of $3.5 million and used the proceeds to repay ICC for the money borrowed by the ESOP. The term of the loan is five years bearing interest at 3.65%. The Company pledged stock and $1.0 million of marketable assets as collateral for the loan.

The Company also has borrowing capacity up to approximately $37 million in the aggregate from its membership with the Federal Home Loan Bank of Chicago (FHLBC).

As part of the Company’s response to COVID-19, the Company obtained, in March 2020, a $6.0 million loan from the FHLBC as a precautionary measure to increase its cash position,  to provide increased liquidity, and to compensate for potential reductions in premium receivable collections. The term of the loan is five years bearing interest at 1.4%. The Company pledged $6.8 million of fixed income securities as collateral for this loan. The Company also obtained, in May 2020, a $4.0 million 0% interest, one-year loan from the FHLBC as an additional precautionary measure to increase its cash position,  to provide increased liquidity, and to compensate for potential reductions in premium receivable collections as a result of the Company’s announcement in March 2020 to temporarily suspend all insurance premium billing for 30 days. The Company pledged an additional $7.4 million of fixed income securities as collateral for both FHLBC loans.

The total balance of the debt agreements at March 31, 2021 and December 31, 2020was $13,462,614 and $13,465,574, respectively. The average interest rate on remaining debt was 1.6% as of March 31, 2021 and 2.2% as of December 31, 2020.  

On July 30, 2020, the Company secured through FHLBC a fixed 0.74% borrowing rate for a future $4.0 million loan becomes effective May 3, 2021, upon the maturity of the existing $4.0 million FHLBC loan.  No collateral was pledged for this forward advance.

Revolving Line of Credit

We maintained a revolving line of credit with a commercial bank, which permitted borrowing up to an aggregate principal amount of $1.75 million. This facility was initially entered into during 2013 and expiredAugust 5, 2020. The line of credit was priced at 30-day LIBOR plus 2% with a floor of 3.5%.  In order to secure the lowest rate possible, the Company pledged marketable securities not to exceed $5.0 million in the event the Company would draw down on the line of credit. There are no financial covenants governing this agreement.

Effective August 3, 2020, the Company replaced its expiring line of credit with a $2.0 million revolving line of credit with anothercommercial bank, which renews annually and has a current expiration date of August 3, 2021.  This new line of credit is priced at Prime plus 0.5%. The Company pledged $2.0 million of business assets in the event the Company draws down on the line of credit.  There are no financial covenants governing this agreement.

There was no interest paid on these lines of credit during the three months ended March 31, 2021 and 2020.

5.     REINSURANCE

In the ordinary course of business, the Company assumes and cedes premiums and selected insured risks with other insurance companies, known as reinsurance. A large portion of the reinsurance is put into effect under contracts known as treaties and, in some instances, by negotiation on each individual risk (known as facultative reinsurance). In addition, there are several types of treaties including quota share, excess of loss and catastrophe reinsurance contracts that protect against losses over stipulated amounts arising from any one occurrence or event. The arrangements allow the Company to pursue greater diversification of business and serve to limit the maximum net loss to a single event, such as a catastrophe. Through the quantification of exposed policy limits in each region and the extensive use of computer-assisted modeling techniques, management monitors the concentration of risks exposed to catastrophic events.

Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $1,000,000 for casualty and workers’ compensation businessand $750,000 for property, although certain treaties contain an annual aggregate deductible before reinsurance applies.

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Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows:

	Three-Month Periods Ended March 31,
	2021		2020
WRITTEN
Direct	$	15,172,035	$	14,794,534
Reinsurance assumed		27,898		37,534
Reinsurance ceded		(2,473,168)		(2,377,544)
Net	$	12,726,765	$	12,454,524
EARNED
Direct	$	14,482,050	$	15,362,814
Reinsurance assumed		38,822		44,950
Reinsurance ceded		(2,472,159)		(2,393,775)
Net	$	12,048,713	$	13,013,989
LOSS AND SETTLEMENT EXPENSES INCURRED
Direct	$	10,767,434	$	8,761,679
Reinsurance assumed		25,445		26,518
Reinsurance ceded		(2,990,173)		(946,115)
Net	$	7,802,706	$	7,842,082

6.     UNPAID LOSSES AND SETTLEMENT EXPENSES

The following table is a reconciliation of the Company’s unpaid losses and settlement expenses:

	For the Three-Months Ended
	March 31,
(In thousands)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,576	$	56,838
Less: Ceded		13,020		11,036
Net		48,556		45,802
Increase in incurred losses and settlement expense:
Current year		7,142		6,245
Prior years		661		1,597
Total incurred		7,803		7,842
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,288		1,204
Prior years		7,274		5,484
Total paid		8,562		6,688
Net unpaid losses and settlement expense - end of the period		47,797		46,956
Plus: Reinsurance recoverable on unpaid losses		14,011		11,318
Gross unpaid losses and settlement expense - end of the period	$	61,808	$	58,274

Net unpaid losses and settlement expense increased$841,000, or 1.8%, in the three months ended March 31, 2021 as compared to the same period in 2020. For the three months ended March 31, 2021 and 2020, we experienced unfavorable development of $661,000 and $1,597,000, respectively. The unfavorable development for the three months ended March 31, 2021 was primarily driven by the Workers’ Compensation line of business. Business Owners Liability and Business Owners Property lines of business were the primary drivers of adverse development for the three months ended March 31, 2020.  

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7.     INCOME TAXES

The Company’s effective tax rate for the threemonth period ended March 31, 2021,  was21.1%, compared to 21.4%for the same period in 2020. Effective rates are dependent upon components of pretax earnings and the related tax effects.

Income tax expense for the three month periods ended March 31, 2021 and 2020, differed from the amounts computed by applying the U.S. federal tax rate of 21% to pretax income from continuing operations as demonstrated in the following table:

	For the Three-Months Ended
	March 31,
	2021		2020
Provision for income taxes at the statutory federal tax rates	$	309,097	$	(527,296)
Increase (reduction) in taxes resulting from:
Dividends received deduction		(8,108)		(6,535)
Tax-exempt interest income		(14,794)		(15,480)
Proration of tax-exempt interest and dividends received deduction		5,564		5,368
Nondeductible expenses		18,026		5,503
Officer life insurance, net		166		803
Total	$	309,951	$	(537,637)

Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset.

As of March 31, 2021 and December 31, 2020, the Company does not have any capital or operating loss carryforwards. Periods still subject to IRS audit include 2017 through current year. There are currently no open tax exams.

8.     EMPLOYEE BENEFITS

ESOP

In connection with our conversion and public offering, we established an ESOP. The ESOP borrowed from the Company to purchase 350,000 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the equity section of the balance sheet for the unallocated shares at an amount equal to their $10.00 per share purchase price.

The Company may make discretionary contributions to the ESOP and pay dividends on unallocated shares to the ESOP. ICC makes annual contributions to the ESOP sufficient to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation.  No contributions to the ESOP were made during the three months ended March 31, 2021 and 2020, respectively.

A compensation expense charge is booked monthly during each year for the shares committed to be allocated to participants that year, determined with reference to the fair market value of our stock at the time the commitment to allocate the shares is accrued and recognized. For the three months ended March 31, 2021, we recognized compensation expense of $82,750 related to 5,779 shares of our common stock that are committed to be released to participants’ accounts at December 31, 2021. Of the 5,779 shares committed to be released, 1,991 shares were committed on March 31, 2021 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2021. For the three months ended March 31, 2020, we recognized compensation expense of $75,768 related to 5,827 shares of our common stock that were committed to be released to participants’ accounts at December 31, 2020. Of the 5,827 shares committed to be released at December 31, 2020,  1,985 shares were committed on March 31, 2020 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2020.  

RESTRICTED STOCK UNITS

Restricted stock units (RSUs) were granted for the first time in February 2018 with additional RSUs granted in March 2019 and April 2020. RSUs have a grant date value equal to the closing price of the Company’s stock on the dates the shares are granted. The RSUs vest 1/3 over three years from the date of grant.

As of March 31, 2021,  18,040,  13,071, and 11,700 RSUs have been granted at a fair market value of $11.03,  $13.70, and $15.10, respectively. We recognized $38,116 and $36,928 of expense on these units in the three months ended March 31, 2021 and 2020, respectively. Total unrecognized compensation expense relating to outstanding and unvested RSUs was $181,863 as of March 31, 2021, which will be recognized over the remainder of their respectivethree-year vesting periods.

~  16  ~

9.     SUBSEQUENT EVENTS

Subsequent events have been evaluated through the date the financial statements were issued.

The Company granted on April 1, 2021 15,000 RSUs to members of executive staff.

The $4.0 million FHLBC loan, obtained in May 2020, matured on May 3, 2021. On this date, a new FHLBC $4.0 million loan became effective. This loan agreement was arranged in July 2020.  See Note 4 - Debt for more information.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Private Securities Litigation Reform Act of 1995 (the “Reform Act”) provides a safe harbor for forward-looking statements made by or on behalf of ICC Holdings, Inc. ICC Holdings, Inc. and its representatives may, from time to time, make written or verbal forward-looking statements, including statements contained in ICC Holdings, Inc.'s filings with the Securities and Exchange Commission (SEC) and its reports to shareholders. Generally, the inclusion of the words “anticipates,” “believe,” “estimate,” “expect,” “future,” “intend,” “estimate,” “may,” “plans,” “seek”, “will,” or the negative of such terms and similar expressions identify statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and that are intended to come within the safe harbor protection provided by those sections. All statements addressing operating performance, events, or developments that ICC Holdings, Inc. expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, and market share, as well as statements expressing optimism or pessimism about future operating results, are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are and will be based on management’s then-current beliefs and assumptions regarding future events and operating performance and on information currently available to management, and are applicable only as of the dates of such statements.

Forward-looking statements involve risks, uncertainties and assumptions, including, among other things, the factors discussed under the heading “Item 1A. Risk Factors” of ICC Holdings, Inc.’s Annual Report on Form 10-K and those listed below. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Actual results may differ materially from those expressed in these forward-looking statements due to several uncertainties and risks, including the risks described in this Quarterly Report on Form 10-Q and other unforeseen risks. Readers should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Quarterly Report on Form 10-Q, even if subsequently made available by us on our website or otherwise, and we undertake no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

All of these factors are difficult to predict and many are beyond our control. These important factors include those discussed under “Item 1A. Risk Factors” of ICC Holdings, Inc.’s 2020 Annual Report on Form 10-K and those listed below:

· the potential impact of fraud, operational errors, systems malfunctions, or cybersecurity incidents;

· future economic conditions in the markets in which we compete that are less favorable than expected;

· our ability to expand geographically;

· the effects of weather-related and other catastrophic events, including those related to health emergencies and the spread of infectious diseases and pandemics;

· the effect of legislative, judicial, economic, demographic and regulatory events in the jurisdictions where we do business, especially changes with respect to laws, regulations and judicial decisions relating to liquor liability;

· our ability to enter new markets successfully and capitalize on growth opportunities either through acquisitions or the expansion of our producer network;

· financial market conditions, including, but not limited to, changes in interest rates and the stock markets causing a reduction of investment income or investment gains and a reduction in the value of our investment portfolio;

· heightened competition, including specifically the intensification of price competition, the entry of new competitors and the development of new products by new or existing competitors, resulting in a reduction in the demand for our products;

· actual claims may exceed our best estimate of ultimate insurance losses incurred through March 31, 2021 resulting directly from the COVID19 pandemic and consequent economic crises;

· our reserves at March 31, 2021 could change including as a result of, among other things, the impact of legislative or regulatory actions taken in response to COVID-19;

· the continued impact of COVID-19 and related risks, including from shelter-in-place orders, unemployment, and the financial market volatility, could continue to adversely impact our results, including premiums written and investment income;

· infection rates, severity of pandemics, including COVID-19, civil unrest and their effects on our business operations and claims activity, and any adverse impact to our insureds, brokers, agents, and employees;

· the impact of acts of terrorism and acts of war;

· the effects of terrorist related insurance legislation and laws;

· changes in general economic conditions, including inflation, unemployment, interest rates and other factors;

· the cost, availability and collectability of reinsurance;

· estimates and adequacy of loss reserves and trends in loss and settlement expenses;

· changes in the coverage terms selected by insurance customers, including higher limits;

· our inability to obtain regulatory approval of, or to implement, premium rate increases;

· our ability to obtain reinsurance coverage at reasonable prices or on terms that adequately protect us;

~  18  ~

· the potential impact on our reported net income that could result from the adoption of future auditing or accounting standards issued by the Public Company Accounting Oversight Board or the Financial Accounting Standards Board or other standard-setting bodies;

· unanticipated changes in industry trends and ratings assigned by nationally recognized rating organizations;

· adverse litigation or arbitration results;

· litigation tactics and developments, including those related to business interruption claims; and

· adverse changes in applicable laws, regulations or rules governing insurance holding companies and insurance companies, and environmental, tax or accounting matters including limitations on premium levels, increases in minimum capital and reserves, and other financial viability requirements, and changes that affect the cost of, or demand for our products.

Because forward-looking information is subject to various risks and uncertainties, actual results may differ materially from that expressed or implied by the forward-looking information.

All subsequent written and oral forward-looking information attributable to ICC Holdings, Inc. or any person acting on our behalf is expressly qualified in its entirety by the cautionary statement contained or referred to in this section.

Overview

ICC is a regional property and casualty insurance company incorporated in Illinois and focused exclusively on the food and beverage industry. On the effective date of the mutual-to-public company conversion, ICC became a wholly owned subsidiary of ICC Holdings, Inc.

For the three months ended March 31, 2021, we had direct written premiums of $15,172,000, net premiums earned of $12,049,000, and net earningsof $1,162,000. For the three months ended March 31, 2020, we had direct premiums written of $14,795,000, net premiums earned of $13,014,000, and net lossof $1,973,000. At March 31, 2021, we had total assets of $182,744,000 and equity of $71,781,000. At December 31, 2020, we had total assets of $183,939,000 and equity of $72,743,000.  In response to the ongoing novel coronavirus (COVID-19) pandemic, in March 2020, we temporarily suspended all insurance premium billing for at least 30 days, and, by August 2020, normal billing resumed in all states in which we operate.

We are an “emerging growth company” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to: not required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; exemptions from the requirements of holding an annual non-binding advisory vote on executive compensation and nonbinding stockholder approval of any golden parachute payments not previously approved.

In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies later in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable.

Principal Revenue and Expense Items

We derive our revenue primarily from premiums earned, net investment income and net realized and unrealized gains (losses) from investments.

Gross and net premiums written

Gross premiums written is equal to direct and assumed premiums before the effect of ceded reinsurance. Net premiums written is the difference between gross premiums written and premiums ceded or paid to reinsurers (ceded premiums written).

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Net premiums earned

Premiums earned is the earned portion of our net premiums written. Gross premiums written include all premiums recorded by an insurance company during a specified policy period. Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are earned ratably over the duration of the policies. At the end of each accounting period, the portion of the premiums that is not yet earned is included in unearned premiums and is realized as revenue in subsequent periods over the remaining term of the policy. Our policies typically have a term of twelve months. Thus, for example, for a policy that is written on July 1, 2021, one-half of the premiums would be earned in 2021 and the other half would be earned in 2022.

Net investment income and net realized gains (losses) on investments

We invest our surplus and the funds supporting our insurance liabilities (including unearned premiums and unpaid loss and loss adjustment expenses) in cash, cash equivalents, equities, fixed securities and real estate. Investment income includes interest and dividends earned on invested assets as well as rental income on investment properties. Net realized gains and losses on invested assets are reported separately from net investment income. We recognize realized gains when invested assets are sold for an amount greater than their cost or amortized cost (in the case of fixed securities) and recognize realized losses when investment securities are written down as a result of an other than temporary impairment or sold for an amount less than their cost or amortized cost, as applicable. We recognize in earnings the change in unrealized gains and losses on equity securities when our equity securities are trading at an amount greater than or less than their cost, respectively. Unrealized gains (losses) on equity securities for the three months ended March 31, 2021and March 31, 2020were$876,000 and $(3,689,000), respectively. Our portfolio of investment securities is managed by two independent third parties with managers specializing in the insurance industry.

ICC’s expenses consist primarily of:

Losses and settlement expenses

Losses and settlement expenses represent the largest expense item and include: (1) claim payments made, (2) estimates for future claim payments and changes in those estimates for prior periods, and (3) costs associated with investigating, defending and adjusting claims.

Amortization of deferred policy acquisition costs and other operating expenses

Expenses incurred to underwrite risks are referred to as policy acquisition expenses. Variable policy acquisition costs consist of commission expenses, premium taxes and certain other underwriting expenses that vary with and are primarily related to the writing and acquisition of new and renewal business. These policy acquisition costs are deferred and amortized over the effective period of the related insurance policies. Fixed policy acquisition costs are expensed as incurred. These costs include salaries, rent, office supplies, and depreciation. Other operating expenses consist primarily of information technology costs, accounting and internal control salaries, as well as audit and legal expenses.

Income taxes

We use the asset and liability method of accounting for income taxes. Deferred income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax bases of our assets and liabilities. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect of a change in tax rates is recognized in the period of the enactment date.

Key Financial Measures

We evaluate our insurance operations by monitoring certain key measures of growth and profitability. In addition to reviewing our financial performance based on results determined in accordance with generally accepted accounting principles in the United States (GAAP), we utilize certain operational financial measures that we believe are valuable in managing our business and for comparison to our peers. These operational measures are combined ratio, written premiums, underwriting income, the losses and settlement expense ratio, the expense ratio, the ratio of net written premiums to statutory surplus and return on average equity.

We measure growth by monitoring changes in gross premiums written and net premiums written. We measure underwriting profitability by examining losses and settlement expense, underwriting expense and combined ratios. We also measure profitability by examining underwriting income (loss) and net earnings (loss).

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Losses and settlement expense ratio

The losses and settlement expense ratio is the ratio (expressed as a percentage) of losses and settlement expenses incurred to net premiums earned. We measure the losses and settlement expense ratio on an accident year and calendar year loss basis to measure underwriting profitability. An accident year loss ratio measures losses and settlement expenses for insured events occurring in a particular year, regardless of when they are reported, as a percentage of premiums earned during that year. A calendar year loss ratio measures loss and settlement expense for insured events occurring during a particular year and the change in loss reserves from prior accident years as a percentage of premiums earned during that year.

Expense ratio

The underwriting expense ratio is the ratio (expressed as a percentage) of amortization of deferred policy acquisition costs and other operating expenses to premiums earned, and measures our operational efficiency in producing, underwriting and administering our insurance business.

GAAP combined ratio

Our GAAP combined ratio is the sum of the losses and settlement expense ratio and the expense ratio and measures our overall underwriting profit. If the GAAP combined ratio is below 100%, we are making an underwriting profit. If our combined ratio is at or above 100%, we are not profitable without investment income and may not be profitable if investment income is insufficient.

Net premiums written to statutory surplus ratio

The net premiums written to statutory surplus ratio represents the ratio of net premiums written, after reinsurance ceded, to statutory surplus. This ratio measures our exposure to pricing errors in our current book of business. The higher the ratio, the greater the impact on surplus should pricing prove inadequate.

Underwriting income (loss)

Underwriting income (loss) measures the pre-tax profitability of our insurance operations. It is derived by subtracting losses and settlement expense, amortization of deferred policy acquisition costs, and underwriting and administrative expenses from net earned premiums. Each of these items is presented as a caption in our statements of earnings.

Net earnings (loss) and return on average equity

We use net earnings (loss) to measure our profit and return on average equity to measure our effectiveness in utilizing equity to generate net earnings. In determining return on average equity for a given year, net earnings (loss) is divided by the average of the beginning and ending equity for that year.

Critical Accounting Policies

The accounting policies and estimates considered by management to be critically important in the preparation and understanding of the Company’s financial statements and related disclosures are presented in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.  

Results of Operations

Our results of operations are influenced by factors affecting the property and casualty insurance industry in general. The operating results of the United States property and casualty insurance industry are subject to significant variations due to competition, weather, catastrophic events, regulation, general economic conditions, judicial trends, fluctuations in interest rates and other changes in the investment environment. In response to the ongoing novel coronavirus (COVID-19) pandemic, in March 2020, we announced a  temporary suspense of all insurance premium billing for 30 days, and, by August 2020 normal billing had resumed in all states in which we operate.

Our premium and underwriting results have been, and continue to be, influenced by market conditions. Pricing in the property and casualty insurance industry historically has been cyclical. During a soft market cycle, price competition is more significant than during a hard market cycle and makes it difficult to attract and retain properly priced commercial business. A hard market typically has a positive effect on premium growth.

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The following summarizes our results for the three months ended March 31, 2021 and 2020:  

Premiums

Direct premiums written grew by $377,000, or 2.5%, to $15,172,000 for the three months ended March 31, 2021 from $14,795,000 for the same period of 2020. Net written premium increased by $272,000, or 2.2%, to $12,727,000 for the three months ended March 31, 2021 from $12,455,000 for the same period in 2020. Net premiums earned decreased by $965,000, or 7.4%, in the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, primarily due to 2020’s policy exposure decreasesresulting from state mandated shutdowns of restaurants and taverns.

For the three months ended March 31, 2021, we ceded to reinsurers $2,472,000 of earned premiums, compared to $2,394,000 of earned premiums for the three months ended March 31, 2020. Ceded earned premiums as a percent of direct premiums written increased to 16.3% from 16.2% for the three months ended March 31, 2020 in comparison to March 31, 2020.

Premiums are earned ratably over the term of the policy whereas written premiums are reflected on the effective date of the policy.

Investment Income

Net investment income decreased by $34,000, or 4.1%, to $801,000 for the March 31, 2021, as compared to $835,000 for the same period in 2020as a result of a decrease in our bond portfolio’s investment income which is sensitive to the changes in interest rates.

Other Income

Other income is derived from policies we write and represents additional charges to policyholders for services outside of the premium charge, such as installment billing or policy issuance costs. Other income decreased by $3,000 or 6.0% during the three months ended March 31, 2021 as a result of fewer premium write offs as compared to the same period in 2020.  

Unpaid Losses and Settlement Expenses

The following table details our unpaid losses and settlement expenses. 

	For the Three-Months Ended
	March 31,
(In thousands)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,576	$	56,838
Less: Ceded		13,020		11,036
Net		48,556		45,802
Increase in incurred losses and settlement expense:
Current year		7,142		6,245
Prior years		661		1,597
Total incurred		7,803		7,842
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,288		1,204
Prior years		7,274		5,484
Total paid		8,562		6,688
Net unpaid losses and settlement expense - end of the period		47,797		46,956
Plus: Reinsurance recoverable on unpaid losses		14,011		11,318
Gross unpaid losses and settlement expense - end of the period	$	61,808	$	58,274

Net unpaid losses and settlement expenseincreased by$841,000, or 1.8%, in the three months ended March 31, 2021 as compared to the same period in 2020. For the three months ended March 31, 2021 and 2020, we experienced unfavorable development of $661,000and $1,597,000, respectively. The 2021decrease in unfavorable development was primarily driven by the Workers’ Compensation line of business. Business Owners Liability and Business Owners Property lines of business were the primary drivers of adverse development for the threemonths ended March 31, 2020.

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Losses and Settlement Expenses

Losses and settlement expenses decreased by $39,000, or 0.5%, to $7,803,000 for the three months ended March 31, 2021, from $7,842,000 for the same period in 2020. Losses and settlement expenses decreasedslightly for the three months ended March 31, 2021,  which we believe indicates a return to pre-COVID-19 claims experience with restaurants and taverns re-opening their doors for business.

Policy Acquisition Costs and Other Operating Expenses and the Expense Ratio

Policy acquisition costs are costs we incur to issue policies, which include commissions, premium taxes, underwriting reports, and underwriter compensation costs. The Company offsets the direct commissions it pays with ceded commissions it receives from reinsurers. Other operating expenses consist primarily of information technology costs, accounting and internal control salaries, as well as audit and legal expenses. Policy acquisition costs and other operating expenses decreased by $297,000, or 6.2%, to $4,468,000 for the three months ended March 31, 2021 from $4,765,000 for the same period in 2020.

Our expense ratio is calculated by dividing the sum of policy acquisition costs and operating expenses by net earned premiums. We use the expense ratio to evaluate the operating efficiency of our consolidated operations. Costs that cannot be readily identifiable as a direct cost of a product line remain in Corporate and Other.

Our expense ratio increased by 46 basis points from 36.61% to 37.07% for the three months ended March 31, 2021 as compared to the same period in2020. The primary driver for this change was the $965,000 decrease in net earned premium.

General Corporate Expenses

General corporate expenses consist primarily of occupancy costs, such as rent and utilities. These costs are largely fixed and, therefore, do not vary significantly with premium volume but do vary with the Company’s changes in properties held for investment. Our general corporate expenses decreased by $12,000, or 6.9%, in the three months ended March 31, 2021 as compared to the same period in 2020.  

Interest Expense

Interest expense increased to $54,000 for the three months ended March 31, 2021 from $35,000 for the same period during 2020 and reflects a full three months of interest for the $6.0 million FHLB borrowing agreement entered into in March 2020.

Income Tax Expense

We reported income tax expenseof $310,000 and income tax benefit of $538,000 for the three months ended March 31, 2021 and 2020, respectively. The increase in income tax expense in 2021 relates to pretax earnings for the three months ended March 31, 2021 compared to a  pretax loss for the same period in 2020. Our effective tax rate for the three months ended March 31, 2021 was 21.1%, compared to 21.4% for the same period in 2020. Effective rates are dependent upon components of pretax (loss) or earnings and the related tax effects.

The Company has not established a valuation allowance against any of the net deferred tax assets.

Financial Position

The following summarizes our financial position as of March 31, 2021 and December 31, 2020:  

Unpaid Losses and Settlement Expense

Our reserves for unpaid loss and settlement expense are summarized below:

	As of March 31,		As of  December 31,
(In thousands)	2021		2020
Case reserves	$	27,071	$	27,901
IBNR reserves		20,726		20,655
Net unpaid losses and settlement expense		47,797		48,556
Reinsurance recoverable on unpaid loss and settlement expense		14,011		13,020
Reserves for unpaid loss and settlement expense	$	61,808	$	61,576

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As of March 31, 2021, the Company had received 1,296 claims for business interruption related to COVID-19. Based on policy language, the Company does not anticipate that coverage will be triggered for these property claims requiring loss payment.

Actuarial Ranges

The selection of the ultimate loss is based on information unique to each line of business and accident year and the judgment and expertise of our actuary and management.

The following table provides case and IBNR reserves for losses and loss adjustment expenses as of March 31, 2021 and December 31, 2020.

As of March 31, 2021

(In thousands)	Case Reserves		IBNR Reserves		Total Reserves
Commercial liability	$	18,861	$	17,617	$	36,478
Property		3,801		84		3,885
Other		4,409		3,025		7,434
Total net reserves		27,071		20,726		47,797
Reinsurance recoverables		3,852		10,159		14,011
Gross reserves	$	30,923	$	30,885	$	61,808

As of December 31, 2020

							Actuarially Determined Range of Estimates
(In thousands)	Case Reserves		IBNR Reserves		Total Reserves		Low		High
Commercial liability	$	19,019	$	17,661	$	36,680
Property		4,075		(39)		4,036
Other		4,807		3,033		7,840
Total net reserves		27,901		20,655		48,556	$	42,860	$	50,780
Reinsurance recoverables		5,281		7,739		13,020		10,962		14,742
Gross reserves	$	33,182	$	28,394	$	61,576	$	53,822	$	65,522

Our actuary determined a range of reasonable reserve estimates which reflect the uncertainty inherent in the loss reserve process. This range does not represent the range of all possible outcomes. We believe that the actuarially determined ranges represent reasonably likely changes in the loss and settlement expense estimates, however actual results could differ significantly from these estimates. The range was determined by line of business and accident year after a review of the output generated by the various actuarial methods utilized. The actuary reviewed the variance around the select loss reserve estimates for each of the actuarial methods and selected reasonable low and high estimates based on his knowledge and judgment. In making these judgments the actuary typically assumed, based on his experience, that the larger the reserve the less volatility and that property reserves would exhibit less volatility than casualty reserves. In addition, when selecting these low and high estimates, the actuary considered:

· historical industry development experience in our business line;

· historical company development experience;

· the impact of court decisions on insurance coverage issues, which can impact the ultimate cost of settling claims;

· changes in our internal claims processing policies and procedures; and

· trends and risks in claim costs, such as risk that medical cost inflation could increase.

Our actuary is required to exercise a considerable degree of judgment in the evaluation of all of these and other factors in the analysis of our loss and settlement expense reserves, and related range of anticipated losses. Because of the level of uncertainty impacting the estimation process, it is reasonably possible that different actuaries would arrive at different conclusions. The method of determining the reserve range has not changed and the reserve range generated by our actuary is consistent with the observed development of our loss reserves over the last few years.

The width of the range in reserves arises primarily because specific losses may not be known and reported for some period and the ultimate losses paid and loss adjustment expenses incurred with respect to known losses may be larger than currently estimated. The ultimate frequency or severity of these claims can be very different than the assumptions we used in our estimation of ultimate reserves for these exposures.

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Specifically, the following factors could impact the frequency and severity of claims, and therefore, the ultimate amount of loss and settlement expense paid:

· the rate of increase in labor costs, medical costs, and material costs that underlie insured risks;

· development of risk associated with our expanding producer relationships and our growth in new states or states where we currently have small market share; and

· impact of changes in laws or regulations.

The estimation process for determining the liability for unpaid loss and settlement expense inherently results in adjustments each year for claims incurred (but not paid) in preceding years. Negative amounts reported for claims incurred related to prior years are a result of claims being settled for amounts less than originally estimated (favorable development). Positive amounts reported for claims incurred related to prior years are a result of claims being settled for amounts greater than originally estimated (unfavorable development). For the three months ended March 31, 2021 and 2020, we experienced unfavorable development of $661,000 and $1,597,000, respectively.

Potential for variability in our reserves is evidenced by this development. As further illustration of reserve variability, we initially estimated unpaid loss and settlement expense net of reinsurance at the end of 2020 at $48,556,000. As of March 31, 2021, that reserve was re-estimated at $49,217,000, which is $661,000, or 1.4%,  higher than the initial estimate.

The estimation of our reserves is based on several actuarial methods, each of which incorporates many quantitative assumptions. The judgment of the actuary plays an important role in selecting among various loss development factors and selecting the appropriate method, or combination of methods, to use for a given accident year. The ranges presented above represent the expected variability around the actuarially determined central estimate. The total range around our actuarially determined estimate varies from (10.3)% to 6.2%. As shown in the table below, since 2016, the variance in our originally estimated accident year selections range from (3.7)%deficient to 5.4% redundant as of March 31, 2021.

Recent Variabilities of Incurred Losses and Settlement Expense, Net of Reinsurance

	Accident Year Data
(In thousands)	2016		2017		2018		2019		2020
As originally estimated	$	25,619	$	29,801	$	29,762	$	33,563	$	31,356
As estimated at March 31, 2021		26,148		30,918		28,383		34,619		29,659
Net cumulative (deficiency) redundancy	$	(529)	$	(1,117)	$	1,379	$	(1,055)	$	1,698
% (deficiency) redundancy		(2.1)%		(3.7)%		4.6%		(3.1)%		5.4%

The table below summarizes the impact on equity, net of tax, from changes in estimates of net unpaid loss and settlement expense:

		December 31, 2020
(In thousands)		Aggregate Loss and Settlement Reserve	Percentage Change in Equity
Reserve Range for Unpaid Losses and Settlement Expense
Low End	$	42,860	6.2%
Recorded		48,556	0.0%
High End		50,780	(2.4)%

If the net loss and settlement expense reserves were recorded at the high end of the actuarially determined range as of December 31, 2020, the loss and settlement expense reserves would increase by $2,224,000 before taxes. This increase in reserves would have the effect of decreasing net earnings and equity as of December 31, 2020 by $1,757,000. If the loss and settlement expense reserves were recorded at the low end of the actuarially-determined range as of December 31, 2020, the net loss and settlement expense reserves at December 31, 2020 would be reduced by $5,696,000 with corresponding increases in net earnings and equity of $4,500,000.

Investments

Our investments are primarily composed of fixed maturity debt securities, and both common and preferred stock equity securities. We categorize all our debt securities as available-for-sale (AFS), which are carried at fair as determined by management based upon quoted market prices when available. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. Changes in unrealized investment gains or losses on our AFS securities, net of applicable income taxes, are reflected directly in equity as a component of comprehensive earnings (loss) and, accordingly, have no effect on net earnings (loss). Equity securities are carried at fair value with

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subsequent changes in fair value recorded in net earnings (loss). Investment income is recognized when earned, and capital gains and losses are recognized when investments are sold, or other-than-temporarily impaired.

The fair value and unrealized losses for our securities that were temporarily impaired are as follows:

	March 31, 2021
	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury	$	689	$	(11)	$	—	$	—	$	689	$	(11)
MBS/ABS/CMBS		7,513		(199)		1,821		(116)		9,334		(315)
Corporate		6,201		(189)		233		(16)		6,434		(205)
Municipal		3,458		(107)		245		(4)		3,703		(111)
Total temporarily impaired fixed maturity securities	$	17,861	$	(506)	$	2,299	$	(135)	$	20,160	$	(641)

	December 31, 2020
	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury	$	299	$	(1)	$	—	$	—	$	299	$	(1)
MBS/ABS/CMBS		7,120		(116)		2,010		(17)		9,130		(133)
Corporate		1,740		(35)		—		—		1,740		(35)
Municipal		757		(16)		—		—		757		(16)
Total temporarily impaired fixed maturity securities	$	9,916	$	(168)	$	2,010	$	(17)	$	11,926	$	(185)

Corporate Bonds

The net unrealized gain in the Corporate bond portfolio decreasedby about $1.8 million from a gain of $4,394,000 at the end of 2020 to a gain of $2,631,000 as of March 31, 2021. The decrease in unrealized gains was driven by an increase in Treasury rates.  Treasury rates moved higher across the curve during the first quarter, with the five year maturity up 58 basis points and the ten year maturity up 82 basis points.  This increase in the risk free rate caused prices on bonds to drop meaningfully. 

Municipal Bonds

The net unrealized gain in the Municipal portfoliodecreasedby about $0.5 million from $1,300,000 at the end of 2020 to $845,000 at the end of March 31, 2021.  Like Corporates, Municipal gains were negatively impacted by higher Treasury rates.  However, the decline in unrealized gains was muted by spread tightening in the sector due to tailwinds from the $350 billion allocation to states from the $1.9 trillion fiscal stimulus package and concerns about higher future tax rates.

We monitor our investment portfolio and review securities that have experienced a decline in fair value below cost to evaluate whether the decline is other than temporary. When assessing whether the amortized cost basis of the security will be recovered, we compare the present value of the cash flows likely to be collected, based on an evaluation of all available information relevant to the collectability of the security, to the amortized cost basis of the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as the “credit loss.” If there is a credit loss, the impairment is other-than-temporary. If we identify that an other-than-temporary impairment loss has occurred, we then determine whether we intend to sell the security, or if it is more likely than not that we will be required to sell the security prior to recovering the amortized cost basis less any current-period credit losses. If we determine that we do not intend to sell, and it is not more likely than not that we will be required to sell the security, the amount of the impairment loss related to the credit loss will be recorded in earnings, and the remaining portion of the other-than-temporary impairment loss will be recognized in other comprehensive income (loss), net of tax. If we determine that we intend to sell the security, or that it is more likely than not that we will be required to sell the security prior to recovering its amortized cost basis less any current-period credit losses, the full amount of the other-than-temporary impairment (OTTI) will be recognized in earnings.

For the three months ended March 31, 2021 and for the year ended December 31, 2020, the Company did not take an impairment charge on any of its security holdings. Adverse investment market conditions, or poor operating results of underlying investments, could result in impairment charges in the future.

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We use quoted values and other data provided by independent pricing services in our process for determining fair values of our investments. The evaluations of such pricing services represent an exit price and a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. This pricing service provides us with one quote per instrument. For fixed maturity securities that have quoted prices in active markets, market quotations are provided. For fixed maturity securities that do not trade daily, the independent pricing service prepares estimates of fair value using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The observable market inputs that our independent pricing service utilizes may include (listed in order of priority for use) benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, and other reference data on markets, industry, and the economy. Additionally, the independent pricing service uses an option adjusted spread model to develop prepayment and interest rate scenarios. The pricing service did not use broker quotes in determining fair values of our investments.

Should the independent pricing service be unable to provide a fair value estimate, we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers and review this estimate in conjunction with a fair value estimate reported by an independent business news service or other sources. In instances where only one broker-dealer provides a fair value for a fixed maturity security, we use that estimate. In instances where can obtain fair value estimates from more than one broker-dealer, we would review the range of estimates and would select the most appropriate value based on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer provide a fair value estimate, we would develop a fair value estimate based on cash flow analyses and other valuation techniques that utilize certain unobservable inputs. Accordingly, we would classify such a security as a Level 3 investment.

The fair value estimates of our investments provided by the independent pricing service at March 31, 2021 and December 31, 2020, respectively, were utilized, among other resources, in reaching a conclusion as to the fair value of our investments.

Management reviews the reasonableness of the pricing provided by the independent pricing service by employing various analytical procedures. We review all securities to identify recent downgrades, significant changes in pricing, and pricing anomalies on individual securities relative to other similar securities. This will include looking for relative consistency across securities in common sectors, durations, and credit ratings. This review will also include all fixed maturity securities rated lower than “A” by Moody’s or S&P. If, after this review, management does not believe the pricing for any security is a reasonable estimate of fair value, then it will seek to resolve the discrepancy through discussions with the pricing service. In our review, we did not identify any such discrepancies for the three months ended March 31, 2021 and 2020 and for the year ended December 31, 2020, and no adjustments were made to the estimates provided by the pricing service. The classification within the fair value hierarchy of Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement, is then confirmed based on the final conclusions from the pricing review.

Deferred Policy Acquisition Costs

Certain acquisition costs consisting of direct and ceded commissions, premium taxes and certain other direct underwriting expenses that vary with and are primarily related to the production of business are deferred and amortized over the effective period of the related insurance policies as the underlying policy premiums are earned. At March 31, 2021 and December 31, 2020, deferred acquisition costs and the related unearned premium reserves were as follows:

(In thousands)	March 31, 2021		December 31, 2020
Deferred acquisition costs	$	5,721	$	5,430
Unearned premium reserves		30,468		29,789

The method followed in computing deferred acquisition costs limits the amount of deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, loss and loss adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Future changes in estimates, the most significant of which is expected loss and loss adjustment expenses, may require adjustments to deferred policy acquisition costs. If the estimation of net realizable value indicates that the deferred acquisition costs are not recoverable, they would be written off.

Income Taxes

We use the asset and liability method of accounting for income taxes. Deferred income taxes arise from the recognition of

temporary differences between financial statement carrying amounts and the tax bases of our assets and liabilities. A valuation

allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The effect of a change in tax rates is recognized in the period of the enactment date.

We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and

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business factors change. Any reduction in estimated future taxable income may require us to record an additional valuation allowance against our deferred tax assets.

As of March 31, 2021 and December 31, 2020, we had no material unrecognized tax benefits or accrued interest and penalties. Federal tax years 2017 through current year are open for examination.

Other Assets

As of March 31, 2021 and December 31, 2020, other assets totaled $1,289,000 and $1,307,000, respectively. The decrease in other assets primarily relates to decreases in Corporate Owned Life Insurance asset values as well as prepaid fees. The Company owns life insurance policies on Arron K. Sutherland, President and Chief Executive Officer, and Norman D. Schmeichel, Vice President – Chief Information Officer.

Outstanding Debt

As of March 31, 2021 and December 31, 2020, outstanding debt balances totaled $13,463,000 and$13,466,000, respectively. The average rate on remaining debt was 1.6% and 2.2% as of March 31, 2021 and December 31, 2020, respectively.  

Debt Obligation

ICC Holdings, Inc. secured a loan with a commercial bank in March 2017 in the amount of $3,500,000 and used the proceeds to repay ICC for the money borrowed by the ESOP. The term of the loan is five years bearing interest at 3.65%. The Company pledged stock and $1.0 million of marketable assets as collateral for the loan.

In response to COVID-19, the Company obtained in March 2020 and May 2020 a $6.0 million and $4.0 million loan, respectively, from the FHLBC as a precautionary measure to increase its cash position,  to provide increased liquidity, and to compensate for potential reductions in premium receivable collections.

Revolving Line of Credit

We maintain a revolving line of credit with a commercial bank, which permits borrowing up to an aggregate principal amount of $2.0 million. This facility was initially entered into in August 2020 and is priced at Prime plus 0.5%. The Company pledged $2.0 million in business assets in the event the Company draws down on the line of credit. There are no financial covenants governing this agreement.

There were no borrowings outstanding and there was no interest paid on the line of credit during the three months ended March 31, 2021.  

Other Liabilities

As of March 31, 2021 and December 31, 2020, other liabilities totaled $944,000 and $1,291,000, respectively. The decrease in other liabilities relates to $210,000 of investment purchases that were pending settlement as of year-end December 31, 2020 and subsequently settled in the first quarter of 2021.

ESOP

In connection with our conversion and public offering, the ESOP financed the purchase of 10.0% of the common stock issued in the offering for $3,500,000 with the proceeds of a loan from ICC prior to the expiration of the offering. ICC makes annual contributions to the ESOP sufficient to repay that loan. See Note 8 – Employee Benefits of this Form 10-Q as well as the “Management — Benefit Plans and Employment Agreements —Employee Stock Ownership Plan” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

~  28  ~

Stock-based Incentive Plan

Under the ICC Holdings, Inc. 2016 Equity Incentive Plan, we reserved for issuance a total of 490,000 shares of common stock. Of this amount, 350,000 shares of common stock may be granted in the form of restricted stock and stock-settled restricted stock unit awards, and 140,000 shares of common stock may be granted in the form of stock options under the stock-based incentive plan. The grant-date fair value of any common stock used for restricted stock and restricted stock unit awards will represent unearned compensation. As we accrue compensation expense to reflect the vesting of such shares, unearned compensation will be reduced accordingly. We compute compensation expense at the time stock units are awarded based on the fair value of such options on the date they are granted. This compensation expense is recognized over the appropriate service period. Restricted stock units (RSUs) were granted for the first time in February 2018 with additional RSUs granted in March 2019 and April 2020. The RSUs vest 1/3 over three years from the date of grant. See Note 8 – Employee Benefits of this Form 10-Q as well as the “Management — Benefit Plans and Employment Agreements” section of the Company’s 2020 Annual Report on Form 10-K.

Liquidity and Capital Resources

We generate sufficient funds from our operations and maintain a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses. The primary sources of funds are premium collections, investment earnings and maturing investments. The decrease in cash used in investing activities during the threemonths ended March 31, 2021 compared to the same period in 2020 relates primarily to purchases of fixed maturity securities and preferred stocks. The decrease in cash provided by financing activities during the three months ended March 31, 2021 compared to the same period in 2020 relates to a  $6.0 million loan obtained from FHLBC during the first three months of 2020. See Note 4 – Debt of this Form 10-Q for more information.

We maintain investment and reinsurance programs that are intended to provide sufficient funds to meet our obligations without forced sales of investments. We maintain a portion of our investment portfolio in relatively short-term and highly liquid assets to ensure the availability of funds.

Cash flows from continuing operations for the three months ended March 31, 2021 and 2020 were as follows:

	Three-Months Ended March 31,
(In thousands)	2021		2020
Net cash provided by operating activities	$	483	$	163
Net cash used in investing activities		(1,503)		(3,781)
Net cash (used in) provided by financing activities		(22)		5,997
Net (decrease) increase in cash and cash equivalents	$	(1,042)	$	2,379

ICC Holdings, Inc.’s principal source of liquidity is dividend payments and other fees received from ICC, Beverage Insurance Agency Inc., and ICC Realty, LLC. ICC is restricted by the insurance laws of Illinois as to the amount of dividends or other distributions it may pay to us. Under Illinois law, there is a maximum amount that may be paid by ICC during any twelve-month period. ICC may pay dividends to us after notice to, but without prior approval of the Illinois Department of Insurance in an amount “not to exceed” the greater of (i) 10% of the surplus as regards policyholders of ICC as reported on its most recent annual statement filed with the Illinois Department of Insurance, or (ii) the statutory net income of ICC for the period covered by such annual statement. Dividends in excess of this amount are considered “extraordinary” and are subject to the approval of the Illinois Department of Insurance.

The amount available for payment of dividends from ICC in 2021 without the prior approval of the Illinois Department of Insurance is approximately $5.9 million based upon the insurance company’s 2020 annual statement. Prior to its payment of any dividend, ICC is required to provide notice of the dividend to the Illinois Department of Insurance. This notice must be provided to the Illinois Department of Insurance 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The Illinois Department of Insurance has the power to limit or prohibit dividend payments if ICC is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. In March 2020, ICC paid a $500,000 dividend to ICC Holdings, Inc.

As of March 31, 2021, the Company had received 1,296 claims for business interruption related to COVID-19. Based on policy language, the Company does not anticipate that coverage will be triggered for these property claims requiring loss payment.

The actual timing of gross loss and loss adjustment expense payments is unknown and therefore timing estimates are based on historical experience and the expectations of future payment patterns.  

~  29  ~

Item 3. Quantitative and Qualitative Information about Market Risk

Market Risk

Market risk is the risk that we will incur losses due to adverse changes in the fair value of financial instruments. We have exposure to three principal types of market risk through our investment activities: interest rate risk, credit risk and equity risk. Our primary market risk exposure is to changes in interest rates. We have not entered, and do not plan to enter, into any derivative financial instruments for hedging, trading or speculative purposes.

Interest Rate Risk

Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates. Our exposure to interest rate changes primarily results from our significant holdings of fixed rate investments. Fluctuations in interest rates have a direct impact on the fair value of these securities.

The average maturity of the debt securities in our investment portfolio at March 31, 2021,  was 8.27 years. Our debt securities investments include U.S. government bonds, securities issued by government agencies, obligations of state and local governments and governmental authorities, and corporate bonds, most of which are exposed to changes in prevailing interest rates and which may experience moderate fluctuations in fair value resulting from changes in interest rates. We carry these investments as available for sale. This allows us to manage our exposure to risks associated with interest rate fluctuations through active review of our investment portfolio by our management and board of directors and consultation with our third-party investment manager.

Fluctuations in near-term interest rates could have an impact on our results of operations and cash flows. Certain of these securities may have call features. In a declining interest rate environment these securities may be called by their issuer and replaced with securities bearing lower interest rates. If we are required to sell these securities in a rising interest rate environment, we may recognize losses.

As a general matter, we attempt to match the durations of our assets with the durations of our liabilities. Our investment objectives include maintaining adequate liquidity to meet our operational needs, optimizing our after-tax investment income, and our after-tax total return, all of which are subject to our tolerance for risk.

The table below shows the interest rate sensitivity of our fixed maturity investments measured in terms of fair value (which is equal to the carrying value for all our investment securities that are subject to interest rate changes):

	March 31, 2021
Hypothetical Change in Interest Rates (In thousands)	Estimated Change in Fair Value		Fair Value
200 basis point increase	$	(10,136)	$	91,729
100 basis point increase		(5,226)		96,639
No change		—		101,865
100 basis point decrease1		3,901		105,766
200 basis point decrease1		6,377		108,242

1Assumes US rates are floored at 0%.

Credit Risk

Credit risk is the potential economic loss principally arising from adverse changes in the financial condition of a specific debt issuer. We address this risk by investing primarily in fixed maturity securities that are rated investment grade and at least 70% of our investment securities must be rated at least “A” by Moody’s or an equivalent rating quality. We also independently, and through our independent third-party investment manager, monitor the financial condition of all of the issuers of fixed maturity securities in the portfolio. To limit our exposure to risk, we employ diversification rules that limit the credit exposure to any single issuer or asset class.

Equity Risk

Equity price risk is the risk that we will incur economic losses due to adverse changes in equity prices.

~  30  ~

Item 4. Controls and Procedures

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that required information is recorded, processed, summarized and reported within the required timeframe as specified in the SEC’s rules and forms of the SEC. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed is accumulated and communicated to the Company’s management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

In connection with the preparation of this Quarterly Report on Form 10-Q, we carried out an evaluation under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, as of March 31, 2021, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon this evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that as of March 31, 2021, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) identified during the first quarter of 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

There were no material changes to report.

Item 1A. Risk Factors

A description of the risks associated with our business, financial conditions and results of operations is set forth in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

~  31  ~

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table summarizes repurchases of common stock pursuant to share repurchase programs authorized by the Board of Directors.

Purchases of Equity Securities

Period	(a) Total number of shares (or units) purchased	(b) Average price paid per share (or unit)		(c) Total number of shares (or units) purchased as part of publicly announced plans or programs	(d) Maximum number (or approximate dollar value) of shares (or units) that may be purchased under the plans or programs (1)
January 1 – January 31, 2021	—	$	—	—	$	2,788,205
February 1 – February 28, 2021	—		—	—	$	2,788,205
March 1 – March 31, 2021	1,300		14.75	1,300	$	2,769,030
Total	1,300	$	14.75	1,300

(1) In August 2018, the Company announced the establishment of a $3.0 million share repurchase program, with no expiration date.  The authorization is in addition to the existing share repurchase program.

Item 3. Default Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

~  32  ~

Item 6. Exhibits

Exhibit Number	Description
3.1	Form of Amended and Restated Articles of Incorporation of ICC Holdings, Inc. (incorporated by reference to Exhibit 3.1 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 (File No. 333-214081) filed on December 23, 2016)
3.2	Form of Amended and Restated Bylaws of ICC Holdings, Inc. (incorporated by reference to Exhibit 3.2 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 (File No. 333-214081) filed on December 23, 2016)
10.1	Deferred Compensation Agreement, dated March 18, 2021, among ICC Holdings, Inc., Illinois Casualty Company, and Arron K. Sutherland (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-38046) filed on March 19, 2021)
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	XBRL-Related Documents

~  33  ~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May  14, 2021.

ICC HOLDINGS, INC.
By:	/s/ Arron K. Sutherland
	Arron K. Sutherland President, Chief Executive Officer and Director (Principal Executive Officer)
By:	/s/ Michael R. Smith
	Michael R. Smith Chief Financial Officer (Principal Financial and Accounting Officer)

~  34  ~

EX-10.1

EXECUTION VERSION

DEFERRED COMPENSATION AGREEMENT

THIS DEFERRED COMPENSATION AGREEMENT (this “Agreement”) is made effective as of 1st day of January, 2021(the “Effective Date”)among Arron K. Sutherland (“Executive”), ICCH Holdings, Inc., a Pennsylvania corporation (“ICC Holdings”), and Illinois Casualty Company, an Illinois insurance company and a  wholly owned subsidiary of ICC Holdings (the “Company”).  For purposes of this Agreement, ICC Holdings and the Company may sometimes be collectively referred to as “Employer”.

WHEREAS, the Executive is employed by the Company and has been for fourteen (14) years, during which time the Executive has performed valuable services for the Company; and

WHEREAS, the Executive currently serves as President/CEO of the Company, and the Company wishes to benefit from the Executive’s continued loyalty, service, and counsel in years to come, to the continued profit of the Company.

NOW, THEREFORE, in order to reward and encourage such continued loyal and valuable service, and to assist the Executive in adequately planning for the financial demands of retirement, and to provide also for the Executive’s family security in the event of disability or death, the parties agree as follows:

ARTICLE I

A.Vesting of Benefit. Upon the Executive’s 62nd birthday,  the Executive shall be considered to be fully “Vested” in the amount payable to or on behalf of Executive under this Agreement.

B.Death of Executive. If the Executive continues employment with the Company as a full time employee and the Executive dies prior to the first day of the month following the month of the Executive’s 62nd birthday,  the Company shall pay monthly installments of Sixteen Thousand Six Hundred Sixty-Six and 67/100 Dollars ($16,667.67) for a continuous period of one hundred twenty (120) months to the Executive’s beneficiary or beneficiaries listed on the attached Exhibit  A.

C.Separation from Service.  

1.If the Executive continues employment with the Company as a full time employee until the Executive is fully Vested, the Company shall pay to the Executive monthly installments ofSixteen Thousand Six Hundred Sixty-Six and 67/100 Dollars ($16,667.67)beginning in the month following the month of the Executive’s separation from servicefor a continuous period of one hundred twenty (120) months. In the event the Executive should die after the Executive’s before receiving the full one hundred twenty (120) monthly installments, the remaining payments shall be paid by the Company, as they fall due, to the Executive’s beneficiary or beneficiaries listed on the attached Exhibit  A.

2.Subject to Article II below, if the Executive’s separation from service with the Company occurs prior to the Executive is fully Vested, the Company shall pay to the Executive the following amounts:

1

a.If the Executive’s separation of service occurs prior to November 20,  2022,  then beginning in the first month after the first day of the month following the month of the Executive’s 62nd birthday, the Company shall pay monthly installments of Four Thousand One Hundred Sixty-Six and 67/100 Dollars ($4,166.67) to the Executive for a continuous period of one hundred twenty (120) months.

b.If the Executive’s separation of service occurs after November 21, 2022 and prior to November 20, 2027, then beginning in the first month after the first day of the month following the month of the Executive’s 62nd birthday, the Company shall pay monthly installments of Eight Thousand Three Hundred Thirty-Three and 33/100 Dollars ($8,333.33) to the Executive for a continuous period of one hundred twenty (120) months.

c.If the Executive’s separation of service occurs after the November 21, 2027 and prior to September 20, 2030, then beginning in the first month after the first day of the month following the month of the Executive’s 62nd birthday, the Company shall pay monthly installments of Twelve Thousand Five Hundred and 00/100 Dollars ($12,500.00) to the Executive for a continuous period of one hundred twenty (120) months.

D.Reimbursement to the Executive for Incremental Income Taxes Paid by the Executive. It is contemplated that when the Executive separates from service, the Executive will incur additional employmenttaxes (the “Additional Employment Taxes”), currently at approximately 1.45%, as a result of the Executive benefit becoming ascertainable. The Company agrees that upon Executive’s separation from service, the Company will “gross up” the Executive’s salary to cover the Executive’s Additional Employment Taxes resulting the Executive benefit becoming ascertainable.

E.No Other Payments. The Company shall make no payments to the Executive under this Agreement other than those specified in paragraphs A through D of this Article I.

ARTICLE II

A.Forfeiture of Benefits. Notwithstanding anything to the contrary contained in Article I of this Agreement, the Executive shall forfeit all rights to any and all benefits to be paid to the Executive under this Agreement if:

1.Suicide.  The Executive dies by suicide within two years after the execution of this Agreement.

2.Termination. Prior to the Executive’s 62nd birthday, the Company terminates the Executive’s employment for “Cause” under the terms of the written Employment Agreement dated October 5, 2016 by and between the Company and the Executive (the “Employment Agreement), a copy of which is attached hereto as Exhibit B.  

B.Leave of Absence. The Company may, in its sole discretion, permit the Executive to take a leave of absence (a “Leave of Absence”) for a period not to exceed one (1) year. During the Leave of Absence, the Executive will be deemed an employee of the Company for all purposes of this Agreement.

C.No Acceleration of Benefits. The benefits provided for under Article I. of this Agreement may not be accelerated and paid at an earlier time than specified in Article I., neither at the option of the Executive nor in the discretion of the Company or any other person.

2

ARTICLE III

A.Assignment of Benefits.  Except to the extent that this provision may be contrary to law, no assignment, pledge, hypothecation, collateralization, lien or attachment of any of the benefits payable pursuant to the provisions of this Agreement shall be valid or recognized by the Company. None of the payments provided for by this Agreement shall be subject to seizure for payment of any debts or judgments against the Executive or any beneficiary, nor shall the Executive or any beneficiary have the right to transfer, modify, anticipate, or in any way encumber any rights or benefits under this Agreement.

B.Amendment.   During the lifetime of the Executive, this Agreement may be altered, amended, or revoked at any time in whole or in part by written agreement of the parties. Notwithstanding the foregoing, no alteration, amendment or revocation of this Agreement may be made in a manner that would cause the benefits payable hereunder to be accelerated or to be deferred in a manner that would cause this Agreement not to be in compliance with Internal Revenue Code (“IRC”) §409A.

C.Designation of Beneficiary.  In the event of the Executive's death, any installments provided for in Article I.C. of this Agreement, or any payments due under the terms of Article I.B. of this Agreement, shall be paid to the beneficiary or beneficiaries listed on the attached Exhibit  A.  The beneficiary or beneficiaries listed on the attached Exhibit  A may be changed at any time by the Executive, with the agreement of the Company by a written amended Exhibit  A signed by the parties to this Agreement. 

D.Unsecured Promise.  The provisions of this Agreement represent the unsecured promises of the Company. The Executive understands and acknowledges that the benefits herein are not secured by any rights to specific assets of the Company. 

E.Employee Retirement Income Security Act (“ERISA”).  For purposes of Title I of ERISA, the arrangement described in this Agreement is an unfunded excess benefit plan for a select highly compensated employee. The plan fiduciary is the secretary (the “Secretary”) of the Company.  Any claim under the plan should be filed in writing with the Secretary, and the Secretary shall respond to such claim in writing, in plain understandable language, making detailed and specific reference to material facts and to the terms of this Agreement, and explaining how and when benefits will be paid, or why they will not be paid, and outlining timely and reasonable procedures for appeal. If a claim under the plan is denied, notice of such denial shall be provided within ninety (90) days or less following the receipt of a claim by the Secretary. 

F.Internal Revenue Code (“IRC”).  For purposes of the Internal Revenue Code, this Agreement has been drafted to comply with and to be governed by IRC §409A and the regulations thereunder. The Company shall administer this Agreement with the intent to comply with IRC §409A, as interpreted in accordance with the regulations thereunder.

G.Binding on Heirs, etc.  This Agreement is solely between the Company and the Executive and shall be binding upon the parties to this Agreement, their heirs, assigns, successors, executors and administrators.

H.Governing Law.  This Agreement and all distributions under it shall be governed by the laws of the State of Illinois.

I.Severability.  If any portion of this Agreement is held to be invalid or otherwise not enforceable, the remainder shall have force and effect to the full extent permitted by law.

3

J.Entire Agreement and Termination of Previous Deferred Compensation Agreement.  This Agreement represents the final and entire agreement between the parties, and supersedes all prior or contemporaneous agreements, express or implied, written or unwritten, including that certain Deferred Compensation Agreement by and between Illinois Casualty Company, a Mutual Insurance Company and the Executive effective as of November 20, 2012.

K.Arbitration; Legal Fees. Except as otherwise provided herein, all controversies, claims or disputes arising out of or related to this Agreement shall be settled in Rock Island, Illinois, under the rules of the American Arbitration Association then in effect, and judgment upon such award rendered by the arbitrator(s) may be entered in any court of competent jurisdiction. 

[SIGNATURES  FOLLOW ON NEXT PAGE]

4

IN WITNESS WHEREOF, the parties have executed this Agreement at Rock Island, Illinois, on the 18thday of March,  2021, effective as of the Effective Date identified above.

ICC HOLDINGS:

ICC Holdings, Inc.

By: /s/ Julia B. Suiter_

Name: Julia B. Suiter_

Title: Chief Legal Officer

THE COMPANY:

Illinois Casualty Company

By: /s/ Julia B. Suiter_

Name: Julia B. Suiter_

Title: Chief Legal Officer

EXECUTIVE:

/s/ Arron K. Sutherland

Arron K. Sutherland

5

Exhibit  A

Beneficiaries

Name of Beneficiary or Beneficiaries:

Arron K. Sutherland Revocable Trust dated May 23, 2013

Executed effective as of March 18,  2021

/s/ Arron K. Sutherland

Arron K. Sutherland

6

ExhibitB

Employment Agreement

See attached Employment Agreement.

7

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER’S 302 CERTIFICATION

I, Arron K. Sutherland, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ICC Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2021

/s/ Arron K. Sutherland

Arron K. Sutherland

Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER’S 302 CERTIFICATION

I, Michael R. Smith, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ICC Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2021

/s/ Michael R. Smith

Michael R. Smith

Chief Financial Officer

(principal financial officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ICC Holdings, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Arron K. Sutherland, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2021

/s/Arron K. Sutherland

Arron K. Sutherland

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ICC Holdings, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael R. Smith, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2021

/s/ Michael R. Smith

Michael R. Smith

Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-38046
Entity Registrant Name	ICC Holdings, Inc.
Entity Central Index Key	0001681903
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	81-3359409
Entity Address, Address Line One	225 20th Street
Entity Address, City or Town	Rock Island
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61201
City Area Code	309
Local Phone Number	793-1700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ICCH
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		3,298,355
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($)		Mar. 31, 2021	Dec. 31, 2020
Investments and cash:
Fixed maturity securities (amortized cost - $97,695,883 at 3/31/2021 and $98,753,027 at 12/31/2020)		$ 101,865,040	$ 105,740,566
Other invested assets		1,777,792	1,772,867
Property held for investment, at cost, net of accumulated depreciation of $464,847 at 3/31/2021 and $465,364 at 12/31/2020		5,148,152	5,399,826
Cash and cash equivalents		5,556,479	6,598,842
Total investments and cash		134,406,160	135,920,807
Accrued investment income		700,153	660,793
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $150,000 at 3/31/2021 and 12/31/2020		22,598,051	23,506,171
Ceded unearned premiums		861,914	860,905
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 3/31/2021 and 12/31/2020		14,011,159	13,019,865
Federal income taxes		338,908	372,986
Deferred policy acquisition costs, net		5,721,277	5,429,620
Property and equipment, at cost, net of accumulated depreciation of $6,196,657 at 3/31/2021 and $6,079,728 at 12/31/2020		2,818,244	2,860,331
Other assets		1,287,738	1,307,794
Total assets		182,743,604	183,939,272
Liabilities:
Unpaid losses and settlement expenses		61,807,968	61,575,666
Unearned premiums		30,467,894	29,788,834
Reinsurance balances payable		347,506	371,195
Corporate debt		13,462,614	13,465,574
Accrued expenses		3,021,753	3,472,511
Income taxes - deferred		910,957	1,231,271
Other liabilities		944,113	1,290,532
Total liabilities		110,962,805	111,195,583
Equity:
Common stock	[1]	35,000	35,000
Treasury stock, at cost	[2]	(3,095,065)	(3,153,838)
Additional paid-in capital		32,765,565	32,780,436
Accumulated other comprehensive earnings, net of tax		3,293,569	5,520,091
Retained earnings		41,302,055	40,140,115
Less: Unearned Employee Stock Ownership Plan shares at cost	[3]	(2,520,325)	(2,578,115)
Total equity		71,780,799	72,743,689
Total liabilities and equity		182,743,604	183,939,272
Common Stocks [Member]
Investments and cash:
Stocks at fair value		18,404,167	14,724,814
Preferred Stock [Member]
Investments and cash:
Stocks at fair value		$ 1,654,530	$ 1,683,892

[1] Par value $0.01; authorized: 2021 - 10,000,000 shares and 2020 - 10,000,000 shares; issued: 2021 - 3,500,000 shares and 2020 - 3,500,000 shares; outstanding: 2021 - 3,295,255 and 2020 - 3,291,125 shares.

[2] 2021 - 204,745 shares and 2020 - 208,875 shares

[3] 2021 -252,032 shares and 2020 -257,811 shares

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Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets [Abstract]
Fixed maturity securities, amortized cost	$ 97,695,883	$ 98,753,027
Property held for investment, accumulated depreciation	464,847	465,364
Premiums and reinsurance balances receivable, allowances for uncollectible amounts	150,000	150,000
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts	0	0
Property and equipment, at cost, accumulated depreciation	$ 6,196,657	$ 6,079,728
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	3,500,000	3,500,000
Common stock, shares outstanding (in shares)	3,295,255	3,291,125
Treasury stock (in shares)	204,745	208,875
Unearned Employee Stock Ownership Plan	252,032	257,811

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Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Earnings and Comprehensive Earnings [Abstract]
Net premiums earned	$ 12,048,713	$ 13,013,989
Net investment income	801,406	835,400
Net realized investment gains	186,709	95,632
Net unrealized gains (losses) on equity securities	876,316	(3,689,347)
Other income	46,716	50,198
Consolidated revenues	13,959,860	10,305,872
Losses and settlement expenses	7,802,706	7,842,082
Policy acquisition costs and other operating expenses	4,467,578	4,764,974
Interest expense on debt	53,702	35,328
General corporate expenses	163,982	174,421
Total expenses	12,487,968	12,816,805
Earnings (loss) before income taxes	1,471,892	(2,510,933)
Total income tax expense (benefit)	309,951	(537,637)
Net earnings (loss)	1,161,941	(1,973,296)
Other comprehensive loss, net of tax	(2,226,522)	(1,710,846)
Comprehensive loss	$ (1,064,581)	$ (3,684,142)
Basic:
Basic net earnings (loss) per share	$ 0.38	$ (0.65)
Diluted:
Diluted net earnings (loss) per share	$ 0.38	$ (0.65)
Weighted average number of common shares outstanding:
Basic	3,034,233	3,016,062
Diluted	3,044,479	3,020,458

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Condensed Consolidated Statements of Stockholders’ Equity - USD ($)	Common Stock [Member]	Treasury Stock [Member]		Unearned ESOP [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Earnings (Loss) [Member]	Total
Balance at Dec. 31, 2019	$ 35,000	$ (3,146,576)		$ (2,812,485)	$ 32,703,209	$ 36,608,750	$ 2,953,936	$ 66,341,834
Net earnings (loss)						(1,973,296)		(1,973,296)
Other comprehensive loss, net of tax							(1,710,846)	(1,710,846)
Restricted stock unit expense		99,467			(62,540)			36,927
ESOP compensation expense				58,272	17,496			75,768
Balance at Mar. 31, 2020	35,000	(3,047,109)		(2,754,213)	32,658,165	34,635,454	1,243,090	62,770,387
Balance at Dec. 31, 2020	35,000	(3,153,838)		(2,578,115)	32,780,436	40,140,115	5,520,091	72,743,689
Purchase of treasury stock		(19,174)						(19,174)
Net earnings (loss)						1,161,941		1,161,941
Other comprehensive loss, net of tax							(2,226,522)	(2,226,522)
Restricted stock unit expense		77,947	[1]		(39,831)			38,116
ESOP compensation expense				57,790	24,960			82,750
Balance at Mar. 31, 2021	$ 35,000	$ (3,095,065)		$ (2,520,325)	$ 32,765,565	$ 41,302,055	$ 3,293,569	$ 71,780,799

[1] Amount represents restricted stock units that have fully vested in the period

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Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net earnings (loss)	$ 1,161,941	$ (1,973,296)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities
Net realized investment gains	(186,709)	(95,632)
Net unrealized (gains) losses on equity securities	(876,316)	3,689,347
Depreciation	159,680	167,079
Deferred income tax	271,546	(776,673)
Amortization of bond premium and discount	67,997	46,198
Stock-based compensation expense	120,866	112,695
Change in:
Accrued investment income	(39,360)	(49,265)
Premiums and reinsurance balances receivable	908,120	145,030
Ceded unearned premiums	(1,009)	16,232
Reinsurance balances payable	(23,689)	(22,323)
Reinsurance balances recoverable	(991,294)	(282,252)
Deferred policy acquisition costs	(291,657)	(111,309)
Unpaid losses and settlement expenses	232,302	1,435,349
Unearned premiums	679,060	(575,696)
Accrued expenses	(450,758)	(1,249,696)
Current federal income tax	34,078	3,497
Other	(292,180)	(316,700)
Net cash provided by operating activities	482,618	162,585
Purchases of:
Fixed maturity securities, available-for-sale	(2,494,500)	(5,105,043)
Other invested assets		(821,500)
Property held for investment	(30,018)	(28,573)
Property and equipment	(80,497)	(108,096)
Proceeds from sales, maturities and calls of:
Fixed maturity securities, available-for-sale	3,484,432	3,802,593
Property held for investment	243,588
Property and equipment	1,007	3,835
Net cash used in investing activities	(1,502,846)	(3,780,629)
Cash flows from financing activities:
Proceeds from loans		6,000,000
Repayments of borrowed funds	(2,961)	(2,522)
Purchase of treasury stock	(19,174)
Net cash (used in) provided by financing activities	(22,135)	5,997,478
Net (decrease) increase in cash and cash equivalents	(1,042,363)	2,379,434
Cash and cash equivalents at beginning of year	6,598,842	6,626,585
Cash and cash equivalents at end of period	5,556,479	9,006,019
Supplemental information:
Interest paid	52,600	35,300
Common Stocks [Member]
Purchases of:
Equity securities	(3,310,389)	(592,329)
Proceeds from sales, maturities and calls of:
Equity securities	687,015	524,818
Preferred Stock [Member]
Purchases of:
Equity securities	(81,953)	(1,548,172)
Proceeds from sales, maturities and calls of:
Fixed maturity securities, available-for-sale	$ 78,469	$ 91,838

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Notes to Unaudited Condensed Consolidated Financial Statements

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.     DESCRIPTION OF BUSINESS

ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to the “Company,” “we,” “us,” and “our” refer to the consolidated group. On a stand-alone basis ICC Holdings, Inc. is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc.; ICC Realty, LLC, a real estate services and holding company; Beverage Insurance Agency, Inc., a non-insurance subsidiary; Estrella Innovative Solutions, Inc., an outsourcing company; and Illinois Casualty Company (ICC), an operating insurance company that is the parent company of ICC Properties, LLC, a real estate series limited liability company. Both ICC and ICC Properties, LLC are Illinois domiciled companies.

We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers’ compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, and Wisconsin and markets through independent agents. Approximately 24.8% and 26.5% of the premium is written in Illinois for the three months ended March 31, 2021 and 2020, respectively. The Company operates as a single segment.

B.     PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q.  Accordingly, they do not include all the disclosures required by GAAP for complete financial statements.  As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, for the year ended December 31, 2020 (the “2020 10-K”). Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2021, and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates.

C.     SIGNIFICANT ACCOUNTING POLICIES

The Company reported its significant accounting policies in the 2020 10-K.

D.     PROSPECTIVE ACCOUNTING STANDARDS

For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the 2020 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies later in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable.

E.     PROPERTY AND EQUIPMENT

Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2021 and 2020, the Company recognized no impairments.  Property and equipment are summarized as follows:

	As of
	March 31,		December 31,
	2021		2020
Automobiles	$	530,723	$	530,722
Furniture and fixtures		488,642		491,766
Computer equipment and software		4,046,770		3,971,272
Home office		3,948,766		3,946,299
Total cost		9,014,901		8,940,059
Accumulated depreciation		(6,196,657)		(6,079,728)
Net property and equipment	$	2,818,244	$	2,860,331

F.     COMPREHENSIVE EARNINGS

Comprehensive earnings (loss) include net earnings (loss) plus unrealized (gains) losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21% tax rate. Other comprehensive earnings, as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax (benefit) of$(591,860) and $(454,782)for the three months ended March 31, 2021 and 2020, respectively.

The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale securities:

	Three-Months Ended March 31,
	2021		2020
Beginning balance	$	5,520,091	$	2,953,936
Other comprehensive loss before reclassification		(2,225,503)		(1,526,960)
Amount reclassified from accumulated other comprehensive loss		(1,019)		(183,886)
Net current period other comprehensive loss		(2,226,522)		(1,710,846)
Ending balance	$	3,293,569	$	1,243,090

The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements.

	Three-Month Periods Ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Other comprehensive loss, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding losses arising during the period	$	(2,817,092)	$	591,589	$	(2,225,503)	$	(1,932,861)	$	405,901	$	(1,526,960)
Reclassification adjustment for gains included in net earnings		(1,290)		271		(1,019)		(232,767)		48,881		(183,886)
Total other comprehensive loss	$	(2,818,382)	$	591,860	$	(2,226,522)	$	(2,165,628)	$	454,782	$	(1,710,846)

The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented:

Amounts Reclassified from
Accumulated Other Comprehensive Earnings
	Three-Month Periods Ended
Details about Accumulated Other	March 31,				Affected Line Item in the Statement
Comprehensive Earnings Component	2021		2020		where Net Earnings is Presented
Unrealized (gains) on AFS investments:
	$	(1,290)	$	(232,767)	Net realized investment (gains)
		271		48,881	Income tax expense
Total reclassification adjustment, net of tax	$	(1,019)	$	(183,886)

G.     RISKS AND UNCERTAINTIES

Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The ongoing COVID-19 pandemic has resulted in, and could continue to result in, significant disruptions in economic activity and financial markets. The cumulative effects of COVID-19 on the Company, and the effect of any other public health outbreak, cannot be predicted, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company.

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Investments

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Investments

2.     INVESTMENTS

The Company’s investments are primarily composed of fixed income debt securities and common and preferred stock equity securities. We carry our equity securities at fair value and categorize all our fixed maturity debt securities as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company’s investments. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has no investment securities for which fair value is determined using Level 3 inputs as defined in Note 3 – Fair Value Disclosures. Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does not differ significantly from trade date accounting.

Available-for-Sale Fixed Maturity and Equity Securities

The following tables are a summary of the proceeds from sales, maturities, and calls of AFS fixed maturity and equity securities and the related gross realized gains and losses.

	For the Three-Months Ended March 31,
							Net Realized
	Proceeds		Gains		Losses		Gains (Losses)
2021
Fixed maturity securities	$	3,484,432	$	1,319	$	(29)	$	1,290
Common stocks		687,015		212,361		(32,397)		179,964
Preferred stocks		78,469		5,455		—		5,455
2020
Fixed maturity securities	$	3,802,593	$	233,693	$	(926)	$	232,767
Common stocks		524,818		47,126		(173,499)		(126,373)
Preferred stocks		91,838		—		(10,762)		(10,762)

The amortized cost and estimated fair value of fixed income securities at March 31, 2021, by contractual maturity, are shown as follows:

	Amortized Cost		Fair Value
Due in one year or less	$	1,849,923	$	1,888,670
Due after one year through five years		20,417,844		21,645,715
Due after five years through 10 years		15,114,224		16,148,886
Due after 10 years		21,536,839		22,722,744
Asset and mortgage backed securities without a specific due date		38,561,248		39,224,101
Redeemable preferred stocks		215,805		234,923
Total fixed maturity securities	$	97,695,883	$	101,865,040

Expected maturities may differ from contractual maturities due to call provisions on some existing securities.

The following table is a schedule of cost or amortized cost and estimated fair values of investments in securities classified as available for sale at March 31, 2021 and December 31, 2020:  

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2021
Fixed maturity securities:
U.S. Treasury	$	1,352,581	$	1,364,297	$	23,227	$	(11,511)
MBS/ABS/CMBS		38,561,248		39,224,101		977,305		(314,452)
Corporate		40,104,876		42,735,613		2,835,297		(204,560)
Municipal		17,461,373		18,306,106		955,785		(111,052)
Redeemable preferred stock		215,805		234,923		19,118		—
Total fixed maturity securities	$	97,695,883	$	101,865,040	$	4,810,732	$	(641,575)

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2020
Fixed maturity securities:
U.S. Treasury	$	1,352,758	$	1,385,406	$	33,336	$	(688)
MBS/ABS/CMBS		40,509,172		41,743,304		1,367,411		(133,279)
Corporate		39,186,671		43,580,743		4,429,000		(34,928)
Municipal		17,488,621		18,788,674		1,316,358		(16,305)
Redeemable preferred stock		215,805		242,439		26,634		—
Total fixed maturity securities	$	98,753,027	$	105,740,566	$	7,172,739	$	(185,200)

All the Company’s collateralized securities carry an average credit rating of AA+ by one or more major rating agencies and continue to pay according to contractual terms. Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are residential mortgage backed securities with fair values of $14,865,024and $16,220,343 and commercial mortgage backed securities of $12,452,036 and $12,721,455 atMarch 31, 2021 and December 31, 2020, respectively.  

ANALYSIS

The following tables are also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of March 31, 2021 and December 31, 2020. The tables segregate the securities based on type, noting the fair value, cost or amortized cost, and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position.

	March 31, 2021						December 31, 2020
			12 Months						12 Months
	< 12 Months		& Greater		Total		< 12 Months		& Greater		Total
Fixed Maturity Securities:
U.S. Treasury
Fair value	$	689,063	$	—	$	689,063	$	299,391	$	—	$	299,391
Amortized cost		700,574		—		700,574		300,078		—		300,078
Unrealized loss		(11,511)		—		(11,511)		(688)		—		(688)
MBS/ABS/CMBS
Fair value		7,512,704		1,820,824		9,333,528		7,120,339		2,010,434		9,130,773
Amortized cost		7,711,500		1,936,480		9,647,980		7,236,360		2,027,692		9,264,052
Unrealized loss		(198,796)		(115,656)		(314,452)		(116,021)		(17,258)		(133,279)
Corporate
Fair value		6,201,266		233,125		6,434,391		1,739,691		—		1,739,691
Amortized cost		6,390,010		248,941		6,638,951		1,774,619		—		1,774,619
Unrealized loss		(188,744)		(15,816)		(204,560)		(34,928)		—		(34,928)
Municipal
Fair value		3,457,673		245,545		3,703,218		756,678		—		756,678
Amortized cost		3,565,111		249,159		3,814,270		772,984		—		772,984
Unrealized loss		(107,438)		(3,614)		(111,052)		(16,306)		—		(16,306)
Total
Fair value		17,860,706		2,299,494		20,160,200		9,916,099		2,010,434		11,926,533
Amortized cost		18,367,195		2,434,580		20,801,775		10,084,041		2,027,692		12,111,733
Unrealized loss	$	(506,489)	$	(135,086)	$	(641,575)	$	(167,942)	$	(17,258)	$	(185,200)

The fixed income portfolio contained 43 securities in an unrealized loss position as of March 31, 2021. Of these 43 securities, 6 have been in an unrealized loss position for 12 consecutive months or longer and represent $135,086in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management’s analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest.

There were no other-than-temporary impairment losses recognized in net earnings during the first three months ended March 31, 2021. For all fixed income securities at a loss at March 31, 2021, management believes it is probable that the Company will receive all contractual payments in the form of principal and interest. In addition, the Company is not required to, nor does it intend to sell these investments prior to recovering the entire amortized cost basis for each security, which may be at maturity. The fixed income securities in an unrealized loss position were not other-than-temporarily impaired at March 31, 2021 and December 31, 2019.

UNREALIZED GAINS AND LOSSES ON EQUITY SECURITIES

Net unrealized gains for the three months ended March 31, 2021 for equity securities held as of March 31, 2021  were$876,316. Net unrealized (losses) for the three months ended March 31, 2020 for equity securities held as of March 31, 2020 were $(3,689,347).

Other Invested Assets

Other invested assets include membership in the Federal Home Loan Bank of Chicago (FHLBC), which occurred in February 2018. Our $200,000investment in FHLBC stock is carried at cost. Due to the nature of our membership in the FHLBC, the carrying amount approximates fair value.

In addition, other invested assets include privately held investments of $204,400, and notes issued. Two of the notes, issued for $625,000 and $650,000 on July 30, 2019 and January 28, 2020, respectively,  bear interest at 6.5% and are amortized over 20 years with a balloon payment due July 30, 2029. A third note issued for $94,000 on October 30, 2020, bears interest at 6.0% and is amortized over 29 years with monthly payments due beginning July 31, 2021. As of March 31, 2021, this note has $4,000 in accrued escrow and interest receivable. The Company had no allowance recorded related to uncollectible notes receivables at March 31, 2021 and December 31, 2020.

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosures

3.     FAIR VALUE DISCLOSURES

Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. The fair value of certain financial instruments is determined based on their underlying characteristics and relevant transactions in the marketplace. GAAP guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance also describes three levels of inputs that may be used to measure fair value.

The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level:

· Level 1 is applied to valuations based on readily available, unadjusted quoted prices in active markets for identical assets.

· Level 2 is applied to valuations based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.

· Level 3 is applied to valuations that are derived from techniques in which one or more of the significant inputs are unobservable. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value.

As a part of the process to determine fair value, management utilizes widely recognized, third-party pricing sources to determine fair values. Management has obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy.

Corporate, Agencies, and Municipal Bonds—The pricing vendor employs a multi-dimensional model which uses standard inputs including (listed in order of priority for use) benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, as well as industry and economic events. All bonds valued using these techniques are classified as Level 2. All Corporate, Agencies, and Municipal securities are deemed Level 2.

Mortgage-backed Securities (MBS), Collateralized Mortgage Obligations (CMO), Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS)—The pricing vendor evaluation methodology includes principally interest rate movements and new issue data. Evaluation of the tranches (non-volatile, volatile, or credit sensitivity) is based on the pricing vendors’ interpretation of accepted modeling and pricing conventions. This information is then used to determine the cash flows for each tranche, benchmark yields, pre-payment assumptions and to incorporate collateral performance. To evaluate CMO volatility, an option adjusted spread model is used in combination with models that simulate interest rate paths to determine market price information. This process allows the pricing vendor to obtain evaluations of a broad universe of securities in a way that reflects changes in yield curve, index rates, implied volatility, mortgage rates, and recent trade activity. MBS, CMBS, CMO and ABS with corroborated and observable inputs are classified as Level 2. All MBS, CMBS, CMO and ABS holdings are deemed Level 2.

U.S. Treasury Bonds, Common Stocks and Exchange Traded Funds—U.S. treasury bonds and exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices). All common stock holdings are deemed Level 1.

Preferred Stock—Preferred stocks do not have readily observable prices, but do have quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices and are classified as Level 2. All preferred stock holdings are deemed Level 2.

Due to the relatively short-term nature of cash and cash equivalents, their carrying amounts are reasonable estimates of fair value. Other invested assets as well as debt obligations are carried at face value and given that there is no readily available market for these to trade in, management believes that face value accurately reflects fair value.

Assets measured at fair value on a recurring basis as of March 31, 2021, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,364,297	$	—	$	—	$	1,364,297
MBS/ABS/CMBS		—		39,224,101		—		39,224,101
Corporate		—		42,735,612		—		42,735,612
Municipal		—		18,306,106		—		18,306,106
Redeemable preferred stocks		—		234,923		—		234,923
Total fixed maturity securities		1,364,297		100,500,743		—		101,865,040
Equity securities
Common stocks		18,404,167		—		—		18,404,167
Perpetual preferred stocks		—		1,654,530		—		1,654,530
Total equity securities		18,404,167		1,654,530		—		20,058,697
Total marketable investments measured at fair value	$	19,768,464	$	102,155,273	$	—	$	121,923,737

Assets measured at fair value on a recurring basis as of December 31, 2020, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,385,406	$	—	$	—	$	1,385,406
MBS/ABS/CMBS		—		41,743,304		—		41,743,304
Corporate		—		43,580,743		—		43,580,743
Municipal		—		18,788,674		—		18,788,674
Redeemable preferred stocks		—		242,439		—		242,439
Total fixed maturity securities		1,385,406		104,355,160		—		105,740,566
Equity securities
Common stocks		14,724,814		—		—		14,724,814
Perpetual preferred stocks		—		1,683,892		—		1,683,892
Total equity securities		14,724,814		1,683,892		—		16,408,706
Total marketable investments measured at fair value	$	16,110,220	$	106,039,052	$	—	$	122,149,272

As noted in the previous tables, the Company did not have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2021 and December 31, 2020. Additionally, there were no securities transferred in or out of Levels 1 or 2 during the three-month periods ended March 31, 2021 and 2020.

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Debt

3 Months Ended

Mar. 31, 2021

Debt [Abstract]

Debt

4.     DEBT

Debt Obligation

ICC Holdings, Inc. secured a loan with a commercial bank in March 2017 in the amount of $3.5 million and used the proceeds to repay ICC for the money borrowed by the ESOP. The term of the loan is five years bearing interest at 3.65%. The Company pledged stock and $1.0 million of marketable assets as collateral for the loan.

The Company also has borrowing capacity up to approximately $37 million in the aggregate from its membership with the Federal Home Loan Bank of Chicago (FHLBC).

As part of the Company’s response to COVID-19, the Company obtained, in March 2020, a $6.0 million loan from the FHLBC as a precautionary measure to increase its cash position, to provide increased liquidity, and to compensate for potential reductions in premium receivable collections. The term of the loan is five years bearing interest at 1.4%. The Company pledged $6.8 million of fixed income securities as collateral for this loan. The Company also obtained, in May 2020, a $4.0 million 0% interest, one-year loan from the FHLBC as an additional precautionary measure to increase its cash position, to provide increased liquidity, and to compensate for potential reductions in premium receivable collections as a result of the Company’s announcement in March 2020 to temporarily suspend all insurance premium billing for 30 days. The Company pledged an additional $7.4 million of fixed income securities as collateral for both FHLBC loans.

The total balance of the debt agreements at March 31, 2021 and December 31, 2020was $13,462,614 and $13,465,574, respectively. The average interest rate on remaining debt was 1.6% as of March 31, 2021 and 2.2% as of December 31, 2020.  

On July 30, 2020, the Company secured through FHLBC a fixed 0.74% borrowing rate for a future $4.0 million loan becomes effective May 3, 2021, upon the maturity of the existing $4.0 million FHLBC loan.  No collateral was pledged for this forward advance.

Revolving Line of Credit

We maintained a revolving line of credit with a commercial bank, which permitted borrowing up to an aggregate principal amount of $1.75 million. This facility was initially entered into during 2013 and expiredAugust 5, 2020. The line of credit was priced at 30-day LIBOR plus 2% with a floor of 3.5%.  In order to secure the lowest rate possible, the Company pledged marketable securities not to exceed $5.0 million in the event the Company would draw down on the line of credit. There are no financial covenants governing this agreement.

Effective August 3, 2020, the Company replaced its expiring line of credit with a $2.0 million revolving line of credit with anothercommercial bank, which renews annually and has a current expiration date of August 3, 2021.  This new line of credit is priced at Prime plus 0.5%. The Company pledged $2.0 million of business assets in the event the Company draws down on the line of credit.  There are no financial covenants governing this agreement.

There was no interest paid on these lines of credit during the three months ended March 31, 2021 and 2020.

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Reinsurance

3 Months Ended

Mar. 31, 2021

Reinsurance [Abstract]

Reinsurance

5.     REINSURANCE

In the ordinary course of business, the Company assumes and cedes premiums and selected insured risks with other insurance companies, known as reinsurance. A large portion of the reinsurance is put into effect under contracts known as treaties and, in some instances, by negotiation on each individual risk (known as facultative reinsurance). In addition, there are several types of treaties including quota share, excess of loss and catastrophe reinsurance contracts that protect against losses over stipulated amounts arising from any one occurrence or event. The arrangements allow the Company to pursue greater diversification of business and serve to limit the maximum net loss to a single event, such as a catastrophe. Through the quantification of exposed policy limits in each region and the extensive use of computer-assisted modeling techniques, management monitors the concentration of risks exposed to catastrophic events.

Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $1,000,000 for casualty and workers’ compensation businessand $750,000 for property, although certain treaties contain an annual aggregate deductible before reinsurance applies.

Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows:

	Three-Month Periods Ended March 31,
	2021		2020
WRITTEN
Direct	$	15,172,035	$	14,794,534
Reinsurance assumed		27,898		37,534
Reinsurance ceded		(2,473,168)		(2,377,544)
Net	$	12,726,765	$	12,454,524
EARNED
Direct	$	14,482,050	$	15,362,814
Reinsurance assumed		38,822		44,950
Reinsurance ceded		(2,472,159)		(2,393,775)
Net	$	12,048,713	$	13,013,989
LOSS AND SETTLEMENT EXPENSES INCURRED
Direct	$	10,767,434	$	8,761,679
Reinsurance assumed		25,445		26,518
Reinsurance ceded		(2,990,173)		(946,115)
Net	$	7,802,706	$	7,842,082

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Unpaid Losses and Settlement Expenses

3 Months Ended

Mar. 31, 2021

Unpaid Losses and Settlement Expenses [Abstract]

Unpaid Losses and Settlement Expenses

6.     UNPAID LOSSES AND SETTLEMENT EXPENSES

The following table is a reconciliation of the Company’s unpaid losses and settlement expenses:

	For the Three-Months Ended
	March 31,
(In thousands)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,576	$	56,838
Less: Ceded		13,020		11,036
Net		48,556		45,802
Increase in incurred losses and settlement expense:
Current year		7,142		6,245
Prior years		661		1,597
Total incurred		7,803		7,842
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,288		1,204
Prior years		7,274		5,484
Total paid		8,562		6,688
Net unpaid losses and settlement expense - end of the period		47,797		46,956
Plus: Reinsurance recoverable on unpaid losses		14,011		11,318
Gross unpaid losses and settlement expense - end of the period	$	61,808	$	58,274

Net unpaid losses and settlement expense increased$841,000, or 1.8%, in the three months ended March 31, 2021 as compared to the same period in 2020. For the three months ended March 31, 2021 and 2020, we experienced unfavorable development of $661,000 and $1,597,000,  respectively. The unfavorable development for the three months ended March 31, 2021 was primarily driven by the Workers’ Compensation line of business. Business Owners Liability and Business Owners Property lines of business were the primary drivers of adverse development for the three months ended March 31, 2020.  

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Income Taxes

3 Months Ended

Mar. 31, 2021

Income Taxes [Abstract]

Income Taxes

7.     INCOME TAXES

The Company’s effective tax rate for the three month period ended March 31, 2021, was21.1%, compared to 21.4% for the same period in 2020. Effective rates are dependent upon components of pretax earnings and the related tax effects.

Income tax expense for the three month periods ended March 31, 2021 and 2020, differed from the amounts computed by applying the U.S. federal tax rate of 21% to pretax income from continuing operations as demonstrated in the following table:

	For the Three-Months Ended
	March 31,
	2021		2020
Provision for income taxes at the statutory federal tax rates	$	309,097	$	(527,296)
Increase (reduction) in taxes resulting from:
Dividends received deduction		(8,108)		(6,535)
Tax-exempt interest income		(14,794)		(15,480)
Proration of tax-exempt interest and dividends received deduction		5,564		5,368
Nondeductible expenses		18,026		5,503
Officer life insurance, net		166		803
Total	$	309,951	$	(537,637)

Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset.

As of March 31, 2021 and December 31, 2020, the Company does not have any capital or operating loss carryforwards. Periods still subject to IRS audit include 2017 through current year. There are currently no open tax exams.

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Employee Benefits

3 Months Ended

Mar. 31, 2021

Employee Benefits [Abstract]

Employee Benefits

8.     EMPLOYEE BENEFITS

ESOP

In connection with our conversion and public offering, we established an ESOP. The ESOP borrowed from the Company to purchase 350,000 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the equity section of the balance sheet for the unallocated shares at an amount equal to their $10.00 per share purchase price.

The Company may make discretionary contributions to the ESOP and pay dividends on unallocated shares to the ESOP. ICC makes annual contributions to the ESOP sufficient to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation.  No contributions to the ESOP were made during the three months ended March 31, 2021 and 2020, respectively.

A compensation expense charge is booked monthly during each year for the shares committed to be allocated to participants that year, determined with reference to the fair market value of our stock at the time the commitment to allocate the shares is accrued and recognized. For the three months ended March 31, 2021, we recognized compensation expense of $82,750 related to 5,779 shares of our common stock that are committed to be released to participants’ accounts at December 31, 2021. Of the 5,779 shares committed to be released, 1,991 shares were committed on March 31, 2021 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2021. For the three months ended March 31, 2020, we recognized compensation expense of $75,768 related to 5,827 shares of our common stock that were committed to be released to participants’ accounts at December 31, 2020. Of the 5,827 shares committed to be released at December 31, 2020,  1,985 shares were committed on March 31, 2020 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2020.  

RESTRICTED STOCK UNITS

Restricted stock units (RSUs) were granted for the first time in February 2018 with additional RSUs granted in March 2019 and April 2020. RSUs have a grant date value equal to the closing price of the Company’s stock on the dates the shares are granted. The RSUs vest 1/3 over three years from the date of grant.

As of March 31, 2021,  18,040,  13,071, and 11,700 RSUs have been granted at a fair market value of $11.03,  $13.70, and $15.10, respectively. We recognized $38,116 and $36,928 of expense on these units in the three months ended March 31, 2021 and 2020, respectively. Total unrecognized compensation expense relating to outstanding and unvested RSUs was $181,863as of March 31, 2021, which will be recognized over the remainder of their respectivethree-year vesting periods.

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Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

9.     SUBSEQUENT EVENTS

Subsequent events have been evaluated through the date the financial statements were issued.

The Company granted on April 1, 2021 15,000 RSUs to members of executive staff.

The $4.0 million FHLBC loan, obtained in May 2020, matured on May 3, 2021. On this date, a new FHLBC $4.0 million loan became effective. This loan agreement was arranged in July 2020.  See Note 4 - Debt for more information.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies [Abstract]

Description of Business

A.     DESCRIPTION OF BUSINESS

ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to the “Company,” “we,” “us,” and “our” refer to the consolidated group. On a stand-alone basis ICC Holdings, Inc. is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc.; ICC Realty, LLC, a real estate services and holding company; Beverage Insurance Agency, Inc., a non-insurance subsidiary; Estrella Innovative Solutions, Inc., an outsourcing company; and Illinois Casualty Company (ICC), an operating insurance company that is the parent company of ICC Properties, LLC, a real estate series limited liability company. Both ICC and ICC Properties, LLC are Illinois domiciled companies.

We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers’ compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, and Wisconsin and markets through independent agents. Approximately 24.8% and 26.5% of the premium is written in Illinois for the three months ended March 31, 2021 and 2020, respectively. The Company operates as a single segment.

Principles of Consolidation and Basis of Presentation

B.     PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q.  Accordingly, they do not include all the disclosures required by GAAP for complete financial statements.  As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, for the year ended December 31, 2020 (the “2020 10-K”). Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2021, and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates.

Significant Accounting Policies

C.     SIGNIFICANT ACCOUNTING POLICIES

The Company reported its significant accounting policies in the 2020 10-K.

Prospective Accounting Standards

D.     PROSPECTIVE ACCOUNTING STANDARDS

For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the 2020 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies later in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable.

Property and Equipment

E.     PROPERTY AND EQUIPMENT

Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2021 and 2020, the Company recognized no impairments.  Property and equipment are summarized as follows:

	As of
	March 31,		December 31,
	2021		2020
Automobiles	$	530,723	$	530,722
Furniture and fixtures		488,642		491,766
Computer equipment and software		4,046,770		3,971,272
Home office		3,948,766		3,946,299
Total cost		9,014,901		8,940,059
Accumulated depreciation		(6,196,657)		(6,079,728)
Net property and equipment	$	2,818,244	$	2,860,331

Comprehensive Earnings

F.     COMPREHENSIVE EARNINGS

Comprehensive earnings (loss) include net earnings (loss) plus unrealized (gains) losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21% tax rate. Other comprehensive earnings, as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax (benefit) of$(591,860) and $(454,782)for the three months ended March 31, 2021 and 2020, respectively.

The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale securities:

	Three-Months Ended March 31,
	2021		2020
Beginning balance	$	5,520,091	$	2,953,936
Other comprehensive loss before reclassification		(2,225,503)		(1,526,960)
Amount reclassified from accumulated other comprehensive loss		(1,019)		(183,886)
Net current period other comprehensive loss		(2,226,522)		(1,710,846)
Ending balance	$	3,293,569	$	1,243,090

The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements.

	Three-Month Periods Ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Other comprehensive loss, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding losses arising during the period	$	(2,817,092)	$	591,589	$	(2,225,503)	$	(1,932,861)	$	405,901	$	(1,526,960)
Reclassification adjustment for gains included in net earnings		(1,290)		271		(1,019)		(232,767)		48,881		(183,886)
Total other comprehensive loss	$	(2,818,382)	$	591,860	$	(2,226,522)	$	(2,165,628)	$	454,782	$	(1,710,846)

The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented:

Amounts Reclassified from
Accumulated Other Comprehensive Earnings
	Three-Month Periods Ended
Details about Accumulated Other	March 31,				Affected Line Item in the Statement
Comprehensive Earnings Component	2021		2020		where Net Earnings is Presented
Unrealized (gains) on AFS investments:
	$	(1,290)	$	(232,767)	Net realized investment (gains)
		271		48,881	Income tax expense
Total reclassification adjustment, net of tax	$	(1,019)	$	(183,886)

Risks and Uncertainties

G.     RISKS AND UNCERTAINTIES

Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The ongoing COVID-19 pandemic has resulted in, and could continue to result in, significant disruptions in economic activity and financial markets. The cumulative effects of COVID-19 on the Company, and the effect of any other public health outbreak, cannot be predicted, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies [Abstract]

Summary of Property, Plant and Equipment

	As of
	March 31,		December 31,
	2021		2020
Automobiles	$	530,723	$	530,722
Furniture and fixtures		488,642		491,766
Computer equipment and software		4,046,770		3,971,272
Home office		3,948,766		3,946,299
Total cost		9,014,901		8,940,059
Accumulated depreciation		(6,196,657)		(6,079,728)
Net property and equipment	$	2,818,244	$	2,860,331

Accumulated Other Comprehensive Earnings (Loss)

	Three-Months Ended March 31,
	2021		2020
Beginning balance	$	5,520,091	$	2,953,936
Other comprehensive loss before reclassification		(2,225,503)		(1,526,960)
Amount reclassified from accumulated other comprehensive loss		(1,019)		(183,886)
Net current period other comprehensive loss		(2,226,522)		(1,710,846)
Ending balance	$	3,293,569	$	1,243,090

Summary of Components of Other Comprehensive Earnings

	Three-Month Periods Ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Other comprehensive loss, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding losses arising during the period	$	(2,817,092)	$	591,589	$	(2,225,503)	$	(1,932,861)	$	405,901	$	(1,526,960)
Reclassification adjustment for gains included in net earnings		(1,290)		271		(1,019)		(232,767)		48,881		(183,886)
Total other comprehensive loss	$	(2,818,382)	$	591,860	$	(2,226,522)	$	(2,165,628)	$	454,782	$	(1,710,846)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnings

Amounts Reclassified from
Accumulated Other Comprehensive Earnings
	Three-Month Periods Ended
Details about Accumulated Other	March 31,				Affected Line Item in the Statement
Comprehensive Earnings Component	2021		2020		where Net Earnings is Presented
Unrealized (gains) on AFS investments:
	$	(1,290)	$	(232,767)	Net realized investment (gains)
		271		48,881	Income tax expense
Total reclassification adjustment, net of tax	$	(1,019)	$	(183,886)

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Investments (Tables)

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Summary of Recognized Impairments

	For the Three-Months Ended March 31,
							Net Realized
	Proceeds		Gains		Losses		Gains (Losses)
2021
Fixed maturity securities	$	3,484,432	$	1,319	$	(29)	$	1,290
Common stocks		687,015		212,361		(32,397)		179,964
Preferred stocks		78,469		5,455		—		5,455
2020
Fixed maturity securities	$	3,802,593	$	233,693	$	(926)	$	232,767
Common stocks		524,818		47,126		(173,499)		(126,373)
Preferred stocks		91,838		—		(10,762)		(10,762)

Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity

	Amortized Cost		Fair Value
Due in one year or less	$	1,849,923	$	1,888,670
Due after one year through five years		20,417,844		21,645,715
Due after five years through 10 years		15,114,224		16,148,886
Due after 10 years		21,536,839		22,722,744
Asset and mortgage backed securities without a specific due date		38,561,248		39,224,101
Redeemable preferred stocks		215,805		234,923
Total fixed maturity securities	$	97,695,883	$	101,865,040

Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2021
Fixed maturity securities:
U.S. Treasury	$	1,352,581	$	1,364,297	$	23,227	$	(11,511)
MBS/ABS/CMBS		38,561,248		39,224,101		977,305		(314,452)
Corporate		40,104,876		42,735,613		2,835,297		(204,560)
Municipal		17,461,373		18,306,106		955,785		(111,052)
Redeemable preferred stock		215,805		234,923		19,118		—
Total fixed maturity securities	$	97,695,883	$	101,865,040	$	4,810,732	$	(641,575)

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2020
Fixed maturity securities:
U.S. Treasury	$	1,352,758	$	1,385,406	$	33,336	$	(688)
MBS/ABS/CMBS		40,509,172		41,743,304		1,367,411		(133,279)
Corporate		39,186,671		43,580,743		4,429,000		(34,928)
Municipal		17,488,621		18,788,674		1,316,358		(16,305)
Redeemable preferred stock		215,805		242,439		26,634		—
Total fixed maturity securities	$	98,753,027	$	105,740,566	$	7,172,739	$	(185,200)

Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position

	March 31, 2021						December 31, 2020
			12 Months						12 Months
	< 12 Months		& Greater		Total		< 12 Months		& Greater		Total
Fixed Maturity Securities:
U.S. Treasury
Fair value	$	689,063	$	—	$	689,063	$	299,391	$	—	$	299,391
Amortized cost		700,574		—		700,574		300,078		—		300,078
Unrealized loss		(11,511)		—		(11,511)		(688)		—		(688)
MBS/ABS/CMBS
Fair value		7,512,704		1,820,824		9,333,528		7,120,339		2,010,434		9,130,773
Amortized cost		7,711,500		1,936,480		9,647,980		7,236,360		2,027,692		9,264,052
Unrealized loss		(198,796)		(115,656)		(314,452)		(116,021)		(17,258)		(133,279)
Corporate
Fair value		6,201,266		233,125		6,434,391		1,739,691		—		1,739,691
Amortized cost		6,390,010		248,941		6,638,951		1,774,619		—		1,774,619
Unrealized loss		(188,744)		(15,816)		(204,560)		(34,928)		—		(34,928)
Municipal
Fair value		3,457,673		245,545		3,703,218		756,678		—		756,678
Amortized cost		3,565,111		249,159		3,814,270		772,984		—		772,984
Unrealized loss		(107,438)		(3,614)		(111,052)		(16,306)		—		(16,306)
Total
Fair value		17,860,706		2,299,494		20,160,200		9,916,099		2,010,434		11,926,533
Amortized cost		18,367,195		2,434,580		20,801,775		10,084,041		2,027,692		12,111,733
Unrealized loss	$	(506,489)	$	(135,086)	$	(641,575)	$	(167,942)	$	(17,258)	$	(185,200)

XML

Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value on a recurring Basis

Assets measured at fair value on a recurring basis as of March 31, 2021, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,364,297	$	—	$	—	$	1,364,297
MBS/ABS/CMBS		—		39,224,101		—		39,224,101
Corporate		—		42,735,612		—		42,735,612
Municipal		—		18,306,106		—		18,306,106
Redeemable preferred stocks		—		234,923		—		234,923
Total fixed maturity securities		1,364,297		100,500,743		—		101,865,040
Equity securities
Common stocks		18,404,167		—		—		18,404,167
Perpetual preferred stocks		—		1,654,530		—		1,654,530
Total equity securities		18,404,167		1,654,530		—		20,058,697
Total marketable investments measured at fair value	$	19,768,464	$	102,155,273	$	—	$	121,923,737

Assets measured at fair value on a recurring basis as of December 31, 2020, are summarized below:

			Significant
	Quoted in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
AFS securities
Fixed maturity securities
U.S. treasury	$	1,385,406	$	—	$	—	$	1,385,406
MBS/ABS/CMBS		—		41,743,304		—		41,743,304
Corporate		—		43,580,743		—		43,580,743
Municipal		—		18,788,674		—		18,788,674
Redeemable preferred stocks		—		242,439		—		242,439
Total fixed maturity securities		1,385,406		104,355,160		—		105,740,566
Equity securities
Common stocks		14,724,814		—		—		14,724,814
Perpetual preferred stocks		—		1,683,892		—		1,683,892
Total equity securities		14,724,814		1,683,892		—		16,408,706
Total marketable investments measured at fair value	$	16,110,220	$	106,039,052	$	—	$	122,149,272

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2021

Reinsurance [Abstract]

Summary of the Effects of Reinsurance

	Three-Month Periods Ended March 31,
	2021		2020
WRITTEN
Direct	$	15,172,035	$	14,794,534
Reinsurance assumed		27,898		37,534
Reinsurance ceded		(2,473,168)		(2,377,544)
Net	$	12,726,765	$	12,454,524
EARNED
Direct	$	14,482,050	$	15,362,814
Reinsurance assumed		38,822		44,950
Reinsurance ceded		(2,472,159)		(2,393,775)
Net	$	12,048,713	$	13,013,989
LOSS AND SETTLEMENT EXPENSES INCURRED
Direct	$	10,767,434	$	8,761,679
Reinsurance assumed		25,445		26,518
Reinsurance ceded		(2,990,173)		(946,115)
Net	$	7,802,706	$	7,842,082

XML

Unpaid Losses and Settlement Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Unpaid Losses and Settlement Expenses [Abstract]

Reconciliation of Unpaid Losses and Settlement Expenses

	For the Three-Months Ended
	March 31,
(In thousands)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,576	$	56,838
Less: Ceded		13,020		11,036
Net		48,556		45,802
Increase in incurred losses and settlement expense:
Current year		7,142		6,245
Prior years		661		1,597
Total incurred		7,803		7,842
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,288		1,204
Prior years		7,274		5,484
Total paid		8,562		6,688
Net unpaid losses and settlement expense - end of the period		47,797		46,956
Plus: Reinsurance recoverable on unpaid losses		14,011		11,318
Gross unpaid losses and settlement expense - end of the period	$	61,808	$	58,274

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2021

Income Taxes [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

	For the Three-Months Ended
	March 31,
	2021		2020
Provision for income taxes at the statutory federal tax rates	$	309,097	$	(527,296)
Increase (reduction) in taxes resulting from:
Dividends received deduction		(8,108)		(6,535)
Tax-exempt interest income		(14,794)		(15,480)
Proration of tax-exempt interest and dividends received deduction		5,564		5,368
Nondeductible expenses		18,026		5,503
Officer life insurance, net		166		803
Total	$	309,951	$	(537,637)

XML

Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) segment	Mar. 31, 2020 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Impairment	$ 0	$ 0
Federal tax rate	21.00%	21.00%
Operating segments | segment	1
Tax (benefit) expense	$ (591,860)	$ (454,782)
Premiums [Member] | Geographic Concentration Risk [Member] | Illinois [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	24.80%	26.50%

XML

Summary of Significant Accounting Policies (Summary of Property, Plant and Equipment) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total cost	$ 9,014,901	$ 8,940,059
Accumulated depreciation	(6,196,657)	(6,079,728)
Net property and equipment	2,818,244	2,860,331
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Total cost	530,723	530,722
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	488,642	491,766
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Total cost	4,046,770	3,971,272
Home Office [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 3,948,766	$ 3,946,299

XML

Summary of Significant Accounting Policies (Accumulated Other Comprehensive Earnings (Loss)) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net current period other comprehensive loss	$ (2,226,522)	$ (1,710,846)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	5,520,091	2,953,936
Other comprehensive loss before reclassification	(2,225,503)	(1,526,960)
Amount reclassified from accumulated other comprehensive loss	(1,019)	(183,886)
Net current period other comprehensive loss	(2,226,522)	(1,710,846)
Balance	$ 3,293,569	$ 1,243,090

XML

Summary of Significant Accounting Policies (Summary of Components of Other Comprehensive Earnings) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Summary of Significant Accounting Policies [Abstract]
Unrealized holding (losses) gains arising during the period, Pre-tax	$ (2,817,092)	$ (1,932,861)
Reclassification adjustment for (gains) losses included in net earnings, Pre-tax	(1,290)	(232,767)
Total other comprehensive (loss) earnings, Pre-tax	(2,818,382)	(2,165,628)
Unrealized holding (losses) gains arising during the period, Tax	591,589	405,901
Reclassification adjustment for (gains) losses included in net earnings, Tax	271	48,881
Total other comprehensive (loss) earnings, Tax	591,860	454,782
Unrealized holding (losses) gains arising during the period, After-tax	(2,225,503)	(1,526,960)
Reclassification adjustment for (gains) losses included in net earnings, After-tax	(1,019)	(183,886)
Net current period other comprehensive loss	$ (2,226,522)	$ (1,710,846)

XML

Summary of Significant Accounting Policies (Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnings) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized invesment (gains) losses	$ (186,709)	$ (95,632)
Income tax expense	309,951	(537,637)
Net income (loss)	(1,161,941)	1,973,296
Unrealized (Gains) Losses On AFS Investments [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized invesment (gains) losses	(1,290)	(232,767)
Income tax expense	271	48,881
Net income (loss)	$ (1,019)	$ (183,886)

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Investments (Narrative) (Details)		3 Months Ended
	Oct. 30, 2020 USD ($)	Mar. 31, 2021 USD ($) item	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jan. 28, 2020 USD ($)	Jul. 30, 2019 USD ($)	Feb. 28, 2018 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Unrealized gain (loss)		$ 876,316	$ (3,689,347)
Unrealized losses for 12 consecutive months or longer		135,086	17,258
OTTI losses recognized in other comprehensive earnings		0	0
Other invested assets		204,400
Allowance recorded		$ 0		$ 0
Federal Home Loan Bank of Chicago [Member]
Schedule of Available-for-sale Securities [Line Items]
Amount funded	$ 94,000				$ 650,000	$ 625,000
Interest rate	6.00%	6.50%
Term	29 years	20 years
Interest Receivable		$ 4,000
Other invested assets							$ 200,000
MBS/ABS/CMBS [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized losses for 12 consecutive months or longer		115,656	$ 17,258
MBS/ABS/CMBS [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value		14,865,024		16,220,343
MBS/ABS/CMBS [Member] | Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value		$ 12,452,036		$ 12,721,455
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities in an unrealized loss position | item		43
Number of securities in an unrealized loss position for 12 consecutive months or longer | item		6
Unrealized losses for 12 consecutive months or longer		$ 135,086
Significant Unobservable Inputs (Level 3)
Schedule of Available-for-sale Securities [Line Items]
Fair value		$ 0

XML

Investments (Summary of Recognized Impairments) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Proceeds	$ 3,484,432	$ 3,802,593
Fixed Maturity Securities [Member]
Proceeds	3,484,432	3,802,593
Gains	1,319	233,693
Losses	(29)	(926)
Net realized gain/(losses)	1,290	232,767
Common Stocks [Member]
Proceeds	687,015	524,818
Gains	212,361	47,126
Losses	(32,397)	(173,499)
Net realized gain/(losses)	179,964	(126,373)
Preferred Stock [Member]
Proceeds	78,469	91,838
Gains	5,455
Losses		(10,762)
Net realized gain/(losses)	$ 5,455	$ (10,762)

XML

Investments (Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, amortized cost	$ 1,849,923
Due after one year through five years, amortized cost	20,417,844
Due after five years through 10 years, amortized cost	15,114,224
Due after 10 years, amortized cost	21,536,839
Fixed maturity securities, amortized cost	97,695,883	$ 98,753,027
Due in one year or less, fair value	1,888,670
Due after one year through five years, fair value	21,645,715
Due after five years through 10 years, fair value	16,148,886
Due after 10 years, fair value	22,722,744
Fixed maturity securities, fair value	101,865,040	$ 105,740,566
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Other, amortized cost	38,561,248
Other, fair value	39,224,101
Redeemable Preferred Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Other, amortized cost	215,805
Other, fair value	$ 234,923

XML

Investments (Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost	$ 97,695,883	$ 98,753,027
AFS securities, amortized cost	97,695,883	98,753,027
Fixed maturity securities, fair value	101,865,040	105,740,566
AFS securities, fair value	101,865,040	105,740,566
Total AFS securities, gross unrealized gains	4,810,732	7,172,739
Total AFS securities, gross unrealized losses	(641,575)	(185,200)
US Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost	1,352,581	1,352,758
Fixed maturity securities, fair value	1,364,297	1,385,406
Fixed maturity securities, gross unrealized gains	23,227	33,336
Fixed maturity securities, gross unrealized losses	(11,511)	(688)
MBS/ABS/CMBS [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost	38,561,248	40,509,172
Fixed maturity securities, fair value	39,224,101	41,743,304
Fixed maturity securities, gross unrealized gains	977,305	1,367,411
Fixed maturity securities, gross unrealized losses	(314,452)	(133,279)
Corporate Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost	40,104,876	39,186,671
Fixed maturity securities, fair value	42,735,613	43,580,743
Fixed maturity securities, gross unrealized gains	2,835,297	4,429,000
Fixed maturity securities, gross unrealized losses	(204,560)	(34,928)
State And Local Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost	17,461,373	17,488,621
Fixed maturity securities, fair value	18,306,106	18,788,674
Fixed maturity securities, gross unrealized gains	955,785	1,316,358
Fixed maturity securities, gross unrealized losses	(111,052)	(16,305)
Redeemable Preferred Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, amortized cost		215,805
Equity securities, amortized cost	215,805
Fixed maturity securities, fair value		242,439
Equity securities, fair value	234,923
Fixed maturity securities, gross unrealized gains		$ 26,634
Equity securities, gross unrealized gains	$ 19,118

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Investments (Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position) (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	$ 17,860,706	$ 9,916,099
Less than 12 months, Cost or amortized cost	18,367,195	10,084,041
Less than 12 months, unrealized loss	(506,489)	(167,942)
Greater than 12 months, fair value	2,299,494	2,010,434
Greater than 12 months, Cost or amortized cost	2,434,580	2,027,692
Greater than 12 months, unrealized loss	(135,086)	(17,258)
Fair value	20,160,200	11,926,533
Cost or amortized cost	20,801,775	12,111,733
Unrealized loss	(641,575)	(185,200)
US Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	689,063	299,391
Less than 12 months, Cost or amortized cost	700,574	300,078
Less than 12 months, unrealized loss	(11,511)	(688)
Greater than 12 months, fair value
Greater than 12 months, Cost or amortized cost
Greater than 12 months, unrealized loss
Fair value	689,063	299,391
Cost or amortized cost	700,574	300,078
Unrealized loss	(11,511)	(688)
MBS/ABS/CMBS [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	7,512,704	7,120,339
Less than 12 months, Cost or amortized cost	7,711,500	7,236,360
Less than 12 months, unrealized loss	(198,796)	(116,021)
Greater than 12 months, fair value	1,820,824	2,010,434
Greater than 12 months, Cost or amortized cost	1,936,480	2,027,692
Greater than 12 months, unrealized loss	(115,656)	(17,258)
Fair value	9,333,528	9,130,773
Cost or amortized cost	9,647,980	9,264,052
Unrealized loss	(314,452)	(133,279)
Corporate Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	6,201,266	1,739,691
Less than 12 months, Cost or amortized cost	6,390,010	1,774,619
Less than 12 months, unrealized loss	(188,744)	(34,928)
Greater than 12 months, fair value	233,125
Greater than 12 months, Cost or amortized cost	248,941
Greater than 12 months, unrealized loss	(15,816)
Fair value	6,434,391	1,739,691
Cost or amortized cost	6,638,951	1,774,619
Unrealized loss	(204,560)	(34,928)
State And Local Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	3,457,673	756,678
Less than 12 months, Cost or amortized cost	3,565,111	772,984
Less than 12 months, unrealized loss	(107,438)	(16,306)
Greater than 12 months, fair value	245,545
Greater than 12 months, Cost or amortized cost	249,159
Greater than 12 months, unrealized loss	(3,614)
Fair value	3,703,218	756,678
Cost or amortized cost	3,814,270	772,984
Unrealized loss	(111,052)	$ (16,306)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Greater than 12 months, unrealized loss	$ (135,086)

XML

Fair Value Disclosures (Narrative) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities transferred from level 1 to level 2	$ 0		$ 0
Securities transferred from level 2 to level 1	0		0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0		0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0		0
Fair Value, Equity, Level 1 to Level 2 Transfers, Amount	0		0
Fair Value, Equity, Level 2 to Level 1 Transfers, Amount	0		$ 0
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	121,923,737	$ 122,149,272
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities

XML

Fair Value Disclosures (Summary of Assets Measured at Fair Value on a recurring Basis) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	$ 0	$ 0
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	121,923,737	122,149,272
Fair Value, Measurements, Recurring [Member] | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,364,297	1,385,406
Fair Value, Measurements, Recurring [Member] | MBS/ABS/CMBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	39,224,101	41,743,304
Fair Value, Measurements, Recurring [Member] | Corporate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	42,735,612	43,580,743
Fair Value, Measurements, Recurring [Member] | State And Local Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	18,306,106	18,788,674
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	234,923	242,439
Fair Value, Measurements, Recurring [Member] | Fixed Maturity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	101,865,040	105,740,566
Fair Value, Measurements, Recurring [Member] | Common Stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	18,404,167	14,724,814
Fair Value, Measurements, Recurring [Member] | Perpetual Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,654,530	1,683,892
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	20,058,697	16,408,706
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	19,768,464	16,110,220
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,364,297	1,385,406
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | MBS/ABS/CMBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | State And Local Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Maturity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,364,297	1,385,406
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	18,404,167	14,724,814
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Perpetual Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	18,404,167	14,724,814
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	102,155,273	106,039,052
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | MBS/ABS/CMBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	39,224,101	41,743,304
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Corporate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	42,735,612	43,580,743
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | State And Local Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	18,306,106	18,788,674
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	234,923	242,439
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Fixed Maturity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	100,500,743	104,355,160
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Common Stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Perpetual Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,654,530	1,683,892
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities	1,654,530	1,683,892
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | US Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | MBS/ABS/CMBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | State And Local Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Fixed Maturity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Common Stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Perpetual Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS securities

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Debt (Details) - USD ($)		1 Months Ended		3 Months Ended	12 Months Ended
	Aug. 03, 2020	May 31, 2020	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020	May 03, 2021	Mar. 31, 2017
Revolver [Member]
Debt Instrument [Line Items]
Interest expense				$ 0
Debt maturity				Aug. 05, 2020
Collateral	$ 2,000,000			$ 5,000,000
Maximum borrowing capacity	$ 2,000,000			$ 1,750,000
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolver [Member]
Debt Instrument [Line Items]
Variable interest rate				2.00%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolver [Member]
Debt Instrument [Line Items]
Variable interest rate				3.50%
Prime Rate [Member] | Revolver [Member]
Debt Instrument [Line Items]
Variable interest rate	0.50%
Debt Obligation [Member]
Debt Instrument [Line Items]
Face amount of debt instrument							$ 3,500,000
Interest rate				3.65%
Collateral				$ 1,000,000
Term of debt instrument				5 years
Debt Obligation [Member] | Bofi Federal Bank B & C [Member]
Debt Instrument [Line Items]
Debt				$ 13,462,614	$ 13,465,574
Current interest rate				1.60%	2.20%
Federal Home Loan Bank of Chicago [Member]
Debt Instrument [Line Items]
Face amount of debt instrument				$ 4,000,000		$ 4,000,000
Interest rate		0.00%	1.40%
Collateral				7,400,000
Term of debt instrument		1 year	5 years
Maximum borrowing capacity				$ 37,000,000
FHLBC advances		$ 4,000,000	$ 6,000,000
Securities pledged			$ 6,800,000
Federal Home Loan Bank of Chicago [Member] | Forecast [Member]
Debt Instrument [Line Items]
Face amount of debt instrument						$ 4,000,000
Interest rate						0.74%
Collateral						$ 0

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Reinsurance (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
Casualty Business [Member]
Ceded Credit Risk [Line Items]
Individual risk	$ 1,000,000
Workers Compensation [Member]
Ceded Credit Risk [Line Items]
Individual risk	$ 750,000

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Reinsurance (Summary of the Effects of Reinsurance) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
WRITTEN
Direct	$ 15,172,035	$ 14,794,534
Reinsurance assumed	27,898	37,534
Reinsurance ceded	(2,473,168)	(2,377,544)
Net	12,726,765	12,454,524
EARNED
Direct	14,482,050	15,362,814
Reinsurance assumed	38,822	44,950
Reinsurance ceded	(2,472,159)	(2,393,775)
Net	12,048,713	13,013,989
LOSSES AND SETTLEMENT EXPENSES INCURRED
Direct	10,767,434	8,761,679
Reinsurance assumed	25,445	26,518
Reinsurance ceded	(2,990,173)	(946,115)
Total incurred	$ 7,802,706	$ 7,842,082

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Unpaid Losses and Settlement Expenses (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Liability for Future Policy Benefit, by Product Segment [Line Items]
Increase in net unpaid losses and settlement expense	$ 841,000
Increase in net unpaid losses and settlement expense, percent	1.80%
Liquor Liability And Business Owners Liability [Member]
Liability for Future Policy Benefit, by Product Segment [Line Items]
Increase in net unpaid losses and settlement expense	$ 661,000
Liquor Liability And Umbrella Liability [Member]
Liability for Future Policy Benefit, by Product Segment [Line Items]
Increase in net unpaid losses and settlement expense		$ 1,597,000

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Unpaid Losses and Settlement Expenses (Reconciliation of Unpaid Losses and Settlement Expenses) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Unpaid losses and settlement expense - beginning of the period:
Gross	$ 61,575,666	$ 56,838,000
Less: Ceded	13,019,865	11,036,000
Net	47,797,000	46,956,000	$ 48,556,000	$ 45,802,000
Increase in incurred losses and settlement expense:
Current year	7,142,000	6,245,000
Prior years	661,000	1,597,000
Total incurred	7,802,706	7,842,082
Deduct: Loss and settlement expense payments for claims incurred:
Current year	1,288,000	1,204,000
Prior years	7,274,000	5,484,000
Total paid	8,562,000	6,688,000
Net unpaid losses and settlement expense - end of the period	47,797,000	46,956,000
Plus: Reinsurance recoverable on unpaid losses	14,011,159	11,318,000
Gross unpaid losses and settlement expense - end of the period	$ 61,807,968	$ 58,274,000

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Income Taxes (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) item	Mar. 31, 2020	Dec. 31, 2020 USD ($)
Income Taxes [Abstract]
Federal tax rate	21.00%	21.00%
Effective tax rate	21.10%	21.40%
Capital loss carryforward	$ 0		$ 0
Operating loss carryforward	$ 0		$ 0
Number of open exams | item	0

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Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Taxes [Abstract]
Provision for income taxes at the statutory federal tax rates	$ 309,097	$ (527,296)
Increase (reduction) in taxes resulting from:
Dividends received deduction	(8,108)	(6,535)
Tax-exempt interest income	(14,794)	(15,480)
Proration of tax-exempt interest and dividends received deduction	5,564	5,368
Nondeductible expenses	18,026	5,503
Officer life insurance, net	166	803
Total income tax expense (benefit)	$ 309,951	$ (537,637)

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Employee Benefits (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Employee stock ownership plan, shares	350,000
Employee stock ownership plan, share purchase price	$ 10.00
Contributions to ESOP	$ 0	$ 0
Shares committed		1,985
Restricted Stock Units (RSUs)
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Share compensation expense	38,116	$ 36,928
Unrecognized compensation expense	$ 181,863
Vesting period	3 years
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Vesting percentage	33.00%
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Vesting percentage	33.00%
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Three [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Vesting percentage	33.00%
Restricted Stock Units (RSUs) | $11.03 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shaes granted	18,040
Fair value of shares granted	$ 11.03
Restricted Stock Units (RSUs) | $13.70 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shaes granted	13,071
Fair value of shares granted	$ 13.70
Restricted Stock Units (RSUs) | $15.10 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shaes granted	11,700
Fair value of shares granted	$ 15.10
November 2022 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares committed to be released	1,991
Impact on weighted average shares outstanding	0
November 2017 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Compensation expense	$ 82,750
Shares committed to be released	5,779
November 2027 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Compensation expense		$ 75,768
Shares committed to be released		5,827
Impact on weighted average shares outstanding		0

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Subsequent Events (Details) - USD ($)	Apr. 01, 2021	May 03, 2021	Mar. 31, 2021	May 31, 2020	Mar. 31, 2020
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares granted	15,000
Federal Home Loan Bank of Chicago [Member]
Subsequent Event [Line Items]
Face amount of debt instrument		$ 4,000,000	$ 4,000,000
FHLBC advances				$ 4,000,000	$ 6,000,000
Federal Home Loan Bank of Chicago [Member] | FHLBC Loan 1 [Member]
Subsequent Event [Line Items]
Face amount of debt instrument			$ 4,000,000