Delivering expertly crafted insurance products and services for the food and beverage industry.

www.ilcasco.com

marked our first full year as a publicly traded company. It was an exciting year of growth and discovery. We experienced many highs, including recognition by Oracle as a winner of the 2018 Oracle Excellence Award for Cloud Platform Innovation. The award recognized how quickly we developed and delivered our mobile app to market. This was a great illustration of the innovative thinking and nimble response ability that is part of the culture at Illinois Casualty Company (ICC).

We continued our geographic expansion plans by successfully entering the new market of Michigan and are excited about the potential that it provides. Additionally, we experienced strong growth in all of our existing markets and will continue to build on that positive momentum.

The year did not come without its challenges, most notably weather-related catastrophe losses. The combination of early-year winter storms and summer tornados significantly impacted our results and stretched our resources. However, I am very proud of the employees at ICC who rose to these, and many other, challenges to deliver the high-quality service upon which we have built our reputation.

From a financial perspective, it was a solid but not stellar year. Top line growth continued strong with a 13.5 percent increase in direct written premium and 6.6 percent in net earned premium. Fortunately, we had a strong fourth quarter and ended the year with $893,000 of net earnings, a 26 percent increase over 2017. With a focus on innovation and efficiency, we were able to reduce our expense ratio by 50 basis points in 2018, despite a 102 percent increase in employee medical costs.

As we move forward with our strategic plan, we understand that we must innovate and adapt to an ever-changing and increasingly competitive landscape. To do so requires having a trusted advisor to communicate critical customer needs and highlight ICC’s unique competitive advantages in meeting their business insurance requirements. For this reason, we are steadfast in our commitment to independent agents and to our mission of providing expertly crafted insurance products and services for the food and beverage industry.

We continue to be focused on growth, but with a commitment to profitability. In order to stay the best and most consistent insurer for the food and beverage industry, we must constantly stay abreast of the unique coverage needs of this market, while ensuring that our products are delivered at a competitive and adequate price.

I’m excited about what the future holds for ICC, ICC Holdings, and all our stakeholders. Thank you to our policyholders, agency partners, and employees for being a part of this journey.

Arron K. SutherlandPresident/CEOIllinois Casualty Company

www.ilcasco.com

It’s what we do. It’s who we are.

2018 Financial Report

Corporate Citizenship

• Through monetary donations or volunteer time, a total of 39 organizations throughout our territory were impacted

Directors Officers

(left to right)Norm Schmeichel - Chief Information Officer

Kathy Springer - Chief Human Resources OfficerJulia Suiter - Chief Legal Officer

Mike Smith - Chief Financial OfficerHoward Beck - Chief Underwriting Officer

Arron Sutherland - President and CEO

ICC began writing business in Michigan in

March of 2018

ICC debuted the ICC2Go mobile app, allowing policyholders to

make a payment, report a claim, and contact ICC from

their phones

ICC2Go is available on the App Store and Google Play

ICC became the endorsed carrier for

the Tavern League of Colorado

Q1 Q3

Q2 Q4

ICC was presented with the Oracle Excellence

Award for Cloud Platform Innovation for

the creation of our mobile app

2018Annual Report

® ®

94% of Employees Gave Back in 2018

To view ICCH’s consolidated financial statement on Form 10-K, click here.

Statutory Balance Sheet2018 2017

Assets

Cash and Invested Assets

Bonds 87,213,815 86,512,215

Preferred Stocks - 2,502,930

Common Stocks 11,069,484 7,503,071

Cash and short-term investments 3,586,646 4,990,661

Other invested assets (Sched BA) 2,974,686 -

Total cash and investment 104,844,631 101,508,877

Other Assets

Insurance premiums and reinsurance 20,645,346 18,025,989

All other 2,945,565 2,606,599

Net deferred tax asset 2,255,573 1,610,703

EDP equipment and software 218,028 356,125

Net Admitted Assets 130,909,143 124,108,293

Liabilities

Loss and loss adjustment expenses 44,711,477 41,044,293

Unearned premiums 29,176,558 26,280,611

Commissions payable 2,538,993 2,423,475

Accounts payable and accrued expenses 1,772,995 1,785,358

All other 2,156,953 1,802,096

Total Liabilities 80,356,976 73,335,833

Policyholders' Surplus

Unassigned surplus 29,408,631 29,428,891

Gross paid in and contributed surplus 17,376,742 17,376,742

Common capital stock 3,000,000 3,000,000

Special surplus funds (sale leaseback) 766,794 966,827

Total Policyholders' Surplus 50,552,167 50,772,460

Total Liabilities and Policyholders' Surplus 130,909,143 124,108,293

Statutory Income Statement2018 2017

Premiums earned 47,116,962 44,213,269

Loss and loss adjustment expenses incurred 31,262,465 29,009,832

Other underwriting expenses 17,696,885 16,667,241

Net underwriting loss (1,842,388) (1,463,804)

Net investement income earned 2,039,824 2,001,810

Net realized capital gains 704,757 623,716

Net investment gain 2,744,581 2,625,526

Other income 197,813 239,827

Net income before dividends to policyholders 1,100,006 1,401,549

Dividends to policyholders 11,145 2,569

Net income after dividends to policyholders 1,088,861 1,398,980

Federal income taxes incurred (117,299) 82,894

Net income 1,206,160 1,316,086

• During ICC’s Days of Giving (a two-day event in June), 32 employees gave up time at their desk to volunteer, collectively giving over 81 work hours to help their community

Mark SchwabJim Dingman

Christine SchmittScott Burgess

Joe Heriford Dan Portes

John Klockau Arron Sutherland

Jerry Pepping, Chairman

Direct Written Premium: 2014 - 2018$61.1 M

$53.7 M

$51.0 M

$49.0 M

$46.3 M

2018

2017

2016

2015

2014

Surplus: 2014 - 2018$50.6 M

$50.8 M

$29.9 M

$26.9 M

$25.2 M

2018

2017

2016

2015

2014

Net Admitted Assets: 2014 - 2018$130.9 M

$124.1 M

$102.9 M

$97.6 M

$90.9 M

2018

2017

2016

2015

Combined Ratio: 2014 - 2018101.7%

101.9%

94.8%

95.1%

96.1%

2018

2017

2016

2015

2014

2014