Tuesday, September 27, 2022

FG Monetary Group, Inc. Stories Second Quarter Monetary Outcomes

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FG Monetary Group Sees Reinsurance Premium Progress As It Continues to Broaden Its Reinsurance Enterprise

Completes Fourth IPO on Its SPAC Platform

ST. PETERSBURG, Fla., August 11, 2022–(BUSINESS WIRE)–FG Monetary Group, Inc. (Nasdaq: FGF) (the “Firm”), a reinsurance and asset administration holding firm targeted on opportunistic collateralized and loss capped reinsurance, whereas allocating capital in partnership with Elementary World®, a personal partnership targeted on long-term strategic holdings led by Kyle Cerminara and Joe Moglia – and once in a while different strategic traders, to SPAC and SPAC sponsor-related companies, in the present day introduced outcomes for the second quarter and 6 months ended June 30, 2022.

FG Monetary Group CEO Larry Swets, Jr. commented, “Within the second quarter, we continued to execute our technique to develop long-term intrinsic worth by way of a strategic give attention to our SPAC and reinsurance companies. The reinsurance market is the strongest we’ve seen in a few years, presenting many alternatives to jot down enticing area of interest contracts. Since launching our reinsurance enterprise we’ve entered six contracts, with three added this quarter driving important reinsurance premium development. We additionally proceed to develop our FG SPAC platform and closed a $115 million IPO for FG Acquisition Corp. (TSX: FGAA.U) in April. Our SPAC enterprise has now accomplished two de-SPACs with OppFi and Hagerty, and at the moment has two funded SPACs evaluating acquisition alternatives. Whereas we recorded a non-cash unrealized loss from investments within the first half of the yr primarily as a consequence of valuation reductions attributed to SPAC investments at pre-merger stage, we stay extraordinarily optimistic concerning the long-term development alternative in these companies.”

FG Monetary Group Chairman Kyle Cerminara added, “We proceed to see uneven threat/reward alternatives throughout our markets, and stay targeted on patiently allocating capital to drive long-term shareholder worth.”

Choose 2022 Second Quarter and Six Months Monetary Outcomes and Highlights

FG Monetary Group’s 2022 second quarter and six-month monetary outcomes included:

  • Web reinsurance premiums earned elevated to $3.0 million for the three months ended June 30, 2022 from $0.9 million within the second quarter of final yr. Web reinsurance premiums for the six months ended June 30th, 2022 elevated to $5.4 million from $1.1 million for the six months ended June 30th, 2021.

  • Web funding loss for the second quarter was $3.7 million in comparison with web funding earnings of $2.2 million within the prior yr interval.

  • The Firm paid the 8% Collection A Most popular Share dividend of $0.45 million, which represents the Firm’s seventeenth consecutive quarter of paying the total dividend due on the 8% Collection A Most popular Shares since their issuance in February 2018.

  • Common and administrative expense was $2.3 million and $4.0 million for the three and six-months ended June 30th, 2022, respectively, as in comparison with $1.7 million and $3.7 million for a similar durations within the prior yr, respectively. The rise was primarily as a consequence of salaries and wages regarding headcount will increase and charges associated to new reinsurance agreements because the Firm expands its SPAC platform and reinsurance companies.

Web loss attributable to frequent shareholders for the second quarter elevated to $5.9 million, or $(0.87) per absolutely diluted share, in comparison with a lack of $0.7 million, or $(0.13) per absolutely diluted share for the second quarter of 2021. Web loss attributable to frequent shareholders for the six-month interval ended June 30, 2022, was $10.2 million, or $(1.55) per absolutely diluted share, as in comparison with a lack of $1.0 million, or $(0.20) per absolutely diluted share, for six-month interval ended June 30, 2021.

Stability Sheet Highlights

As of June 30, 2022, FG Monetary Group’s key stability sheet objects included:

  • Money and money equivalents of $12.8 million.

  • Funding holdings totaling $10.9 million, together with immediately or not directly held investments in Oppfi, Hagerty, two new holdings beneath the Firm’s SPAC Platform, FG Merger Corp. and FG Acquisition Corp., and different investments.

  • Whole shareholders’ fairness of $27.7 million.

FG Monetary Group, Inc.

FG Monetary Group, Inc. is a reinsurance and asset administration holding firm run by Larry Swets, Jr. and chaired by Kyle Cerminara that’s targeted on opportunistic collateralized and loss capped reinsurance, whereas allocating capital in partnership with Elementary World®, a personal partnership targeted on long-term strategic holdings led by Kyle Cerminara and Joe Moglia – and once in a while different strategic traders, to SPAC and SPAC sponsor-related companies. The Firm’s principal enterprise operations are carried out by way of its subsidiaries and associates.

Ahead Wanting Statements

This press launch accommodates forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Part 21E of the Securities Trade Act of 1934, as amended (the “Trade Act”). These statements are due to this fact entitled to the safety of the protected harbor provisions of those legal guidelines. These statements could also be recognized by means of forward-looking terminology resembling “anticipate,” “consider,” “price range,” “can,” “ponder,” “proceed,” “might,” “envision,” “estimate,” “count on,” “consider,” “forecast,” “purpose,” “steerage,” “point out,” “intend,” “seemingly,” “could,” “may,” “outlook,” “plan,” “probably,” “potential,” “predict,” “possible,” “in all probability,” “pro-forma,” “venture,” “search,” “ought to,” “goal,” “view,” “will,” “would,” “will likely be,” “will proceed,” “will seemingly outcome” or the unfavorable thereof or different variations thereon or comparable terminology. Particularly, discussions and statements relating to the Firm’s future enterprise plans and initiatives and the anticipated timing of the closing of the providing are forward-looking in nature. We’ve got based mostly these forward-looking statements on our present expectations, assumptions, estimates, and projections. Whereas we consider these to be cheap, such forward-looking statements are solely predictions and contain a variety of dangers and uncertainties, a lot of that are past our management. These and different necessary elements could trigger our precise outcomes, efficiency, or achievements to vary materially from any future outcomes, efficiency or achievements expressed or implied by these forward-looking statements, and will influence our capability to implement and execute on our future enterprise plans and initiatives. Administration cautions that the forward-looking statements on this launch are usually not ensures of future efficiency, and we can not assume that such statements will likely be realized or the forward-looking occasions and circumstances will happen. Elements that may trigger such a distinction embody, with out limitation: dangers related to our incapacity to establish and notice enterprise alternatives, and the enterprise of any new such alternatives; normal situations within the world economic system, together with the influence of well being and security issues from the present COVID-19 pandemic; our lack of working historical past or established status within the reinsurance business; our incapacity to acquire or keep the mandatory approvals to function reinsurance subsidiaries; dangers related to working within the reinsurance business, together with inadequately priced insured dangers, credit score threat related to brokers we could do enterprise with, and insufficient retrocessional protection; our incapacity to execute on our funding and funding administration technique, together with our technique to put money into the danger capital of particular goal acquisition firms (SPACs); potential lack of worth of investments; threat of turning into an funding firm; fluctuations in our short-term outcomes as we implement our new enterprise technique; dangers of being unable to draw and retain certified administration and personnel to implement and execute on our enterprise and development technique; failure of our info know-how programs, information breaches and cyber-attacks; our capability to determine and keep an efficient system of inside controls; our restricted working historical past as a public firm; the necessities of being a public firm and dropping our standing as a smaller reporting firm or turning into an accelerated filer; any potential conflicts of curiosity between us and our controlling stockholders and totally different pursuits of controlling stockholders; potential conflicts of curiosity between us and our administrators and government officers; volatility or decline within the worth of the shares of FedNat Holding Firm frequent inventory obtained by us as consideration within the sale of our insurance coverage enterprise or limitations and restrictions with respect to our possession of such shares; dangers of being a minority stockholder of FedNat Holding Firm; dangers related to our associated social gathering transactions and investments; and dangers related to our investments in SPACs, together with the failure of any such SPAC to finish its preliminary enterprise mixture. Our expectations and future plans and initiatives might not be realized. If considered one of these dangers or uncertainties materializes, or if our underlying assumptions show incorrect, precise outcomes could differ materially from these anticipated, estimated or projected. You might be cautioned to not place undue reliance on forward-looking statements. The forward-looking statements are made solely as of the date hereof and don’t essentially replicate our outlook at some other cut-off date. We don’t undertake and particularly decline any obligation to replace any such statements or to publicly announce the outcomes of any revisions to any such statements to replicate new info, future occasions or developments.

FG FINANCIAL GROUP, INC.

Consolidated Stability Sheets

($ in 1000’s, besides per share information)

June 30, 2022

(unaudited)

December 31,

2021

ASSETS

Fairness securities, at honest worth (price foundation of $5,111 and $14,495, respectively)

$

110

$

1,421

Different investments

10,814

14,040

Money and money equivalents

12,832

15,542

Deferred coverage acquisition prices

1,255

786

Reinsurance balances receivable

7,332

3,853

Funds deposited with reinsured firms

3,978

4,442

Different belongings

952

745

Whole belongings

$

37,273

$

40,829

LIABILITIES

Loss and loss adjustment expense reserves

$

2,883

$

2,133

Unearned premium reserves

6,168

3,610

Accounts payable

392

502

Different liabilities

117

575

Whole liabilities

$

9,560

$

6,820

SHAREHOLDERS’ EQUITY

Collection A Most popular Shares, $25.00 par and liquidation worth, 1,000,000 shares approved; 894,580 shares issued and excellent as of June 30, 2022 and December 31, 2021

$

22,365

$

22,365

Frequent inventory, $0.001 par worth; 100,000,000 shares approved; 9,278,001 and 6,497,205 shares issued and excellent as of June 30, 2022 and December 31, 2021, respectively

9

6

Further paid-in capital

49,933

46,037

Accrued deficit

(44,594

)

(34,399

)

Whole shareholders’ fairness

27,713

34,009

Whole liabilities and shareholders’ fairness

$

37,273

$

40,829

FG FINANCIAL GROUP, INC.

Consolidated Statements of Operations

($ in 1000’s, besides per share information)

(Unaudited)

Three months ended
June 30,

Six months ended
June 30,

2022

2021

2022

2021

Income:

Web premiums earned

$

2,953

937

$

5,426

1,122

Web funding (loss) earnings

(3,714

)

2,241

(6,059

)

4,091

Different earnings

26

24

50

79

Whole income

(735

)

3,202

(583

)

5,292

Bills:

Web losses and loss adjustment bills

1,868

729

3,391

835

Amortization of deferred coverage acquisition prices

606

374

1,318

431

Common and administrative bills

2,269

1,659

4,009

3,698

Whole bills

4,743

2,762

8,718

4,964

(Loss) earnings from persevering with operations earlier than earnings taxes

(5,478

)

440

(9,301

)

328

Revenue tax expense (profit)

Web earnings (loss) from persevering with operations

$

(5,478

)

$

440

$

(9,301

)

$

328

Discontinued operations:

Acquire from sale of the Maison Enterprise, web of taxes

145

Web earnings (loss)

(5,478

)

440

(9,301

)

473

Acquire (loss) attributable to noncontrolling pursuits

667

666

Dividends declared on Collection A Most popular Shares

447

447

894

797

Loss attributable to FG Monetary Group, Inc. frequent shareholders

$

(5,925

)

$

(674

)

$

(10,195

)

$

(990

)

Primary and diluted web earnings (loss) per frequent share:

Persevering with operations

$

(0.87

)

$

(0.13

)

$

(1.55

)

$

(0.23

)

Discontinued operations

0.03

$

(0.87

)

$

(0.13

)

$

(1.55

)

$

(0.20

)

Weighted common frequent shares excellent:

Primary and diluted

6,775,501

5,010,377

6,589,296

5,001,731

View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20220811005804/en/

Contacts

INVESTOR RELATIONS:

IMS Investor Relations
John Nesbett/Jennifer Belodeau
(203) 972-9200
IR@fgfinancial.com



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