FG Financial Group, a reinsurance and asset management holding company, has reported a net income of $5.2 million for the third quarter of 2023, compared to $9.8 million from the third quarter of 2022.
The company also posted net reinsurance premiums earned of $4.2 million for Q323, compared to $4.4 million in Q322.
Net investment income for the third quarter came in at $7.0 million compared to net investment income of $11.2 million in the third quarter of the prior year.
According to FG Financial. the net investment income in the quarter was primarily driven by strong gains from the successful business combination of FG Merger Corp. with iCoreConnect Inc.
Meanwhile, for 9M23, net reinsurance premiums increased to $11.5 million from $9.8 million in the nine months ended September 30, 2022.
FG Financial said that the increase in reinsurance premiums for the nine month period was driven by successful execution of the businesses strategy as prior reinsurance contracts concluded profitably and capital re-deployed in new loss-capped reinsurance arrangements.
In addition, net investment income for 9M23 came in at $8.3 million, as compared to $5.1 million in the same period last year.
FG Financial also noted that net income for the nine-month period ended September 30, 2023, was $2.7 million, compared to net loss of $0.4 million for the nine month period ended September 30, 2022.
FG Financial Group CEO Larry Swets, Jr., said: “We continued to execute our long-term value creation strategy and delivered strong profitability for the quarter, driven by solid performance in both the reinsurance and merchant banking initiatives. The reinsurance business continues to patiently evaluate potential loss capped contracts and is seeing attractive opportunities as it builds its brand in the marketplace. On the merchant banking side, platform company FG Merger Corp. completed its business combination with iCoreConnect Inc., a software company with an attractive, scalable business model positioned to take advantage of healthcare industry tailwinds. We’re pleased with the progress in our merchant banking business and continue to seek asymmetric risk/reward opportunities to allocate capital.”
FG Financial Group Chairman Kyle Cerminara, commented: “Our results year to date demonstrate the increasing strength and durability of our business model. Our reinsurance business continues to carefully evaluate opportunities to enter loss capped niche contracts, and our merchant banking segment has a growing portfolio of companies on its platform with attractive end markets and strong management teams. For example, FG Communities has acquired over 20 communities since formation in 2022 and our restaurant brand platform, Craveworthy announced the addition of multiple brands this quarter. As for our SPAC business, FG Merger Corp. completed its business combination with iCoreConnect Inc. and we look forward to being shareholders and sharing in their future success.”
