In its full year results, FG Financial Group has reported that net reinsurance premiums earned rose to $13 million, a substantial increase from $4.9 million in 2021.
In Q4 alone, net reinsurance premiums earned jumped to $3.2 million, compared to $2.6 million in the same quarter of 2021.
FG notes that its reinsurance operations benefited from these continued increases in net earned premiums, without incurring any major losses from large catastrophe events.
Full year 2022 net investment income stood at $6.8 million, increasing from $2.5 million in 2021.
Q4 net investment income was $1.7 million, which compares to a net investment loss of $0.25 million in 2021.
Net loss attributable to common shareholders for the full year improved to $0.70 million as compared to a loss of $10.2 million for 2021, while net loss attributable to common shareholders for Q4 alone improved to $0.30 million from a loss of $3.8 million in 2021.
Meanwhile, the firm paid the 8% Series A Preferred Share dividend of $0.45 million, which represents FG’s 19th consecutive quarter of paying the full dividend due on the 8% Series A Preferred Shares since their issuance in February 2018.
FG Financial Group CEO Larry Swets, Jr. commented, “During the quarter we saw significant growth across both our reinsurance and merchant banking business, capping off a pivotal year for the business.
“The reinsurance business has established itself as a niche underwriter and we continue to carefully evaluate opportunities to deploy capital.
“Our new merchant banking division, launched in the third quarter of 2022, already has multiple attractive businesses on the platform.”
Swets continued, “In November we formed FG Communities which has a growing portfolio of manufactured housing communities, and subsequent to the quarter we announced the formation of Craveworthy, a growing restaurant brand platform made up of diverse, relevant and highly scalable brands.
“Finally, the SPAC FG Merger Corp. announced a business combination with iCoreConnect, a cloud-based software and technology company in the healthcare space.”
FG Financial Group Chairman Kyle Cerminara added, “FG Financial made great progress in 2022. Our reinsurance business significantly grew premiums, and since launching our new merchant banking platform in the third quarter of 2022 we have added multiple companies to the platform in diverse end markets including real estate, healthcare and restaurants.
“We continue to see asymmetric risk/reward opportunities and remain focused on patiently allocating capital to drive long-term shareholder returns.”