Fundamental Global Inc., formerly known as FG Financial Group, Inc., has reported Q4 2023 net reinsurance premiums earned of $5.1 million, increasing from $3.2 million in Q4 2022, driven by the successful execution of its strategy to deploy capital in loss-capped reinsurance arrangements.
While premiums earned grew year-on-year, the company’s net investment income fell slightly to $1.5 million, compared with $1.7 million in Q4 2022.
Total revenue for the quarter amounted to almost $7 million, up from $4.9 million a year earlier. However, a rise in net losses and loss adjustment expenses to $3.6 million from $1.7 million, as well as slightly higher general and administrative expenses, saw the firm record a loss of $657,000 for Q4 2023, compared with a loss of $313,000 in Q4 2022.
Turing to the firm’s full year 2023 performance, and net premiums earned were $16.6 million, increasing from $13 million in 2022. The increase in reinsurance premiums for the year was again driven by the successful execution of the company strategy to deploy capital in loss-capped reinsurance arrangements.
For 2023, net investment income was $9.8 million, rising from $6.8 million in 2022, attributed primarily to gains associated with the successful business combination of FG Merger Corp. and iCoreConnect Inc. Total revenue for the year rose from $20.1 million in 2022 to $26.8 million in 2023.
Net losses and loss adjustment expenses for 2023 hit $9.7 million compared with $7.4 million in 2022, but despite this, the company generated net income of $2.1 million for the year, compared with a loss of $700,000 in 2022.
As previously announced, FG Financial Group, Inc. and FG Group Holdings Inc. completed their merger earlier this year, merging with and into FG Group LLC, a wholly-owned subsidiary of the company. Due to the merger, the company was renamed Fundamental Global Inc.
It’s worth noting that these results reflect the financial results of FG Financial Group, Inc. and do not include the financial results of FG Group Holdings Inc., which was merged into FG Group LLC.
D. Kyle Cerminara, Chairman and Chief Executive Officer, Fundamental Global, commented, “We are pleased to have completed the merger transaction with FG Group Holdings Inc. Today, we are operating as Fundamental Global Inc., a unified public company combining the legacy businesses of FG Group Holdings Inc. and FG Financial Group, Inc.
“Our goal is to consolidate and simplify all of our operations, reduce public company costs and focus our efforts on accelerating growth in select scalable and high ROIC businesses. Our reinsurance portfolios and investments generated strong results as we deployed capital in those areas driving a significant increase in net income in the legacy FG Financial Group, Inc. business during 2023. We look forward to implementing our plans with a focus on shareholder returns.”
