Midwest Holding Inc. has reported a GAAP net income of $3.8 million for the first quarter of 2023, a substantial improvement compared to $0.2 million that was recorded in the prior year quarter.
GAAP total revenue in Q1 was $38.5 million compared with revenue of $2.6 million in the same period last year. The company stated that this was driven by an increase in investment income from growth in invested assets retained, as well as higher policy administration fees, and growing amortization of deferred ceding commissions.
At the same time, investment income for the quarter rose to $19.2 million from $6.2 million from the prior year quarter.
Midwest also noted that amortization of deferred gain on reinsurance reached $1.6 million in Q1, compared to $1.0 million from the same period last year. The firm explained that this was due to growth in the deferred gain on co-insurance on the balance sheet to $40.0 million compared to $38.1 million a year ago, which reflects ceding commission received on reinsurance with third parties.
Meanwhile, annuity direct written premium under statutory accounting principles (SAP), a non-GAAP measure, increased 98.4% to $194.6 million in the first three months of the year from $98.1 million in Q122, due to a focus on distribution and pricing.
Additionally, Midwest’s ceded premiums (SAP), a non-GAAP measure, were $102.1 million in Q123 compared to $40.1 million in Q122.
Georgette Nicholas, CEO of Midwest, commented on the company’s Q1 results: “We are excited about the execution and progress of the business. The results for the quarter reflect the continued focus on distribution, pricing, products, investment management, and reinsurance to position the Company for further growth.”
