FG Financial Group, Corporation. Reports Second Quarter Financial Results

FG Financial Group Sees Reinsurance Premium Growth Because It Is constantly on the Expand Its Reinsurance Business Completes 4th IPO on Its SPAC Platform

ST. PETERSBURG, Fla.–FG Financial Group, Corporation. (Nasdaq: FGF) (the “Company”), a reinsurance and asset management holding company centered on opportunistic collateralized and loss capped reinsurance, while allocating capital together with Fundamental Global®, a personal partnership centered on lengthy-term proper holdings brought by Kyle Cerminara and Joe Moglia – and every so often other proper investors, to SPAC and SPAC sponsor-related companies, today announced recent results for the 2nd quarter and 6 several weeks ended June 30, 2022.

FG Financial Group Chief executive officer Ray Swets, Junior. commented, “In the 2nd quarter, we ongoing to complete our technique to grow lengthy-term intrinsic value via a proper concentrate on our SPAC and reinsurance companies. The reinsurance marketplace is the most powerful we view in lots of years, presenting many possibilities to create attractive niche contracts. Since launching our reinsurance business we’ve joined six contracts, with three added this quarter driving significant reinsurance premium growth. We keep growing our FG SPAC platform and closed a $115 million IPO for FG Acquisition Corp. (TSX: FGAA.U) in April. Our SPAC business has completed two de-SPACs with OppFi and Hagerty, and presently has two funded SPACs evaluating acquisition possibilities. Basically we recorded a non-cash unrealized loss from investments within the first half of the season mainly because of valuation discounts related to SPAC investments at pre-merger stage, we remain very positive concerning the lengthy-term growth chance during these companies.”

FG Financial Group Chairman Kyle Cerminara added, “We still see uneven risk/reward possibilities across our markets, and turn into centered on with patience allocating capital they are driving lengthy-term shareholder value.”

Select 2022 Second Quarter and 6 Several weeks Financial Results and Highlights

FG Financial Group’s 2022 second quarter and 6-month financial results incorporated:

  • Net reinsurance premiums earned elevated to $3. million for that three several weeks ended June 30, 2022 from $.9 million within the second quarter of this past year. Internet reinsurance premiums for that six several weeks ended June 30th, 2022 elevated to $5.4 million from $1.a million for that six several weeks ended June 30th, 2021.
  • Net investment loss for that second quarter was $3.seven million when compared with internet investment earnings of $2.two million within the prior year period.
  • The Organization compensated the 8% Series A Frequent Share dividend of $.45 million, addressing their 17th consecutive quarter of having to pay the entire dividend due around the 8% Series A Frequent Shares since their issuance in Feb 2018.
  • General and administrative expense was $2.3 million and $4. million for that three and 6-several weeks ended June 30th, 2022, correspondingly, when compared with $1.seven million and $3.seven million for the similar periods within the prior year, correspondingly. The rise was mainly because of salaries and wages associated with headcount increases and charges associated with new reinsurance contracts as the organization expands its SPAC platform and reinsurance companies.

Net loss due to common shareholders for that second quarter elevated to $5.9 million, or $(.87) per fully diluted share, over a lack of $.seven million, or $(.13) per fully diluted share for that second quarter of 2021. Internet loss due to common shareholders for that six-month period ended June 30, 2022, was $10.two million, or $(1.55) per fully diluted share, when compared with a loss of revenue of $1. million, or $(.20) per fully diluted share, for six-month period ended June 30, 2021.

Balance Sheet Highlights

By June 30, 2022, FG Financial Group’s key balance sheet products incorporated:

  • Cash and funds equivalents of $12.8 million.
  • Investment holdings totaling $10.9 million, including directly or not directly held investments in Oppfi, Hagerty, two new holdings underneath the Company’s SPAC Platform, FG Merger Corp. and FG Acquisition Corp., along with other investments.
  • Total shareholders’ equity of $27.seven million.

FG Financial Group, Corporation.

FG Financial Group, Corporation. is really a reinsurance and asset management holding company operated by Ray Swets, Junior. and chaired by Kyle Cerminara that is centered on opportunistic collateralized and loss capped reinsurance, while allocating capital together with Fundamental Global®, a personal partnership centered on lengthy-term proper holdings brought by Kyle Cerminara and Joe Moglia – and every so often other proper investors, to SPAC and SPAC sponsor-related companies. Their principal business operations are conducted through its subsidiaries and affiliates.

Forward Searching Statements

This pr release contains forward-searching statements inside the concept of Section 27A from the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E from the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are thus titled towards the protection from the safe harbor provisions of those laws and regulations. These statements might be identified through forward-searching terminology for example “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or even the negative thereof or any other variations thereon or comparable terminology. Particularly, discussions and statements concerning the Company’s future strategic business plans and initiatives and also the expected timing from the closing from the offering are forward-searching anyway. We’ve based these forward-searching statements on the current expectations, assumptions, estimates, and projections. Basically we believe those to be reasonable, such forward-searching statements are just predictions and involve numerous risks and uncertainties, a few of which are beyond our control. These along with other key elements could cause our actual results, performance, or achievements to differ materially from the future results, performance or achievements expressed or implied by these forward-searching statements, and could impact our capability to implement and execute on the future strategic business plans and initiatives. Management cautions the forward-searching statements within this release aren’t guarantees of future performance, so we cannot think that such statements is going to be recognized or even the forward-searching occasions and conditions will occur. Factors that may cause this type of difference include, without limitation: risks connected with this lack of ability to recognize and realize business possibilities, and also the undertaking associated with a new such possibilities general conditions within the global economy, such as the impact of safety and health concerns in the current COVID-19 pandemic our insufficient operating history or established status within the reinsurance industry our lack of ability to acquire or keep up with the necessary approvals to function reinsurance subsidiaries risks connected with operating within the reinsurance industry, including inadequately priced insured risks, credit risk connected with brokers we might work with, and insufficient retrocessional coverage our lack of ability to complete on the investment and investment management strategy, including our strategy to purchase the danger capital of special purpose acquisition companies (SPACs) potential lack of worth of investments chance of just as one investment company fluctuations within our short-term results once we implement our start up business strategy perils of being not able to draw in and retain qualified management and personnel to apply and execute on the business and growth strategy failure in our it systems, data breaches and cyber-attacks our capability to establish and keep a highly effective system of internal controls our limited operating history like a public company the needs to be an open company and losing our status like a smaller sized reporting company or just as one faster filer any potential conflicts of great interest between us and our controlling stockholders and various interests of controlling stockholders potential conflicts of great interest between us and our company directors and executive officials volatility or loss of the need for the shares of FedNat Holding Company common stock received by us as consideration within the purchase in our insurance business or limitations and limitations regarding our possession of these shares perils of as being a minority stockholder of FedNat Holding Company risks connected with this related party transactions and investments and risks connected with this investments in SPACs, such as the failure associated with a such SPAC to accomplish its initial business combination. Our expectations and future plans and initiatives might not be recognized. If one of these simple risks or uncertainties materializes, or maybe our underlying assumptions prove incorrect, actual results can vary materially from individuals expected, believed or forecasted. You’re cautioned to not place undue reliance upon forward-searching statements. The forward-searching statements are created only by the date hereof and don’t always reflect our outlook at every other time. We don’t undertake and particularly decline any obligation to update such statements in order to openly announce the outcomes associated with a revisions to the such statements to mirror new information, future occasions or developments.

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