Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer”
or the “Company”) today announced results for the second quarter
ended June 30, 2023.
Second Quarter 2023 Financial Highlights
(compared to the prior year period)
- Gross written premium increased
19.4% to $44.7 million
- Expense ratio continues downward
trend: 110 basis point improvement from Q2 2022
- Combined ratio of 120.9%; accident
year combined ratio excluding the impact of storm-related losses
was 95.4% (6)
Management Comments James
Petcoff, Executive Chairman and Co-CEO, commented, “While the
second quarter results were affected by atypically severe storm
losses, it is important to emphasize that excluding the impact of
these storm-related losses, Conifer would have achieved continued
profitability in the quarter.”
2023 Second Quarter Financial Results
Overview
|
At and for theThree Months Ended June 30, |
|
At and for theSix Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
(dollars in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross written premiums |
$ |
44,674 |
|
|
$ |
37,418 |
|
|
|
19.4 |
% |
|
$ |
80,888 |
|
|
$ |
70,382 |
|
|
|
14.9 |
% |
Net written premiums |
|
29,328 |
|
|
|
27,266 |
|
|
|
7.6 |
% |
|
|
47,670 |
|
|
|
45,287 |
|
|
|
5.3 |
% |
Net earned premiums |
|
23,183 |
|
|
|
24,576 |
|
|
|
-5.7 |
% |
|
|
45,135 |
|
|
|
48,531 |
|
|
|
-7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
1,354 |
|
|
|
564 |
|
|
|
140.1 |
% |
|
|
2,661 |
|
|
|
1,071 |
|
|
|
148.5 |
% |
Net realized investment gains
(losses) |
|
- |
|
|
|
(1,436 |
) |
|
|
** |
|
|
|
- |
|
|
|
(1,505 |
) |
|
|
** |
|
Change in fair value of equity
investments |
|
(12 |
) |
|
|
317 |
|
|
|
-103.8 |
% |
|
|
682 |
|
|
|
597 |
|
|
|
14.2 |
% |
Other gains (losses) |
|
- |
|
|
|
(1 |
) |
|
|
** |
|
|
|
- |
|
|
|
(6 |
) |
|
|
** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(4,739 |
) |
|
|
(8,399 |
) |
|
|
** |
|
|
|
(3,738 |
) |
|
|
(11,269 |
) |
|
|
** |
|
Net income (loss) per share, diluted |
$ |
(0.39 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
$ |
(0.31 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
(loss)* |
|
(4,727 |
) |
|
|
(7,279 |
) |
|
|
** |
|
|
|
(4,420 |
) |
|
|
(10,355 |
) |
|
|
** |
|
Adjusted operating income (loss) per share, diluted* |
$ |
(0.39 |
) |
|
$ |
(0.75 |
) |
|
|
** |
|
|
$ |
(0.36 |
) |
|
$ |
(1.07 |
) |
|
|
** |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
outstanding |
$ |
1.38 |
|
|
$ |
1.75 |
|
|
|
|
$ |
1.38 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
12,220,331 |
|
|
|
9,712,602 |
|
|
|
|
|
12,218,102 |
|
|
|
9,710,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting ratios: |
|
|
|
|
|
|
|
|
|
|
|
Loss ratio (1) |
|
83.0 |
% |
|
|
90.2 |
% |
|
|
|
|
72.9 |
% |
|
|
82.7 |
% |
|
|
Expense ratio (2) |
|
37.9 |
% |
|
|
39.0 |
% |
|
|
|
|
37.6 |
% |
|
|
38.3 |
% |
|
|
Combined ratio (3) |
|
120.9 |
% |
|
|
129.2 |
% |
|
|
|
|
110.5 |
% |
|
|
121.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The
"Definitions of Non-GAAP Measures" section of this release defines
and reconciles data that are not based on generally accepted
accounting principles. |
** Percentage is not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
(1) The loss
ratio is the ratio, expressed as a percentage, of net losses and
loss adjustment expenses to net earned premiums and other income
from underwriting operations. |
(2) The expense
ratio is the ratio, expressed as a percentage, of policy
acquisition costs and other underwriting expenses to net earned
premiums and other income from underwriting operations. |
(3) The combined
ratio is the sum of the loss ratio and the expense ratio. A
combined ratio under 100% indicates an underwriting profit. A
combined ratio over 100% indicates an underwriting loss. |
|
2023 Second Quarter Premiums
Gross Written PremiumsGross written premiums
increased 19.4% in the second quarter of 2023 to $44.7 million,
compared to $37.4 million in the prior year period. This top line
growth was orchestrated through a multi-faceted approach: Rate
increases in select market segments were thoughtfully aligned with
the Company's risk profile; while concurrently, continued expansion
within select key verticals allowed the Company to capitalize on
existing strengths and expertise, and highlight runway for future
growth in these historically profitable lines of business.
This approach was most clearly demonstrated in
the Company’s small business program, where GWP increased 17.0% in
the second quarter of 2023 to $28.0 million. Conifer’s low-value
dwelling line of business continued its strong growth trajectory as
well, with premiums up 62.0% to $6.9 million in the quarter.
Net Earned PremiumsNet earned premiums decreased
5.7% to $23.2 million in the second quarter of 2023, compared to
$24.6 million for the prior year period. The decrease was primarily
due to higher specific loss property reinsurance rates, effective
January 1, 2023.
Commercial Lines Financial and Operational
Review
Commercial Lines Financial Review |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross written premiums |
$ |
34,761 |
|
|
$ |
32,076 |
|
|
|
8.4 |
% |
|
$ |
63,736 |
|
|
$ |
60,662 |
|
|
|
5.1 |
% |
Net written premiums |
|
20,485 |
|
|
|
22,386 |
|
|
|
-8.5 |
% |
|
|
32,726 |
|
|
|
36,726 |
|
|
|
-10.9 |
% |
Net earned premiums |
|
17,487 |
|
|
|
20,784 |
|
|
|
-15.9 |
% |
|
|
34,610 |
|
|
|
41,308 |
|
|
|
-16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting ratios: |
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
77.5 |
% |
|
|
95.5 |
% |
|
|
|
|
69.5 |
% |
|
|
88.1 |
% |
|
|
Expense ratio |
|
37.4 |
% |
|
|
38.0 |
% |
|
|
|
|
36.8 |
% |
|
|
37.2 |
% |
|
|
Combined ratio |
|
114.9 |
% |
|
|
133.5 |
% |
|
|
|
|
106.3 |
% |
|
|
125.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution to combined ratio
from net (favorable) adverse prior year development |
|
5.0 |
% |
|
|
44.4 |
% |
|
|
|
|
0.2 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident year combined ratio
(non-GAAP) (4) |
|
109.9 |
% |
|
|
89.1 |
% |
|
|
|
|
106.1 |
% |
|
|
89.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact from storms |
|
5.5 |
% |
|
|
- |
|
|
|
|
|
2.7 |
% |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident year combined ratio before impact of storms
(non-GAAP) (4) |
|
104.4 |
% |
|
|
89.1 |
% |
|
|
|
|
103.4 |
% |
|
|
89.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) The accident
year combined ratio is the sum of the loss ratio and the expense
ratio, less changes in net ultimate loss estimates from prior
accident year loss reserves. The accident year combined ratio
provides management with an assessment of the specific policy
year's profitability and assists management in their evaluation of
product pricing levels and quality of business written. The
accident year combined ratio is a non-GAAP measure. We excluded
$967,000 of severe storm losses from the accident year combined
ratio during the quarter due to the significant variance relative
to our historical and expected future losses. The accident year
combined ratio before impact of storms is a non-GAAP measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s commercial lines of business
represented 77.8% of total gross written premium in the second
quarter of 2023. Conifer’s dedication to maintaining and enhancing
its deep knowledge and experience within select key verticals
remains a cornerstone of its strategy. This expertise-driven
approach provides the foundation for the Company's future growth
and profitability.
Commercial lines gross written premium increased
8.4% in the second quarter of 2023 to $34.8 million, diligently
executing on the Company’s strategy of combining rate increases
with organic growth in historically profitable lines of
business.
The Commercial lines combined ratio was 114.9%
for the three months ended June 30, 2023; this represents an
improvement of 18.6 percentage points compared to the same period
in 2022. The loss ratio was 77.5% for the quarter, down 18.0
percentage points from 95.5% in the prior year period.
The expense ratio was 37.4% for the second
quarter of 2023, marking continued improvement from the prior year
period.
Personal Lines Financial and Operational
Review
Personal Lines Financial Review |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross written premiums |
$ |
9,913 |
|
|
$ |
5,342 |
|
|
|
85.6 |
% |
|
$ |
17,152 |
|
|
$ |
9,720 |
|
|
|
76.5 |
% |
Net written premiums |
|
8,843 |
|
|
|
4,880 |
|
|
|
81.2 |
% |
|
|
14,944 |
|
|
|
8,561 |
|
|
|
74.6 |
% |
Net earned premiums |
|
5,696 |
|
|
|
3,792 |
|
|
|
50.2 |
% |
|
|
10,525 |
|
|
|
7,223 |
|
|
|
45.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting ratios: |
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
100.1 |
% |
|
|
61.4 |
% |
|
|
|
|
84.1 |
% |
|
|
51.7 |
% |
|
|
Expense ratio |
|
39.2 |
% |
|
|
44.7 |
% |
|
|
|
|
40.0 |
% |
|
|
44.1 |
% |
|
|
Combined ratio |
|
139.3 |
% |
|
|
106.1 |
% |
|
|
|
|
124.1 |
% |
|
|
95.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution to combined ratio
from net (favorable) adverse prior year development |
|
-6.4 |
% |
|
|
7.0 |
% |
|
|
|
|
-7.2 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident year combined ratio
(non-GAAP) (5) |
|
145.7 |
% |
|
|
99.1 |
% |
|
|
|
|
131.3 |
% |
|
|
95.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact from storms |
|
78.0 |
% |
|
|
- |
|
|
|
|
|
42.2 |
% |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident year combined ratio before impact of storms
(non-GAAP) (5) |
|
67.7 |
% |
|
|
99.1 |
% |
|
|
|
|
89.1 |
% |
|
|
95.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) The accident
year combined ratio is the sum of the loss ratio and the expense
ratio, less changes in net ultimate loss estimates from prior
accident year loss reserves. The accident year combined ratio
provides management with an assessment of the specific policy
year's profitability and assists management in their evaluation of
product pricing levels and quality of business written. The
accident year combined ratio is a non-GAAP measure. We excluded
$4.4 million of severe storm losses from the accident year combined
ratio during the quarter due to the significant variance relative
to our historical and expected future losses. The accident year
combined ratio before impact of storms is a non-GAAP measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal lines, representing 22.2% of total
gross written premium for the second quarter of 2023, consists
mainly of low-value dwelling homeowner’s insurance.
Personal lines gross written premium increased
85.6% to $9.9 million in the second quarter of 2023 compared to the
prior year period, led by growth in the Company’s low-value
dwelling line of business.
Personal lines combined ratio was 139.3% for the
three months ended June 30, 2023. As noted in the Company’s July
28, 2023 press release, losses stemmed predominantly from the
multiple convection storms that largely impacted Oklahoma and Texas
in the second quarter. Before the impact of these storm-related
losses, the personal lines accident year combined ratio was a
profitable 67.3% for the second quarter of 2023, and 89.1% for the
six months ended June 30, 2023.
Combined Ratio Analysis
|
Three Months EndedJune 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Underwriting ratios: |
|
|
|
|
|
|
|
Loss ratio |
|
83.0 |
% |
|
|
90.2 |
% |
|
|
72.9 |
% |
|
|
82.7 |
% |
Expense ratio |
|
37.9 |
% |
|
|
39.0 |
% |
|
|
37.6 |
% |
|
|
38.3 |
% |
Combined ratio |
|
120.9 |
% |
|
|
129.2 |
% |
|
|
110.5 |
% |
|
|
121.0 |
% |
|
|
|
|
|
|
|
|
Contribution to combined ratio
from net (favorable) adverse prior year development |
|
2.2 |
% |
|
|
38.6 |
% |
|
|
-1.5 |
% |
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
Accident year combined ratio
(non-GAAP) (6) |
|
118.7 |
% |
|
|
90.6 |
% |
|
|
112.0 |
% |
|
|
90.1 |
% |
|
|
|
|
|
|
|
|
Impact from storms |
|
23.3 |
% |
|
|
- |
|
|
|
11.9 |
% |
|
|
- |
|
|
|
|
|
|
|
|
|
Accident year combined
ratio before impact of storms (non-GAAP) (6) |
|
95.4 |
% |
|
|
90.6 |
% |
|
|
100.1 |
% |
|
|
90.1 |
% |
|
|
|
|
|
|
|
|
(6) The accident
year combined ratio is the sum of the loss ratio and the expense
ratio, less changes in net ultimate loss estimates from prior
accident year loss reserves. The accident year combined ratio
provides management with an assessment of the specific policy
year's profitability and assists management in their evaluation of
product pricing levels and quality of business written. The
accident year combined ratio is a non-GAAP measure. We excluded
$5.4 million of severe storm losses from the accident year combined
ratio during the quarter due to the significant variance relative
to our historical and expected future losses. The accident year
combined ratio before impact of storms is a non-GAAP measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Ratio:The Company's combined ratio was
120.9% for the quarter ended June 30, 2023, down 8.3 percentage
points from the prior year period. Before the impact of storm
losses as described above, the Company’s accident year combined
ratio was 95.4% for the quarter.
Loss Ratio: The Company’s losses and loss
adjustment expenses were $19.3 million for the three months ended
June 30, 2023, down from $22.3 million in the prior year
period.
Expense Ratio: The expense ratio continues to
improve, due in large part to the Company’s sustained emphasis on
expense management: the expense ratio for the second quarter of
2023 was 37.9%, down from 39.0% in the prior year period as the
Company approaches its near-term target expense ratio of 35%.
Net Investment IncomeNet
investment income was $1.4 million during the quarter ended June
30, 2023, up 140.1% compared to $564,000 in the prior year
period.
Net Realized Investment Gains
(Losses)The Company did not have any realized investment
gains or losses during the second quarter of 2023. Net realized
investment losses were $1.4 million in the prior year period.
Change in Fair Value of Equity
SecuritiesDuring the quarter, the Company reported a loss
of $12,000 from the change in fair value of equity investments,
compared to a gain of $317,000 in the prior year period.
Net Income (Loss) The Company
reported net loss of $4.7 million, or $0.39 per share, for the
second quarter of 2023, compared to a net loss of $8.4 million, or
$0.86 per share, in the prior year period.
Adjusted Operating Income
(Loss)In the second quarter of 2023, the Company reported
an adjusted operating loss of $4.7 million, or $0.39 per share,
compared to an adjusted operating loss of $7.3 million, or $0.75
per share, for the same period in 2022. See Definitions of Non-GAAP
Measures.
Earnings Conference Call with
Accompanying Slide PresentationThe Company will hold a
conference call/webcast on Thursday, August 10, 2023 at 8:30 a.m.
ET to discuss results for the second quarter ended June 30,
2023.
Investors, analysts, employees and the general
public are invited to listen to the conference call via:
Webcast:Conference Call: |
|
On the Event Calendar at IR.CNFRH.com844-868-8843 (domestic) or
412-317-6589 (international) |
The webcast will be archived on the Conifer
Holdings website and available for replay for at least one
year.
About Conifer HoldingsConifer
Holdings, Inc. is a specialty insurance holding company, offering
customized coverage solutions tailored to the needs of our insureds
nationwide. Conifer is traded on the NASDAQ exchange under the
symbol “CNFR”. Additional information is available on the Company’s
website at www.CNFRH.com.
Definitions of Non-GAAP
Measures
Conifer prepares its public financial statements
in conformity with accounting principles generally accepted in the
United States of America (GAAP). Statutory data is prepared in
accordance with statutory accounting rules as defined by the
National Association of Insurance Commissioners' (NAIC) Accounting
Practices and Procedures Manual, and therefore is not reconciled to
GAAP data.
We believe that investors’ understanding of
Conifer’s performance is enhanced by our disclosure of adjusted
operating income. Our method for calculating this measure may
differ from that used by other companies and therefore
comparability may be limited. We define adjusted operating income
(loss), a non-GAAP measure, as net income (loss) excluding the
after-tax amounts of: 1) net realized investment gains and losses,
2) Other gains (losses) and 3) change in fair value of equity
securities. We use adjusted operating income as an internal
performance measure in the management of our operations because we
believe it gives our management and other users of our financial
information useful insight into our results of operations and our
underlying business performance.
Reconciliations of adjusted operating income and adjusted
operating income per share:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(dollar in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(4,739 |
) |
|
$ |
(8,399 |
) |
|
$ |
(3,738 |
) |
|
$ |
(11,269 |
) |
Less: |
|
|
|
|
|
|
|
Net realized investment gains (losses), net of tax |
|
- |
|
|
|
(1,436 |
) |
|
|
- |
|
|
|
(1,505 |
) |
Other gains (losses), net of tax |
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
(6 |
) |
Change in fair value of equity securities, net of tax |
|
(12 |
) |
|
|
317 |
|
|
|
682 |
|
|
|
597 |
|
Adjusted operating income
(loss) |
$ |
(4,727 |
) |
|
$ |
(7,279 |
) |
|
$ |
(4,420 |
) |
|
$ |
(10,355 |
) |
|
|
|
|
|
|
|
|
Weighted average common
shares, diluted |
|
12,220,331 |
|
|
|
9,712,602 |
|
|
|
12,218,102 |
|
|
|
9,710,223 |
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
common share: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(0.39 |
) |
|
$ |
(0.86 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.16 |
) |
Less: |
|
|
|
|
|
|
|
Net realized investment gains (losses), net of tax |
|
- |
|
|
|
(0.14 |
) |
|
|
- |
|
|
|
(0.15 |
) |
Other gains (losses), net of tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Change in fair value of equity securities, net of tax |
|
- |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Adjusted operating income
(loss), per share |
$ |
(0.39 |
) |
|
$ |
(0.75 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward-Looking Statement
This press release contains forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
or our future financial or operating performance, and include
Conifer’s expectations regarding premiums, earnings, its capital
position, expansion, and growth strategies. The forward-looking
statements contained in this press release are based on
management’s good-faith belief and reasonable judgment based on
current information. The forward-looking statements are qualified
by important factors, risks and uncertainties, many of which are
beyond our control, that could cause our actual results to differ
materially from those in the forward-looking statements, including
those described in our form 10-K (“Item 1A Risk Factors”) filed
with the SEC on March 27, 2023 and subsequent reports filed with or
furnished to the SEC. Any forward-looking statement made by us in
this report speaks only as of the date hereof or as of the date
specified herein. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable laws or regulations.
Conifer Holdings, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(dollars in thousands) |
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
(Unaudited) |
|
|
Investment securities: |
|
|
|
Debt securities, at fair value (amortized cost of $121,367 and
$127,119, respectively) |
$ |
105,996 |
|
|
$ |
110,201 |
|
Equity securities, at fair value (cost of $2,282 and $1,905,
respectively) |
|
2,326 |
|
|
|
1,267 |
|
Short-term investments, at fair value |
|
39,564 |
|
|
|
25,929 |
|
Total investments |
|
147,886 |
|
|
|
137,397 |
|
|
|
|
|
Cash and cash equivalents |
|
18,765 |
|
|
|
28,035 |
|
Premiums and agents' balances
receivable, net |
|
25,895 |
|
|
|
21,802 |
|
Receivable from Affiliate |
|
933 |
|
|
|
1,261 |
|
Reinsurance recoverables on
unpaid losses |
|
56,505 |
|
|
|
82,651 |
|
Reinsurance recoverables on
paid losses |
|
5,828 |
|
|
|
6,653 |
|
Prepaid reinsurance
premiums |
|
24,444 |
|
|
|
16,399 |
|
Deferred policy acquisition
costs |
|
9,500 |
|
|
|
10,290 |
|
Other assets |
|
6,767 |
|
|
|
7,862 |
|
Total assets |
$ |
296,523 |
|
|
$ |
312,350 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Liabilities: |
|
|
|
Unpaid losses and loss adjustment expenses |
$ |
145,004 |
|
|
$ |
165,539 |
|
Unearned premiums |
|
78,468 |
|
|
|
67,887 |
|
Reinsurance premiums payable |
|
12,023 |
|
|
|
6,144 |
|
Debt |
|
34,031 |
|
|
|
33,876 |
|
Accounts payable and accrued expenses |
|
10,140 |
|
|
|
19,954 |
|
Total liabilities |
|
279,666 |
|
|
|
293,400 |
|
|
|
|
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
Common stock, no par value (100,000,000 shares authorized;
12,222,881 and 12,215,849 issued and outstanding,
respectively) |
|
98,013 |
|
|
|
97,913 |
|
Accumulated deficit |
|
(64,498 |
) |
|
|
(60,760 |
) |
Accumulated other comprehensive income (loss) |
|
(16,658 |
) |
|
|
(18,203 |
) |
Total shareholders' equity |
|
16,857 |
|
|
|
18,950 |
|
Total liabilities and shareholders' equity |
$ |
296,523 |
|
|
$ |
312,350 |
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations
(Unaudited) |
(dollars in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Revenue and Other
Income |
|
|
|
|
|
|
|
|
Premiums |
|
|
|
|
|
|
|
|
Gross earned premiums |
|
$ |
36,013 |
|
|
$ |
33,782 |
|
|
$ |
70,307 |
|
|
$ |
66,546 |
|
Ceded earned premiums |
|
|
(12,830 |
) |
|
|
(9,206 |
) |
|
|
(25,172 |
) |
|
|
(18,015 |
) |
Net earned premiums |
|
|
23,183 |
|
|
|
24,576 |
|
|
|
45,135 |
|
|
|
48,531 |
|
Net investment income |
|
|
1,354 |
|
|
|
564 |
|
|
|
2,661 |
|
|
|
1,071 |
|
Net realized investment gains (losses) |
|
|
- |
|
|
|
(1,436 |
) |
|
|
- |
|
|
|
(1,505 |
) |
Change in fair value of equity securities |
|
|
(12 |
) |
|
|
317 |
|
|
|
682 |
|
|
|
597 |
|
Other gains (losses) |
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
(6 |
) |
Other income |
|
|
398 |
|
|
|
663 |
|
|
|
1,024 |
|
|
|
1,361 |
|
Total revenue and other income |
|
|
24,923 |
|
|
|
24,683 |
|
|
|
49,502 |
|
|
|
50,049 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses, net |
|
|
19,319 |
|
|
|
22,251 |
|
|
|
33,032 |
|
|
|
40,269 |
|
Policy acquisition costs |
|
|
4,413 |
|
|
|
5,725 |
|
|
|
9,134 |
|
|
|
11,189 |
|
Operating expenses |
|
|
5,114 |
|
|
|
4,470 |
|
|
|
9,393 |
|
|
|
8,630 |
|
Interest expense |
|
|
820 |
|
|
|
727 |
|
|
|
1,506 |
|
|
|
1,438 |
|
Total expenses |
|
|
29,666 |
|
|
|
33,173 |
|
|
|
53,065 |
|
|
|
61,526 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
earnings in Affiliate and income taxes |
|
|
(4,743 |
) |
|
|
(8,490 |
) |
|
|
(3,563 |
) |
|
|
(11,477 |
) |
Equity earnings (loss) in Affiliate, net of tax |
|
|
4 |
|
|
|
93 |
|
|
|
(175 |
) |
|
|
169 |
|
Income tax expense (benefit) |
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
(39 |
) |
Net income
(loss) |
|
|
(4,739 |
) |
|
|
(8,399 |
) |
|
|
(3,738 |
) |
|
|
(11,269 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share, basic and diluted |
|
$ |
(0.39 |
) |
|
$ |
(0.86 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, basic and diluted |
|
|
12,220,331 |
|
|
|
9,712,602 |
|
|
|
12,218,102 |
|
|
|
9,710,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Further Information:Jessica Gulis,
248.559.0840ir@cnfrh.com
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