EX-99.1 2 cnfr-ex99_1.htm EX-99.1 EX-99.1

 

img218339982_0.jpg 

News Release

 

For Further Information:

Jessica Gulis, 248.559.0840

ir@cnfrh.com

 

Conifer Holdings Reports 2023 Second Quarter Financial Results

Company to Host Conference Call at 8:30 AM ET on Thursday, August 10, 2023

 

Troy, MI, August 9, 2023 – 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.”

 

 

 

 

Conifer Holdings, Inc. Page 2

August 9, 2023

 

2023 Second Quarter Financial Results Overview

 

 

At and for the
Three Months Ended June 30,

 

 

At and for the
Six 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 Premiums

Gross 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.

 

 

 

Conifer Holdings, Inc. Page 3

August 9, 2023

 

Net Earned Premiums

Net 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.

 

 

 

Conifer Holdings, Inc. Page 4

August 9, 2023

 

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.

 

 

 

 

Conifer Holdings, Inc. Page 5

August 9, 2023

 

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 67.7% for the second quarter of 2023, and 89.1% for the six months ended June 30, 2023.

Combined Ratio Analysis

 

 

Three Months Ended
June 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.

 

 

 

 

Conifer Holdings, Inc. Page 6

August 9, 2023

 

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 Income

Net 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 Securities

During 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 Presentation

The 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: On the Event Calendar at IR.CNFRH.com

Conference Call: 844-868-8843 (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 Holdings

Conifer 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.

 

 

 

Conifer Holdings, Inc. Page 7

August 9, 2023

 

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 Ended
June 30,

 

 

Six Months Ended
June 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

)

 

 

 

 

 

Conifer Holdings, Inc. Page 8

August 9, 2023

 

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. Page 9

August 9, 2023

 

 

 

 

 

 

 

 

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
   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

 

 

 

 

 

Conifer Holdings, Inc. Page 10

August 9, 2023

 

Conifer Holdings, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

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