News Release For Further Information: Jessica Gulis, 248.559.0840 ir@cnfrh.com Conifer Holdings Reports 2025 Second Quarter Financial Results 2025 Second Quarter Financial Results Overview Conifer Holdings, Inc. Page 3 August 13, 2025 | | | | At and for the | | | | At and for the | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Three Months Ended June 30, | | | | Six Months Ended June 30, | | | | | | | | | % | | | | % | | | 2025 | | 2024 | | Change (dollars in thousands, except sh ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37536 Conifer Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...

TROY, Mich., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer” or the “Company”) today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Net income allocable to common shareholders of $2.1 million, or $0.17 per shareGains in the quarter due largely to valuation recognition of an earnoutNet investment income of $1.3 millionBook value increased to $2.31 per common share outstanding Management Comments Brian Roney, CEO of C ...

For the transition period from to Commission file number 001-37536 UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Conifer Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Core Insights - Conifer Holdings, Inc. reported mixed financial results for the first quarter of 2025, with a small net income gain despite significant declines in gross and net written premiums [2][5][15]. Financial Performance - Gross written premiums decreased by 33.5% to $16.2 million compared to $24.3 million in the same period last year [5]. - Net written premiums fell by 29.6% to $10.8 million from $15.4 million year-over-year [2]. - Net earned premiums dropped by 38.9% to $10.3 million from $16.9 million in the prior year [2]. - Net investment income was $1.3 million, down 16.6% from $1.5 million in the previous year [13]. - The company reported a net income allocable to common shareholders of $522,000, or $0.04 per share, compared to $74,000, or $0.01 per share, in the prior year [15][26]. Underwriting Performance - The loss ratio increased to 89.7% from 62.0%, while the expense ratio rose to 50.8% from 34.7%, resulting in a combined ratio of 140.5%, up from 96.7% [12][26]. - Personal lines production grew by 22% during the quarter, with gross written premiums in this segment increasing to $14.1 million from $11.6 million [3][11]. - The commercial lines segment saw a dramatic decline, with gross written premiums down 84.0% to $2.0 million [6][7]. Strategic Focus - The company is shifting its focus towards personal lines, particularly low-value dwelling homeowner's insurance in Texas and the Midwest, following the sale of its agency group in 2024 [5][7]. - Personal lines now represent 87.4% of total gross written premiums for the quarter [10]. Investment and Equity - The change in fair value of equity investments resulted in a loss of $192,000, compared to a gain of $43,000 in the prior year [14]. - Book value per common share increased to $2.09 from $0.21 year-over-year [3].

Financial Performance - Net income allocable to common shareholders was $522,000, or $0.04 per share, compared to $231,000, or $0.02 per share in the prior year [14][21]. - Net income from continuing operations for Q1 2025 was $522,000, compared to $1.357 million in Q1 2024, reflecting a decline of 61.5% [23]. - The company reported a net income allocable to common shareholders of $522,000 for Q1 2025, compared to $74,000 in Q1 2024, indicating a significant increase [23]. - Adjusted operating loss was $3.7 million, or $0.30 per share, compared to an adjusted operating income of $1.3 million, or $0.11 per share in Q1 2024 [15][21]. Premiums and Revenue - Gross written premiums decreased by 33.5% to $16.2 million in Q1 2025, down from $24.3 million in the same period last year [5][6]. - Net earned premiums fell by 38.9% to $10.3 million, compared to $16.9 million in Q1 2024 [5]. - Net earned premiums for Q1 2025 were $10.315 million, a decrease of 38.5% compared to $16.887 million in Q1 2024 [23]. - Total revenue and other income for Q1 2025 was $15.875 million, down 14.0% from $18.625 million in Q1 2024 [23]. Loss Ratios and Expenses - The loss ratio for the quarter was 89.7%, significantly higher than 62.0% in the prior year [11]. - The combined ratio for the quarter was 140.5%, compared to 96.7% in the prior year, indicating increased underwriting losses [11]. - Losses and loss adjustment expenses, net, were $9.274 million in Q1 2025, down from $10.520 million in Q1 2024, a decrease of 11.8% [23]. Investment and Assets - Net investment income decreased to $1.3 million from $1.5 million in the prior year [12]. - The company reported a loss of $192,000 from the change in fair value of equity securities, compared to a gain of $43,000 in the prior year [13]. - Total assets decreased to $277.074 million as of March 31, 2025, down from $311.107 million at December 31, 2024, representing a decline of approximately 10.9% [22]. - Cash and cash equivalents slightly decreased to $10.281 million as of March 31, 2025, from $10.663 million at December 31, 2024 [22]. Liabilities and Deficits - Total liabilities decreased to $251.489 million as of March 31, 2025, down from $260.131 million at December 31, 2024, a reduction of approximately 3.0% [22]. - The company’s accumulated deficit improved to $(62.631) million as of March 31, 2025, compared to $(63.153) million at December 31, 2024 [22]. Shareholder Information - Book value per common share increased to $2.09, up from $0.21 in the previous year [5]. - The weighted average common shares outstanding remained constant at 12,222,881 for both Q1 2025 and Q1 2024 [23].

Financial Performance - For the full year 2024, total Gross Written Premium decreased by almost 50% to $72.1 million from $143.8 million in 2023, while Net Earned Premium fell by 27.5% to $60.9 million[2][4][8]. - The Company reported a net income allocable to common shareholders of $23.5 million for the full year 2024, translating to $1.93 per share, while the Q4 2024 net loss was $25.4 million, or $2.08 per share[4][17]. - Adjusted operating loss for Q4 2024 was $25,821 thousand, compared to a loss of $19,411 thousand in Q4 2023, indicating a decline in performance[25]. - Net income (loss) for the year ended December 31, 2024, was $24,347 thousand, compared to a loss of $25,904 thousand in 2023, showing an improvement in profitability[27]. - Total revenue and other income for the year ended December 31, 2024, was $67,271 thousand, a decrease from $90,522 thousand in 2023, representing a decline of about 25.5%[27]. Premiums and Business Segments - Personal Lines business saw a 10.6% increase in Gross Written Premium for Q4 2024, totaling $10.6 million, and a 23.4% increase for the full year 2024, reaching $45.4 million[3][11][12]. - The Commercial Lines business experienced a 79% decline in Gross Written Premium for Q4 2024, contributing only 23% to total gross written premium[10][12]. - The Company anticipates that future premiums will primarily come from Personal Lines, particularly homeowner's insurance in Texas and the Midwest[3][10]. Loss Ratios and Claims - The loss ratio for the combined business in Q4 2024 was 254.6%, significantly higher than 191.1% in Q4 2023, indicating increased claims relative to premiums[13]. - Adjusted operating loss for Q4 2024 was $25.8 million, or $2.11 per share, reflecting ongoing challenges in the commercial lines segment[18]. Investment Income and Assets - Net investment income increased by 5.8% to $5.8 million for the year ending December 31, 2024, compared to $5.4 million in the prior year[15]. - The company reported a net investment income of $5,763 thousand for the year ended December 31, 2024, compared to $5,447 thousand in 2023, reflecting a growth of approximately 5.8%[27]. - Total assets decreased to $281,656 thousand as of December 31, 2024, from $315,606 thousand in 2023, a reduction of approximately 10.7%[26]. Liabilities and Valuation - The company recorded total liabilities of $260,131 thousand as of December 31, 2024, down from $312,717 thousand in 2023, a decrease of about 16.8%[26]. - Unpaid losses and loss adjustment expenses increased to $189,285 thousand in 2024, up from $174,612 thousand in 2023, indicating a rise of about 8.4%[26]. - The company has recorded a full valuation allowance against its deferred tax assets as of December 31, 2024, resulting in no taxable impacts to adjusted operating income from the adjustments to net income[25]. Shareholder Metrics - Book value per share improved to $1.76 as of December 31, 2024, compared to $0.24 in the previous year[4][12]. - The diluted loss per common share for Q4 2024 was $(2.08), compared to $(1.59) in Q4 2023, indicating a worsening in earnings per share[27]. Other Financial Highlights - The Company recorded a $61 million gain from the sale of its insurance agency operations in August 2024, which contributed to the overall financial results[4][17]. - Net earned premiums for Q4 2024 were $12,708 thousand, down from $14,821 thousand in Q4 2023, reflecting a decrease of approximately 14.2%[27].

Core Viewpoint - Conifer Holdings, Inc. experienced a significant transition in 2024, marked by the sale of its insurance agency operations, a substantial reduction in commercial lines business, and a strategic focus on personal lines insurance moving forward [2][3][4]. Financial Highlights - For the full year 2024, total Gross Written Premium decreased by nearly 50% compared to the previous year, while Net Earned Premium fell by 27.5% [2][10]. - The fourth quarter of 2024 saw Gross Written Premium at $13.7 million, down 43.9% from $24.4 million in the same period of 2023 [10]. - Net income allocable to common shareholders for the fourth quarter was a loss of $25.4 million, or $2.08 per share, while for the full year, the company reported a net income of $23.5 million, or $1.93 per share [20][31]. Commercial Lines Business - The commercial lines business experienced a drastic decline, with Gross Written Premium down 79% in Q4 2024 and 75.1% for the full year [13][14]. - The loss ratio for commercial lines surged to 650.8% in Q4 2024, reflecting the company's focus on strengthening reserves [13][17]. Personal Lines Business - Personal lines gross written premiums increased by 10.6% in Q4 2024 and 23.4% for the full year, driven by growth in the homeowner's insurance portfolio in Texas and the Midwest [3][14]. - Personal lines accounted for 77% of total gross written premium in Q4 2024, indicating a strategic shift towards this segment [15]. Investment Performance - Net investment income rose by 5.8% to $5.8 million for the year ending December 31, 2024, compared to $5.4 million in the prior year [18]. - The company reported a loss of $21,000 from changes in the fair value of equity investments during the quarter, contrasting with a gain of $13,000 in the prior year [19]. Underwriting Ratios - The combined ratio for the company was 292.9% in Q4 2024, significantly higher than 231.7% in Q4 2023, indicating underwriting challenges [17]. - The loss ratio for the overall business was 254.6% in Q4 2024, compared to 191.1% in the same quarter of the previous year [17].

Investment Portfolio - As of December 31, 2024, the fair value of the investment portfolio, excluding cash and cash equivalents, was $128.4 million, down from $145.3 million in 2023, indicating a decrease of approximately 11.9%[314] - As of December 31, 2024, a 200 basis point increase in interest rates would decrease the fair value of investments by $6,328,000, representing a 5.0% decline in shareholders' equity[316] - The estimated fair value of investments remains at $126,816,000 with no change in interest rates[316] - A 200 basis point decrease in interest rates would increase the fair value of investments by $7,305,000, leading to a 5.8% increase in shareholders' equity[316] Interest Rate Risk Management - The option adjusted duration of the debt securities portfolio was 2.7 years as of December 31, 2024, compared to 2.9 years in 2023, reflecting a slight reduction in interest rate risk exposure[314] - The primary market risk exposure to the debt portfolio is interest rate risk, with the fair market value of fixed-income securities inversely related to changes in market interest rates[314] - The company manages interest rate risks by investing in securities with varied maturity dates and maintaining the duration of the investment portfolio within a defined range of three to four years[314] Regulatory Environment - The company's insurance subsidiaries are subject to various state regulations designed to protect policyholders, which may impact profitability and operational flexibility[66] - Regulatory requirements include the approval of premium rates and policy forms, as well as maintaining minimum capital and surplus levels[68] - The company is required to participate in insolvency funds or associations, which protect policyholders against insurer insolvency, with minimal assessments reported for 2023 and 2024[75][76] - The National Association of Insurance Commissioners (NAIC) Insurance Regulatory Information System (IRIS) identifies thirteen industry ratios to assist in monitoring the financial condition of insurance companies[78] Employee and Operational Information - As of December 31, 2024, the company had nine full-time employees, with no collective bargaining agreements in place[79] - The company maintains an internet website where it provides access to its financial reports and filings with the SEC[80] Reinsurance and Credit Risk - The net amount due from reinsurers decreased from $112.3 million in 2023 to $97.5 million in 2024[319] - The company primarily invests in investment-grade securities to manage credit risk[317] - The company selects reinsurers with an A.M. Best rating of "A-" or better to mitigate credit risk[318] - The company remains obligated to pay claims regardless of reinsurer performance under reinsurance agreements[318] - The company evaluates the financial condition of reinsurers throughout the duration of agreements to manage credit risk[318] Inflation Impact - Inflation is not believed to have a material effect on operations, except for its impact on interest rates and claims costs[320] - The company considers inflation effects in pricing and estimating reserves for unpaid losses and loss adjustment expenses (LAE)[320]

Financial Performance - Conifer Holdings reported a net income of $53.3 million for Q3 2024, translating to $4.32 per share[2][11]. - Adjusted operating loss for the quarter was $7.4 million, or $0.60 per share[2][12]. - The company anticipates a significant decline in revenue following the sale of its insurance agency operations[3][5]. - Adjusted operating loss for the three months ended September 30, 2024, was $(7,352) thousand compared to $(4,275) thousand for the same period in 2023, indicating a worsening of approximately 72.8%[17]. - The company reported a net income allocable to common shareholders of $52,788 thousand for the three months ended September 30, 2024, compared to a net loss of $(2,706) thousand for the same period in 2023[19]. - Diluted income per common share for the three months ended September 30, 2024, was $4.32, a significant increase from $(0.22) in the prior year[17]. Revenue and Premiums - Gross written premiums decreased by 60.9% year-over-year to $15 million, primarily due to the exit from commercial lines[4][5]. - Net earned premiums fell by 39.1% to $14.6 million compared to the previous year[4]. - Personal lines gross written premiums increased by 10.1% to $11.1 million, representing 73% of total gross written premiums[9]. - Net earned premiums for the three months ended September 30, 2024, were $14,601 thousand, a decrease from $23,979 thousand for the same period in 2023, representing a decline of approximately 39.5%[19]. - Total revenue and other income for the three months ended September 30, 2024, was $16,017 thousand, down from $25,440 thousand in the prior year, reflecting a decrease of about 37.0%[19]. Assets and Liabilities - Total assets as of September 30, 2024, were $299,852 thousand, a decrease from $315,606 thousand as of December 31, 2023, representing a decline of about 5.0%[18]. - Total liabilities decreased to $250,801 thousand as of September 30, 2024, from $312,717 thousand at the end of 2023, reflecting a reduction of approximately 19.8%[18]. - Cash and cash equivalents increased to $32,389 thousand as of September 30, 2024, compared to $10,663 thousand at the end of 2023, indicating a growth of approximately 203.5%[18]. Other Financial Metrics - The loss ratio for the combined business was 143.1%, up from 120.8% in the prior year[10]. - Interest expense for the three months ended September 30, 2024, was $2,275 thousand, up from $855 thousand in the same period last year, representing an increase of about 166.5%[19]. - The company expects commercial lines to represent 10% or less of written premiums going forward[3].