ifer (US:CNFR)2024-08-14 18:17Financial Performance - Gross written premiums decreased 57.5% year-over-year to $19.0 million in Q2 2024, down from $44.7 million in Q2 2023[3] - The company reported a net loss allocable to common shareholders of $4.0 million, or $0.32 per share, for Q2 2024[9] - The combined ratio for Q2 2024 was 123.6%, compared to 120.9% in Q2 2023[8] - The loss ratio for Q2 2024 was 91.5%, up from 83.0% in the prior year[8] - Conifer Holdings reported a net loss allocable to common shareholders of $3.95 million for the three months ended June 30, 2024, compared to a net loss of $4.74 million for the same period in 2023, representing a 16.5% improvement[14] - Adjusted operating income for the three months ended June 30, 2024, was a loss of $3.64 million, compared to a loss of $4.73 million in the prior year, indicating a 23.1% reduction in losses[14] - The diluted loss per common share for the three months ended June 30, 2024, was $0.32, an improvement from a loss of $0.39 per share in the same quarter of 2023[14] - Net income (loss) for Q2 2024 was $(3,792) million, compared to $(4,739) million in Q2 2023, showing an improvement of 20.0%[16] - Earnings (loss) per common share improved to $(0.32) in Q2 2024 from $(0.39) in Q2 2023[16] Revenue and Premiums - Gross earned premiums for Q2 2024 were $29,381 million, down from $36,013 million in Q2 2023, representing a decrease of 18.1%[16] - Net earned premiums decreased to $16,666 million in Q2 2024 from $23,183 million in Q2 2023, a decline of 28.3%[16] - Total revenue and other income increased to $26,848 million in Q2 2024, compared to $24,923 million in Q2 2023, reflecting a growth of 7.7%[16] - Agency commission income significantly increased to $8,831 million in Q2 2024 from $211 million in Q2 2023, a remarkable growth of 4011.4%[16] Investment and Assets - Net investment income increased by 11.2% to $1.5 million compared to $1.4 million in the prior year period[3] - The company reported total investments of $144.37 million as of June 30, 2024, slightly down from $145.31 million at the end of 2023, a decrease of 0.6%[15] - Total assets decreased to $292.93 million as of June 30, 2024, down from $311.80 million at the end of 2023, reflecting a 6.0% decline[15] - Cash and cash equivalents decreased to $9.70 million as of June 30, 2024, down from $11.13 million at the end of 2023, a decline of 12.8%[15] Liabilities and Recoverables - Total liabilities were reported at $294.10 million as of June 30, 2024, compared to $308.92 million at the end of 2023, showing a decrease of 4.8%[15] - Premiums and agents' balances receivable increased to $30.58 million as of June 30, 2024, up from $29.37 million at the end of 2023, marking a 4.1% increase[15] - Reinsurance recoverables on unpaid losses rose to $74.36 million as of June 30, 2024, compared to $70.81 million at the end of 2023, representing a 5.5% increase[15] Operational Efficiency - The expense ratio improved by 5.8 percentage points to 32.1% from 37.9% in the prior year[3] - Conifer Holdings continues to focus on growth strategies and capital position improvements, with expectations for future premium increases and operational performance enhancements[11] - The company expects 100% of future commercial gross written premium to flow through its managing general agency (MGA) model[1] - Conifer anticipates that substantially all commercial lines business will be directly written by third-party insurers with A.M. Best ratings of A- or better by the end of Q3 2024[2]