ifer (US:CNFR)2024-11-13 21:00Financial Performance - Net earned premiums for the three months ended September 30, 2024, were $14,601,000, down 38.8% from $23,979,000 in the same period of 2023[10] - Total revenue and other income decreased to $16,017,000 for the three months ended September 30, 2024, compared to $25,440,000 for the same period in 2023, a decline of 37.0%[10] - The company reported a net loss from continuing operations of $6,886,000 for the three months ended September 30, 2024, compared to a loss of $4,362,000 in the same period of 2023[10] - The net income (loss) for the nine months ended September 30, 2024, was $(9,044,000), compared to $(7,861,000) for the same period in 2023, indicating a worsening financial performance[20] - The company reported a net loss from continuing operations of $10,895 million for the nine months ended September 30, 2024, compared to a loss of $8,325 million for the same period in 2023[78] - The company reported a segment loss of $(6,294) for the three months ended September 30, 2024, compared to a loss of $(5,020) for the same period in 2023[75] - The total segment loss increased to $7.3 million in Q3 2024 from $5.3 million in Q3 2023[105] Discontinued Operations - Net income from discontinued operations was $60,176,000 for the three months ended September 30, 2024, compared to $1,656,000 in the same period of 2023, indicating a significant increase[10] - The net income from discontinued operations for the nine months ended September 30, 2024, was $58,773 million, compared to $1,417 million in 2023[35] - The company recognized a gain of $54,767 million on the sale of CIS and $6,459 million on the sale of SSU during the three months ended September 30, 2024[34] - The company completed the sale of Conifer Insurance Services on August 30, 2024, for a total consideration of $59.5 million, which includes an initial cash consideration of $46.6 million and contingent payments[30] Assets and Liabilities - Total assets decreased from $315,606,000 on December 31, 2023, to $299,852,000 as of September 30, 2024, representing a decline of approximately 5.0%[7] - Total liabilities decreased from $312,717,000 on December 31, 2023, to $250,801,000 as of September 30, 2024, a reduction of approximately 19.8%[7] - The company’s accumulated deficit improved from $(86,683,000) on December 31, 2023, to $(37,771,000) as of September 30, 2024[7] - Total liabilities as of August 30, 2024, were $39,421 million, compared to $401 million on December 31, 2023[32] - The company’s total liabilities increased to $98,162 million as of September 30, 2024, compared to $97,913 million at December 31, 2022[19] Cash Flow and Investments - The company experienced a significant increase in cash provided by investing activities, totaling $50,528,000 for the nine months ended September 30, 2024, compared to a cash outflow of $(4,040,000) in the same period of 2023[20] - The company reported a significant increase in cash flows from operating activities, with a net cash provided of $6,722 million for the nine months ended September 30, 2024, compared to a net cash used of $5,550 million in the same period of the previous year[20] - The company reported total cash at the end of the period of $32,389 million, a substantial increase from $14,361 million at the beginning of the period[20] - The company reported gross unrealized losses from available-for-sale securities were $10.2 million as of September 30, 2024, due to market conditions and interest rate changes[38] - The company held 282 issues of debt securities with unrealized losses as of September 30, 2024[40] Premiums and Underwriting - Gross written premiums for the three months ended September 30, 2024, totaled $15,086, a decrease from $38,548 in the same period of 2023[75] - The Company exited the Oklahoma business in mid-2024 and significantly reduced writings in commercial lines[75] - For the nine months ended September 30, 2024, gross written premiums totaled $58,370 million, a decrease from $119,436 million for the same period in 2023[78] - The underwriting combined ratio was 143.1% for Q3 2024, up from 120.8% in Q3 2023, indicating an underwriting loss[93] - The company has significantly reduced its writings in commercial lines, with gross written premiums from Texas, Michigan, Oklahoma, and Indiana accounting for 84.2% of total gross written premiums for the nine months ended September 30, 2024[75] Stock and Equity - The company redeemed all of its $6.0 million Series A Preferred Stock on August 30, 2024, incurring a redemption premium of $397,000[69] - The company’s stock-based compensation expense for the nine months ended September 30, 2024, was $62 million, down from $147 million in the same period of 2023[20] - The book value per common share outstanding increased to $4.01 for the nine months ended September 30, 2024, compared to $0.24 for the same period in 2023[108] Risk and Compliance - The company does not believe there is a reasonable possibility of any material loss exceeding amounts already accrued from ongoing legal claims[74] - The company has no contracts referencing LIBOR and does not expect new accounting guidance to have a material impact on its financial statements[27] - The company is currently evaluating the impact of new accounting standards related to income taxes and segment reporting, effective after December 15, 2024[27] Miscellaneous - The company reported that actual results may differ from estimates made in the financial statements, highlighting the inherent uncertainty in financial reporting[24] - The management's discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included in the quarterly report[80] - The company filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission on April 1, 2024[80]