ifer (US:CNFR)2025-11-12 21:12Financial Performance - Net earned premiums for the three months ended September 30, 2025, were $6,821,000, a decrease of 53.3% from $14,601,000 in the same period of 2024[10]. - Total revenue and other income for the nine months ended September 30, 2025, was $38,688,000, down 26.4% from $52,545,000 in the prior year[10]. - Net income (loss) from continuing operations for the three months ended September 30, 2025, was $(3,970,000), compared to $(6,886,000) in the same period of 2024[10]. - The company reported a net loss allocable to common shareholders of $(3,970,000) for the three months ended September 30, 2025, compared to a net income of $52,788,000 in the same period of 2024[10]. - For the nine months ended September 30, 2025, the net loss from continuing operations was $1,397,000 compared to a loss of $9,044,000 for the same period in 2024[16]. - Total comprehensive income for the nine months ended September 30, 2025, was $1,811,000, a decrease from $52,917,000 in the same period of 2024[12]. - The company reported a net cash used in operating activities of $18,697,000 for the nine months ended September 30, 2025, compared to $12,678,000 in 2024[16]. - The company reported a net loss from continuing operations of $3,970,000 compared to a loss of $6,886,000 for the same period in 2024[97]. Assets and Liabilities - Total assets increased to $284,995,000 as of September 30, 2025, compared to $281,656,000 on December 31, 2024, reflecting a growth of 1.3%[8]. - Total liabilities decreased slightly to $259,692,000 as of September 30, 2025, from $260,131,000 at the end of 2024[8]. - The company’s accumulated deficit increased to $(64,550,000) as of September 30, 2025, from $(63,153,000) at the end of 2024[8]. - Shareholders' equity increased to $25,303,000 as of September 30, 2025, compared to $21,525,000 at the end of 2024, representing a 17.5% increase[8]. - As of September 30, 2025, total assets measured at fair value amounted to $157,152,000, with total liabilities at $21,297,000[56]. - Total debt securities available for sale amounted to $94.576 million as of September 30, 2025, down from $105.665 million as of December 31, 2024[41]. Cash and Investments - The company’s cash and cash equivalents decreased to $7,414,000 as of September 30, 2025, from $27,654,000 at the end of 2024, a decline of 73.3%[8]. - Cash at the end of the period on September 30, 2025, was $7,414,000, down from $32,389,000 at the end of the same period in 2024[16]. - The company purchased investments totaling $237,667,000 during the nine months ended September 30, 2025, compared to $139,736,000 in 2024[16]. - Proceeds from sales of investments were $208,112,000 for the nine months ended September 30, 2025, compared to $142,989,000 in 2024[16]. - The company recognized stock-based compensation expenses of $43,000 for the nine months ended September 30, 2025, compared to $62,000 in 2024[16]. - The gross unrealized losses related to equity investments were $9,130,000 as of September 30, 2025, primarily due to market conditions[40]. Reinsurance and Losses - The Company ceded 50% of written premiums on substantially all homeowners business under a new quota share reinsurance agreement effective June 1, 2025, generating $4.1 million of ceded written premiums for the quarter[73]. - Losses and loss adjustment expenses, net, for the three months ended September 30, 2025, were $6,389,000, down 57.8% from $15,152,000 in the same period of 2024[10]. - The Company ceded an aggregate of $18.4 million of losses to the loss portfolio transfer (LPT) reinsurance agreement as of September 30, 2025[77]. - Net losses and LAE decreased by $8.8 million, or 57.8%, to $6.4 million during Q3 2025 compared to $15.2 million in Q3 2024[71]. Regulatory and Compliance - The company contributed an additional $16.0 million to TIC in late 2024 and early 2025 to maintain its Risk Based Capital (RBC) above the Regulatory Action Level[33]. - TIC's RBC ratio was 156% as of December 31, 2024, and improved to approximately 261% by September 30, 2025, following a $6.5 million contribution in June 2025[35]. - Regulatory monitoring requirements have increased due to TIC not being above the minimum required RBC levels as of December 31, 2024[36]. - The Company is currently evaluating the impact of new accounting guidance (ASU 2023-09) on its disclosures, effective for fiscal years beginning after December 15, 2024[29]. Stock and Shareholder Information - Basic and diluted earnings per common share for the three months ended September 30, 2025, were $(0.32), while for the same period in 2024, it was $4.32[97]. - The Series B Preferred Stock issued totaled $7.5 million, with a quarterly dividend rate equating to an annualized rate of 13.5% as of September 30, 2025[91]. - The Company has $16.9 million of senior unsecured notes outstanding as of September 30, 2025, with an interest rate of 9.75% per annum[83]. - The company issued options to purchase 630,000 shares of common stock to two executive officers, with a strike price of $4.53 per share[98].