ifer (US:CNFR)2024-05-14 20:00Financial Performance - Net earned premiums fell to $16,887 thousand for the three months ended March 31, 2024, down 23.5% from $21,952 thousand in the same period of 2023[29]. - Total revenue and other income decreased to $23,078 thousand for Q1 2024, a decline of 6.1% compared to $24,579 thousand in Q1 2023[29]. - Net income for the three months ended March 31, 2024, was $231 thousand, a significant decrease from $1,001 thousand in the same period of 2023[30]. - The company reported a total comprehensive loss of $205 thousand for Q1 2024, compared to a comprehensive income of $3,287 thousand in Q1 2023[30]. - Earnings per common share for Q1 2024 was $0.01, down from $0.08 in Q1 2023[82]. - Gross written premiums for the three months ended March 31, 2024, totaled $24,313 million, a decrease from $36,214 million in the same period last year, representing a decline of approximately 32.9%[93]. - The company reported agency commission income of $4,336 million for the quarter, compared to $430 million in the previous year, indicating a significant increase[93]. - Operating expenses for the quarter were $4,495 million, compared to $4,279 million in the same period last year, representing an increase of approximately 5.0%[93]. Assets and Liabilities - Total assets decreased from $311,804 thousand as of December 31, 2023, to $301,078 thousand as of March 31, 2024, a decline of approximately 3.5%[27]. - The company’s total liabilities decreased from $308,915 thousand as of December 31, 2023, to $298,519 thousand as of March 31, 2024, a reduction of approximately 3.3%[27]. - The accumulated deficit improved slightly from $(86,683) thousand as of December 31, 2023, to $(86,609) thousand as of March 31, 2024[27]. - Shareholders' equity as of March 31, 2024, was $2,559 million, down from $2,889 million, reflecting a decline of about 11.4%[27]. Cash Flow and Investments - Cash and cash equivalents increased from $11,125 thousand as of December 31, 2023, to $17,316 thousand as of March 31, 2024, an increase of 55.5%[27]. - Net cash provided by operating activities was $8,175,000, compared to a cash outflow of $6,018,000 in the prior year[35]. - The company reported unrealized investment losses of $436 million in Q1 2024, contrasting with unrealized gains of $2,286 million in Q1 2023[30]. - The total fair value of investments with unrealized losses was $97,574 million, with gross unrealized losses of $13,760 million as of March 31, 2024[49]. - The company reported net investment income of $1,552 million for the three months ended March 31, 2024, compared to $1,307 million for the same period in 2023, indicating a year-over-year increase of approximately 18.7%[53]. Strategic Changes - The company plans to shift its business model to rely primarily on commission revenues generated by its managing general agency (MGA) and third-party insurers[45]. - Substantially all commercial lines business will no longer be underwritten by the insurance company subsidiaries by the end of Q2 2024[45]. - The company expects to continue underwriting a limited amount of personal lines business within its insurance company subsidiaries[45]. - The Company is shifting from underwriting insurance products to primarily producing and selling insurance products through its Managing General Agents (MGA) starting Q1 2024[40]. - The Company anticipates that existing cash and investments will be adequate to meet its capital and liquidity needs over the next twelve months[45]. Losses and Expenses - Losses and loss adjustment expenses, net, were $10,520 thousand for Q1 2024, down from $13,713 thousand in Q1 2023, representing a reduction of 23.3%[29]. - Policy acquisition costs rose to $7,013 million in Q1 2024, up from $4,721 million in Q1 2023, marking an increase of about 48.5%[29]. - The Company recorded $10,520 in total net incurred losses and LAE for Q1 2024, down from $13,713 in Q1 2023[69]. - Direct losses and LAE increased significantly to $22.0 million in Q1 2024 from $2.0 million in Q1 2023[69]. Stock and Dividends - Preferred stock dividends paid amounted to $157 thousand in Q1 2024, with no dividends reported in the same period of 2023[29]. - Dividends paid to shareholders amounted to $176,000, with no dividends paid in the previous year[35]. - The Company issued $6.0 million of Series A Preferred Stock with an annualized dividend rate of 10.5% as of March 31, 2024[76]. - As of March 31, 2024, the Company had 12,222,881 issued and outstanding shares of common stock[79].