Conifer Holdings Reports 2024 Third Quarter Financial Results

Core Viewpoint - Conifer Holdings, Inc. reported a significant financial shift following the sale of its insurance agency operations, resulting in a net income of $53.3 million for Q3 2024, despite an adjusted operating loss of $7.4 million [2][12]. Financial Highlights - The company achieved a $61 million gain from the sale of its insurance agency operations [2]. - Adjusted operating loss was reported at $7.4 million, equating to a loss of $0.60 per share [2][13]. - Net income for the period was $53.3 million, or $4.32 per share [12][25]. Premiums and Revenue - Gross written premiums decreased by 60.9% to $15.1 million compared to $38.5 million in Q3 2023 [4][6]. - Net earned premiums fell by 39.1% to $14.6 million from $24 million in the prior year [4][24]. - The company anticipates that commercial lines will represent 10% or less of written premiums going forward, focusing instead on personal lines, particularly homeowners insurance in Texas and the Midwest [3][6]. Commercial Lines Business - The commercial lines business saw a drastic decline, with gross written premiums down 85.9% to $4 million in Q3 2024 [7][8]. - The loss ratio for commercial lines increased significantly to 168% compared to 88.8% in the previous year [7][11]. - The company expects continued revenue decline in commercial lines following the sale of its agency operations [6][8]. Personal Lines Business - Personal lines gross written premiums increased by 10.1% to over $11 million, representing 73% of total gross written premiums for the quarter [10][11]. - The combined ratio for personal lines improved to 100.7%, indicating a more favorable underwriting environment compared to 121.7% in Q3 2023 [10][11]. Investment Income - Net investment income remained stable at $1.4 million for both Q3 2024 and Q3 2023 [11][24]. - The company reported a loss of $29,000 from changes in the fair value of equity investments, an improvement from a loss of $87,000 in the prior year [12][24]. Management Commentary - CEO Brian Roney highlighted the successful sale of the insurance agency operations and the strategic focus on personal lines insurance moving forward [2].