Conifer Holdings Reports 2024 Fourth Quarter and Year End Financial Results

Core Viewpoint - Conifer Holdings, Inc. experienced a significant transition in 2024, marked by the sale of its insurance agency operations, a substantial reduction in commercial lines business, and a strategic focus on personal lines insurance moving forward [2][3][4]. Financial Highlights - For the full year 2024, total Gross Written Premium decreased by nearly 50% compared to the previous year, while Net Earned Premium fell by 27.5% [2][10]. - The fourth quarter of 2024 saw Gross Written Premium at $13.7 million, down 43.9% from $24.4 million in the same period of 2023 [10]. - Net income allocable to common shareholders for the fourth quarter was a loss of $25.4 million, or $2.08 per share, while for the full year, the company reported a net income of $23.5 million, or $1.93 per share [20][31]. Commercial Lines Business - The commercial lines business experienced a drastic decline, with Gross Written Premium down 79% in Q4 2024 and 75.1% for the full year [13][14]. - The loss ratio for commercial lines surged to 650.8% in Q4 2024, reflecting the company's focus on strengthening reserves [13][17]. Personal Lines Business - Personal lines gross written premiums increased by 10.6% in Q4 2024 and 23.4% for the full year, driven by growth in the homeowner's insurance portfolio in Texas and the Midwest [3][14]. - Personal lines accounted for 77% of total gross written premium in Q4 2024, indicating a strategic shift towards this segment [15]. Investment Performance - Net investment income rose by 5.8% to $5.8 million for the year ending December 31, 2024, compared to $5.4 million in the prior year [18]. - The company reported a loss of $21,000 from changes in the fair value of equity investments during the quarter, contrasting with a gain of $13,000 in the prior year [19]. Underwriting Ratios - The combined ratio for the company was 292.9% in Q4 2024, significantly higher than 231.7% in Q4 2023, indicating underwriting challenges [17]. - The loss ratio for the overall business was 254.6% in Q4 2024, compared to 191.1% in the same quarter of the previous year [17].