Conifer Holdings Reports 2025 Second Quarter Financial Results

Core Viewpoint - Conifer Holdings, Inc. reported a mixed performance in the second quarter of 2025, with a significant increase in gross written premiums driven by the Personal Lines business, while facing challenges in the Commercial Lines segment [2][8]. Financial Highlights - Gross written premiums increased by 11.1% to $21.1 million compared to $19.0 million in the same period last year, primarily due to a renewed focus on disciplined underwriting in homeowners' insurance [3][8]. - Net written premiums decreased significantly by 89.6% to $1.4 million from $13.2 million year-over-year [3]. - Net earned premiums fell by 42.6% to $9.6 million compared to $16.7 million in the prior year [3]. - Net investment income was reported at $1.3 million, down 11.9% from $1.5 million in the previous year [3][16]. - The company recorded a net income allocable to common shareholders of $2.1 million, or $0.17 per share, compared to a loss of $3.9 million, or $(0.32) per share, in the same quarter last year [4][18]. Underwriting Performance - The loss ratio improved to 68.8% from 91.5% year-over-year, while the expense ratio increased to 52.3% from 32.1% [5][15]. - The combined ratio for the quarter was 121.1%, slightly better than 123.6% in the prior year, indicating ongoing underwriting challenges [5][15]. Segment Performance - Personal Lines, which accounted for 84.9% of total gross written premiums, saw a 46.8% increase in gross written premiums to $17.9 million, driven by growth in low-value dwelling homeowners' insurance in Texas [13][14]. - Commercial Lines represented only 15.1% of total gross written premiums, with gross written premiums declining by 53.0% to $3.2 million [10][12]. Balance Sheet Overview - Total assets increased to $283.3 million as of June 30, 2025, compared to $281.7 million at the end of 2024 [27]. - Total liabilities decreased to $255.1 million from $260.1 million, with unpaid losses and loss adjustment expenses at $164.6 million [27]. Additional Insights - The company is focusing on streamlining operations and simplifying its organizational structure, particularly in the Commercial Lines segment, which is winding down [2][9]. - The partial recognition of an earnout related to the CIS sale positively impacted the quarter's results [2].