ifer (US:CNFR)2023-03-09 14:44Financial Data and Key Metrics Changes - The company reported a net income of $2.1 million or $0.17 per share for the fourth quarter, compared to a net loss of $801,000 or $0.08 per share in the prior year period [12] - The combined ratio was 142% in the fourth quarter compared to 104% during the same period last year, with the accident year combined ratio excluding Hurricane Ian's impact at 101% [11] - The expense ratio for the fourth quarter was 37%, down 420 basis points from the same period last year, and the full year 2022 expense ratio was 38% compared to 41% in the prior year [29] Business Line Data and Key Metrics Changes - Total gross written premium was approximately $34.5 million for the fourth quarter, reflecting a nearly 5% increase year-over-year [20] - The personal lines business represented 17% of total gross written premium for the fourth quarter, with personalized gross written premium up almost 50% quarter-over-quarter to $6 million [9] - The company has reduced writings in Florida to a select book of Restaurant/Tavern business, with all other product offerings largely non-renewed [8] Market Data and Key Metrics Changes - The company has seen a 45% increase in premium in Michigan since 2020, with Michigan accounting for roughly 25% of gross written premium overall for 2022 [21] - The company is deliberately reducing exposure to Florida while increasing market share in favorable geographies like Michigan [21] Company Strategy and Development Direction - The company is focused on organic growth and has made significant strides in underwriting enhancements, narrowing its focus to key specialty verticals [4][7] - The strategy includes executing a Loss Portfolio Transfer to strengthen reserves and protect against legacy reserve drag [5][19] - The company aims to achieve a sustainable top line and streamlined expense structure, with a goal of maintaining an expense ratio of 35% or lower [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction of the company, highlighting improved geographic spread and enhanced claim statistics [10] - The company anticipates continued successes for the balance of the year and beyond, driven by underwriting focus and expense reduction initiatives [13][19] Other Important Information - The company recorded a $43,000 decrease in the fair value of equity securities in the fourth quarter, with investments conservatively managed [24] - Total assets were $312 million at quarter-end, with cash and total investments of $165 million [30] Q&A Session All Questions and Answers Question: What is the plan for the maturing notes towards the end of September of this year? - Management indicated that they will either renew the notes or pay them off, with plans underway for one or the other [32]