ifer (US:CNFR)2022-11-12 18:27Financial Data and Key Metrics Changes - Gross written premiums decreased just under 2% to $33 million in Q3 2022 compared to the same period last year [21] - The combined ratio was 106.5% in Q3 2022, largely unchanged from 106.9% in Q3 2021 [22] - The loss ratio increased to 67% in Q3 2022 from 65% in Q3 2021 [22] - Net loss reported was $1.5 million or $0.14 per share for Q3 2022, compared to a net loss of $1.2 million or $0.12 per share in the prior year [25] Business Line Data and Key Metrics Changes - The personal lines business represented 16% of total gross written premium for Q3 2022, with gross written premium up almost 42% year-over-year at $5.5 million [18] - In commercial lines, the loss ratio was 64% for Q3 2022, with a focus on increasing profitable premium from small business groups [22][13] - Total claims in Q3 2022 were down 6% from a year ago, indicating favorable claims trends [19] Market Data and Key Metrics Changes - The company has reduced its exposure to the state of Florida by roughly 57% since 2018, with expected premiums down almost 70% in the state [16] - Michigan has seen the premium base more than double since 2018, accounting for over 25% of gross written premium in Q3 2022 [16] Company Strategy and Development Direction - The company completed two significant strategic transactions aimed at improving profitability: an asset purchase agreement with Whitetail Insurance Services and a Loss Portfolio Transfer reinsurance agreement with Fleming Re [7][9] - The focus remains on profitable premium growth and streamlining expenses, with a near-term expense ratio goal of 35% [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing improvements to the business mix and expense reductions, expecting continued success for the balance of 2022 and beyond [27] - The company anticipates that favorable claims trends and strategic decisions will positively impact financial results in the near term [20] Other Important Information - The company reported a net investment income of $860,000 in Q3 2022, up 67% from the prior year [24] - Total assets were $286 million at quarter end, with cash and total investments of $179 million [26] Q&A Session Summary Question: Impact of the MGA sale and loss portfolio transfer on income statement - Management indicated that the sale of the MGA assets would not be consolidated in financials and would show as equity income from a subsidiary [30] Question: Improvements in expense ratio - Management expects the expense ratio to decrease from 38.5% in the current year, with significant expense reductions already implemented [32]