The following is a summary of the Conifer Holdings, Inc. (CNFR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Conifer Holdings reported a drop in gross written premium by 33% to $24 million.
The combined ratio improved by 280 basis points from Q1 2023, arriving at 97% in Q1 2024.
It held a steady loss ratio at 62%.Furthermore, the net investment income saw a 19% increase to $1.6 million from $1.3 million in the previous year.
The company's net income attributing to its common shareholders was reported at $74,000 or $0.01 per share, and an adjusted operating income of $188,000 or $0.02 per share for Q1 2024.
The total assets stood at $301 million at the quarter-end, with cash and total investments of $164 million. The book value at the quarter-end was $0.21 per share.
Business Progress:
The company's shift towards a wholesale agency production-based revenue model for commercial lines of business began bearing preliminary signs of success as it amplified its partnership with agencies, expanded in key markets, and mitigated market risks.
Commercial lines formed approximately 53% of total production for the quarter, while personal lines constituted the remaining share.
It commenced the transfer of cannabis premium to its capacity partners, marking its positioning as a frontrunner provider of cannabis-related coverage.
Moreover, it continued to underwrite the low-value homeowners business, especially in Texas and Midwest, which demonstrated strong performance in Q1 2024 resulting in a combined ratio of 83%.
Due to the positive impact of the new production model, the company foresees building upon this success in the forthcoming quarters.
More details: Conifer Holdings IR
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