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TROY, Mich., March 28, 2025 (GLOBE NEWSWIRE) -- Conifer Holdings, Inc. (Nasdaq: CNFR) ("Conifer” or the "Company”) today announced results for the fourth quarter and year ended December 31, 2024.
Year End 2024 Financial Highlights
- Net income allocable to common shareholders of $23.5 million
- $61 Million gain on sale of insurance agency operations in August 2024
- Continuing Personal Lines business profitable for the fourth quarter of 2024
- Book value per share of $1.76 as of December 31, 2024
Management Comments
Brian Roney, CEO of Conifer, commented, "2024 was indeed a transitional year for Conifer Holdings as we successfully sold our insurance agency operations, paid down considerable debt, further strengthened reserves, streamlined our organization overall, and focused our production efforts on select personal lines going forward.”
Reduction of Commercial Lines Business
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For the full year 2024, total Gross Written Premium was down almost 50% from the prior year, and Net Earned premium was down 27.5% for the same period. As a result of the sale of Conifer's insurance agency operations, completed in August 2024, we anticipated and planned for this significant decline in Commercial Lines revenue. We expect Commercial Lines business to represent a diminishing percentage of total gross written premium going forward.
Future premiums are expected to consist primarily of Personal Lines business, notably our homeowner's insurance portfolio in Texas and the Midwest. As detailed in the Personal Lines results overview below, gross written premium for those lines of business for the fourth quarter of 2024 increased 10.6% from the prior year period and increased 23.4% for the full year 2024 over the prior year.
Additional information regarding the disposal of Conifer's agency business and its impact on future Company operations can be found in the Company's 2024 Annual Report to be filed March 28, 2025 on Form 10-K.
2024 Fourth Quarter and Full Year Financial Results Overview
| At and for the
Three Months Ended December 31, | At and for the
Year Ended December 31, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| (dollars in thousands, except share and per share amounts) | |||||||||||||||||||||
| Gross written premiums | $ | 13,683 | $ | 24,398 | -43.9 | % | $ | 72,053 | $ | 143,834 | -49.9 | % | |||||||||
| Net written premiums | 9,526 | 15,329 | -37.9 | % | 49,338 | 68,688 | -28.2 | % | |||||||||||||
| Net earned premiums | 12,708 | 14,821 | -14.3 | % | 60,862 | 83,935 | -27.5 | % | |||||||||||||
| Net investment income | 1,352 | 1,411 | -4.2 | % | 5,763 | 5,447 | 5.8 | % | |||||||||||||
| Net realized investment gains (losses) | - | (20 | ) | ** | (125 | ) | (20 | ) | ** | ||||||||||||
| Change in fair value of equity investments | (21 | ) | 13 | 261.5 | % | (203 | ) | 608 | -133.4 | % | |||||||||||
| Net income (loss) allocable to common shareholders | (25,382 | ) | (19,479 | ) | -30.3 | % | 23,530 | (25,923 | ) | ** | |||||||||||
| Net income (loss) allocable to common shareholders | $ | (2.08 | ) | $ | (1.59 | ) | -30.3 | % | $ | 1.93 | $ | (2.12 | ) | ||||||||
| per share, diluted | |||||||||||||||||||||
| Adjusted operating income (loss)* | (25,821 | ) | (19,411 | ) | -33.0 | % | (34,558 | ) | (27,867 | ) | -24.0 | % | |||||||||
| Adjusted operating income (loss) per share, diluted* | $ | (2.11 | ) | $ | (1.59 | ) | -32.7 | % | $ | (2.83 | ) | $ | (2.28 | ) | -24.1 | % | |||||
| Book value per common share outstanding | $ | 1.76 | $ | 0.24 | $ | 1.76 | $ | 0.24 | |||||||||||||
| Weighted average shares outstanding, basic and diluted | 12,222,881 | 12,222,881 | 12,222,881 | 12,220,551 | |||||||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio (1) | 254.6 | % | 191.1 | % | 120.2 | % | 97.8 | % | |||||||||||||
| Expense ratio (2) | 38.3 | % | 40.6 | % | 35.8 | % | 37.1 | % | |||||||||||||
| Combined ratio (3) | 292.9 | % | 231.7 | % | 156.0 | % | 134.9 | % | |||||||||||||
| * The "Definitions of Non-GAAP Measures" section of this release defines and reconciles data that are not based on generally accepted accounting principles. | |||||||||||||||||||||
| ** Percentage is not meaningful | |||||||||||||||||||||
| (1) The loss ratio is the ratio, expressed as a percentage, of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations. | |||||||||||||||||||||
| (2) The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and other underwriting expenses to net earned premiums and other income from underwriting operations. | |||||||||||||||||||||
| (3) The combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss. | |||||||||||||||||||||
2024 Fourth Quarter Gross Written Premium
Gross written premiums decreased 43.9% in the fourth quarter of 2024 to $13.7 million, compared to $24.4 million in the prior year period. This decrease reflects the Company's operational shift away from commercial lines insurance business given the sale of our agency group earlier in the year.
Commercial Lines Financial and Operational Review
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Gross written premiums | $ | 3,124 | $ | 14,850 | -79.0 | % | $ | 26,686 | $ | 107,078 | -75.1 | % | ||||||||||
| Net written premiums | 488 | 7,009 |
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