Conifer Holdings Reports 2025 First Quarter Financial Results
TROY, Mich., May 14, 2025 (GLOBE NEWSWIRE) -- Conifer Holdings, Inc. (Nasdaq: CNFR) ("Conifer" or the "Company") today announced results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
-- Personal Lines production was up 22% for the period
-- Net income allocable to common shareholders of $522,000, or $0.04 per
share
-- Book value increased to $2.09 per common share outstanding
Management Comments
Brian Roney, CEO of Conifer, commented, "While we were pleased to see continued growth in our Personal lines production, overall, Conifer had an up and down quarter, netting to a small gain. Of note for the period, book value did increase, but largely due to GAAP treatment of an expected earn-out payment."
2025 First Quarter Financial Results Overview
At and for the
Three Months Ended March 31,
2025 2024 % Change
-------------------- --------------------- -----------
(dollars in thousands, except share and per share
amounts)
Gross written
premiums $ 16,173 $ 24,313 -33.5%
Net written
premiums 10,840 15,391 -29.6%
Net earned
premiums 10,315 16,887 -38.9%
Net investment
income 1,289 1,546 -16.6%
Net realized
investment
gains (losses) 3 - **
Change in fair
value of equity
investments (192) 43 **
Net income
(loss)
allocable to
common
shareholders 522 74 **
Net income
(loss)
allocable to
common
shareholders
per share,
diluted $ 0.04 $ 0.01 **
Adjusted
operating
income (loss)* (3,684) 1,314 **
Adjusted
operating
income
(loss) per
share,
diluted* $ (0.30) $ 0.11 **
Book value per
common share
outstanding $ 2.09 $ 0.21
Weighted average
shares
outstanding,
basic and
diluted 12,222,881 12,222,881
Underwriting
ratios:
Loss ratio
(1) 89.7% 62.0%
Expense ratio
(2) 50.8% 34.7%
----------- ------------
Combined
ratio (3) 140.5% 96.7%
=========== ============
* 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.
2025 First Quarter Gross Written Premium
Gross written premiums decreased 33.5% in the first quarter of 2025 to $16.2 million, compared to
$24.3 million in the prior year period. This decrease reflects the Company's strategic shift away from Commercial Lines premium following the sale of our agency group in 2024.
Commercial Lines Financial and Operational Review
Commercial Lines Financial Review
------------------------------------------------------------------------
Three Months Ended March 31,
2025 2024 % Change
--------------- ----------- ----------
(dollars in thousands)
Gross written premiums $ 2,047 $12,762 -84.0%
Net written premiums (1,604) 8,287 -119.4%
Net earned premiums 1,331 8,797 -84.9%
Underwriting ratios:
Loss ratio 113.1% 76.5%
Expense ratio 25.3% 32.7%
------- ------
Combined ratio 138.4% 109.2%
======= ======
Contribution to combined ratio
from net (favorable) adverse
prior year development -46.6% 0.5%
------- ------
Accident year combined ratio
(1) 185.0% 108.7%
======= ======
(1) The accident year combined ratio is the sum of
the loss ratio and the expense ratio, less changes
in net ultimate loss estimates from prior accident
year loss reserves. The accident year combined ratio
provides management with an assessment of the specific
policy year's profitability and assists management
in their evaluation of product pricing levels and
quality of business written.
The Company's commercial lines of business represented 12.6% of total gross written premium in the first quarter of 2025. As noted above, premium decreased considerably year over year as Conifer continued to focus its underwriting efforts on Personal Lines business, notably our homeowner's insurance portfolio in Texas and the Midwest.
Personal Lines Financial and Operational Review
Personal Lines Financial Review
------------------------------------------------------------------------
Three Months Ended March 31,
2025 2024 % Change
---------------- ------------ ----------
(dollars in thousands)
Gross written premiums $ 14,126 $ 11,551 22.3%
Net written premiums 12,444 7,104 75.2%
Net earned premiums 8,984 8,090 11.1%
Underwriting ratios:
Loss ratio 86.3% 46.2%
Expense ratio 54.6% 36.8%
-------- -------
Combined ratio 140.9% 83.0%
======== =======
Contribution to combined
ratio from net (favorable)
adverse prior year
development 8.6% -6.3%
-------- -------
Accident year combined ratio 132.3% 89.3%
======== =======
Personal lines, representing 87.4% of total gross written premium for the quarter, consists primarily of low-value dwelling homeowner's insurance in Texas and the Midwest.
Personal lines gross written premium increased 22.3% from the prior year period to $14.1 million for the first quarter of 2025, led by growth in the Company's low-value dwelling line of business in Texas.
For the quarter, the loss ratio was impacted by ordinary seasonal storms, largely in Texas. As per the expected norm, we believe that the loss ratio should moderate as the year progresses.
Combined Ratio Analysis
Three Months Ended
March 31,
2025 2024
------------ ----------
Underwriting ratios:
Loss ratio 89.7% 62.0%
Expense ratio 50.8% 34.7%
------- ------
Combined ratio 140.5% 96.7%
======= ======
Contribution to combined ratio from net
(favorable) adverse prior year development 1.4% -2.7%
------- ------
Accident year combined ratio 139.1% 99.4%
======= ======
Net Investment Income
Net investment income was $1.3 million for the quarter ended March 31, 2025, compared to $1.5 million in the prior year period.
Change in Fair Value of Equity Securities
During the quarter, the Company reported a loss from the change in fair value of equity investments of $192,000, compared to a $43,000 gain in the prior year period.
Net Income (Loss) allocable to common shareholders
The Company reported net income allocable to common shareholders of $522,000, or $0.04 per share, for the first quarter of 2025.
Adjusted Operating Income (Loss)
There was an adjusted operating loss of $3.7 million, or $0.30 per share, for the first quarter ended March 31, 2025. See Definitions of Non-GAAP Measures.
About Conifer Holdings
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