NASDAQ:CNFR Conifer Q1 2024 Earnings Report $0.72 -0.03 (-3.38%) As of 04:00 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings History Conifer EPS ResultsActual EPS$0.02Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AConifer Revenue ResultsActual Revenue$23.08 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AConifer Announcement DetailsQuarterQ1 2024Date5/14/2024TimeAfter Market ClosesConference Call DateWednesday, May 15, 2024Conference Call Time8:30AM ETUpcoming EarningsConifer's Q1 2025 earnings is scheduled for Monday, May 12, 2025, with a conference call scheduled on Wednesday, May 14, 2025 at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Conifer Q1 2024 Earnings Call TranscriptProvided by QuartrMay 15, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, everyone, and welcome to Conifer Holdings First Quarter 20 24 Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is also being recorded. At this time, I'd like to turn the conference call over to Brian Roney. Operator00:00:26Sir, please go ahead. Speaker 100:00:28Thank you, and good morning, everyone. Conifer issued its 2024 Q1 financial results after the close of market yesterday. You can find copies of the earnings release on the company's website at ir.cnfrh.com. The slide presentation accompanying management's remarks this morning is available to view or download via webcast or from the Investor Relations section of Conifer's website. Before we get started, please note that except with regard to historical information, statements made in this conference call may constitute forward looking statements within the meaning of the federal securities laws, including statements relating to trends, the company's operations and financial results and the business and the products of the company and its subsidiaries. Speaker 100:01:22Actual results may differ materially from the results anticipated in these forward looking statements due to various risks and uncertainties underlying our forward looking statements as described from time to time in Conifer's filings with the SEC, including our latest Form 10 ks and subsequent reports. Conifer specifically disclaims any obligation to update or revise any forward looking statements whether due to new information, future developments or otherwise. In addition, a replay of this call will be provided through a link on the Investor Relations section of our website. During this call, we'll also discuss non GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non GAAP financial measures to the comparable GAAP financial measures are included when possible in our earnings release and our historical SEC filings. Speaker 100:02:19Statutory accounting data is prepared in accordance with statutory accounting rules and is therefore not reconciled to GAAP. We will conduct a Q and A session after management's prepared remarks this morning. With that, I'll turn the call over to Nick Pretkoff, our Chief Executive Officer. Nick? Speaker 200:02:38Thanks, Brian, and good morning, everyone. Also on the call with us today is Harold Meloche. I'm pleased to report that the Q1 financial results bear out the strategic decisions we discussed during our last call. We have made significant strides in executing our shift to a revenue model focused on a wholesale agency production based approach. We see the Q1 results as indicative that we are moving in the right direction. Speaker 200:03:04At the outset, let me provide a brief overview of our tactical commercial lines direction. Recognizing the evolving landscape of the insurance industry and with an eye to the long term success and sustainability of the company, we made the decision to pivot towards a wholesale agency model and largely away from an underwriting revenue model for our commercial lines business. This move allows us to leverage the expertise and networks of our agency partners, enhancing our distribution channels and expanding our reach in key markets. Further, this decision to focus on non risk bearing revenue enables us to offer insured A- rated capacity and simultaneously mitigate market risks, ultimately ensuring stability in our bottom line. We made considerable progress during the Q1 2024 in directing premium to capacity providers for coverage across multiple lines of business. Speaker 200:04:00We've also started to ramp up transfer of cannabis premium to our capacity partners, expanding our reach to new markets and strengthening our position as a leading provider of cannabis related coverage. At our core, we remain committed to preserving a strong and consistent top line, continuing to streamline our expense structure and maintaining operational profitability over the long term to generate favorable returns for Conifer shareholders. In that light, the preliminary results are encouraging as they have borne out the key decision to shift our focus to a commission revenue model based upon wholesale agency production at the beginning of 2024. With planned reductions in premium leverage starting in 2023, our percentage of commercial lines production was expected to be down in the Q1. Overall, commercial lines represented roughly 53% of total production for the quarter. Speaker 200:04:52Our personal lines production made up a larger percentage of premiums in Q1. Operator00:04:58While we Speaker 200:04:58have moved our commercial lines business largely to a commission based model utilizing our in house MGA Conifer Insurance Services, our personal lines production is still retained by our operating subsidiaries. As a result, we have continued to underwrite low valued homeowners business, primarily in Texas and the Midwest. Given the strong performance in that line year to date, leading to a combined ratio of 83% for the Q1, we are pleased to retain that business on Conifer Paper moving forward. As we effectively manage the shift in production models, we are proud of the hard work and dedication of our entire team and remain committed to delivering exceptional value to our insurance and shareholders. We will continue to build on this quarter's success in the months and years to come. Speaker 200:05:40With that, I'll pass the call over to Harold to discuss the numbers. Harold? Speaker 300:05:45Thank you, Nick. I'll provide a quick recap of financial results and I encourage investors to review our financial filings and presentation on the company's website for greater detail. In the Q1, gross written premium decreased 33 percent to $24,000,000 reflecting our decision to reduce premium leverage on operating subsidiaries and focus on production based revenue through our managing general agency. The breakout of 1st quarter total gross written premiums was 52% commercial lines and 48% personal lines. Conoverse combined ratio was 97% in the 1st quarter, down 280 basis points from the same period last year. Speaker 300:06:30Our loss ratio was 62%, steady from the Q1 of 2023. As we see the non risk based revenue model continue to progress, we anticipate continued positive movement in our results going forward. The accident year loss ratio in personal lines was 53% for the Q1, down 20 percentage points compared to the Q1 of last year, reflecting the strong underwriting actions we've taken in low value dwelling business. Our expense ratio continues to improve despite lower net earned premiums due to the success of our ongoing expense reduction efforts. The expense ratio was 35% for the 1st quarter, down 260 basis points from the same period last year and meets our near term target of 35%. Speaker 300:07:21Net investment income was $1,600,000 during the Q1, up 19% from $1,300,000 in the prior year period. Our investment portfolio remains conservatively managed with the vast majority in fixed income securities with an average credit quality of AA plus an average duration of 2.7 years and a tax equivalent yield of 3.4%. The company reported net income allocable to common shareholders of $74,000 or $0.01 per share and an adjusted operating income of $188,000 or $0.02 per share for the Q1 of 2024. Moving to the balance sheet, total assets were $301,000,000 at quarter end with cash and total investments of $164,000,000 Our book value at quarter end was $0.21 per share. We have $2.29 per share in net deferred tax assets that due to a full valuation allowance were not reflected in book value. Speaker 300:08:24And with that, I'd like to turn it back over to Nick for closing remarks. Thanks, Harold. Speaker 200:08:29In closing, I want to reiterate that our Q1 results underscore our commitment to sound strategic decision making across the organization. We remain focused on delivering exceptional value to our customers and shareholders and we are excited about the future of our company. With that, I'd like to invite any questions. Operator? Operator00:09:22And ladies and gentlemen, at this time, I'm showing no questions. I'd like to turn the floor back over to Nick for any closing remarks. Speaker 200:09:31Thank you. We appreciate your time and interest in the company and invite you to reach out to us at any time. Thank you. Operator00:09:38Thank you. And with that, ladies and gentlemen, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallConifer Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Conifer Earnings Headlines3 Penny Stocks With Market Caps As Low As $5MApril 10, 2025 | finance.yahoo.comConifer Holdings, Inc.: Conifer Holdings Reports 2024 Fourth Quarter and Year End Financial ResultsMarch 29, 2025 | finanznachrichten.deSilicon Valley Gold RushA new technology has sparked a modern-day gold rush in Silicon Valley. OpenAI’s Sam Altman invested $375M. Bill Gates has backed four companies in this space. The World Economic Forum calls it “the most exciting human discovery since fire.” Whitney Tilson believes this trend could mint a new class of wealthy investors—and he’s sharing one stock to watch now, for free.May 7, 2025 | Stansberry Research (Ad)Conifer Holdings Reports 2024 Fourth Quarter and Year End Financial ResultsMarch 28, 2025 | globenewswire.comConifer Holdings Inc.December 24, 2024 | wsj.comConifer Holdings Secures Leadership with Extended ContractsDecember 19, 2024 | tipranks.comSee More Conifer Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Conifer? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Conifer and other key companies, straight to your email. Email Address About ConiferConifer (NASDAQ:CNFR), an insurance holding company, engages in the sale of property and casualty insurance products. The company offers insurance coverage in specialty commercial and personal product lines. It also underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The company serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. It offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Troy, Michigan.View Conifer ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Disney Stock Jumps on Earnings—Is the Magic Sustainable?Archer Stock Eyes Q1 Earnings After UAE UpdatesFord Motor Stock Rises After Earnings, But Momentum May Not Last Broadcom Stock Gets a Lift on Hyperscaler Earnings & CapEx BoostPalantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release? 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There are 4 speakers on the call. Operator00:00:00Good morning, everyone, and welcome to Conifer Holdings First Quarter 20 24 Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is also being recorded. At this time, I'd like to turn the conference call over to Brian Roney. Operator00:00:26Sir, please go ahead. Speaker 100:00:28Thank you, and good morning, everyone. Conifer issued its 2024 Q1 financial results after the close of market yesterday. You can find copies of the earnings release on the company's website at ir.cnfrh.com. The slide presentation accompanying management's remarks this morning is available to view or download via webcast or from the Investor Relations section of Conifer's website. Before we get started, please note that except with regard to historical information, statements made in this conference call may constitute forward looking statements within the meaning of the federal securities laws, including statements relating to trends, the company's operations and financial results and the business and the products of the company and its subsidiaries. Speaker 100:01:22Actual results may differ materially from the results anticipated in these forward looking statements due to various risks and uncertainties underlying our forward looking statements as described from time to time in Conifer's filings with the SEC, including our latest Form 10 ks and subsequent reports. Conifer specifically disclaims any obligation to update or revise any forward looking statements whether due to new information, future developments or otherwise. In addition, a replay of this call will be provided through a link on the Investor Relations section of our website. During this call, we'll also discuss non GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non GAAP financial measures to the comparable GAAP financial measures are included when possible in our earnings release and our historical SEC filings. Speaker 100:02:19Statutory accounting data is prepared in accordance with statutory accounting rules and is therefore not reconciled to GAAP. We will conduct a Q and A session after management's prepared remarks this morning. With that, I'll turn the call over to Nick Pretkoff, our Chief Executive Officer. Nick? Speaker 200:02:38Thanks, Brian, and good morning, everyone. Also on the call with us today is Harold Meloche. I'm pleased to report that the Q1 financial results bear out the strategic decisions we discussed during our last call. We have made significant strides in executing our shift to a revenue model focused on a wholesale agency production based approach. We see the Q1 results as indicative that we are moving in the right direction. Speaker 200:03:04At the outset, let me provide a brief overview of our tactical commercial lines direction. Recognizing the evolving landscape of the insurance industry and with an eye to the long term success and sustainability of the company, we made the decision to pivot towards a wholesale agency model and largely away from an underwriting revenue model for our commercial lines business. This move allows us to leverage the expertise and networks of our agency partners, enhancing our distribution channels and expanding our reach in key markets. Further, this decision to focus on non risk bearing revenue enables us to offer insured A- rated capacity and simultaneously mitigate market risks, ultimately ensuring stability in our bottom line. We made considerable progress during the Q1 2024 in directing premium to capacity providers for coverage across multiple lines of business. Speaker 200:04:00We've also started to ramp up transfer of cannabis premium to our capacity partners, expanding our reach to new markets and strengthening our position as a leading provider of cannabis related coverage. At our core, we remain committed to preserving a strong and consistent top line, continuing to streamline our expense structure and maintaining operational profitability over the long term to generate favorable returns for Conifer shareholders. In that light, the preliminary results are encouraging as they have borne out the key decision to shift our focus to a commission revenue model based upon wholesale agency production at the beginning of 2024. With planned reductions in premium leverage starting in 2023, our percentage of commercial lines production was expected to be down in the Q1. Overall, commercial lines represented roughly 53% of total production for the quarter. Speaker 200:04:52Our personal lines production made up a larger percentage of premiums in Q1. Operator00:04:58While we Speaker 200:04:58have moved our commercial lines business largely to a commission based model utilizing our in house MGA Conifer Insurance Services, our personal lines production is still retained by our operating subsidiaries. As a result, we have continued to underwrite low valued homeowners business, primarily in Texas and the Midwest. Given the strong performance in that line year to date, leading to a combined ratio of 83% for the Q1, we are pleased to retain that business on Conifer Paper moving forward. As we effectively manage the shift in production models, we are proud of the hard work and dedication of our entire team and remain committed to delivering exceptional value to our insurance and shareholders. We will continue to build on this quarter's success in the months and years to come. Speaker 200:05:40With that, I'll pass the call over to Harold to discuss the numbers. Harold? Speaker 300:05:45Thank you, Nick. I'll provide a quick recap of financial results and I encourage investors to review our financial filings and presentation on the company's website for greater detail. In the Q1, gross written premium decreased 33 percent to $24,000,000 reflecting our decision to reduce premium leverage on operating subsidiaries and focus on production based revenue through our managing general agency. The breakout of 1st quarter total gross written premiums was 52% commercial lines and 48% personal lines. Conoverse combined ratio was 97% in the 1st quarter, down 280 basis points from the same period last year. Speaker 300:06:30Our loss ratio was 62%, steady from the Q1 of 2023. As we see the non risk based revenue model continue to progress, we anticipate continued positive movement in our results going forward. The accident year loss ratio in personal lines was 53% for the Q1, down 20 percentage points compared to the Q1 of last year, reflecting the strong underwriting actions we've taken in low value dwelling business. Our expense ratio continues to improve despite lower net earned premiums due to the success of our ongoing expense reduction efforts. The expense ratio was 35% for the 1st quarter, down 260 basis points from the same period last year and meets our near term target of 35%. Speaker 300:07:21Net investment income was $1,600,000 during the Q1, up 19% from $1,300,000 in the prior year period. Our investment portfolio remains conservatively managed with the vast majority in fixed income securities with an average credit quality of AA plus an average duration of 2.7 years and a tax equivalent yield of 3.4%. The company reported net income allocable to common shareholders of $74,000 or $0.01 per share and an adjusted operating income of $188,000 or $0.02 per share for the Q1 of 2024. Moving to the balance sheet, total assets were $301,000,000 at quarter end with cash and total investments of $164,000,000 Our book value at quarter end was $0.21 per share. We have $2.29 per share in net deferred tax assets that due to a full valuation allowance were not reflected in book value. Speaker 300:08:24And with that, I'd like to turn it back over to Nick for closing remarks. Thanks, Harold. Speaker 200:08:29In closing, I want to reiterate that our Q1 results underscore our commitment to sound strategic decision making across the organization. We remain focused on delivering exceptional value to our customers and shareholders and we are excited about the future of our company. With that, I'd like to invite any questions. Operator? Operator00:09:22And ladies and gentlemen, at this time, I'm showing no questions. I'd like to turn the floor back over to Nick for any closing remarks. Speaker 200:09:31Thank you. We appreciate your time and interest in the company and invite you to reach out to us at any time. Thank you. Operator00:09:38Thank you. And with that, ladies and gentlemen, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.Read morePowered by