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Samantha.Bennett


Conifer Holdings: Navigating Losses and Strategic Shifts in Insurance Landscape

2024-04-15

#CNFR #earning_call #Property-CasualtyInsurers #Samantha.Bennett

Conifer Holdings (CNFR) had its Fourth Quarter 2023 Earnings Conference Call on April 5, 2024, with key participants including Brian Roney, Nicholas Petcoff, and Harold Meloche. The company addressed its financial performance and strategic decisions during the call.

One major point of discussion was the significant loss reported in the fourth quarter of 2023. This loss was a result of a strategic move to bolster reserves by fully booking to the outside actuaries' point estimate. Additionally, the decision to not renew the Oklahoma Personal Lines book of business was made due to the higher risk associated with convective storms in Oklahoma compared to the Texas Personal Lines book.

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In terms of business strategy, Conifer Holdings outlined plans to continue underwriting low-valued homeowners business in Texas and the Midwest. They also shifted their revenue recognition models for commercial lines in 2023, transitioning from a risk retention model to a production-based revenue model through their managing general agency, Conifer Insurance Services (CIS).

Regarding financial performance, the company disclosed a combined ratio of 135% for the full year of 2023, up from 122% in 2022. The accident year combined ratio stood at 132% for the fourth quarter and 114% for the entire year of 2023. The expense ratio for 2023 decreased to 37% from 38% in 2022. Net investment income in the fourth quarter of the current year saw a 27% increase compared to the same period in the previous year, reaching $1.4 million.

Despite facing challenges, Conifer Holdings emphasized its commitment to strategic partnerships and operational excellence. The company expressed satisfaction in collaborating with Palomar and Accelerant to offer A-rated paper for their commercial lines insurance moving forward. With total assets reaching $312 million at the end of the quarter, Conifer Holdings continues to navigate the insurance landscape with a focus on resilience and strategic growth.