Conifer Holdings reports Q1’24 results with improved combined ratio

Michigan-domiciled property and casualty holding company, Conifer Holdings has announced its financial results for the first quarter of 2024, reporting a net income of $74,000, compared to the $1,001,000 reported in Q1 2023.

The company also reported an improved combined ratio of 96.7%, which included a loss ratio of 62% and expense ratio of 34.7%.

“This strong performance serves as a testament to the effectiveness of the company’s risk mitigation strategies and its commitment to sustained profitability,” the firm stated.

Adjusted operating income was $188,000 in Q1 2024, compared to the $307,000 reported in the first quarter of 2023.

Additionally, net investment income for the quarter was $1.6 million, an 18.7% increase compared to the prior year quarter.

Gross written premiums decreased 32.9% in Q1 2024 to $24.3 million, compared to $36.2 million in Q1 2023. According to the firm, this decrease reflects the Company’s planned decision to reduce premium leverage on our operating subsidiaries and focus on non-risk bearing revenue.

Conifer’s commercial lines of business represented 52.5% of total gross written premium in this year’s first quarter. With the lines’ gross written premium decreasing -56.0%, to $12.7 million in the quarter.

The firm noted that this premium has decreased considerably year over year as Conifer executed its planned shift over to its commission-based revenue model with its managing general agency, Conifer Insurance Services (CIS).

Personal lines represented 47.5% of total gross written premium for the quarter, which consisted primarily of low-value dwelling homeowner’s insurance in Texas and the Midwest.

Personal lines gross written premium increased 59.6% from the prior year period to $11.6 million for Q1 2024, led by growth in the company’s low-value dwelling line of business in Texas.

Conifer had previously announced it has made the strategic decision to shift its revenue model to focus on a wholesale agency, production-based approach beginning in 2024.

The firm’s plans are to redirect all commercial gross written premium through its wholly owned MGA, CIS.

“Progress to date has been steady, and the Company’s return to profitability in the first quarter of 2024 underscores the effectiveness of this strategic initiative,” Conifer stated.

Nick Petcoff, CEO of Conifer, commented: “We are pleased to see the early signs of progress resulting from our strategic shift away from a risk-bearing carrier revenue model, toward wholesale agency, production-based revenue. Results to date have been encouraging, and we are proud to report a profitable first quarter for Conifer.”

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