PRHI 8-K
Presurance Holdings, Inc. (PRHI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event Reported):
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On August 9, 2023, Conifer Holdings, Inc. (the "Company") publicly announced results for the second quarter of 2023. A copy of the Company's news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in this Item 2.02 and the attached exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly stated by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits. |
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Exhibit 99.1 |
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Exhibit 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Conifer Holdings Inc. |
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Date: August 15, 2023 |
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By: |
/s/ BRIAN J. RONEY |
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Brian J. Roney |
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President |
News Release
For Further Information:
Jessica Gulis, 248.559.0840
Conifer Holdings Reports 2023 Second Quarter Financial Results
Company to Host Conference Call at 8:30 AM ET on Thursday, August 10, 2023
Troy, MI, August 9, 2023 – Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer” or the “Company”) today announced results for the second quarter ended June 30, 2023.
Second Quarter 2023 Financial Highlights (compared to the prior year period)
Management Comments
James Petcoff, Executive Chairman and Co-CEO, commented, “While the second quarter results were affected by atypically severe storm losses, it is important to emphasize that excluding the impact of these storm-related losses, Conifer would have achieved continued profitability in the quarter.”
Conifer Holdings, Inc. Page 2
August 9, 2023
2023 Second Quarter Financial Results Overview
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At and for the |
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At and for the |
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2023 |
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2022 |
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% Change |
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2023 |
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2022 |
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% Change |
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(dollars in thousands, except share and per share amounts) |
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Gross written premiums |
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$ |
44,674 |
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$ |
37,418 |
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19.4 |
% |
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$ |
80,888 |
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$ |
70,382 |
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14.9 |
% |
Net written premiums |
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29,328 |
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27,266 |
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7.6 |
% |
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47,670 |
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45,287 |
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5.3 |
% |
Net earned premiums |
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23,183 |
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24,576 |
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-5.7 |
% |
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45,135 |
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48,531 |
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-7.0 |
% |
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Net investment income |
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1,354 |
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564 |
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140.1 |
% |
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2,661 |
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1,071 |
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148.5 |
% |
Net realized investment gains (losses) |
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- |
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(1,436 |
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** |
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- |
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(1,505 |
) |
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** |
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Change in fair value of equity investments |
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(12 |
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317 |
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-103.8 |
% |
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682 |
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597 |
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14.2 |
% |
Other gains (losses) |
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- |
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(1 |
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** |
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- |
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(6 |
) |
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** |
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Net income (loss) |
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(4,739 |
) |
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(8,399 |
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** |
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(3,738 |
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(11,269 |
) |
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** |
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Net income (loss) per share, diluted |
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$ |
(0.39 |
) |
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$ |
(0.86 |
) |
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$ |
(0.31 |
) |
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$ |
(1.16 |
) |
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Adjusted operating income (loss)* |
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(4,727 |
) |
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(7,279 |
) |
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** |
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(4,420 |
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(10,355 |
) |
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** |
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Adjusted operating income (loss) per |
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$ |
(0.39 |
) |
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$ |
(0.75 |
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** |
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$ |
(0.36 |
) |
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$ |
(1.07 |
) |
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** |
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Book value per common share outstanding |
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$ |
1.38 |
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$ |
1.75 |
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$ |
1.38 |
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$ |
1.75 |
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Weighted average shares outstanding, basic |
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12,220,331 |
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9,712,602 |
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12,218,102 |
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9,710,223 |
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Underwriting ratios: |
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Loss ratio (1) |
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83.0 |
% |
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90.2 |
% |
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72.9 |
% |
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82.7 |
% |
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Expense ratio (2) |
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37.9 |
% |
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39.0 |
% |
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37.6 |
% |
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38.3 |
% |
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Combined ratio (3) |
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120.9 |
% |
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129.2 |
% |
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110.5 |
% |
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121.0 |
% |
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* The "Definitions of Non-GAAP Measures" section of this release defines and reconciles data that are not based on generally accepted accounting principles. |
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** Percentage is not meaningful |
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(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. |
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(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. |
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(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. |
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2023 Second Quarter Premiums
Gross Written Premiums
Gross written premiums increased 19.4% in the second quarter of 2023 to $44.7 million, compared to $37.4 million in the prior year period. This top line growth was orchestrated through a multi-faceted approach: Rate increases in select market segments were thoughtfully aligned with the Company's risk profile; while concurrently, continued expansion within select key verticals allowed the Company to capitalize on existing strengths and expertise, and highlight runway for future growth in these historically profitable lines of business.
This approach was most clearly demonstrated in the Company’s small business program, where GWP increased 17.0% in the second quarter of 2023 to $28.0 million. Conifer’s low-value dwelling line of business continued its strong growth trajectory as well, with premiums up 62.0% to $6.9 million in the quarter.
Conifer Holdings, Inc. Page 3
August 9, 2023
Net Earned Premiums
Net earned premiums decreased 5.7% to $23.2 million in the second quarter of 2023, compared to $24.6 million for the prior year period. The decrease was primarily due to higher specific loss property reinsurance rates, effective January 1, 2023.
Commercial Lines Financial and Operational Review
Commercial Lines Financial Review |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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% Change |
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2023 |
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2022 |
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% Change |
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(dollars in thousands) |
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Gross written premiums |
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$ |
34,761 |
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$ |
32,076 |
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8.4 |
% |
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$ |
63,736 |
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$ |
60,662 |
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5.1 |
% |
Net written premiums |
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20,485 |
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22,386 |
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-8.5 |
% |
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32,726 |
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36,726 |
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-10.9 |
% |
Net earned premiums |
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17,487 |
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20,784 |
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-15.9 |
% |
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34,610 |
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41,308 |
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-16.2 |
% |
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Underwriting ratios: |
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Loss ratio |
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77.5 |
% |
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95.5 |
% |
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69.5 |
% |
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88.1 |
% |
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Expense ratio |
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37.4 |
% |
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38.0 |
% |
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36.8 |
% |
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37.2 |
% |
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Combined ratio |
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114.9 |
% |
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133.5 |
% |
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106.3 |
% |
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125.3 |
% |
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Contribution to combined ratio from net |
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5.0 |
% |
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44.4 |
% |
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0.2 |
% |
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36.1 |
% |
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Accident year combined ratio (non-GAAP) (4) |
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109.9 |
% |
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89.1 |
% |
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106.1 |
% |
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89.2 |
% |
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Impact from storms |
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5.5 |
% |
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- |
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2.7 |
% |
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- |
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Accident year combined ratio |
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104.4 |
% |
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89.1 |
% |
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103.4 |
% |
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89.2 |
% |
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(4) 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 accident year combined ratio is a non-GAAP measure |
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The Company’s commercial lines of business represented 77.8% of total gross written premium in the second quarter of 2023. Conifer’s dedication to maintaining and enhancing its deep knowledge and experience within select key verticals remains a cornerstone of its strategy. This expertise-driven approach provides the foundation for the Company's future growth and profitability.
Commercial lines gross written premium increased 8.4% in the second quarter of 2023 to $34.8 million, diligently executing on the Company’s strategy of combining rate increases with organic growth in historically profitable lines of business.
Conifer Holdings, Inc. Page 4
August 9, 2023
The Commercial lines combined ratio was 114.9% for the three months ended June 30, 2023; this represents an improvement of 18.6 percentage points compared to the same period in 2022. The loss ratio was 77.5% for the quarter, down 18.0 percentage points from 95.5% in the prior year period.
The expense ratio was 37.4% for the second quarter of 2023, marking continued improvement from the prior year period.
Personal Lines Financial and Operational Review
Personal Lines Financial Review |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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% Change |
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2023 |
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2022 |
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% Change |
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(dollars in thousands) |
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Gross written premiums |
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$ |
9,913 |
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$ |
5,342 |
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85.6 |
% |
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$ |
17,152 |
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$ |
9,720 |
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76.5 |
% |
Net written premiums |
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8,843 |
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4,880 |
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81.2 |
% |
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14,944 |
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8,561 |
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74.6 |
% |
Net earned premiums |
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5,696 |
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3,792 |
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50.2 |
% |
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10,525 |
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7,223 |
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45.7 |
% |
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Underwriting ratios: |
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Loss ratio |
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100.1 |
% |
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61.4 |
% |
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84.1 |
% |
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51.7 |
% |
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Expense ratio |
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39.2 |
% |
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44.7 |
% |
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40.0 |
% |
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44.1 |
% |
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Combined ratio |
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139.3 |
% |
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106.1 |
% |
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124.1 |
% |
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95.8 |
% |
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Contribution to combined ratio from net |
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-6.4 |
% |
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7.0 |
% |
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-7.2 |
% |
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0.6 |
% |
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Accident year combined ratio (non-GAAP) (5) |
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145.7 |
% |
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99.1 |
% |
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131.3 |
% |
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95.2 |
% |
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Impact from storms |
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78.0 |
% |
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- |
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42.2 |
% |
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- |
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Accident year combined ratio |
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67.7 |
% |
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99.1 |
% |
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89.1 |
% |
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95.2 |
% |
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(5) 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 accident year combined ratio is a non-GAAP measure. |
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Personal lines, representing 22.2% of total gross written premium for the second quarter of 2023, consists mainly of low-value dwelling homeowner’s insurance.
Personal lines gross written premium increased 85.6% to $9.9 million in the second quarter of 2023 compared to the prior year period, led by growth in the Company’s low-value dwelling line of business.
Conifer Holdings, Inc. Page 5
August 9, 2023
Personal lines combined ratio was 139.3% for the three months ended June 30, 2023. As noted in the Company’s July 28, 2023 press release, losses stemmed predominantly from the multiple convection storms that largely impacted Oklahoma and Texas in the second quarter. Before the impact of these storm-related losses, the personal lines accident year combined ratio was a profitable 67.7% for the second quarter of 2023, and 89.1% for the six months ended June 30, 2023.
Combined Ratio Analysis
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Three Months Ended |
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Six Months Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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Underwriting ratios: |
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||||
Loss ratio |
|
|
83.0 |
% |
|
|
90.2 |
% |
|
|
|
72.9 |
% |
|
|
82.7 |
% |
|
Expense ratio |
|
|
37.9 |
% |
|
|
39.0 |
% |
|
|
|
37.6 |
% |
|
|
38.3 |
% |
|
Combined ratio |
|
|
120.9 |
% |
|
|
129.2 |
% |
|
|
|
110.5 |
% |
|
|
121.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Contribution to combined ratio from net (favorable) |
|
|
2.2 |
% |
|
|
38.6 |
% |
|
|
|
-1.5 |
% |
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accident year combined ratio (non-GAAP) (6) |
|
|
118.7 |
% |
|
|
90.6 |
% |
|
|
|
112.0 |
% |
|
|
90.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact from storms |
|
|
23.3 |
% |
|
|
- |
|
|
|
|
11.9 |
% |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accident year combined ratio |
|
95.4 |
% |
|
|
90.6 |
% |
|
|
|
100.1 |
% |
|
|
90.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(6) 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 accident year combined ratio is a non-GAAP measure. |
|
|
||||||||||||||||
Combined Ratio:
The Company's combined ratio was 120.9% for the quarter ended June 30, 2023, down 8.3 percentage points from the prior year period. Before the impact of storm losses as described above, the Company’s accident year combined ratio was 95.4% for the quarter.
Loss Ratio:
The Company’s losses and loss adjustment expenses were $19.3 million for the three months ended June 30, 2023, down from $22.3 million in the prior year period.
Conifer Holdings, Inc. Page 6
August 9, 2023
Expense Ratio:
The expense ratio continues to improve, due in large part to the Company’s sustained emphasis on expense management: the expense ratio for the second quarter of 2023 was 37.9%, down from 39.0% in the prior year period as the Company approaches its near-term target expense ratio of 35%.
Net Investment Income
Net investment income was $1.4 million during the quarter ended June 30, 2023, up 140.1% compared to $564,000 in the prior year period.
Net Realized Investment Gains (Losses)
The Company did not have any realized investment gains or losses during the second quarter of 2023. Net realized investment losses were $1.4 million in the prior year period.
Change in Fair Value of Equity Securities
During the quarter, the Company reported a loss of $12,000 from the change in fair value of equity investments, compared to a gain of $317,000 in the prior year period.
Net Income (Loss)
The Company reported net loss of $4.7 million, or $0.39 per share, for the second quarter of 2023, compared to a net loss of $8.4 million, or $0.86 per share, in the prior year period.
Adjusted Operating Income (Loss)
In the second quarter of 2023, the Company reported an adjusted operating loss of $4.7 million, or $0.39 per share, compared to an adjusted operating loss of $7.3 million, or $0.75 per share, for the same period in 2022. See Definitions of Non-GAAP Measures.
Earnings Conference Call with Accompanying Slide Presentation
The Company will hold a conference call/webcast on Thursday, August 10, 2023 at 8:30 a.m. ET to discuss results for the second quarter ended June 30, 2023.
Investors, analysts, employees and the general public are invited to listen to the conference call via:
Webcast: On the Event Calendar at IR.CNFRH.com
Conference Call: 844-868-8843 (domestic) or 412-317-6589 (international)
The webcast will be archived on the Conifer Holdings website and available for replay for at least one year.
About Conifer Holdings
Conifer Holdings, Inc. is a specialty insurance holding company, offering customized coverage solutions tailored to the needs of our insureds nationwide. Conifer is traded on the NASDAQ exchange under the symbol “CNFR”. Additional information is available on the Company’s website at www.CNFRH.com.
Conifer Holdings, Inc. Page 7
August 9, 2023
Definitions of Non-GAAP Measures
Conifer prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
We believe that investors’ understanding of Conifer’s performance is enhanced by our disclosure of adjusted operating income. Our method for calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding the after-tax amounts of: 1) net realized investment gains and losses, 2) Other gains (losses) and 3) change in fair value of equity securities. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.
Reconciliations of adjusted operating income and adjusted operating income per share:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(dollar in thousands, except share and per share amounts) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) |
$ |
(4,739 |
) |
|
$ |
(8,399 |
) |
|
$ |
(3,738 |
) |
|
$ |
(11,269 |
) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized investment gains (losses), net of tax |
|
|
- |
|
|
|
(1,436 |
) |
|
|
- |
|
|
|
(1,505 |
) |
Other gains (losses), net of tax |
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
(6 |
) |
Change in fair value of equity securities, net of tax |
|
|
(12 |
) |
|
|
317 |
|
|
|
682 |
|
|
|
597 |
|
Adjusted operating income (loss) |
|
$ |
(4,727 |
) |
|
$ |
(7,279 |
) |
|
$ |
(4,420 |
) |
|
$ |
(10,355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares, diluted |
|
|
12,220,331 |
|
|
|
9,712,602 |
|
|
|
12,218,102 |
|
|
|
9,710,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
(0.39 |
) |
|
$ |
(0.86 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.16 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized investment gains (losses), net of tax |
|
|
- |
|
|
|
(0.14 |
) |
|
|
- |
|
|
|
(0.15 |
) |
Other gains (losses), net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Change in fair value of equity securities, net of tax |
|
|
- |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Adjusted operating income (loss), per share |
|
$ |
(0.39 |
) |
|
$ |
(0.75 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.07 |
) |
Conifer Holdings, Inc. Page 8
August 9, 2023
Forward-Looking Statement
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Conifer’s expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 27, 2023 and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this report speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.
Conifer Holdings, Inc. Page 9
August 9, 2023
|
|
|
|
|
|
|
||
Conifer Holdings, Inc. and Subsidiaries |
|
|||||||
Consolidated Balance Sheets |
|
|||||||
(dollars in thousands) |
|
|||||||
|
|
|
|
|
|
|
||
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
(Unaudited) |
|
|
|
|
||
Investment securities: |
|
|
|
|
|
|
||
Debt securities, at fair value (amortized cost of $121,367 |
|
$ |
105,996 |
|
|
$ |
110,201 |
|
Equity securities, at fair value (cost of $2,282 and $1,905, respectively) |
|
|
2,326 |
|
|
|
1,267 |
|
Short-term investments, at fair value |
|
|
39,564 |
|
|
|
25,929 |
|
Total investments |
|
|
147,886 |
|
|
|
137,397 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
18,765 |
|
|
|
28,035 |
|
Premiums and agents' balances receivable, net |
|
|
25,895 |
|
|
|
21,802 |
|
Receivable from Affiliate |
|
|
933 |
|
|
|
1,261 |
|
Reinsurance recoverables on unpaid losses |
|
|
56,505 |
|
|
|
82,651 |
|
Reinsurance recoverables on paid losses |
|
|
5,828 |
|
|
|
6,653 |
|
Prepaid reinsurance premiums |
|
|
24,444 |
|
|
|
16,399 |
|
Deferred policy acquisition costs |
|
|
9,500 |
|
|
|
10,290 |
|
Other assets |
|
|
6,767 |
|
|
|
7,862 |
|
Total assets |
|
$ |
296,523 |
|
|
$ |
312,350 |
|
|
|
|
|
|
|
|
||
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Unpaid losses and loss adjustment expenses |
|
$ |
145,004 |
|
|
$ |
165,539 |
|
Unearned premiums |
|
|
78,468 |
|
|
|
67,887 |
|
Reinsurance premiums payable |
|
|
12,023 |
|
|
|
6,144 |
|
Debt |
|
|
34,031 |
|
|
|
33,876 |
|
Accounts payable and accrued expenses |
|
|
10,140 |
|
|
|
19,954 |
|
Total liabilities |
|
|
279,666 |
|
|
|
293,400 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
Shareholders' equity: |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Common stock, no par value (100,000,000 shares authorized; 12,222,881 and |
|
|
98,013 |
|
|
|
97,913 |
|
Accumulated deficit |
|
|
(64,498 |
) |
|
|
(60,760 |
) |
Accumulated other comprehensive income (loss) |
|
|
(16,658 |
) |
|
|
(18,203 |
) |
Total shareholders' equity |
|
|
16,857 |
|
|
|
18,950 |
|
Total liabilities and shareholders' equity |
|
$ |
296,523 |
|
|
$ |
312,350 |
|
Conifer Holdings, Inc. Page 10
August 9, 2023
Conifer Holdings, Inc. and Subsidiaries |
|
|
|
|
|
|
|
|
|||||||||
Consolidated Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
|
|||||||||
(dollars in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue and Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross earned premiums |
|
$ |
36,013 |
|
|
$ |
33,782 |
|
|
$ |
70,307 |
|
|
$ |
66,546 |
|
|
Ceded earned premiums |
|
|
(12,830 |
) |
|
|
(9,206 |
) |
|
|
(25,172 |
) |
|
|
(18,015 |
) |
|
Net earned premiums |
|
|
23,183 |
|
|
|
24,576 |
|
|
|
45,135 |
|
|
|
48,531 |
|
|
Net investment income |
|
|
1,354 |
|
|
|
564 |
|
|
|
2,661 |
|
|
|
1,071 |
|
|
Net realized investment gains (losses) |
|
|
- |
|
|
|
(1,436 |
) |
|
|
- |
|
|
|
(1,505 |
) |
|
Change in fair value of equity securities |
|
|
(12 |
) |
|
|
317 |
|
|
|
682 |
|
|
|
597 |
|
|
Other gains (losses) |
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
(6 |
) |
|
Other income |
|
|
398 |
|
|
|
663 |
|
|
|
1,024 |
|
|
|
1,361 |
|
|
Total revenue and other income |
|
|
24,923 |
|
|
|
24,683 |
|
|
|
49,502 |
|
|
|
50,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Losses and loss adjustment expenses, net |
|
|
19,319 |
|
|
|
22,251 |
|
|
|
33,032 |
|
|
|
40,269 |
|
|
Policy acquisition costs |
|
|
4,413 |
|
|
|
5,725 |
|
|
|
9,134 |
|
|
|
11,189 |
|
|
Operating expenses |
|
|
5,114 |
|
|
|
4,470 |
|
|
|
9,393 |
|
|
|
8,630 |
|
|
Interest expense |
|
|
820 |
|
|
|
727 |
|
|
|
1,506 |
|
|
|
1,438 |
|
|
Total expenses |
|
|
29,666 |
|
|
|
33,173 |
|
|
|
53,065 |
|
|
|
61,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) before equity earnings in Affiliate and income taxes |
|
|
(4,743 |
) |
|
|
(8,490 |
) |
|
|
(3,563 |
) |
|
|
(11,477 |
) |
|
Equity earnings (loss) in Affiliate, net of tax |
|
|
4 |
|
|
|
93 |
|
|
|
(175 |
) |
|
|
169 |
|
|
Income tax expense (benefit) |
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
(39 |
) |
|
Net income (loss) |
|
|
(4,739 |
) |
|
|
(8,399 |
) |
|
|
(3,738 |
) |
|
|
(11,269 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per common share, |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
basic and diluted |
|
$ |
(0.39 |
) |
|
$ |
(0.86 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding, |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
basic and diluted |
|
|
12,220,331 |
|
|
|
9,712,602 |
|
|
|
12,218,102 |
|
|
|
9,710,223 |
|
|