The following is a summary of the Conifer Holdings, Inc. (CNFR) Q2 2024 Earnings Call Transcript:
Financial Performance:
Gross written premium decreased 58% to $19 million due to a strategic shift to a commission-based model.
Conifer's combined ratio was adversely impacted by Oklahoma storms, standing at 124% for the second quarter.
Agency commissions increased significantly to nearly $9 million, comparing to $211,000 in Q2 2023.Net investment income was up 11% year-over-year to $1.5 million.
Net loss allocable to common shareholders amounted to $4 million, or $0.32 per share.
Business Progress:
Conifer restructured its business model to focus on a commission-based revenue system by transitioning gross written premiums through Conifer Insurance Services, its managing general agency.
The company extended the transfer of cannabis premiums to its capacity partner, Palomar, aiming to enhance market presence.
Personal lines were maintained under traditional carrier-based models, aiming for completion of run-off in its Oklahoma business by year-end.
Opportunities:
The shift to a managing general agency model positions Conifer to leverage third-party A-rated capacity providers for expanding business and distributing risk.
Risks:
Personal lines suffered from significant impact due to spring storms. With Oklahoma's business in runoff, there is uncertainty about the stability and profitability of new markets.
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