CNFR - Earnings call transcript Q3 2020

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Operator

Good morning, and welcome to Conifer Holdings' Third Quarter Investor Conference Call. [Operator Instructions]. Please note that this event is being recorded.

Now I'd like to turn the conference over to Mr. Adam Prior. ahead. go Please

Adam Prior

good quarter and yesterday. Conifer its issued Thank results morning, after third financial market the XXXX you, everyone. close of

On via as Conifer's you earnings the which portion is accompanies ir.cnfrh.com, of copies view today, from company's the or the to of Relations download management's can discussion release or slide website. the find well available presentation webcast that as website, Investor

differ has statements including uncertainties relating and result Before to respect uncertainties asked on in started, and anticipated economy time those of we as COVID-XX various our the associated risks in risks forward-looking business underlying from time well company risks its that on in with to may forward-looking business information, company the from that with as the the federal of and the and call statements impact described within statements, our Conifer's filings XX-K disclaims subsequent trends, and revise otherwise. or Form to obligation our with including specifically these the as note result the or may company's and conference whether Conifer statements securities its financial any results information, historical materially statements laws, the the to update statements, results as made future developments latest of any I this forward-looking the Actual products reports. except a forward-looking and and new SEC, of including results and get subsidiaries. a constitute meaning operations Conifer from

section through Investor replay will provided link a on of this website. Relations call our a addition, of In the be

SEC also the possible Statutory accounting Reconciliation these by accounting statutory GAAP. is financial are comparable we'll in non-GAAP to earnings historical discuss financial prepared data filings. when financial non-GAAP During not defined G. reconciled to with measures of our and included and, SEC accordance GAAP rules measures release measures therefore, in Regulation this as call

morning. ahead, Please this Chairman turn call prepared Q&A Officer. after the Jim a session conduct With will over go that, to Jim. management's remarks Executive We Petcoff, Chief Mr. I'll and

James Petcoff

Adam. morning, everyone. Thanks, Good

basis call Beginning with per and brief will the the overview, feel business Andy Nick, the realized about Harold Harold, results greater from detail, line line, growth Brian. written leading We select largely long. accounts, will to a on emphasis the Nick million. profitable On as This, is year discuss lines. higher GAAP in cover personal $X.XX to premiums I'm along share we performing top post due and during the with $XX me financials. gains our of provide quarter. in low-value investments, going during with then bottom earnings our we today our largely underwriting under company We mix, the operations our current the to core a good solid all over with dwelling commercial all meaningfully our to contributed and to in reported on the increased business, expected. and just has Gross quarter, which quarter XX% very lines, reported

in the most activity. as personal especially in to these the Given and pleased industry of post our cat the results unusual we of impact light cat highly well, heavy peers are lines

otherwise area our These claims prior years, see an reserves largely the and have additional increased quick for to hospitality the required XXXX strengthening. activity positively a rate solid that environment service restaurant moves we overall. select company in However, in quarter muted from continued in focused developing older business, reserve

where we from from portfolio was our distinct of into XX% of book a business. is has we where business commercial markets split coastal from cat-exposed way is the competitors, leader believe profitability business over plan complete As low-value transition time. with largely a exposure We This toward over premium from have coming our a our our been latter our volatility perspective products. can areas specialty dwelling the reminder, from markets away as transitioning and wind and derisking commercial lines XX% be and in away sustainable our value largely specialty a away the personal Conifer lines, a achieve core cat-exposed proposition personal moved

personal and greater during very third overall market generated have low-value selection the premiums, in And served XX% our tail while we Moreover, our ability During admitted place exposure excess value combined commercial short-tail pivot the personal outperform helped between underwriting, ratio. over moving written this company is a profitability our more to evaluate and and long-tail ability of markets, business underwriting dwelling well, belief balance both cost our an the line transition, in company. and -- impressively, E&S we and we the even time. and both risks balanced personal, either lines believe reiterated XX% in improve us our tail peers. This them book, we short lines admitted personal top That surplus admitted long generate over versus terms peers. results, know in the long generating products as covering advantage niche quarter gross in in the commercial to to we alliance and growth and a our and or has well will exceptional into avoiding business. as specific within Geographically,

to is instances of increased of is are home during have we strategy they factors pandemic insureds selective This an produce lower distinguishing our In in current we cultivate In criteria. for of underwriting to conditions. the lines, families relationships area results and starting with overall and commercial anticipated. agents meet and the propensity we that claim addition, that our we activity, be specialize which to expertise, at one our individuals seeing attribute

even the reduced X% lines premiums during to better Our premiums in This is the when commercial grew compared growth the by hospitality period. over quarter.

in favorable commercial in pleased maintaining levels XXXX. we as overall our dynamics general We to lines we well, rate be to continue as are high retention premium move into and see

extensively spoke and we quarters employees impact on two COVID-XX its markets, and economy our last about the general. in the Over

We and impact the a deliberate cautious have approach of taken virus. to the

provide of agents we specifically employees and in our to we in hospitality as across exceptional book focus, safety markets. focus the continue Overall, to our performance continue our principal is we segments closely insurers. their monitor to on Our service the

previous and in in as last majority versus to our down calls, writings as specifically in time, regard liability discussed of as our well. volumes difficult been year As significantly, claims year. the this not prepared greatly continue in be overall versus in the year earlier earlier this positive And as impacted in for lines have premium-wise we the

with ratios and are and our improve. We loss have continuing favorable effects shifted the to majority into lines of our premiums commercial

optimize With We also expense over filters that, lines of it book to start our me Nick turn growth believe we some ratio let costs. through specific that Nick? our and our for more on business. will as tick business, to continue to color of down

Nicholas Petcoff

reported criteria. rate solid Jim. we our the with you, to we our core and markets, retain has environment, our operating night Last that with of in growth key strategy to company on a Conifer's coupled Thank that fits ultimately underwriting business pricing segments. binding all of selective led want favorable focusing of its more

premiums. likewise very has encouraged depth taken book, discussed we developing and will an is the time over line in in work and the the are our take its quarters, of time base. to excellent growing But meantime, few detail we transition line. quarter by to properly into top past As it This breadth the our earned the way for premium top

importantly, COVID continuing operations have environment. thrived our More overall in the

seamlessly we've in and our manage operations, underwriting effectively investments house, continued to successful previous our all to operations. claims we transition been technology largely remote to utilize As able in

of operating roughly an are working As our business extremely our XX% at level. and high now, employees of remotely, is

in second at higher quarter, select than retention increase to at share premium and retention historical our rates business top line, Submission of are maintaining were as continued both On in the quarter high and gross personal mix we rate well. running just throughout came many levels the new over In or rates quarterly the are lines. norms. new addition key we growth higher in XXXX, our commercial XX%-plus trend market through to exhibited growing XX%, in running and of of seeing business, a In written geographies. the course

Michigan of room we state, and to there. have is largest our state home Our premium grow still

plan, negatively contributing were shift, has lines a mix commercial we business that enterprise core been growing higher results continued exhibit profitability. well-executed overall risk lines while especially emphasizing well-thought-out, target our feel Our logically accounts exiting much by that commercial management specialty

markets tailings for niche auto to strong in which in reported contractors, offer still solutions insurers us other small can small These select performed be commercial markets continue we commercial have where specializes example, business. today. For of historically classes clients we business our among and segment, well and growth for

restaurants. hospitality the bars in addition, taverns for have and a includes quick and position market strong policies In which service mainly restaurants, we segment,

on of reserves performance hospitality period. to strengthening discuss that for to I'd greater business, the our Speaking like the a led

Over has the the notably older seen atypical are development in pandemic markets. are effect. totals year. that important of slip and generally past year business, a select we've greater preponderance and these been most falls like. year, claims in Typically accident higher losses hospitality certain activities geographic the of What severity is positive we this to the we have majority related It's accident year's this the experienced from in current note And Montana is particularly Pennsylvania, geographies such and as results not seeing Florida. to then

geographically higher see specific. in certain year, past lines we the claims Over hospitality mainly to volumes began

For the liquor in in volumes liability change to or well. as the claims from XXXX due example, in Montana laws liability uptick liquor Pennsylvania

steps these had foremost, the have select our Florida tightened Southeast challenges. criteria the the geographical addition, on What its underwriting challenges of impact results. mitigate necessary underwriting done? markets help In and our effect overall. we general First we negative liability believe the We and of we have impact has taken to

reduced and of added agents accounts. and We go underperforming underperforming in targeted have states let exposure to geographies

For example, altogether exited liability we liquor XXXX. have effective Pennsylvania

represent results. recent premium liability Montana claims total our liquor We reduced Southeast general a limits and to Florida and These liabilities. overall areas our reduced premium and have significantly concentration, exposure in hospitality X impacting significant exposure

$X we XX% service of Florida by in reduced a restaurant in premiums Additionally, XXXX. quick from watermark high over have roughly million

especially we the dynamics filter have in these book. lines, result, begun additional as rate a through to seen As has improving

the impact of of fact, hospitality significant In for generated claims many has activity improvement our insurance. in the pandemic overall

in noted down claims general liability tangible other restaurants claim hold the quarter we lockdown reduced began. third both other on We've has counts For accounts significantly are month this exposure. phone third counts In with liability began frequency Through second reducing almost the XX% quarter year-to-date. severities. were down options, to improvements and that the continued throughout claims drive-up, and and our total quarter many delivery see seen XX%, service since to app the or each example, we takeout focusing quick

focused a had to these reduction personal The correlated low-value briefly the significant of premium directly improved last as dwelling premium, Moving We've personal of from firmly cat-exposed result had reported growing of years. in results away our few of exceptional line business We transition performance lines a reduction overall on as instead. the we our markets lines. in low-value business away and business over wind-exposed wind-exposed is from business. largely to

strongly produced commercial lines very pleased line niches top contribution previous within quarter. personal especially expect XX% improving quarter very in have performance results, ratios Outside noted positive about development, stated and the are lines investment the markets. Conifer trends grow to personal overall continue very a our and quarter in defined the line exceptional premiums, loss these stable in by consistent we top today. We the supporting we with growing to returns, feel of the lines, the we With combined our

Our to I'll profits to operating that, financials. sustainable hand years company is well-positioned discussion to for With team over of to Harold that is the goal management Meloche the a for generate as it ensure come. the

Harold Meloche

company's prior a And the loss presentation $XX.X Conifer's of to greater quarter, also focus was to you, combined and detail. review for in million. investors I'll written gross Nick With results. same Thank results. was compared In compared XXX% period. XXX% ratio period in quarter XX% the and provide our quick having increased website I'll ratio I the premiums, Nick. premiums detailed encourage our filings flat the on the underwriting to third review year breakout to Jim which third was last XX%, year. the The in the on

to contributed As loss noted this lines reported liability adverse earlier, certain in quarter's commercial significantly we which ratio. development

Moving to ratio. our expense

flat the reductions, dollar for our some by quarter have absolute premium ratio -- were to some remained higher rates. expense We XX% ceded compared offset this Accordingly, achieved roughly which expense at and cost net the -- earned we ratio premium continue Overall, the and cutting our period see year. implement to to we to and same measures. the last reduce up expect scale as expense

investment an under feel increased We the third continue short-term million $XXX,XXX grow, And gains that improve. $XXX,XXX. goal realized And Net to ratio in quarter, premiums ratio period. $X.X was year or as a expense will of this $X.X to compared compared confident we have million reporting the substantially at to XX%. net to during income prior

with conservatively and X.X%. of managed securities with an quality an years Our of investments average a majority the of fixed are yield equivalent in average AA, X just under tax duration credit income

of a the As Conifer $XXX,XXX prior share per of profitability, the per income result reporting to year. above, share $X.XX net $X.X compared $X.XX in returned of a or million to net or loss

and due per share Jim for the or Conifer share $X.X the covered quarter of an reported XXXX. was development or in largely adjusted adverse $X.XX to $X.XX per million Nick that period This million operating same earlier. loss to compared $X.X This

assets balance Cash $XXX investments at and to at sheet. Total $XXX million compared million compared quarter at Moving were year-end. total year-end. quarter end to million million $XXX at were the end $XXX to

book Finally, per reported at quarter we end value of share. $X.XX

book We With a of Jim over assets turn that, per for to company's I'd remarks. against reflected was it in valuation value. to have closing allowance share back $X.XX deferred tax that not like the

Nicholas Petcoff

line In meaningful We growing now your quarter. earned premium expense $XX to in our this operating we profit. driving the Operator? see are pleased are base as ratio our top short, take to And grow we toward writing overall, by questions. almost in reduce helping ready and premium million our

James Petcoff

on Go Any apologize. ahead. mute. nick actually I I phone because questions? had my was That

Operator

[Operator Instructions].

question from James. Holanda, First Marcos Raymond comes

Marcos Holanda

fooled let you me me. And say this, Nick, just

of there good My just the Or we us limitation some on statute an give us just job. we show any question, to looking 'XX? that this quarter, improving this So should when first in Is of sense be and give maybe should not and more color a reserves improving. obviously trend? expect how for

James Petcoff

I'll you Nick, answer let that.

Nicholas Petcoff

will Yes. that limitations. Pennsylvania. of be are particular, XXXX statutes equation I -- and running mean, in bit little it's the in statute a is definitely part on of running Florida longer

may be XXXX. development the X general of Florida being liquor it a -- liability, that those function was in Pennsylvania areas, So saw really largest. we more the Southeast liability But two we

of plaintiff's have claims Our XXXX out Part COVID come we've the the given impact, the and COVID claims system down that's to well significantly. as prior able year as and court older of close been been to attorneys. impact on impact

And the be for that XXXX did don't a in seen anomaly line So GL, We of we and seems some 'XX. during the good see And we which other is bit that years. we've little But a lingering of handle add development. traction where We to we'll in some Jim, get a did you anything gotten have that we've we're quarters. prior Pennsylvania certainly on we trend. better see know, like seeing of on as if an impacts certainly, thought isolated this on to we've away impact wanted there. versus those. XXXX strengthened guard from there's year. as further liquor see really feel we the Florida to an I that. quarter versus areas don't That XXXX, security We that reserves run the it, statutes Southeast why our certainly

James Petcoff

on had specific causing those business the book to and and and the years. going 'XX, areas those of business out and and development, business 'XX performing that current Nick significant is things. and areas we we're and XX. lines I made we're and make in, very on ago get in XXXX go have geographic GL. We're wanted of XXXX, to 'XX, books do. X we've 'XX, in in realizing benefits confident the bullish to minute those today to for where performed me in it. there's have profitably closed We've going say have with and the having of a what is our And business it's lines in changes. we're trying business changes started country how of aggressively think are settle when very those some development after of proactive the after very I We're in And we're -- in every company and book in and in I just started of that. The

that over it tell where I we're no, be, our can to what going going. So book now will it's you bleed it's and business exactly of in. But positive on we're date and probably very

Marcos Holanda

give largely closed. my guess an claim update update many you Got how around core your good question how were give inventory. mortgage systems it. still second an the Florida color. home for manage us on considering And claims through Maybe That's you that I COVID, maybe business. us have the is

James Petcoff

those available? don't have don't I numbers. numbers do I you have those know, Nick,

Nicholas Petcoff

I included less there say it's the some as Yes, don't may have Florida in on the well. claims. number I'd than homeowners XX, number be and exact claims cash that

majority So trying reinsurers. ceded significantly. lag that's court those pretty claims Irma-related the already to to the close are there's really outstanding less that we're definitely, come to been claims due And are out. system. Obviously down our a of The

remaining I significantly past, us even getting are and X claims has the has courts we into a in where to because the ways out been system for not things probably that knowing things have in trial you're basically positive grinding outstanding, pushed that's to may aggressive been That's now. But litigation more impact perhaps on almost we been seeing later. for some settlements to a the [indiscernible] we months seeing attorneys the legal certainly, that are halt all that On movement XXXX, as COVID think dragged on. be mentioned, plaintiff

is benefits our down. the of claims down, they're So count and certainly one come

beginning each spend time allows our file. those at put count and claims open from dig to really XX% pressure the of settle things into other almost from perspective. level adjusters demands I And more year. is more a think, side beneficial, on the their down, come certainly That claim down since on the Our and open to fair

Harold Meloche

And almost think counts, down I think, are I jump I just total claim think, to XX%. in,

Nicholas Petcoff

Yes, claims reported down. are

Harold Meloche

that's down true. And Claims XX%. reported are

Your outstanding inventories are down. coming

your been some above So is for time. it's closing ratio XXX, and

and are So we're is for that inventories to roughly across claims I say the less XXX And there that XXXX outstanding. want board. eating still or into prior

Marcos Holanda

But ratio, ceding has My XX% expect Got perhaps year-to-date Maybe increasing. Great. a achieve and at the sense still what largely us in flat question, of last expense do commissions. below it's been challenging there the it. when ride quarter just give your to higher target. you

James Petcoff

reinsurers, reinstatement Well, I'm Harold, and lowering premiums have been but claims over That's start those seeding were we we're we expense the they're which lowered net in lowering also increasing But But those. of to our big the to Also, at ratio. in our earned their has coming skewing September, kind going reinsurance still significantly. in to going give -- Irma this end saying to I'm with our an a the our on up you had to cat. went by all premium. last year-end And increase rates earned been retentions. amount premium actually year Florida

we improvement So we reinsurance premium significant X/X/XX. comes in our had in the up increase an portfolio, overall see hoping continues and administration X increase, We're change expense the that expect XXXX our as lowering in we ratio. earned to those actually And expenses, to things as we're but derisked our costs. reinsurance

see to So all if he anything else to has say. Harold that, now give to it that I'll I said

Harold Meloche

there, the expenses absolute X.X% did trending with I it sort The quarter. of to them you a net think is lower to down each quarter, had of We and fourth $X reduction noticeable. consistently about in expect in the quarter in about million first expenses operating be Jim. good I dollar job

costs. that the every than But our Now indication to the higher time Usually expenses you of the quarters, does dollar general, the administrative there's some that to the can't clear on of over lead in in quarter we fluctuations. year. other the good, take a bank it basis the way an first because are roll reducing course absolute slightly is just

Unidentified Company Representative

I'd I there jump And well. in as think

expense the So I mean, both of sides ratio. the trying ratio we're from to attack

So a It's reduce we've been we're Harold's point, thing to expenses. absolute trying all to been continued doing along.

look at as look headcount, headcount we have down talked best Jim the too expenses. relative you versus trying the premium. forward is overall to year-to-date. retain we were and at about, are year-end, the obviously and also where our at to go you to We're But denominator so If where earned absolute

scale. it, world. we a premium in you tar to premium's So you just in if I a sake, to out don't for write want to of lot faith take go of seeing bunch don't appropriate achieve COVID want us you back premium there, especially a mean,

it how last planned, wind-exposed comments, execute out couple execution we you've the our moving it Nick talked and in into were about years, of the a there business So small and of seen over his largely commercial -- of coming was space. well-thought-out

as see base earned absolute your numerator. think both. ratio expenses premium So that you I compression that the work expense you think get hitting I grow, reduce to you really as from And denominator going hits that's the

Operator

Paul The from Sandler. Piper is next of question Newsome

Paul Newsome

Just expense for The of chance time. costs That Is reduced for might been guess, a running around, like that that to in follow-up commercial any percent be of there I this acquisition amount sounds a some business. commission future? XX-ish that, fair quite the have premium discussion.

James Petcoff

after are hope that we exact ratios, XX% a are cetera, the in there geographic number. but good wholesalers XX%. net loss -- out it's of been Harold have It's getting paying the businesses us have net -- earned there's that profitable the will would XX%. we're you we locations to basis exceptionally some And in and that excess for on basis, in XX%. are are producing other Michigan, XX% et a give gross you so, take premium versus gross The I around on believe, I

is I'm not So It's that of. Nick, a that on paying premium side? basis. correct on commission we're aware direct XX% anybody the

Nicholas Petcoff

as things running couple costs XX% on to mind, markets. and key acquisition a a our On commissions generally right. A basis, Yes. well of of keep costs our are include No, XX%. between gross couple you're in commercial

obviously that partners. to the going so And to not to XX% on fronting agent, yes, commercial -- XX not expense going commission. typically that's -- between which the and as adds XX% But our well, lines is we're that's

couple like range. just above you XX% are have select of a have that of wholesalers, that We track that long mentioned, records profitability

number the underwriting to going of not that per includes our coded that what's or believe some get well is and the agents XX% So I se, acquisition costs as our costs. -- go that to

Harold Meloche

a I of Yes. say couple percentage that. of points would

X.X% it's if eliminate some what to of the So at A There's fees. you internal earned that compared just fees look gross for of XX%. look And in bit, basis the at also I some get to of maybe are of total when at other business. variable number is costs, And ceding on -- net-net our if would impact to fronting to or little lines the commissions, are we taxes underwriting included business premium acquisition try about you are relating fronting when in on we some XX% premiums that. we're that about a down costs. some reports real with say included

James Petcoff

Best ratio would us minus, look and could lot save A.M. percent our if a and So better. would give A an few quite a we expense cooperate

Paul Newsome

maybe general, rate in where you're, could you a to about of figures think claims give making any underlying see I progress us had of just that. if what We'll current kind you you your the underlying margins? think keep our crossed overall. is versus And sort thoughts to the with of inflation sense you your for levels book wanted

James Petcoff

should Nick, guess, the handle rate I question. you

that's some a but question for to the getting of inflation that just all I think to one figure us. we've been tough claims of Nick, hopefully that focused. you claims have there's deal out geographies want no it's But on ones the with been which is out, premium? geographically impacting incredible, kind the inflation, There's the us of that

Nicholas Petcoff

the areas we inflation, good well. this areas Yes. the we is I over at mean up a that's feel gotten the of about to about was claims we little -- whatever certain Pennsylvania as and are or don't out think we single are. get is auto there obviously increase keep case. of little good, single I'd rate either needed and where No, year. from a in with one social rating GL think those we're could is some X% liquor the point. digits. that property probably those geographies auto property, being say I the low drivers we think We've lower. a that GL. where It's little Florida When digits. bit high off Commercial look bit That a Commercial inflation trickier.

that that seeing single-digit And book they're of kind is rate increases rate with everyone think in increases to X keep as still needs grappling taking level a I of high for to what high not on well. We've with now. as we're been they number inflation. be up claims as years although maybe were 'XX, 'XX,

I'd And based point to about starting feel sort it's we even this a on favorable. obviously the maybe work like you're in on that at the to much is positive. claims our say smaller say piece good number, little a of momentum bit be inflation of book, but still terms improvement certainly the comp rate. book. pretty geography, on, of a in looks see we're that And bottomed then So seem It's to some trends I'd pretty out and there -- that seeing, again, claims of

Paul Newsome

your positive on that pandemic you in things we've like question. losses industry, not? impacts some but one been that vary. ones Or insurance have and And slip impacts the had book? all really the has The then sorts Have heard of falls, on frequency final and seen of has not to you

James Petcoff

service said GL bit restaurants, it's GL our experience and his comments, from Nick side yes, a that, in-dining-room the maybe that in of I you claim know and goes. excess down is or little as through. XX%. the the on quick suggest counts drive have count that's would of on I to -- that, the but even in start, carry on I'll I gone Well, restaurants, our service that mean -- Nick quick as out to claim noted

claims significant severity. So on in we've our of reduction GL book in numbers seen and

If the lot seeing they seeing the lot GL we've had -- has have on the and all cats lot we've property open, side. capacity. that that less you less I a The been because been hurricanes less dodging on frequency are pretty we're when think a about and We're mean stuff. fewer did bars open to that have of fortunate on these fights, kind been they and claims consistent, And been of not don't -- even be going to to -- claims perform bar side, side, very one the have COVID our frequency. significant cat think categories. these it's on general I The situation. But that. do Andy, our terrible. continues I to from But come we've Nick bad retention And liability or property improvement add fairly seen well. want close COVID we you is on not the that? know any a of the on our in anything to

Nicholas Petcoff

No.

of pretty really frequency the June. severity, normalize third improvement on we it. think seen that and here towards the May, claims covered did some end really auto, in We've I significant of you on see Commercial quarter. April, kind

has pre-COVID levels to general that frequency impact So liability has liability probably it. severity. dramatic as Jim liquor mentioned, I pretty close We're the the pretty and the certainly, for But think normalized and that, us. been on

James Petcoff

this… more one on let And me thing add

Nicholas Petcoff

go I was -- Jim. ahead, say going to

James Petcoff

None book, those frequency the security down. been for have those events, concerts, to types some has of more things. say gone difficult of the venues I on guards are was happening. Historically, security our going of

you the have Now the security itself book has actually because guards, grown buildings. vacant

et these in buildings temperatures, need going other check all have things to on where they cetera. You people

been positively has And the in it's Would you types business our impacted impacted that, side guard guard less with businesses. standpoint. also Nick? from being on security been security by business of positively the volatile a agree So

Nicholas Petcoff

by and things like much typical that's Yes. No, another typically and a with well business, maybe lockdown, of though hospitality we're a for pandemic through that. have people, that's absolutely your the and large and security large in but even the the of is, these on DoorDash point persisted food-related reduced we we've groupings takeout frequency And claims, fall. gone those exposure here less tougher obviously than seen seeing sort have of restaurants pretty severe lot obviously capacity, of significantly. small And and down the a are slip uptick side and guard our really

So overall it's net for the still positive book. a

Operator

[Operator Instructions].

question is and Farnam, Boenning Bob from Scattergood. Next

Bob Farnam

here. A few questions

were You talking about cat losses.

-- question my we first the Do losses quarter? my any consider for Just cat just that accumulation is you of have simple. can

James Petcoff

No. No.

Bob Farnam

was I a that simple Okay. figure one.

I more ones. into complex get Now

of an you quarter that. touching accident from a third XX% to year the for got going months the I'm from in this at the for looking ratio COVID. the I'm for So on ratio, XX% how trend benefit discussion year. and looking at kind second Paul's of combined I'm improvement much loss about combined the XX% for -- trying X quantify of quarter. the --

terms clinical Just points the much kind those to how in of a environment. curious you benefited environment do normal than think due that of COVID rather

James Petcoff

-- not for older that by has do lot had significantly things don't 'XX, And we getting the that know our stuff. the the year. weird as was you I tell year one I loss really in things percentages. of COVID anyway. specific the claims hasn't the have know tell liability ratio is But get what far to ratio And with 'XX, I types you that COVID. 'XX, quickened really know down. years, would of in that. And And the reporting, significant has and have you were this that you from improvement that those gone next as have that we're shown. late will lockdowns things expecting way accident loss with COVID been of impacted I a don't claims slowed I may

significant don't of expecting have a fairly just were anyway a ratio guys book I mean, improved loss you I percentages? know makeup Nick do business. idea because Andy the of think the of or we any Brian or whatever, However, of percentage. or I

Nicholas Petcoff

answer. of I even personal I side. over improved like loss But versus it's line is in Certainly COVID Yes. given may to much a the difficult had better we think difficult. book to makeup that improvement due we the accident Jim in the of And year, business, mean the current ratios saw the mentioned. just business. expected think Harold. in to specifically I mean, hand it's I I'll how isolate have this He

that's So obviously COVID-related. not

other you that? So tough have that. do any the think it's impact on I to on COVID isolate thoughts Harold, just

Harold Meloche

we, a I normally that. have so ratio. I be year-to-date, it loss mean, rate, or both and be XX% say for XX% just year or something like would recognizing that guess, a quarter run accident the our normal XX% that would is maybe and at literally this

is COVID. it of to maybe So half due

Bob Farnam

be. around of talked Okay. normal next was a trying about to expect the forward should difficult going much get have be I to could question back a was answer, is go I question just we get, if I guess but maybe changes color to year you accident what some we kind lot made. a how going what to that you've environment, loss ratios those I -- figured

far 'XX lot a reserves, and How has XXXX up reserves how had held going you've So in have the the from thus of they prior. XXXX?

James Petcoff

comment know, It's held up well. do have I other on Nick, you that? don't any

Nicholas Petcoff

think I our 'XX, born quarter. that up think accident continued that into mean, I as from progress albeit hoped, it's mix strengthening continued and it's I itself No. the we held obviously, that much the year as not 'XX, this -- But out. today within 'XX improvement maybe 'XX, has made we business in had 'XX, expectations,

point think I So this accident the XXXX at good we about year. feel

Harold Meloche

general… in And

Bob Farnam

ahead. Yes -- go

Harold Meloche

seen you overall as as under normal in 'XX think much the normally to we've specific and 'XX, of kind was in I say, going might I don't activity general course. claims to expect

'XX So I think in improved particular. of to that results kind speaking for that's

Bob Farnam

has adverse to kind of in a years. get the trying for recent of the -- development subsided flavor I'm the Yes. more just kind

see revenue expectations that continue agency we whole you're as for a And there future? the near of thing talk hopefully are your kind case. what to flow Sycamore, We the it So wholesale for operations, into in the seeing about what can mature, don't last remains terms go and me. that lot, of you but

James Petcoff

Andy?

Andrew Petcoff

holding our for was around Sycamore the and them. business to paying help two, and them agents intent write side, first On taxes the the saying, the retail we by surplus really the to we fees country. that, to continue for do one, license, and by, have And lines a platform

increase. as portion that lines -- that to it business, we increase So surplus continue to continues our of

We come of our insurance made carriers. that sense within across business business book agencies our of and have a write have retail and couple fit a of with lot

And to it so to that although probably due continue does continue to have expand would does COVID. we and than slowly, slower expected expand,

slightly. impacted where that continue grow, But has we placed the avenue and So agency premiums with carriers as well. on as there, continue we to we COVID additional us side our area fee to that's additional one see income see through insurance

Bob Farnam

right. All

the kind in presentation, this curious. you're revenue looking maybe like I'm looks million $X just year. expecting Sorry. of of I'm it

for expectations forward? your on increase based to expect So going that you'd growth,

Andrew Petcoff

Yes.

to expect that as go slightly We increase we forward.

Operator

our question-and-answer session. This concludes

back Now conference closing like to the to remarks. turn management any I'd over for

James Petcoff

working very been and a got Jason, really in general coordinate you. agents beat thank real our far to Thank management and tribute successful. on We've handle Nick to really a January, might claims being Patience IT times from is an not want a in for able have to in our that's I that I everybody COVID happen. thinking early and as able our being miss you just the we something as to operational these in from and servicing were guy, IT beat. time. the home to today. will level call And missed together our for appreciated. staff this being not that tell

a this more that think And different. the people home, going So -- we bit way the they little well-prepared work eventuality. do will home. from as our we is future work opportunities be I were business have to to from And for in

ideas collaboration from the to this ability the from working do think I learn other. However, and each home hurts of in

work-from-home has not not total for we're hopeful. this, us months I'm to hurt it to X But in else. midyear be out next sure there There's date. But vaccines we're going everything environment. like it and to through of So a another very looks X year.

analysis I as next for quarter. the questions, my So look forward you we for great today. guess, company. that's of a being guys just, talking But thank Thanks the on are to you call to where and

Unidentified Company Representative

everybody. Thanks,

Operator

Thank presentation. concluded. now today's for attending The conference has you

may You now disconnect.

Conifer (CNFR) 14 Nov 202020 Q3 Earnings call transcript