CNFR - Earnings call 3 2023 | Conifer Holdings, Inc.

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Operator

Good morning, and welcome to the Conifer Holdings Third Quarter 2023 Investor Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Roney. Please go ahead.

Brian Roney

Thank you, and good morning, everyone. Conifer issued its 2023 third quarter financial results after the close of market yesterday.

of release copies website the find ir.cnfrh.com. can the on earnings company's You accompanying morning Investor remarks view slide management's The presentation this Conifer's via or of or webcast is from section the Relations website. download to available

and to we and the regard historical business with company including federal the conference may securities information, that within financial statements relating this to constitute in laws, started, forward-looking products note trends, made the the Before operations of get its call and except results the please company's statements meaning and statements of the subsidiaries.

our may from as uncertainties differ Conifer a as underlying otherwise. Actual in from developments latest subsequent update and anticipated to obligation results and due statements, including future forward-looking time specifically any materially with described in statements of revise XX-K these any statements reports. or or new filings forward-looking our information, risks time Form SEC, results forward-looking disclaims result various whether to to the Conifer's the

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

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

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

James Petcoff

go, specifically, Yet Harold. negligible. to results. Like where the hit wind now form quarter in storm significantly industry our exposure was several our lines the impacted me joining results. activity. we activity recent call the today or the third quarter today After tough generally we has everyone. business large, in exiting mostly of our in morning, with good Thank Also discuss Brian, Thanks, personal were years the on were hurricane Florida at lines a us before systemic pleased with are for and storm. More by almost had you personal reduction, financial Oklahoma. the Nick risk impacted altogether for of by convective But storm the book example, the is improving in wind quarter, period, hardest of was and

which profitable gross the related to lines, we unusual continues despite their in roughly substantial saw select deep in our historically our expertise XX% core up believe markets. business, profitable for and the were and specialty example, executing on period, top our as nicely third We in continue in remember our the on growth For our team the line our well. Overall, total, we in emphasized efforts to continued up generate the historically -- to of written strength losses we our key focused key year verticals. remain select in focus which growth growth speaks underwriting verticals. premiums In quarter I organic and underwriting

also are toward for demonstrates pleased see This quarter. third ongoing coming efforts. the line a our top into to improvement with posted has persistent we ratio management expense expense line expense the We moving, our XX% continuous the drive reduction. While been ratio expense overall

moving and on Conifer. the future. place take sound hand to color hand Nick note for good results, proud I'm on over a role transition to and in the company reins will great is to that of CEO where year over at into the confident our Nick? that this the Nick, more footing I'm for like be over to taking the take hands a Nick to will end of the moment I Before underwriting call I'd

Nicholas Petcoff

opportunities the take to excited well as genuinely lie for am ahead I Jim. that you, the as and Thank challenges on Conifer. role

noted, direction several no [ the of the operational ] Jim part small continuously prospects commitment appear due years. strategic Conifer's to over in business As and last mix improving and refining bright long-term our overall

us in I'm You've an we collective talk but position to today by, ultimate gone effort see than this to days better are pleased about team coming even before, and the fruition. heard

we historical third few focusing underwriting deep prior quarter and maximizing where increase past the the mix proven key the operating we our year those advantage Over with competitive select these advantage a concentrating growth underwriting with verticals optimized premiums teams resulted increase business our years, over focusing have were record. Gross specialty organic are This where rate lines increases. our keenly of have our see been a $XX written knowledge, logical compared refining to in track growth select period. coupled lines experience, toward have on from million, narrowly distinct business profitability. XX% our and By combined on of team's and ongoing verticals, where we the efforts for a select

strong production still quarter majority of X% premium business performance written spite and top line for up to commercial business, total which lines XX% Florida, in small reductions for was in In our our quarter. to premium segment for driver shows potential the continues lines, premium planned the in primary like The great of be commercial of state written for period. gross comprised accounted of commercial $XX our million. Within roughly the lines gross continued the the

third Our quarter. of personal of for lines are driver personal total at dwelling lines business products main written premium and total just gross insurance gross $XX Low-value for in premium, home the million the third stands the the quarter. XX% which written was over

last in continued posting over the that leading XX% to to renew financials loss couple dwelling last business us storms, ratio to decide years, business. this our of book low-value contrast, Oklahoma well, not the impact year. well In X severely of perform has over it generally did a quarters, our including book through our several has very While performed months

year the for first and XX% months our X ratio accident personal commitment year. losses, for responsible the quarter. looking combined and combined practices ratio Before attentive of before the the was book our management. the losses, at to lines XX% Overall, accident pricing our of quarter highlights XXXX third the was the third combined impact the the storm impact demonstrates XX% when for of of company's and claims strength of This ratio fundamental storm-related year

turn the Harold best to drive to discuss performing in over call company select key to As that, forward. the way especially continue the going our effect this business, strong of quarter's long-term losses devoting to the profitability. With verticals, below, the of clears combined our lines reflect the expect reveal improved to results storm-related we the to I'll ratios foundation financials. the will towards efforts By financial

Harold MeLoche

company's for Nick. I recap I'll greater encourage you, a to filings presentation financial detail. website Thank review the provide of quick results, and investors on the and our

written XX% noted, just million under $XX gross premiums As to quarter. in the increased third

the and in For XXX% part, activity the their quarter, to noted ratio elevated our storm Nick due, large remarks. was in Jim overall combined

Before XX% much loss largely the Conifer's the the emergence impacted activity, that ratio The in third industry. accident ratio from quarter combined impact loss was quarter. the of storms convective additional of again, quarter, the was the second for year resulting from the storm XX%

reduction Despite and XXX ongoing This was last a the premiums, prior ratio beating the year improve as XX%. we period. lower $XXX,XXX points period from to investment basis during ratio net $X.X down quarter's efforts. Net of the result up was quarter, from of our expense earned expense million continue year our see income expense target in the expense XX%, XX% ratio same

first to the income net $X.X was million. For XXXX, over last X of year months investment up XXX%

of result $X.X prior and $X.X losses a adjustable in $X.X have our majority portion in the the investable our to with investments net of yield of we X.X%. in with the or a remain an million year loss of a AA+, share loss securities per compared tax million reported sizable X.X income fixed per of vast period. and quarter, the assets credit in T-bills $X.XX storm conservatively quality managed of floaters. Largely net of million average years Also, or Our as of company growing a assets $X.XX duration in a share third average investable equivalent an the

to were at and sheet. end, cash of $XXX Total quarter million. $XXX assets Moving total investments balance the million with

quarter book per value share. Our at end $X.XX was

due share with it were back that, not deferred over value. And in that turn to closing per Jim to full like $X.XX book a I'd valuation in reflected net allowance have tax remarks. assets We to for

James Petcoff

in want to closing, and his emphasize to our helping forward we in look I that, as move I we Nick. to like forward, long-term deliver I to invite Nick ability In Operator? I'd role Harold I . any questions. can. With new that any to Conifer's Thanks, -- confident in shareholders. value way remain

Operator

Paul first Instructions] from Newsome from question Our Piper [Operator Sandler. comes

Jon Paul Newsome

how start you that with Congratulations I was results to did you hoping Nick that and position. the with affect transaction prospectively. will core the you specialty could for think the

James Petcoff

looked loss consolidate had did was -- start. the writings it the the what bit and delever front the business we a our company, that that to I'll little Well, us we business fee, ratio business of the and acquisition of was at and the we had We for high cost due cost left to books. order in the that was on higher

statutory the insurance the that it companies. gone, with being of strength So enhances

to my transaction Nick? other with business less put view that the costs. a it. But to efficiently look of we to more that's in write So acquisition and us position

Nicholas Petcoff

growing level. No, bolsters the The pretty I surplus agree. Primarily, it was substantially. book

that the the were company. limits the were high. also highest costs thought acquisition the mentioned, profiles Jim we throughout And As very

perspective, So to reinsurance it we those the from also and most all factors. made book was of sense move a away from it for costly, thought that

Jon Paul Newsome

X/X of like So it gross was it premiums. looks roughly your

no So replacement there's for that, -- that. I assume that

business bought assume [ think revenue basically what earned the X/X. are on should gross we premium they ] in? prospectively, And I be the earned Or So impact by your premiums should so... set

Harold MeLoche

The UPR.

Jon Paul Newsome

UPR. The

guess what fairly revenues, I X/X that Is less looking basically revenues. So would quarter, for insurance right that you're roughly? next

Harold MeLoche

near the term. In

Nicholas Petcoff

those In areas. the a Yes. as we we growth dip result a near Obviously, see see in transaction. will term, other the of

business. that decline out of of offset the that book So will

So the decline term, yes, see the in a in premiums. we near will

Jon Paul Newsome

is difference a I written Is There net a the the written net number gross guess, of the from in that third certain unusual. happening end written -- fairly don't that was between premium you a what very quarter. happened low perspective this would but I were it affected at and because that premium's know that quarter? the was transaction

Harold MeLoche

was that the premium. premium It's about Yes, ceded is $XX -- we absolutely. when unearned Harold. of million unearned This

shows that ceded up So written. as

net Now quarter net premium that does affect written. for ceded written affect any but and third the earned not does

Operator

Petcoff concludes [Operator like any Instructions] the questions Jim in our conference the no more I would over to This closing for question-and-answer session. back are turn queue. There remarks. to

James Petcoff

you Thank your the to appreciate you, we seeing company, in forward the everyone. look in interest and We future.

out questions, reach If feel to to please free you have us. any

Operator

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

disconnect. now may You

Conifer (CNFR) 10 Nov 232023 Q3 Earnings call transcript