CNFR - Earnings call transcript Q1 2024

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Operator

Good morning, everyone, and welcome to Conifer Holdings First Quarter 2024 Earnings Conference Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is also being recorded. At this time, I'd like to turn the conference call over to Brian Roney. ahead. go please Sir,

Brian Roney

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

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

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

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

with filings. G. rules Reconciliations measures non-GAAP Statutory SEC possible prepared also we'll and reconciled financial call, release our when and there these discuss non-GAAP SEC accounting financial accordance of is as this data in to our Regulation is defined measures During comparable included GAAP. in as to measures financial accounting statutory are GAAP the historical earnings by

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

Nicholas Petcoff

out call Meloche. I'm the the pleased quarter financial on today to morning, bear and with Also call. results first discussed our we the Brian, during Thanks, that report good last us strategic everyone. decisions is Harold

revenue to our overview a business. the a made market Further, We model We evolving line. We ensuring us markets. and model XXXX strengthening have strong returns direction. as decision a significant a With on the commercial focused wholesale to reach to networks our directing started lines Conifer right bottom of see enhancing quarter revenue focus production an strides position borne let are generate us commission ramp move also agency results agency focus of up core, at in for agency decision revenue model upon indicative of ultimately they of to capacity of to eye approach. as business. channels lines from of partners, preliminary out XXXX. our towards encouraging key to coverage we considerable operational our premium made We've Recognizing quarter have to and based made the underwriting that and expanding a our offer our wholesale long reductions light, agency the continuing This rated to allows risks, distribution on reach to favorable cannabis planned new enables profitability moving markets and the model top and our A- this that wholesale In beginning shareholders. across revenue shift industry outset, we our and insureds brief an simultaneously total the coverage. At first to the and leverage the for starting largely multiple capacity direction. At the results lines leverage represented premium pivot to preserving of key tactical away streamline the to expertise line, the and first mitigate and the our and committed XXXX, XX% to percentage cannabis-related during provide in stability progress in of provider commercial transfer in nonrisk-bearing shift quarter. Overall a first down executing insurance over landscape term partners, of sustainability company, providers we the our capacity consistent as be expected for our expense are maintaining our structure for the lines premium our commercial roughly in to in lines remain to expanding production of long-term decision success was the leading in production the commercial a me of to with quarter. production-based our

up Our production premiums percentage in of larger a made lines personal QX.

commercial While we personal MGA commission-based operating largely retained our still Conifer a lines is production Insurance utilizing business have in-house Services, our lines to our model, by moved our subsidiaries.

we business, Midwest. a result, to underwrite have the low-valued in primarily As and continued homeowners Texas

that a business moving Given to favor pleased on leading Conifer quarter, the for in strong first forward. performance ratio line combined we are year-to-date, that of retain the to XX%

exceptional shift in models, are of our the dedication insurance work remain delivering the and manage effectively production our to committed shareholders. we and As we value team to hard of and proud entire

We success will Harold in that, discuss Harold? numbers. over to continue With call to the pass I'll build and to years come. to the on months the this quarter's

Harold MeLoche

I reduce ratio personalized. down greater revenue The focus $XX on recap gross in website last written commercial Conifer's view same premium to the basis gross XX% the provide points agency. XXX managing quarter first on production-based on our operating total presentation for and to written decision I'll subsidiaries XX% financial reflecting a from detail. In premium and financial million, combined Thank first and period XX% and quarter, leverage investors first our you, general of premiums quarter, was our was breakout through quick encourage of year. filings decreased company's the the lines Nick. results, XX% to

steady the XXXX. from XX%, was ratio quarter first loss Our of

lines quarter, first dwelling percentage quarter ratio compared last XX% non-risk-based the to movement XX year actions model personal the was business. to going see strong in the we accident progress, year, continued the in positive first results of in we continue The points anticipate taken As revenue reflecting our underwriting for forward. loss we've down low-value

the points of from $X.X net expense reduction lower XXX was premiums despite success expense the improve due in last was ongoing XX%. Net to investment to continues period the meets ratio XX% basis earned the near-term million from and down quarter, our year million income our ratio expense first quarter, efforts. period. The same of the for XX% target during $X.X year first up Our prior

or years the with portfolio yield an majority adjusted remains of $XXX,XXX with operating managed for share shareholders average and company securities an quarter of X.X in income X.X%. The XXXX. investment a tax credit AA Our conservatively an or of $X.XX per equivalent $X.XX per of allocable reported income of fixed and common net duration $XX,XXX share average income to first of the quality vast

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

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

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

Nicholas Petcoff

quarter the company. customers any about commitment strategic excited on to are underscore want exceptional Thanks, that, focused questions. Operator? our our We and of to Harold. across our organization. In to closing, reiterate that value invite delivering results remain the future decision-making to and sound With our shareholders, I'd I we first like

Operator

showing to turn floor at questions, [Operator no I'd like over back gentlemen, for remarks. any this in to the Instructions] Ladies time, Nick and closing

Nicholas Petcoff

you. interest company reach invite to to the any time time. and appreciate your Thank us We and you in at out

Harold MeLoche

Thank you.

Operator

thank We we'll do And today's conference you call for and gentlemen, with that, presentation. concluding be ladies joining. and

You may now your disconnect lines.

Conifer (CNFR) 15 May 242024 Q1 Earnings call transcript