CNFR - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to Conifer Holdings' Second Quarter 2024 Investor Conference 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. second results XXXX of the its yesterday. market issued quarter after financial close Conifer

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

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

specifically update any due statements, whether future or new otherwise. any to information, Conifer forward-looking to developments revise or obligation disclaims

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

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

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

Nicholas Petcoff

Harold with on good morning, Meloche. and today is Brian, Also the Thanks, call everyone. us

part premium our our As you our general results, a wholly-owned model, strategic channeling agency, shift Conifer commission-based deliberate change quarter and second notice line through Insurance decision in you'll on we towards review a as continue revenue Services. This significant figures. top is our a our managing

lines more by MGA. aligns carrier revenue stable focus up Our the achieve on than risk-bearing written our revenue ramping with rather is gross move strategy model. running of our commissions our to traditional long-term and predictable premium commercial through streams through the optimization This

this and a compared a and reach our distribution scalable business it in our key enhancing our critical lower markets. in Under has can more While previous a network overall model. resulted agency our periods, line in and expanding to we partners of top the this step expertise creating and is leverage model, profitability enhancing channels sustainable

is Through ratings insurers A-rated paper revenue better. and model. written this our capacity scalable governing third-party broader much profitable us or a third-party coverage offer reach and sustainable enabling programs, for for insurers existing approach, business superior a to directly business simultaneously risk by with of MGA-produced Best through providers provides while Utilizing A.M. A- production-based

second XXXX, we strides the various of commercial across of premiums business. quarter to in our During providers channeling capacity lines made significant

and transfer have our Palomar, the solidify coverage us of into cannabis-related our cannabis enabling expand to we accelerate markets partner, as capacity to provider to the new started Specifically, leading position a of U.S. premiums across

more capacity As providers compared up quarter year largely the second prior significantly period. production planned, lines ramp the result the other complementary This in our our commercial to decreased of is required the in time period. to

Most which accident personal Oklahoma solid from of came these to ratio XX% for a our of run-off. ratio loss combined spring came year lines is and XX%. was impacted represented at the quarter. Switching commercial our in quarter, the total the combined lines, commercial by roughly lines business, our Overall, were quarter in significantly in results XXX% production the the currently For storms.

will premium traditional segment written in from through going revenue Oklahoma be the retained personal our by the process for general, was that and away, larger production In run-off largely completed With this of business year-end. in low-valued lines carrier-based come second expect our gross primarily and quarter. Midwest. the model homeowners Texas will percentage a We production represented

this as we ahead to trend further model. continue revenue in the transition expect We quarters our

Overall, we flexible but a partners this yield equipping insurers responsive over market better that and remain to us confident improving time, only and our approach agency not benefits our margins, will offering. with also serve more

streamline we our preserving operational over term this achieve a to and consistent generating line, continuing continue to we remain strong committed profitability the expense our returns transition, As long and top shareholders. structure favorable for to

the to the turn discuss I'll call to that, over Harold? With numbers. Harold

Harold MeLoche

through a gross Conifer second homeowners Nick. was detail. investors I'll second which in premium reflecting should which reduce was mix operating further commercial total subsidiaries going In premium company's to overall Insurance and commission-based personal should Oklahoma impacted ratio the quarter, MGA, XX% XX% combined financial was review presentation second our The the to premium written filings by in We the May, improved revenue business forward. and Conifer's storms. breakout Oklahoma million, for our encourage of in writing reduce lines. Overall, results, our Services. the of quarter the -- our recap website lines of instead quarter which result XXX% XX% written for the to brief provide $XX on on you, Thank focus gross to and premium decreased leverage I decision on and stopped

nearly agency XXXX, illustrating second commission the the from period XX%. our Our to continues the of and investments in XXX second quarter, value XX% progress the basis the second quarter, ongoing second was shift to $XXX,XXX. period. quarter equity quarter was $X.X near-term efforts. lower XX% loss $X.X in in model. Net last of expense prior up year during well net the The $XXX,XXX net below million from the a the reduction to the due in compared points company despite expense of premiums commission-based success expense down in same in year in the ratio investment our has recorded Agency to was ratio to the quarter, drive decrease improve million its $XXX,XXX leading $X of initiative earned of target realized business to million investment and general made a We managing revenue income fair second

remain average vast AA+ fixed investable investments X.X%. of Our of average a of and an duration on managed majority credit yield assets quality securities income our of X.X conservatively with the equivalent with years tax and

reported net $X.X second for company of of Our million share $X.XX shareholders $X of quarter operating per loss share to and or the XXXX. loss allocable adjusted $X.XX common per million or

over investments closing remarks. balance that, it the at million $XXX Nick million. to quarter and with $XXX Total I'd to with sheet. for Moving cash were to turn total back of And assets end, like

Nicholas Petcoff

our approach wrap In us is will We're Harold. excited long-term we this value future shift shareholders. confident up, focused growth. more as our Thanks, sustainable strategic and the positioning summary, for that to deliver stronger, about

you questions. Thank your for support. invite to continued Operator? that, any With I'd like

Operator

question from retail. ] Berman one comes Our Robert from [ Instructions] [Operator

Unknown Shareholder

and become color shareholder liquidity your And that through on a a expect And profitable. is has when losses of you long-standing I'm capital? not management, here. to get to of and string sources achieved, like are suffered additional if some I'd like what

Nicholas Petcoff

quarter and MGA with do the We to off. commission-based Appreciate the can allow us model. lines we the in difficult a impact paper, the had model personal more the The do that that lines lead side lines quarter support on obviously us is We to for feel that moving on we achieve do model profitability the question. of to book that second weather. feel I we're about quarter second pivot as carrier-based had big a feel the moving commercial A-rated quickly the the a that Typically, does we the good Yes. have personal than with forward. us.

do with A-rated on paper business, commercial on rather than allowing combination on that's the that will side, to and think what that, a on. get the lines, that's getting personal weather the model revenue So commissions results focused all to of profitability, we're move sheet lines us us grow balance risk in and improved the to based that we

I'll a about As that talk little and tackle let one to liquidity, it bit Harold that. relates

Harold MeLoche

our have considering expense sales. several Also, structure the with additional did liquidity, did to align we that asset the need we XX-Q reductions So our are does we expense in are which we our extent years, last mention over other -- revenues. we help that

Operator

this will may the conclude conclude call. session. question-and-answer Petcoff, questions, you Mr. further the no With

Nicholas Petcoff

appreciate of you Thank any the and appreciate we and to to we have question, and time you. And the at reach invite company everyone's any a day. out us thank and in you, interest good And time.

Operator

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

disconnect. You may now

Conifer (CNFR) 14 Aug 242024 Q2 Earnings call transcript