Conifer Holdings, Inc. reported a net income of $522,000, or $0.04 per share, for the first quarter of 2025, a decrease from the $1.4 million, or $0.11 per share, recorded in the same period of 2024. The company's total revenue for the quarter was $15.9 million, down from $18.6 million year-over-year, primarily due to a significant decline in gross earned premiums, which fell by 33.5% to $16.2 million. The decrease in revenue was attributed to the company's strategic shift away from commercial lines, which are now in run-off, and a focus on specialty homeowners insurance.
In terms of operational changes, Conifer Holdings completed the sale of its agency business, Conifer Insurance Services, on August 30, 2024, which has since been reported as discontinued operations. This sale resulted in a substantial reduction in the company's workforce, with 68 of the 77 employees transferred to the buyer. The company also appointed Brian Roney as the new CEO following the departure of Nicholas Petcoff. The sale was part of a broader strategy to enhance liquidity and support the remaining insurance operations, which are now concentrated in Texas, Illinois, and Indiana.
The company's financial position showed a total asset value of $277.1 million as of March 31, 2025, a slight decrease from $281.7 million at the end of 2024. Total liabilities also decreased to $251.5 million from $260.1 million, primarily due to a reduction in unpaid losses and loss adjustment expenses. The company’s shareholders' equity increased to $25.6 million, up from $21.5 million, reflecting the issuance of new preferred stock and warrants. The company’s cash and cash equivalents stood at $10.3 million, down from $27.7 million at the end of the previous year.
Looking ahead, Conifer Holdings faces challenges in maintaining its regulatory capital requirements, particularly for its insurance subsidiaries, which have been downgraded by rating agencies. The company is working to improve its Risk-Based Capital (RBC) ratio, which is currently estimated at 160%. Management has indicated that it may need to make additional capital contributions to ensure compliance with regulatory standards. The outlook remains cautious as the company navigates the impacts of its strategic decisions and market conditions, with expectations of limited growth in commercial lines and a focus on stabilizing its homeowners insurance business.
About Conifer Holdings, Inc.
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