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Conifer Holdings Reports 2025 Second Quarter Financial Results

1. CNFR reports Q2 2025 net income of $2.1 million. 2. Gross written premiums rose 11.1% driven by Personal Lines. 3. CEO highlights progress in streamlining operations. 4. Commercial Lines saw significant declines in premiums. 5. Book value per share increased to $2.31.

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Why Bullish?

The increase in net income and premiums is encouraging, despite challenges in Commercial Lines. Historically, positive income amidst operational restructuring has led to stock price growth.

How important is it?

The article details significant operational successes and financial improvements that could boost investor sentiment. Additionally, a strong quarterly performance can attract new investments.

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Immediate investor reactions to quarterly earnings typically influence stock prices quickly. Positive earnings reports often lead to short-term increases as investors regain confidence.

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August 13, 2025 16:01 ET  | Source: Conifer Holdings, Inc. TROY, Mich., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer” or the “Company”) today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Net income allocable to common shareholders of $2.1 million, or $0.17 per shareGains in the quarter due largely to valuation recognition of an earnoutNet investment income of $1.3 millionBook value increased to $2.31 per common share outstanding Management Comments Brian Roney, CEO of Conifer, commented, "We are encouraged by progress made to date in streamlining our organization and focusing on our core lines going forward. The Company continues to simplify operations as the last part of our Commercial Lines production is largely running off at this point. Overall, our gross written premium was up double digits for the period led by our Personal Lines business, which after a tough first quarter is coming back in line with expected performance metrics. Additionally, the quarter’s results were positively impacted by the partial recognition of an earnout related to the CIS sale from last year." 2025 Second Quarter Financial Results Overview  At and for the Three Months Ended June 30, At and for the Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change                       (dollars in thousands, except share and per share amounts)                      Gross written premiums$21,079  $18,971  11.1% $37,252  $43,284  -13.9%Net written premiums 1,383   13,247  -89.6%  12,223   28,638  -57.3%Net earned premiums 9,564   16,666  -42.6%  19,879   33,553  -40.8%            Net investment income 1,298   1,473  -11.9%  2,587   3,019  -14.3%Net realized investment gains (losses) (28)  (118) **  (25)  (118) **Change in fair value of equity investments (65)  (196) **  (257)  (153) **            Net income (loss) allocable to common shareholders 2,051   (3,950) **  2,573   (3,876) **Net income (loss) allocable to common shareholders per share, diluted$0.17  $(0.32) ** $0.21  $(0.32)              Adjusted operating income (loss)* (2,070)  (3,414) **  (5,754)  (1,888) **Adjusted operating income (loss) per share, diluted*$(0.17) $(0.28) ** $(0.47) $(0.15) **            Book value per common share outstanding$2.31  $(0.10)   $2.31  $(0.10)              Weighted average shares outstanding, basic and diluted 12,222,881   12,222,881     12,222,881   12,222,881               Underwriting ratios:           Loss ratio (1) 68.8%  91.5%    79.7%  76.6%  Expense ratio (2) 52.3%  32.1%    51.5%  33.4%  Combined ratio (3) 121.1%  123.6%    131.2%  110.0%              * The "Definitions of Non-GAAP Measures" section of this release defines and reconciles data that are not based on generally accepted accounting principles.** Percentage is not meaningful(1) The loss ratio is the ratio, expressed as a percentage, of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations.(2) The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and other underwriting expenses to net earned premiums and other income from underwriting operations.(3) The combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.             2025 Second Quarter Gross Written Premium Gross written premiums increased 11.1% in the second quarter of 2025 to $21.1 million, compared to $19.0 million in the prior year period. This increase was led largely by the Company’s renewed focus on disciplined underwriting in its homeowners’ lines of business in Texas and the Midwest. Performance in these lines of business improved substantially compared to the first quarter of 2025, during which the Company saw considerable impact from storm activity. Metrics across the portfolio are beginning to line up with expected targets. Commercial Lines Financial and Operational Review Commercial Lines Financial Review  Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change (dollars in thousands)                      Gross written premiums$3,190  $6,782  -53.0% $5,237  $19,544  -73.2%Net written premiums (433)  4,285  **  (2,036)  12,572  **Net earned premiums 468   8,681  -94.6%  1,799   17,478  -89.7%            Underwriting ratios:           Loss ratio 216.4%  79.4%    140.0%  77.9%  Expense ratio 40.9%  25.3%    29.5%  29.1%  Combined ratio 257.3%  104.7%    169.5%  107.0%              Contribution to combined ratio from net (favorable) adverse prior year development 26.7%  23.6%    -27.5%  12.0%              Accident year combined ratio (1) 230.6%  81.1%    197.0%  95.0%              ** Percentage is not meaningful (1) The accident year combined ratio is the sum of the loss ratio and the expense ratio, less changes in net ultimate loss estimates from prior accident year loss reserves. The accident year combined ratio provides management with an assessment of the specific policy year's profitability and assists management in their evaluation of product pricing levels and quality of business written.             The Company’s commercial lines of business represented 15.1% of total gross written premium in the second quarter of 2025. As noted above, premiums decreased considerably year over year as Conifer continued to focus its underwriting efforts on Personal Lines business, notably our homeowners’ insurance portfolio in Texas and the Midwest. Personal Lines Financial and Operational Review Personal Lines Financial Review  Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change (dollars in thousands)                      Gross written premiums$17,889  $12,189  46.8% $32,015  $23,740  34.9%Net written premiums 1,816   8,962  -79.7%  14,259   16,066  -11.2%Net earned premiums 9,096   7,985  13.9%  18,080   16,075  12.5%            Underwriting ratios:           Loss ratio 61.2%  104.6%    73.7%  75.2%  Expense ratio 53.0%  39.5%    53.8%  38.1%  Combined ratio 114.2%  144.1%    127.5%  113.3%              Contribution to combined ratio from net (favorable) adverse prior year development 4.7%  9.3%    6.6%  1.4%              Accident year combined ratio 109.5%  134.8%    120.9%  111.9%               Personal lines, representing 84.9% of total gross written premium for the quarter, consist primarily of low-value dwelling homeowners’ insurance in Texas and the Midwest. Personal lines gross written premium increased 46.8% from the prior year period to $17.9 million for the second quarter of 2025, led by growth in the Company’s low-value dwelling line of business in Texas. The expense ratio increased in part due to a quota share treaty effective June 1, 2025, which reduces net earned premium. Combined Ratio Analysis  Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024          Underwriting ratios:       Loss ratio68.8% 91.5% 79.7% 76.6%Expense ratio52.3% 32.1% 51.5% 33.4%Combined ratio121.1% 123.6% 131.2% 110.0%        Contribution to combined ratio from net (favorable) adverse prior year development5.8% 16.8% 3.5% 6.9%        Accident year combined ratio115.3% 106.8% 127.7% 103.1%         Net Investment Income Net investment income was $1.3 million for the quarter ended June 30, 2025, compared to$1.5 million in the prior year period. Change in Fair Value of Equity Securities During the quarter, the Company reported a modest loss from the change in fair value of equity investments of $65,000, compared to a $196,000 loss in the prior year period. Net Income (Loss) allocable to common shareholders The Company reported net income allocable to common shareholders of $2.1 million, or $0.17 per share, for the second quarter of 2025. Adjusted Operating Income (Loss) The Company reported an adjusted operating loss of $2.1 million, or $0.17 per share, for the second quarter ended June 30, 2025. See Definitions of Non-GAAP Measures. About Conifer Holdings Conifer Holdings, Inc. is a Michigan-based property and casualty holding company. Through its subsidiaries, Conifer offers specialty insurance coverage for both commercial and personal lines, marketing through independent agents. The Company trades on the Nasdaq Capital Market under the symbol CNFR. Additional information is available on the Company's website at www.ir.cnfrh.com. Definitions of Non-GAAP Measures Conifer prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data. We believe that investors’ understanding of Conifer’s performance is enhanced by our disclosure of adjusted operating income. Our method of calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding: 1) net realized investment gains and losses, 2) change in fair value of equity securities, 3) Change in fair value of contingent considerations, 4) Contingent consideration bonus expense and 5) net income or loss from discontinued operations. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into the results of our operations and underlying business performance. Forward-Looking Statement This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Conifer’s expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 28, 2025 and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this report speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable laws or regulations. Reconciliations of adjusted operating income (loss) and adjusted operating income (loss) per share:  Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024    (dollar in thousands, except share and per share amounts)        Net income (loss)$2,051  $(3,792) $2,573  $(3,561)Less:       Net realized investment gains (losses) (28)  (118)  (25)  (118)Change in fair value of equity securities (65)  (196)  (257)  (153)Change in fair value of contingent considerations 5,355   -   9,750   - Contingent consideration bonus expense (1,141)    (1,141)  Net income (loss) from discontinued operations -   (64)  -   (1,402)Impact of income tax expense (benefit) from adjustments * -   -   -   - Adjusted operating income (loss)$(2,070) $(3,414) $(5,754) $(1,888)        Weighted average common shares, diluted 12,222,881   12,222,881   12,222,881   12,222,881         Diluted income (loss) per common share:       Net income (loss)$0.17  $(0.31) $0.21  $(0.29)Less:       Net realized investment gains (losses) -   (0.01)  -   (0.01)Change in fair value of equity securities (0.01)  (0.02)  (0.02)  (0.02)Change in fair value of contingent considerations 0.44   -   0.80   - Contingent consideration bonus expense (0.09)  -   (0.10)  - Net income (loss) from discontinued operations -   -   -   (0.11)Impact of income tax expense (benefit) from adjustments * -   -   -   - Adjusted operating income (loss), per share$(0.17) $(0.28) $(0.47) $(0.15)         * The Company has recorded a full valuation allowance against its deferred tax assets as of June 30, 2025 and June 30, 2024, respectively. As a result, there were no taxable impacts to adjusted operating income from the adjustments to net income (loss) in the table above after taking into account the use of NOLs and the change in the valuation allowance.     Conifer Holdings, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(dollars in thousands)     June 30, December 31,  2025   2024 Assets(Unaudited)  Investment securities:   Debt securities, at fair value (amortized cost of $108,000 and $117,827, respectively)$97,899  $105,665 Equity securities, at fair value (cost of $1,832 and $1,836, respectively) 1,342   1,603 Short-term investments, at fair value 36,387   21,151 Total investments 135,628   128,419     Cash and cash equivalents 21,953   27,654 Premiums and agents' balances receivable, net 8,435   9,901 Reinsurance recoverables on unpaid losses 77,892   84,490 Reinsurance recoverables on paid losses 5,863   6,919 Prepaid reinsurance premiums 18,179   6,088 Deferred policy acquisition costs 3,338   6,380 Receivable from contingent considerations 7,820   8,070 Other assets 4,154   3,735 Total assets$283,262  $281,656     Liabilities and Shareholders' Equity   Liabilities:   Unpaid losses and loss adjustment expenses$164,644  $189,285 Unearned premiums 35,239   30,590 Reinsurance premiums payable 9,386   1 Debt 12,060   11,932 Mandatorily redeemable preferred stock 5,885   - Funds held under reinsurance agreements 21,180   25,829 Accounts payable and other liabilities 6,660   2,494 Total liabilities 255,054   260,131     Commitments and contingencies       Shareholders' equity:   Common stock, no par value (100,000,000 shares authorized; 12,222,881 issued and outstanding, respectively) 100,132   98,178 Accumulated deficit (60,580)  (63,153)Accumulated other comprehensive income (loss) (11,344)  (13,500)Total shareholders' equity  28,208   21,525 Total liabilities and shareholders' equity$283,262  $281,656      Conifer Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Operations (Unaudited) (dollars in thousands, except share and per share data)         Three Months Ended Six Months Ended June 30 June 30  2025   2024   2025   2024         Revenue and Other Income       Premiums       Gross earned premiums$16,484  $29,381  $32,602  $63,613 Ceded earned premiums (6,920)  (12,715)  (12,723)  (30,060)Net earned premiums 9,564   16,666   19,879   33,553 Net investment income 1,298   1,473   2,587   3,019 Net realized investment gains (losses) (28)  (118)  (25)  (118)Change in fair value of equity securities (65)  (196)  (257)  (153)Other income 10   77   75   226 Change in fair value of contingent considerations 5,355   -   9,750   - Total revenue and other income 16,134   17,902   32,009   36,527         Expenses       Losses and loss adjustment expenses, net 6,564   15,281   15,838   25,801 Policy acquisition costs 2,287   3,392   4,964   6,552 Operating and other expenses 4,368   2,422   7,229   5,072 Interest expense 864   868   1,405   1,745 Total expenses 14,083   21,963   29,436   39,170         Income (loss) from continuing operations before income taxes 2,051   (4,061)  2,573   (2,643)Income tax expense (benefit) -   (333)  -   (484)        Net income (loss) from continuing operations$2,051  $(3,728) $2,573  $(2,159)Net income (loss) from discontinued operations -   (64)  -   (1,402)Net income (loss) 2,051   (3,792)  2,573   (3,561)Series A Preferred Stock dividends -   158   -   315 Net income (loss) allocable to common shareholders$2,051  $(3,950) $2,573  $(3,876)        Earnings (loss) per common share, basic and diluted       Net income (loss) from continuing operations$0.17  $(0.31) $0.21  $(0.18)Net income (loss) from discontinued operations$-  $(0.01) $-  $(0.11)Net income (loss) allocable to common shareholders$0.17  $(0.32) $0.21  $(0.32)        Weighted average common shares outstanding, basic and diluted 12,222,881   12,222,881   12,222,881   12,222,881          For Further Information:Jessica Gulis, 248.559.0840ir@cnfrh.com

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