CNFR 2Q24 Webcast Presentation
Q2 2024 INVESTOR CONFERENCE CALL
Nasdaq: CNFR
Fulfilling the Unique
Specialty Insurance Markets
a Long-Term Partner
Q2 2024HIGHLIGHTS
STRATEGIC SHIFT
Agency Commission Income
for Q2 2024:
Focus is on a production-based
revenue model
Maintaining profitable premium
in
|
FUTURE PROFITABILITY |
ADJUSTED BOOK VALUE OF |
|
EXPECTED |
|
|
Q2 2024 Expense Ratio: 32.1%, |
Includes |
|
well below 35%near-term target |
( |
|
Optimizing Commercial Lines |
Total adjusted book value of |
|
business through utilization of |
|
|
capacity providers with A.M. |
|
|
Best ratings of A- or better |
|
|
Broader reach for existing |
|
|
profitable programs |
STRATEGIC SHIFT: SCALABLE & SUSTAINABLE PROFITABILITY
THROUGH PRODUCTION-BASEDREVENUE MODEL
3
CONIFER'SI
- Wholly owned general agency
- Acts as a conduit for retail agents to access and write E&S and admitted policies for Conifer and White Pine Insurance Companies
- Facilitates specialty programs and markets on a select basis
- Founded in 2009
- Licensed & Admitted in 4 States (MI, IL, IN, SD)
- E&S in 49 States (Exc. NY)
- Founded in 2010
- Licensed & Admitted in 44 States & DC
PROGRAM PORTFOLIO
Cannabis
CBD & Hemp
Food & Beverage
Liquor Liability
Marijuana Liability
Workers' Compensation
Specialty Homeowners
4
Our Lines Of Business
COMMERCIAL
PERSONAL
GROSS WRITTEN PREMIUM FOR Q2 2024:
Commercial Lines
35.7%
Small Business
14.3%
|
Hospitality |
Low-Value |
|
21.4% |
Dwelling |
|
64.3% |
Personal Lines
64.3%
5
COMMERCIAL LINES
- Gross written premium decrease reflects the Company's strategic decision to reduce premium leverage on operating subsidiaries and focus on commission-based revenue through its wholly owned MGA,
Conifer Insurance Services - Utilization of capacity providers with
A.M. Best ratings of A- or better offers opportunity to expand reach in key markets for existing profitable programs, while governing risk through a scalable and sustainable production-based revenue model - Commercial Lines represented roughly 36% of the premium written in Q2 2024
|
YTD |
Gross Written Premium |
||
|
Top Five States |
$ in thousands |
||
|
|
|
64.9% |
|
|
|
1,338 |
6.8% |
|
|
|
690 |
3.5% |
|
|
|
671 |
3.4% |
|
|
|
634 |
3.3% |
|
|
All Other |
3,523 |
18.1% |
|
|
Total |
|
100.0% |
|
MILLIONS
GROSS WRITTEN PREMIUM
|
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2024 |
|
Hospitality |
Small Business |
6
PERSONAL LINES
- Personal Lines gross written premium represented approximately 64% of total premium in Q2 2024
- Growth in Personal Lines premium for the quarter was generated primarily through low-value dwelling segment in
Texas and the Midwest
|
YTD |
Gross Written Premium |
|
|
Top Five States |
$ in thousands |
|
|
|
|
68.5% |
|
|
6,138 |
25.9% |
|
|
889 |
3.7% |
|
|
355 |
1.5% |
|
|
78 |
0.3% |
|
All Other |
22 |
0.1% |
|
Total |
|
100.0% |
|
MILLIONS |
|
|
|
GROSS WRITTEN PREMIUM
$6.9
|
Q2 2023 |
Q2 2024 |
|
Wind Exposed |
Low Value Dwelling |
7
Q2 2024INVESTMENT PORTFOLIO
|
• Net Investment Income for Q2 2024: |
|
• Highly liquid portfolio of investment grade |
|
debt securities |
|
• Total investment portfolio of |
|
at |
|
• Average duration: 2.6 years |
|
• Average tax-equivalent yield: ~3.4% |
|
• Average credit quality: AA+ |
DEBT SECURITY PORTFOLIO ALLOCATION
CMBS Government
2.6% Obligations
4.8%
ABS
State & Local
Governments
16.9%
DEBT SECURITY PORTFOLIO
CREDIT RATING
|
$ in thousands |
|
||
|
Fair Value |
% of Total |
||
|
|
|
48% |
|
|
AA |
36,882 |
31% |
|
|
A |
16,622 |
14% |
|
|
BBB |
8,888 |
7% |
|
|
TOTAL DEBT |
|||
|
|
100% |
||
|
SECURITIES |
|||
CMO/RMBS
2.2%
31.0%
Corporate
25.2%
MBS 17.3%
8
ALIGNED AND EXPERIENCED MANAGEMENT TEAM
Insiders own 70% of outstanding stock
|
As Chief Executive Officer of |
|
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and Information Technology operations. |
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NICHOLAS PETCOFF |
|
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both wholly owned subsidiaries of |
|
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CEO & Director |
19 years of experience in the insurance industry. |
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|
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Company's overall strategy, growing the business while enabling the Company to conceptualize and deftly respond to |
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market needs. |
|
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As President of |
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well as general operations. He has been with the Company since 2010 and has more than 25 years of experience in the |
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BRIAN RONEY |
insurance industry. |
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|
|
|
President |
than 35 years of financial services experience and spent 10 years in the securities industry as a principal with a broker- |
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dealer, where he specialized in public and private offerings and held |
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the executive leadership team. |
HAROLD MELOCHE
Chief Financial Officer &
Treasurer
As Chief Financial Officer and Treasurer of
9
APPENDIX
- Income Statement
- Balance Sheet
- Summary Financial Information
- Adjusted Operating EPS
Contact:
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