In their financial results for the third quarter of 2024, Conifer Holdings has posted a $61 million gain from the sale of its insurance agency operations to Bishop Street Underwriters, which was completed in August of this year.
At the same time, the company also recorded a net income of $53.3 million, but faced an adjusted operating loss of $7.4 million during Q3 2024.
For the period, total gross written premium (GWP) was down almost 61% overall, while net earned premium was down 39%.
“As a result of the sale completed in August 2024, we no longer have any insurance agency operations, and we expect a significant decline in revenue. We expect commercial lines business to represent 10% or less of our written premiums going forward,” the firm explained.
Overall, GWP decreased significantly during the third quarter of 2024, to $15 million, compared to the $38.5 million figure that the firm posted in the prior year period. While net earned premiums fell to $14.6 million, in comparison to $23.9 million from last year.
Conifer’s commercial lines production was down almost 86% in the quarter and represented roughly 27% of total GWP in the third quarter of 2024. Commercial lines net earned premium was down 63% for the same period.
Additionally, personal lines premium represented 73% of total GWP for Q3 2024. Personal lines GWP increased 10% from the prior year period to just over $11 million, which was primarily led by growth in the company’s low-value dwelling line of business in Texas and the Midwest.
Furthermore, Conifer also posted a combined ratio of 143.1% for the quarter, compared to a combined ratio of 120.8% from last year. The combined ratio consisted of a 103.8% loss ratio, as well as a 39.3% expense ratio.
Brian Roney, CEO of Conifer, commented: “Third quarter results reflect the successful culmination of the sale of our insurance agency operations to Bishop Street Underwriters. With the sale, and the majority of our commercial lines production in runoff, we are focusing underwriting efforts on select personal lines, particularly in Texas and Midwest homeowners.”
