The latest results from Conifer show that firm saw gross written premiums in Q2 2022 being 7% than at the same point in 2021.
According to Conifer, gross written premiums at the end of Q2 2021 were $35m, but have since risen to $37.4m. The firm also said in a statement that commercial lines gross written premiums had increased 3.6%, while for personal lines, the increase was 32.4%.
It said that subsequent to the end of the second quarter, it completed a private placement of 2,500,000 shares of common stock at $2 per share, which was sold to management and the board of directors for proceeds of $5m. Taking this transaction into account, the total shareholders’ equity as of June 30, 2022 would have been $22m, and its book value per share would have been $1.80.
James Petcoff, executive chairman and Co-CEO, said, “While we are pleased to report continued top-line growth in our most profitable lines of business, we must recognize that these achievements were generally obscured by persistent adverse development from select lines. As a result, we have taken numerous prudent actions to strengthen our reserves overall and we look forward to reporting the beneficial results of those initiatives in the very near future.”
It said that its commercial lines of business, representing 85.7% of total gross written premium in the second quarter of 2022, primarily consists of property and liability coverage offered to owner-operated small- to mid-sized businesses. Commercial lines gross written premium increased 3.6% in the second quarter of 2022 to $32.1m, reflecting the Company’s continued emphasis on expansion in its most profitable specialty lines.
These numbers come a few months after AM Best said it was downgrading the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb-” (Fair) from “bb” (Fair) of the company. The agency also downgraded the Financial Strength Rating to B+ (Good) from B++ (Good) and the Long-Term ICR to “bbb-” (Good) from “bbb” (Good) of Conifer’s subsidiaries Conifer Insurance Company (CIC) and White Pine Insurance Company (White Pine).
It said at the time that these rating actions follow Conifer’s reported full year earnings announced by management in early March and takes into consideration the group’s underwriting and operating losses which, along with prior years, have fallen below expectations.
