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Conifer Holdings Inc. (CNFR+5.16%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a significant decrease in gross written premiums to $72.1 million from $143.8 million in the previous year, primarily due to a strategic shift away from commercial lines.
Net earned premiums also declined to $60.9 million from $83.9 million, reflecting the company's reduced underwriting activities.
The company reported a net loss from continuing operations of $34.2 million, compared to a net loss of $27.3 million in the previous year. The loss was attributed to adverse development in prior-year loss reserves.
Conifer completed the sale of its agency business, Conifer Insurance Services, generating a gain of $54.6 million, which contributed to a net income from discontinued operations of $58.6 million.
The company redeemed all of its $6.0 million Series A Preferred Stock and paid off its $9.3 million Senior Secured Notes using proceeds from the sale of its agency business.
A.M. Best and Kroll downgraded the financial strength ratings of Conifer's insurance subsidiaries, and the company withdrew from the rating process, leaving it non-rated.
The company's insurance subsidiaries are facing capital constraints, with CIC falling within the Company Action Level of the RBC formula, requiring a remediation plan to be submitted to regulators.
Conifer's business is now focused on personal lines, specifically homeowners insurance in Texas, Illinois, and Indiana, with significant reliance on a single managing general agent for premium generation.
The company raised $7.5 million through the issuance of Series B Preferred Stock to support its insurance subsidiaries and maintain regulatory capital levels.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Conifer Holdings Inc. annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.