Conifer Holdings, Inc. reported significant financial developments for the third quarter and nine months ended September 30, 2024, reflecting a strategic shift in its business operations. The company, primarily engaged in specialty homeowners insurance, experienced a notable decrease in gross earned premiums, which fell to $23.3 million in Q3 2024 from $38.2 million in Q3 2023, a decline of 39.0%. Net earned premiums also decreased to $14.6 million from $24.0 million, marking a 39.1% drop. Total revenue and other income for the quarter decreased to $16.0 million from $25.4 million, while total expenses decreased to $24.3 million from $30.3 million.

Despite the reduction in revenue, Conifer reported a net income of $53.3 million for Q3 2024, a significant turnaround from a net loss of $2.7 million in the same period last year. This improvement was largely attributed to the sale of its managing general agency business, Conifer Insurance Services (CIS), which was sold for $46.6 million in cash, along with potential contingent payments of up to $25 million based on performance. The sale, completed on August 30, 2024, resulted in a net income from discontinued operations of $60.2 million for the quarter.

For the nine months ended September 30, 2024, Conifer reported a net income of $49.7 million, compared to a net loss of $6.4 million in the same period of 2023. The company’s accumulated deficit improved to $(37.8 million) from $(86.7 million) at the end of the previous fiscal year. Total assets decreased to $299.9 million from $315.6 million, while total liabilities fell to $250.8 million from $312.7 million.

The company’s strategic shift away from commercial lines has resulted in a significant reduction in gross written premiums, which fell by 60.9% to $15.1 million in Q3 2024. Commercial lines gross written premiums decreased by 85.9% to $4.0 million, while personal lines increased by 10.1% to $11.1 million. The underwriting combined ratio for Q3 2024 was reported at 143.1%, compared to 120.8% in Q3 2023, indicating increased underwriting losses.

Conifer's cash and cash equivalents rose to $32.4 million as of September 30, 2024, up from $10.7 million at the end of 2023. The company has also made significant changes in its management, with the resignation of CEO Nicholas Petcoff and the appointment of Brian Roney as his successor. The company is currently focused on enhancing its operational efficiency and addressing identified weaknesses in its internal controls following the sale of its agency business.