Conifer Holdings Inc. reported its fourth-quarter and full-year 2024 financial results, marking a year of transition following the sale of its insurance agency operations.
The company reported net income of $23.5 million for the year, largely driven by a $61 million gain from the divestiture in August. That compares with a loss of $25.9 million a year earlier.
CEO Brian Roney described 2024 as a pivotal year for Conifer, highlighting efforts to reduce debt, strengthen reserves, streamline operations and shift its focus to select personal lines. The company saw a sharp decline in commercial lines business, with total gross written premium falling nearly 50% for the year and net earned premium down 27.5% from the prior year.
In the fourth quarter, commercial lines premium dropped 79%, making up just 23% of total gross written premium. The company expects commercial lines to continue declining as it moves away from that segment.
Meanwhile, personal lines premium accounted for 77% of total gross written premium for the quarter, rising 10.6% from the prior year. Full-year personal lines premium grew 23.4%, led by expansion in low-value dwelling coverage in Texas and the Midwest.
Despite storm-related losses, Conifer reported an improved combined ratio for personal lines in 2024.
Net investment income rose 5.8% to $5.8 million for the year. However, the company recorded a $21,000 loss from changes in the fair value of equity investments in the fourth quarter, compared with a $13,000 gain in the same period the previous year.
Conifer posted a fourth-quarter net loss of $25.4 million, or $2.08 per share, while reporting an adjusted operating loss of $25.8 million, or $2.11 per share. The full-year net income of $23.5 million, or $1.93 per share, was largely supported by the agency sale.
With the shift toward personal lines, Conifer is focusing on its homeowner’s insurance portfolio, particularly in Texas and the Midwest. The company has indicated that its underwriting approach will prioritize profitability and risk management. Management believes the restructuring efforts undertaken in 2024 will position the company for long-term stability.
