Wed, May 14, 8:14 PM (61 days ago)
**Conifer Holdings, Inc. (CNFR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue and other income decreased by 15.8% to $15.9 million from $18.6 million in Q1 2024. Gross earned premiums dropped by 33.5% to $16.2 million. - **Profit Margins:** Net income from continuing operations was $522,000, down from $1.4 million in Q1 2024. The combined ratio worsened to 140.5% from 96.7% in Q1 2024, indicating underwriting losses. - **Cash Flow:** Operating activities used $15.3 million in cash, a significant increase from $8.2 million provided in Q1 2024. Investing activities used $9.6 million, up from $1.6 million in Q1 2024. Financing activities provided $7.5 million, compared to $426,000 used in Q1 2024. **Key Metrics & Trends:** - **Earnings Changes:** Earnings per share from continuing operations were $0.04, down from $0.11 in Q1 2024. Adjusted operating loss was $3.7 million, or $0.30 per share, compared to an adjusted operating income of $1.3 million, or $0.11 per share, in Q1 2024. - **Uncertainties:** Significant uncertainties include regulatory monitoring, potential suspension of business authority, and the impact of downgraded financial strength ratings. The company is reliant on contingent payments and potential asset sales to meet obligations. **Future Operations & Impact:** - **Strategic Shifts:** The company has exited the agency business and is focusing on specialty homeowners business. However, this shift has led to a significant reduction in revenues and underwriting losses. - **Capital & Liquidity:** The company has $52.3 million in cash, cash equivalents, and short-term investments. However, it faces challenges in meeting obligations due to regulatory deficiencies and the need for additional capital contributions. **Conclusion:** Conifer Holdings, Inc. faced a challenging quarter with significant declines in revenue and underwriting losses. The company is navigating strategic shifts and regulatory uncertainties while working to meet its financial obligations. Investors should closely monitor the company's progress in addressing these challenges and its ability to generate sustainable underwriting profits.