Conifer Holdings, Inc. (NASDAQ:CNFR) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 08:30 am ET


Conifer Holdings, Inc. (NASDAQ:CNFR) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to the Conifer Holdings Incorporated Q1 2019 Investor Conference Call. All participants will be in a listen-only mode.(Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Adam Prior with the Equity Group. Please go ahead.

Adam Prior

Thank you, and good morning, everyone. Conifer issued its 2019 first quarter financial results after the close of market yesterday. On the company's website,, you can find copies of the earnings release as well as the slide presentation that accompanies management's discussion today. If you are looking at that presentation via webcast, you may find the slides that are easier to read in the large slide view, which can be selected on the right-hand side of the page.

Before we get started, the company has asked that I note that except with respect to historical information, statements made in this conference call may constitute forward-looking statements within the meaning of the federal securities law, including statements relating to trends, the company's operations and financial results and the business and the products of the company and its subsidiaries. Actual results from Conifer may differ materially from the results anticipated in these forward-looking statements as a result of risks and uncertainties, including those described from time-to-time in Conifer's filings with the SEC.

Conifer specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Also, a reconciliation of non-GAAP measures was provided with the news release. Statutory accounting data is prepared in accordance with statutory accounting rules and is therefore not reconciled to GAAP. We will conduct a Q&A session after management's prepared remarks this morning.

And with that, let me turn the call over to Mr. Jim Petcoff, Chairman and Chief Executive Officer. Please go ahead, Jim.

Jim Petcoff

Thanks, Adam. Good morning, everyone. Joining us today from the management is Nick Petcoff, Harold Meloche, Andy Petcoff and Brian Roney. Overall, we're generally pleased with our progress in the first quarter, but we still have a number of milestones to accomplish as we execute our growth strategy. We're continuing to focus on achieving growth in our specialty commercial lines where we see the best underwriting performance potential. Throughout the past year, we shifted the majority of Conifer's premiums into these core commercial lines with favorable results. As evidenced by a solid accident year ratio in the commercial space. These gains were somewhat offset by continued losses in personalized with majority stemming from the Florida homeowners business. However, the good news is that with each quarter, these elements are less and less impactful and our bottom line results should continue to improve.

The process of ultimately shifting our business mix will continue to take some time, but we believe that Conifer is in the right markets where we have substantial runway for growth, and we expect to generate value for our shareholders. Conifer's commercial business is largely divided into our hospitality segments, which includes