Conifer Holdings, Inc. (NASDAQ:CNFR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 08:30 am ET


Conifer Holdings, Inc. (NASDAQ:CNFR) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, and welcome to the Conifer Holdings, Inc. Q3 2019 Investor Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Mr. Adam Prior of The Equity Group. Please go ahead.

Adam Prior

Thank you, and good morning, everyone. Conifer issued its 2019 third 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 are easier to read in the large slide view, which can be selected on the right-hand side of the webcast 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 laws, including statements relating to trends, the Company's operation 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 recognized -- 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 Jim Petcoff, Chairman and Chief Executive Officer. Please go ahead, Jim.

James G. Petcoff

Thank you, Adam. Good morning, everyone. Joining us today from the management team is Nick, Harold, Andy and Brian. Nick Petcoff, Andy Petcoff, Brian Roney and Harold Meloche. We've been pleased with the growth in our specialty commercial lines. This is consistent with our business transition over the past several quarters. We are seeing positive trends in the specialty markets we serve, opportunities for growth, coupled with rising rates. Heading into 2020, we feel comfortable we have positively positioned the Company for not only a return to profitability, but an acceleration of our top line premium. I believe that the third quarter results reflect this trend in part. It shows some progress that we've made. In the quarter, we achieved steady favorable premium increases across almost all lines and improvement in our loss ratios, our expense ratio as well. While still not near our long-term goals, it's progress in the right direction.

Through the past year, we've taken a measured approach in shifting our business mix, which is now over 90% commercial, with a majority focused on our core niche underserved classes. In our specialty commercial lines, we achieved rate increases while still increasing market share in many of our core