Conifer Holdings, Inc. (CNFR)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 printed GAAP diluted EPS of $0.17 on net income allocable to common shareholders of $2.1M, aided by a $5.36M gain from the change in fair value of contingent considerations tied to the CIS sale; adjusted operating loss was $(0.17) per share, reflecting underlying underwriting losses .
• Gross written premiums rose 11.1% year over year to $21.1M on strength in Personal Lines (Texas/Midwest low-value dwelling) while Commercial Lines continued to run off; net earned premiums fell 42.6% and combined ratio remained above 100% at 121.1% .
• Personal Lines combined ratio improved markedly year over year (114.2% vs. 144.1%) as loss ratio normalized after storm-heavy Q1; Commercial Lines remained elevated with a 257.3% combined ratio as the runoff and prior-year development weighed on results .
• No quantitative guidance was provided; management emphasized ongoing simplification, focus on core Personal Lines, and performance normalization post-storms as the main near-term narrative drivers .
• Shares reacted positively around the release window; Yahoo’s article header showed CNFR +24.38% near the press release publication, suggesting investor focus on the GAAP profit and improving Personal Lines trajectory .

What Went Well and What Went Wrong

What Went Well

• Personal Lines growth and improving underwriting: Gross written premiums +46.8% YoY to $17.9M; combined ratio improved to 114.2% (loss ratio 61.2%) as performance “came back in line” after Q1 storms .
• Organizational streamlining and focus on core lines: “We are encouraged by progress made to date in streamlining our organization and focusing on our core lines going forward” — Brian Roney, CEO .
• GAAP profitability and book value build: Net income allocable to common shareholders $2.1M; book value per share increased to $2.31, supported by earnout valuation recognition .

What Went Wrong

• Underlying underwriting still loss-making: Combined ratio 121.1% and adjusted operating loss $(2.1)M indicate non-GAAP operating performance remains negative despite GAAP profit lift from contingent consideration fair value .
• Net earned premiums and investment income down: Net earned premiums fell 42.6% YoY to $9.56M and net investment income slipped 11.9% YoY to $1.30M, reflecting mix shifts and reinsurance treaties .
• Commercial Lines runoff and adverse dynamics: Commercial combined ratio 257.3% with contribution from prior-year development; commercial GWP down 53% YoY to $3.19M, underscoring continuing drag during runoff .

Financial Results

Consolidated Trends vs. Prior Year and Prior Quarter

Notes:

• EPS benefitted from $5.36M gain in fair value of contingent considerations in Q2; adjusted metrics exclude this and other non-GAAP items .
• Expense ratio increased due partly to a quota share treaty effective June 1, 2025 that reduced net earned premium .

Segment Breakdown (Q2 2025 vs. Q2 2024)

KPIs and Balance Sheet Highlights

Guidance Changes

Earnings Call Themes & Trends

Note: A webcast link exists but full transcript was not accessible. Themes below reference management commentary and recent quarters .

Management Commentary

• “We are encouraged by progress made to date in streamlining our organization and focusing on our core lines going forward.” — Brian Roney, CEO .
• “Overall, our gross written premium was up double digits… led by our Personal Lines business, which after a tough first quarter is coming back in line with expected performance metrics.” — Brian Roney, CEO .
• “Additionally, the quarter’s results were positively impacted by the partial recognition of an earnout related to the CIS sale from last year.” — Brian Roney, CEO .

Q&A Highlights

• Q2 2025 earnings call transcript was not accessible in full; a webcast link is available here: 2Q25 Earnings Conference Call .
• No additional Q&A clarifications could be verified from primary transcript sources.

Estimates Context

• Wall Street consensus (S&P Global) coverage appears limited; consensus EPS and revenue estimates for Q2 2025 were unavailable*. | Consensus vs. Actual | Q2 2025 Consensus | Q2 2025 Actual | |----------------------|-------------------|----------------| | EPS ($USD) | Unavailable* | $0.17 | | Revenue ($USD Millions) | Unavailable* | $16.13 |

*Values retrieved from S&P Global.

Implication: Absent consensus, investor focus likely shifted to internal trajectory (Personal Lines recovery, combined ratio improvement vs Q1) and GAAP profit lift from earnout valuation.

Key Takeaways for Investors

• Personal Lines momentum and underwriting normalization after Q1 storms drove YoY GWP growth (+46.8%) and improved combined ratio (114.2%), an important lever for medium-term margin repair .
• GAAP profitability benefited from a $5.36M earnout valuation gain; watch adjusted operating loss and combined ratio to gauge true underwriting progress quarter to quarter .
• Commercial Lines runoff continues to be a drag (257.3% combined), but exposure is shrinking (15.1% of GWP), supporting strategic focus on Personal Lines .
• Expense ratio elevated by the new quota share; near-term reported margins may look weaker as net earned premiums are reduced—evaluate economic impact vs. accounting optics .
• Book value per share climbed to $2.31 with equity up to $28.2M; monitor capital strength vs. debt ($12.06M) and preferred ($5.89M) as the company navigates runoff and re-underwriting .
• No formal guidance; near-term trading likely reacts to signs of Personal Lines stability, storm activity in Texas/Midwest, and further clarity on contingent consideration timing .
• Medium-term thesis hinges on sustained Personal Lines underwriting improvement, disciplined growth, and reduced legacy Commercial Lines volatility; track combined ratio and adjusted operating income as key signals .

Sources: Q2 2025 press release and exhibit (Form 8-K 2.02) ; Q1 2025 8-K ; Q4 2024 8-K ; Webcast and media references .