Conifer Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Conifer Holdings, Inc. has submitted its 2023 10-K annual report, detailing its operations in the property and casualty insurance sector.</b>

AI Summary

Conifer Holdings, Inc. (PRHIZ) filed a Annual Report (10-K) with the SEC on April 1, 2024. Conifer Holdings, Inc. filed its 2023 10-K report on April 1, 2024. The company operates in the FIRE, MARINE & CASUALTY INSURANCE sector. Key segments include Commercial Lines and Personal Lines, with a focus on Net Earned Premiums. The filing references specific insurance contract accident years, such as 2021 and 2020. Financial instruments include Commercial Mortgage and Asset Backed securities, with fair value inputs categorized by Level 1 and Level 3.

Why It Matters

For investors and stakeholders tracking Conifer Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Conifer Holdings' financial performance, business operations, and risk factors for the fiscal year ending December 31, 2023. Investors and analysts can use this report to assess the company's financial health, strategic direction, and potential for future growth within the insurance market.

Risk Assessment

Risk Level: medium — Conifer Holdings, Inc. shows moderate risk based on this filing. The company operates in the highly regulated insurance industry, which involves significant market and operational risks, as evidenced by the detailed risk factors and segment reporting in the 10-K.

Analyst Insight

Monitor Conifer Holdings' performance in its Commercial and Personal Lines segments, paying close attention to earned premiums and underwriting results for the upcoming fiscal year.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-04-01 — Filing Date (Date the 10-K was filed with the SEC)
• 6331 — SIC Code (Standard Industrial Classification for Conifer Holdings)
• MI — State of Incorporation (State where Conifer Holdings is incorporated)
• 2021 — Accident Year (Specific accident year referenced for insurance contracts)
• 2015 — Accident Year (Specific accident year referenced for insurance contracts)
• Level 1 — Fair Value Input Level (Categorization of fair value inputs for financial instruments)
• Level 3 — Fair Value Input Level (Categorization of fair value inputs for financial instruments)

Key Players & Entities

• Conifer Holdings, Inc. (company) — Filer of the 10-K report
• FIRE, MARINE & CASUALTY INSURANCE (industry) — Standard Industrial Classification for Conifer Holdings
• 2023-12-31 (date) — Fiscal year end date for the 10-K filing
• 2024-04-01 (date) — Filing date of the 10-K report
• Venture Agency Holdings Inc. (company) — Mentioned in relation to a specific date
• Sycamore Specialty Underwriters Llc (company) — Mentioned in relation to a specific date and role
• Nine Point Seven Five Percent Senior Notes Due 2028 (debt) — Specific debt instrument mentioned
• 3001 West Big Beaver Road (address) — Business and mailing address of Conifer Holdings

FAQ

Key Financial Figures

• $6,900 — mium amount of an individual policy was $6,900. We also have substantial expertise i
• $1,500 — mium amount of an individual policy was $1,500. Overall, we structure the multi-line

Filing Documents

• cnfr-20231231.htm (10-K) — 5684KB
• cnfr-ex4_1.htm (EX-4.1) — 169KB
• cnfr-ex4_4.htm (EX-4.4) — 190KB
• cnfr-ex10_7.htm (EX-10.7) — 1086KB
• cnfr-ex10_8.htm (EX-10.8) — 47KB
• cnfr-ex10_12.htm (EX-10.12) — 871KB
• cnfr-ex21_1.htm (EX-21.1) — 7KB
• cnfr-ex23_1.htm (EX-23.1) — 3KB
• cnfr-ex31_1.htm (EX-31.1) — 17KB
• cnfr-ex31_2.htm (EX-31.2) — 17KB
• cnfr-ex32_1.htm (EX-32.1) — 8KB
• cnfr-ex32_2.htm (EX-32.2) — 8KB
• cnfr-ex97.htm (EX-97) — 54KB
• cnfr-ex99_1.htm (EX-99.1) — 5KB
• img37137235_0.jpg (GRAPHIC) — 12KB
• img37137235_1.jpg (GRAPHIC) — 12KB
• img37137235_2.jpg (GRAPHIC) — 12KB
• img37137235_3.jpg (GRAPHIC) — 12KB
• 0000950170-24-039426.txt (&nbsp;) — 27159KB
• cnfr-20231231.xsd (EX-101.SCH) — 2464KB
• cnfr-20231231_htm.xml (XML) — 6214KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 32 Item 1C. Cybersecurity 32 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 56 Item 9A.

Controls and Procedures

Controls and Procedures 56 Item 9B. Other Information 57 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 57 Part III Items 10-14. 58 Part IV Item 15. Exhibits and Financial Statement Schedules 59 Item 16. Form 10-K Summary 109

Signatures

Signatures 110 CONIFER HOLDINGS, INC. AND SUBSIDIARIES PART I

Forward-Looking Statements

Forward-Looking Statements Certain statements contained in this Annual Report on Form 10-K, which are not statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, as Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance. Words such as "anticipate," "believe," "estimate," "expect," "will," "intend," "may," "plan," "seek" and similar terms and phrases, or the negative thereof, may be used to identify forward-looking statements. The forward-looking statements contained in this report are based on management's good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those in the forward-looking statements, including those described above in Item 1A Risk Factors and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this report speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.

B USINESS

ITEM 1. B USINESS Legal Organization Conifer Holdings, Inc. (Nasdaq: CNFR) is a Michigandomiciled insurance holding company formed in 2009. Our principal executive offices are located at 3001 West Big Beaver Road, Suite 200, Troy, MI 48084 (telephone number: (248) 559-0840). Our corporate website address is www.cnfrh.com. As used in this Form 10-K, references to "Conifer," "Conifer Holdings," "the Company," "our Company," "we," "us," and "our" refer to Conifer Holdings, Inc., a Michigan corporation, and its wholly owned subsidiaries Conifer Insurance Company ("CIC"), White Pine Insurance Company ("WPIC"), Red Cedar Insurance Company ("RCIC"), Conifer Insurance Services ("CIS") formerly known as Sycamore Insurance Agency, Inc. ("Sycamore") and, as of October 13, 2022, VSRM, Inc. ("VSRM"). CIC, WPIC and RCIC are collectively referred to as the "Insurance Company Subsidiaries." On a stand-alone basis Conifer Holdings, Inc. is referred to as the "Parent Company." VSRM owns a 50% non-controlling interest in Sycamore Specialty Underwriters, LLC ("SSU" or "Affiliate"). Business Overview Historically, the Company has engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Through our Insurance Company Subsidiaries, we offer insurance coverage in specialty commercial and specialty personal product lines. Currently, we are authorized to write insurance as an excess and surplus lines ("E&S") carrier in 45 states including the District of Columbia. We are also licensed to write insurance as an admitted carrier in 42 states, including the District of Columbia, and we offer our insurance products in all 50 states. Our revenues are primarily derived from premiums earned from our insurance operations. We also

Underwriting

Underwriting Historically, we have been focused on underwriting profitability and effective enterprise risk management. Our underwriting philosophy for our specialty commercial risks in the hospitality industry has been to look at each risk individually and selectively before writing any policies. We remain focused on small- to medium-sized businesses where the owner is often on site and in a better position to efficiently and safely run the overall operations. We understand the risks associated with the smaller enterprises and, due to lighter competition, believe we can receive a fair premium to compensate for the risk taken. With respect to commercial property coverages, we believe it is important to focus on the profitability of the insureds' business, as well as the traditional risk factors. Therefore, in addition to obtaining inspections on commercial risks, we strive to understand the insureds' business operations and bottom line to verify the underlying business is an acceptable risk. All commercial and personal policy applications have been underwritten according to established guidelines that have been provided to our independent agency force. These guidelines have been integrated into our information technology system framework and only policies that meet our guidelines are accepted by our system. Our underwriting staff has substantial industry experience in matching policy terms, conditions, and pricing to the risk profiles of our policyholders and therefore strengthens our ability to achieve profitability in the product lines we write. Commercial Lines. In writing commercial lines policies, we frequently employ tailored limiting endorsements, rating surcharges and customized limits to align our product offerings to the risk profile of the class and the specific policyholder being underwritten. Furthermore, we consistently monitor our markets so that we are able to quickly implement changes in pricing, underwriting guidelines and product offerin

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View this 10-K filing on SEC EDGAR