Presurance Holdings, Inc.

Conifer reported overall gross written premium of $19 million, down 58% year over year. The company posted a combined ratio of 124% in the second quarter, an expense ratio of 32% versus 35% target, net investment income of $1.5 million, a net realized investment loss of $118,000, net loss allocable to common shareholders of $4 million or $0.32 per share, and adjusted operating loss of $3.6 million or $0.30 per share. Total assets were $293 million, with cash and total investments of $154 million. Management did not provide explicit next-quarter or full-year financial guidance, but said it expects Oklahoma runoff to be largely completed by year-end and believes the MGA/commission model, A-rated paper, and improved personal lines weather outcomes can lead to profitability more quickly.

Nick Petcoff said the sharp top-line decline was intentional and strategic, driven by Conifer’s shift toward a commission-based MGA model and away from balance-sheet risk. He framed the change as a way to create more stable and predictable revenue, broaden distribution through agency partners, and improve long-term scalability and profitability. His tone was optimistic, emphasizing that the company is focused on reaching profitability through the combination of MGA growth, A-rated capacity, and better personal lines results.

Harold Meloche focused on the financial impact of the transition and the balance sheet. He noted gross written premium of $19 million, a 124% combined ratio, a 32% expense ratio that was 580 basis points better than last year and below the near-term target, and nearly $9 million of agency commission versus $211,000 a year ago. He also cited net investment income of $1.5 million, cash and total investments of $154 million, and said the company is considering asset sales if additional liquidity is needed.

The main analyst question asked when the company expects to become profitable and what liquidity sources are available if losses continue. Petcoff answered that the MGA model and A-rated paper should allow Conifer to achieve profitability more quickly than the old carrier model, especially with improved weather and the personal lines book they believe is solid. Meloche added that prior expense reductions have aligned costs with revenues and that, if needed, the company is considering additional asset sales for liquidity.