TROY, Mich., March 08, 2023 (GLOBE NEWSWIRE) -- Conifer Holdings, Inc. (Nasdaq: CNFR) ("Conifer" or the "Company") today announced results for the fourth quarter and year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights (compared to the prior year period)
- Gross written premium increased 4.6% to $34.5 million
- Net earned premiums decreased 11.3% to $23.2 million
- Expense ratio was 37.2% (420bps improvement from Q4 2021)
- Net income of $2.1 million, or $0.17 per share, based on 12.2 million weighted average shares outstanding
Year End 2022 Financial Highlights (compared to the prior year period)
- Gross written premium increased 4.5% to $138.0 million
- Net earned premium decreased 2.1% to $96.7 million
- Expense ratio down 400bps to 38.4%
Management Comments
James Petcoff, Executive Chairman and Co-CEO, commented, "Following the execution of a Loss Portfolio Transfer Agreement specific to accident years 2019 and prior, plus continued additional investments to bolster our general reserves, we are better positioned than ever to address the legacy reserve drag that had been hampering our financial results. Our refined focus on our best performing specialty verticals, in combination with our moves to strengthen overall reserves, should lead to near term and sustainable profitability."
2022 Fourth Quarter Financial Results Overview
| At and for the Three Months Ended December 31, | At and for the Year Ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||
| (dollars in thousands, except share and per share amounts) | |||||||||||||||||||||
| Gross written premiums | $ | 34,549 | $ | 33,037 | 4.6 | % | $ | 138,019 | $ | 132,095 | 4.5 | % | |||||||||
| Net written premiums | 22,252 | 22,345 | -0.4 | % | 91,232 | 101,429 | -10.1 | % | |||||||||||||
| Net earned premiums | 23,222 | 26,188 | -11.3 | % | 96,711 | 98,802 | -2.1 | % | |||||||||||||
| Net investment income | 1,112 | 419 | 165.4 | % | 3,043 | 1,968 | 54.6 | % | |||||||||||||
| Net realized investment gains (losses) | - | (1,005 | ) | ** | (1,505 | ) | 2,878 | ** | |||||||||||||
| Change in fair value of equity investments | (43 | ) | 1,214 | ** | 403 | (2,020 | ) | ** | |||||||||||||
| Gain from VSRM Transaction | 8,810 | - | ** | 8,810 | - | ** | |||||||||||||||
| Other gains (losses) | (1 | ) | (24 | ) | ** | 59 | 11,664 | ** | |||||||||||||
| Loss portfolio transfer (loss) | (5,400 | ) | - | ** | (5,400 | ) | - | ** | |||||||||||||
| Net income (loss) | 2,111 | (801 | ) | ** | (10,681 | ) | (1,094 | ) | ** | ||||||||||||
| Net income (loss) per share, diluted | $ | 0.17 | $ | (0.08 | ) | $ | (1.00 | ) | $ | (0.11 | ) | ||||||||||
| Adjusted operating income (loss)* | (1,255 | ) | (986 | ) | ** | (13,048 | ) | (13,616 | ) | ** | |||||||||||
| Adjusted operating income (loss) per share, diluted* | $ | (0.10 | ) | $ | (0.10 | ) | ** | $ | (1.22 | ) | $ | (1.40 | ) | ** | |||||||
| Book value per common share outstanding | $ | 1.55 | $ | 4.17 | $ | 1.55 | $ | 4.17 | |||||||||||||
| Weighted average shares outstanding, basic and diluted | 12,215,479 | 9,707,203 | 10,692,090 | 9,691,998 | |||||||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio (1) | 105.2 | % | 62.5 | % | 83.9 | % | 70.5 | % | |||||||||||||
| Expense ratio (2) | 37.2 | % | 41.4 | % | 38.4 | % | 42.4 | % | |||||||||||||
| Combined ratio (3) | 142.4 | % | 103.9 | % | 122.3 | % | 112.9 | % | |||||||||||||
| * The "Definitions of Non-GAAP Measures" section of this release defines and reconciles data that are not based on generally accepted accounting principles. | |||||||||||||||||||||
| ** Percentage is not meaningful | |||||||||||||||||||||
| (1) The loss ratio is the ratio, expressed as a percentage, of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations. | |||||||||||||||||||||
| (2) The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and other underwriting expenses to net earned premiums and other income from underwriting operations. | |||||||||||||||||||||
| (3) The combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss. | |||||||||||||||||||||
2022 Fourth Quarter Premiums
Gross Written Premiums
Gross written premiums increased 4.6% in the fourth quarter of 2022 to $34.5 million, compared to $33.0 million in the prior year period. The overall premium increase was achieved through a combination of rate increases and continued emphasis on growth in specialty lines, specifically in the Company's small business programs, $23.2 million in the quarter, up 6% from Q4 2021. Further supporting this increase, the Company saw continued growth in personal lines, driven by its low-value dwelling line of business.
Net Earned Premiums
Net earned premiums decreased 11.3% to $23.2 million for the fourth quarter of 2022, compared to $26.2 million for the prior year period. The decrease was due to the new specific loss reinsurance treaties that were entered into December 31, 2021 and January 1, 2022, which included 40% ceding commissions. For the year, net earned premium was down slightly at 2.1%. Despite this decrease, the Company continued to drive sustained expense ratio improvement through vigilant expense management.
Commercial Lines Financial and Operational Review
| Commercial Lines Financial Review | |||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Gross written premiums | $ | 28,571 | $ | 29,058 | -1.7 | % | $ | 116,868 | $ | 117,075 | -0.2 | % | |||||||||
| Net written premiums | 16,862 | 18,622 | -9.5 | % | 72,318 | 87,307 | -17.2 | % | |||||||||||||
| Net earned premiums | 18,726 | 22,890 | -18.2 | % | 80,823 | 87,759 | -7.9 | % | |||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio | 111.3 | % | 66.6 | % | 87.3 | % | 72.6 | % | |||||||||||||
| Expense ratio | 37.6 | % | 41.3 | % | 37.9 | % | 42.4 | % | |||||||||||||
| Combined ratio | 148.9 | % | 107.9 | % | 125.2 | % | 115.0 | % | |||||||||||||
| Contribution to combined ratio from net | |||||||||||||||||||||
| (favorable) adverse prior year development | 32.6 | % | 16.4 | % | 29.4 | % | 21.0 | % | |||||||||||||
| Accident year combined ratio (1) | 116.3 | % | 91.5 | % | 95.8 | % | 94.0 | % | |||||||||||||
| Loss ratio excluding Hurricane Ian | 94.5 | % | 66.6 | % | 83.6 | % | 72.6 | % | |||||||||||||
| Expense ratio excluding Hurricane Ian | 34.8 | % | 41.3 | % | 37.2 | % | 42.4 | % | |||||||||||||
| Combined ratio excluding Hurricane Ian | 129.3 | % | 107.9 | % | 120.8 | % | 115.0 | % | |||||||||||||
| Accident year loss ratio | |||||||||||||||||||||
| excluding Hurricane Ian | 64.4 | % | 50.2 | % | 54.7 | % | 51.6 | % | |||||||||||||
| Accident year combined ratio | |||||||||||||||||||||
| excluding Hurricane Ian | 99.2 | % | 91.5 | % | 91.9 | % | 94.0 | % | |||||||||||||
| (1) The accident year combined ratio is the sum of the loss ratio and the expense ratio, less changes in net ultimate loss estimates from prior accident year loss reserves. The accident year combined ratio provides management with an assessment of the specific policy year's profitability and assists management in their evaluation of product pricing levels and quality of business written. | |||||||||||||||||||||
The Company's commercial lines of business represented 82.7% of total gross written premium in the fourth quarter of 2022. Looking forward: the Company has re-underwritten its book to focus on select key verticals in select specialty markets where the Company has deep underwriting knowledge and experience, strong agent relationships, and runway for growth.
Commercial lines gross written premium decreased 1.7% in the fourth quarter of 2022 to $28.6 million, as the Company began narrowing its focus to write only the most profitable specialty lines.
The Commercial lines combined ratio was 148.9% for the three months ended December 31, 2022. The loss ratio was 111.3% in the quarter, due in large part to the impact of Hurricane Ian, as well as additional reserve bolstering in the period. Excluding the impact of Hurricane Ian, the loss ratio for the period drops to 94.5%, and considering the reserve impact in the quarter, the accident year loss ratio nets down to 64.4%.
The expense ratio was 37.6% for the fourth quarter of 2022, marking continued improvement from 41.3% during the prior year period.
The Company booked through the required loss corridor of the LPT purchased in Q4 2022, such that the Company expects minimal to no additional anticipated reserve impact for accident years 2019 and prior.
In the fourth quarter, excluding the impact of Hurricane Ian, the Commercial lines accident year combined ratio was 99.2%.
Personal Lines Financial and Operational Review
| Personal Lines Financial Review | |||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Gross written premiums | $ | 5,978 | $ | 3,979 | 50.2 | % | $ | 21,151 | $ | 15,020 | 40.8 | % | |||||||||
| Net written premiums | 5,390 | 3,723 | 44.8 | % | 18,914 | 14,122 | 33.9 | % | |||||||||||||
| Net earned premiums | 4,496 | 3,298 | 36.3 | % | 15,888 | 11,043 | 43.9 | % | |||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio | 79.7 | % | 34.2 | % | 66.9 | % | 53.6 | % | |||||||||||||
| Expense ratio | 35.5 | % | 42.4 | % | 41.0 | % | 41.7 | % | |||||||||||||
| Combined ratio | 115.2 | % | 76.6 | % | 107.9 | % | 95.3 | % | |||||||||||||
| Contribution to combined ratio from net | |||||||||||||||||||||
| (favorable) adverse prior year development | (0.5 | )% | 0.9 | % | 2.6 | % | 8.6 | % | |||||||||||||
| Accident year combined ratio | 115.7 | % | 75.7 | % | 105.3 | % | 86.7 | % | |||||||||||||
| Loss ratio excluding Hurricane Ian | 72.5 | % | 34.2 | % | 64.8 | % | 53.6 | % | |||||||||||||
| Expense ratio excluding Hurricane Ian | 35.3 | % | 42.4 | % | 40.9 | % | 41.7 | % | |||||||||||||
| Combined ratio excluding Hurricane Ian | 107.8 | % | 76.6 | % | 105.7 | % | 95.3 | % | |||||||||||||
| Accident year loss ratio | |||||||||||||||||||||
| excluding Hurricane Ian | 73.0 | % | 33.3 | % | 62.2 | % | 45.0 | % | |||||||||||||
| Accident year combined ratio | |||||||||||||||||||||
| excluding Hurricane Ian | 108.3 | % | 75.7 | % | 103.1 | % | 86.7 | % | |||||||||||||
Personal lines, representing 17.3% of total gross written premium for the fourth quarter of 2022, consists largely of low-value dwelling homeowner's insurance.
Personal lines gross written premium increased 50.2% to $6.0 million in the fourth quarter of 2022 compared to the prior year period, led by growth in the Company's low-value dwelling line of business in Texas and Oklahoma.
Personal lines combined ratio was 115.2% for the three months ended December 31, 2022; excluding the impact of Hurricane Ian, the combined ratio was 107.8%. For the full year 2022, the personal lines combined ratio was 107.9%; excluding the impact of Hurricane Ian, it was 105.7%. Personal Lines experienced a few more severe fire losses in 2022 than the recent historical averages which added to the loss ratio.
The personal lines accident year combined ratio, excluding Hurricane Ian, was 108.3% for the fourth quarter of 2022; for the twelve months, the accident year combined ratio was 103.1% excluding the impact of Hurricane Ian.
Combined Ratio Analysis
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| Underwriting ratios: | |||||||||||
| Loss ratio | 105.2 | % | 62.5 | % | 83.9 | % | 70.5 | % | |||
| Expense ratio | 37.2 | % | 41.4 | % | 38.4 | % | 42.4 | % | |||
| Combined ratio | 142.4 | % | 103.9 | % | 122.3 | % | 112.9 | % | |||
| Contribution to combined ratio from net (favorable) | |||||||||||
| adverse prior year development | 26.2 | % | 14.5 | % | 25.0 | % | 19.6 | % | |||
| Accident year combined ratio | 116.2 | % | 89.4 | % | 97.3 | % | 93.3 | % | |||
| Loss ratio excluding Hurricane Ian | 90.5 | % | 62.5 | % | 80.6 | % | 70.5 | % | |||
| Expense ratio excluding Hurricane Ian | 34.9 | % | 41.4 | % | 37.8 | % | 42.4 | % | |||
| Combined ratio excluding Hurricane Ian | 125.4 | % | 103.9 | % | 118.4 | % | 112.9 | % | |||
| Accident year loss ratio | |||||||||||
| excluding Hurricane Ian | 65.9 | % | 48.0 | % | 55.9 | % | 50.9 | % | |||
| Accident year combined ratio | |||||||||||
| excluding Hurricane Ian | 100.8 | % | 89.4 | % | 93.7 | % | 93.3 | % | |||
Combined Ratio:
The Company's combined ratio was 142.4% for the quarter ended December 31, 2022, due largely to the combined impact of Hurricane Ian and additional reserve bolstering. The combined ratio was 122.3% for the year ended December 31, 2022. The Company's accident year combined ratio for the twelve-month period was 97.3%; excluding the impact of Hurricane Ian, the accident year combined ratio for the full year was 93.7%.
Loss Ratio:
The Company's losses and loss adjustment expenses were $24.5 million for the three months ended December 31, 2022. The accident year loss ratio, excluding the impact of Hurricane Ian, was 55.9% for the full year 2022, which aligns with the Company's target loss ratio in its select specialty lines of business.
Expense Ratio:
Improvements continue, due to the Company's emphasis on expense management: the expense ratio for the fourth quarter of 2022 was 37.2%, down from 41.4% in the prior year period. For the full year 2022, the expense ratio improved 400 basis points to 38.4%
Net Investment Income
Net investment income was $1.1 million during the quarter ended December 31, 2022, compared to $419,000 in the prior year period. For the full year 2022, net investment income was $3.0 million, up from $2.0 million for the full year 2021.
Net Realized Investment Gains (Losses)
Net realized investment gains were flat during the fourth quarter of 2022, compared to net realized investment losses of $1.0 million in the prior year period.
Change in Fair Value of Equity Securities
During the quarter, the Company reported a small loss from the change in fair value of equity investments of $43,000, compared to a gain of $1.2 million in the prior year period. For the full year 2022, the Company reported a gain of $403,000, compared to a $2.0 million loss in 2021.
Net Income (Loss)
The Company reported net income of $2.1 million, or $0.17 per share, for the fourth quarter of 2022; an improvement compared to a net loss of $801,000, or $0.08 per share, in the prior year period.
Adjusted Operating Income (Loss)
In the fourth quarter of 2022, the Company reported an adjusted operating loss of $1.3 million, or $0.10 per share, compared to an adjusted operating loss of $986,000, or $0.10 per share, for the same period in 2021. See Definitions of Non-GAAP Measures.
Earnings Conference Call with Accompanying Slide Presentation
The Company will hold a conference call/webcast on Thursday, March 9, 2023 at 8:30 a.m. ET to discuss results for the fourth quarter and year ended December 31, 2022.
Investors, analysts, employees and the general public are invited to listen to the conference call via:
| Webcast: | On the Event Calendar at IR.CNFRH.com | |
| Conference Call: | 844-868-8843 (domestic) or 412-317-6589 (international) |
The webcast will be archived on the Conifer Holdings website and available for replay for at least one year.
About Conifer Holdings
Conifer Holdings, Inc. is a specialty insurance holding company, offering customized coverage solutions tailored to the needs of our insureds nationwide. Conifer is traded on the NASDAQ exchange under the symbol "CNFR". Additional information is available on the Company's website at www.CNFRH.com.
Definitions of Non-GAAP Measures
Conifer prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.
We believe that investors' understanding of Conifer's performance is enhanced by our disclosure of adjusted operating income. Our method for calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding the after-tax amounts of: 1) net realized investment gains and losses, 2) change in fair value of equity securities, 3) gain from VSRM Transaction, 4) Loss portfolio transfer (loss) and 5) Other gains (losses). We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.
Reconciliations of adjusted operating income and adjusted operating income per share:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (dollar in thousands, except share and per share amounts) | |||||||||||||||
| Net income (loss) | $ | 2,111 | $ | (801 | ) | $ | (10,681 | ) | $ | (1,094 | ) | ||||
| Less: | |||||||||||||||
| Net realized investment gains (losses), net of tax | - | (1,005 | ) | (1,505 | ) | 2,878 | |||||||||
| Change in fair value of equity securities, net of tax | (43 | ) | 1,214 | 403 | (2,020 | ) | |||||||||
| Gain from VSRM Transaction, net of tax | 8,810 | - | 8,810 | - | |||||||||||
| Loss portfolio transfer (loss), net of tax | (5,400 | ) | - | (5,400 | ) | - | |||||||||
| Other gains (losses), net of tax | (1 | ) | (24 | ) | 59 | 11,664 | |||||||||
| Adjusted operating income (loss) | $ | (1,255 | ) | $ | (986 | ) | $ | (13,048 | ) | $ | (13,616 | ) | |||
| Weighted average common shares, diluted | 12,215,479 | 9,707,203 | 10,692,090 | 9,691,998 | |||||||||||
| Diluted income (loss) per common share: | |||||||||||||||
| Net income (loss) | $ | 0.17 | $ | (0.08 | ) | $ | (1.00 | ) | $ | (0.11 | ) | ||||
| Less: | |||||||||||||||
| Net realized investment gains (losses), net of tax | - | (0.10 | ) | (0.14 | ) | 0.30 | |||||||||
| Change in fair value of equity securities, net of tax | (0.01 | ) | 0.12 | 0.04 | (0.21 | ) | |||||||||
| Gain from VSRM Transaction, net of tax | 0.72 | - | 0.82 | - | |||||||||||
| Loss portfolio transfer (loss), net of tax | (0.44 | ) | - | (0.51 | ) | - | |||||||||
| Other gains (losses), net of tax | - | - | 0.01 | 1.20 | |||||||||||
| Adjusted operating income (loss), per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (1.22 | ) | $ | (1.40 | ) | |||
Forward-Looking Statement
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Conifer's expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release 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, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our form 10-K ("Item 1A Risk Factors") filed with the SEC on March 10, 2022 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.
For Further Information:
Jessica Gulis, 248.559.0840
ir@cnfrh.com
| Conifer Holdings, Inc. and Subsidiaries | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (dollars in thousands) | |||||||||||
| December 31, | December 31, | ||||||||||
| 2022 | 2021 | ||||||||||
| Assets | (Unaudited) | ||||||||||
| Investment securities: | |||||||||||
| Debt securities, at fair value (amortized cost of $127,119 and | $ | 110,201 | $ | 149,783 | |||||||
| $150,732, respectively) | |||||||||||
| Equity securities, at fair value (cost of $1,905 and $10,972, respectively) | 1,267 | 9,931 | |||||||||
| Short-term investments, at fair value | 25,929 | 23,013 | |||||||||
| Total investments | 137,397 | 182,727 | |||||||||
| Cash and cash equivalents | 28,035 | 9,913 | |||||||||
| Premiums and agents' balances receivable, net | 21,802 | 21,197 | |||||||||
| Receivable from Affiliate | 1,261 | 5,784 | |||||||||
| Reinsurance recoverables on unpaid losses | 82,651 | 40,344 | |||||||||
| Reinsurance recoverables on paid losses | 6,653 | 1,347 | |||||||||
| Prepaid reinsurance premiums | 16,399 | 8,301 | |||||||||
| Deferred policy acquisition costs | 10,290 | 12,267 | |||||||||
| Other assets | 7,862 | 8,524 | |||||||||
| Total assets | $ | 312,350 | $ | 290,404 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Unpaid losses and loss adjustment expenses | $ | 165,539 | $ | 139,085 | |||||||
| Unearned premiums | 67,887 | 65,269 | |||||||||
| Reinsurance premiums payable | 6,144 | 5,318 | |||||||||
| Debt | 33,876 | 33,564 | |||||||||
| Accounts payable and accrued expenses | 19,954 | 6,665 | |||||||||
| Total liabilities | 293,400 | 249,901 | |||||||||
| Commitments and contingencies | - | - | |||||||||
| Shareholders' equity: | |||||||||||
| Common stock, no par value (100,000,000 shares authorized; 12,215,849 and | |||||||||||
| 9,707,817 issued and outstanding, respectively) | 97,913 | 92,692 | |||||||||
| Accumulated deficit | (60,760 | ) | (50,079 | ) | |||||||
| Accumulated other comprehensive income (loss) | (18,203 | ) | (2,110 | ) | |||||||
| Total shareholders' equity | 18,950 | 40,503 | |||||||||
| Total liabilities and shareholders' equity | $ | 312,350 | $ | 290,404 | |||||||
| Conifer Holdings, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||
| (dollars in thousands, except share and per share data) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
| Revenue and Other Income | |||||||||||||||||||
| Premiums | |||||||||||||||||||
| Gross earned premiums | $ | 34,454 | $ | 32,805 | $ | 135,401 | $ | 123,050 | |||||||||||
| Ceded earned premiums | (11,232 | ) | (6,617 | ) | (38,690 | ) | (24,248 | ) | |||||||||||
| Net earned premiums | 23,222 | 26,188 | 96,711 | 98,802 | |||||||||||||||
| Net investment income | 1,112 | 419 | 3,043 | 1,968 | |||||||||||||||
| Net realized investment gains (losses) | - | (1,005 | ) | (1,505 | ) | 2,878 | |||||||||||||
| Change in fair value of equity securities | (43 | ) | 1,214 | 403 | (2,020 | ) | |||||||||||||
| Gain from VSRM Transaction | 8,810 | - | 8,810 | - | |||||||||||||||
| Loss portfolio transfer (loss) | (5,400 | ) | - | (5,400 | ) | - | |||||||||||||
| Other gains (losses) | (1 | ) | (24 | ) | 59 | 11,664 | |||||||||||||
| Other income | 804 | 697 | 2,768 | 2,671 | |||||||||||||||
| Total revenue and other income | 28,504 | 27,489 | 104,889 | 115,963 | |||||||||||||||
| Expenses | |||||||||||||||||||
| Losses and loss adjustment expenses, net | 24,500 | 16,414 | 81,440 | 69,861 | |||||||||||||||
| Policy acquisition costs | 4,760 | 7,632 | 22,179 | 28,451 | |||||||||||||||
| Operating expenses | 5,779 | 3,741 | 18,789 | 16,509 | |||||||||||||||
| Interest expense | 755 | 698 | 2,971 | 2,852 | |||||||||||||||
| Total expenses | 35,794 | 28,485 | 125,379 | 117,673 | |||||||||||||||
| Income (loss) before equity earnings in Affiliate and income taxes | (7,290 | ) | (996 | ) | (20,490 | ) | (1,710 | ) | |||||||||||
| Equity earnings in Affiliate, net of tax | - | 212 | 368 | 824 | |||||||||||||||
| Income tax expense (benefit) | (9,401 | ) | 17 | (9,441 | ) | 208 | |||||||||||||
| Net income (loss) | 2,111 | (801 | ) | (10,681 | ) | (1,094 | ) | ||||||||||||
| Earnings (loss) per common share, | |||||||||||||||||||
| basic and diluted | $ | 0.17 | $ | (0.08 | ) | $ | (1.00 | ) | $ | (0.11 | ) | ||||||||
| Weighted average common shares outstanding, | |||||||||||||||||||
| basic and diluted | 12,215,479 | 9,707,203 | 10,692,090 | 9,691,998 | |||||||||||||||
