Conifer Holdings, Inc. (CNFR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.48 million, or $ 0.19 a share in the quarter, against a net profit of $1.33 million, or $0.21 a share in the last year period. Revenue during the quarter grew 27.83 percent to $24.31 million from $19.02 million in the previous year period.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $25.73 million, or 110.03 percent of premium earned from $17.92 million or 100.23 percent of premium earned in the last year period. Operating loss for the quarter was $1.41 million, compared with an operating income of $1.10 million in the previous year period. Net investment income was at $0.56 million for the quarter, up 10.89 percent or $0.06 million from year-ago period. The company has recorded a gain on investments of $0.07 million in the quarter compared with a gain of $0.01 million for the previous year period.
James Petcoff, chairman and chief executive officer, commented, "During the third quarter Conifer continued to produce consistent topline growth (up 18%) coupled with strong underwriting results in our core commercial lines. We are steadily expanding geographically within the specialty niche markets that our underwriters have focused on for decades, particularly in our hospitality business. Further, we are seeing considerable growth as part of our 2015 investments in specialty markets, such as security guard liability and quick service restaurants in commercial lines, as well as low-value dwellings in personal lines."
Liabilities outpace assets growth
Total assets increased 13.49 percent or $23.29 million to $195.92 million on Sep. 30, 2016. On the other hand, total liabilities were at $121.42 million as on Sep. 30, 2016, up 31.31 percent or $28.95 million from year-ago. Return on assets was negative at 0.67 percent in the quarter against a positive 0.77 percent in the last year period. Return on equity was negative at 1.98 percent in the quarter against a positive 1.51 percent in the last year period.
Investments move up
Investments stood at $132.39 million as on Sep. 30, 2016, up 22.44 percent or $24.26 million from year-ago. Meanwhile, yield on investments went down 4 basis points to 0.42 percent in the quarter. Total debt was at $14.25 million as on Sep. 30, 2016, up 46.15 percent or $4.50 million from year-ago. Shareholders equity stood at $74.50 million as on Sep. 30, 2016, down 7.06 percent or $5.66 million from year-ago. As a result, debt to equity ratio went up 7 basis points to 0.19 percent in the quarter from 0.12 percent in the last year period.
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