Presurance Holdings, Inc. Q4 FY2023 earnings call

• In the fourth quarter, a strategic decision was made to fully book to outside actuaries' point estimate to strengthen reserves, leading to a significant portion of the full year loss. - The Oklahoma Personal Lines book was non-renewed due to storm impact, now in runoff, while Texas Personal Lines continued better performance. - Personal lines will continue underwriting low-valued homeowners in Texas and Midwest. - In commercial lines, a shift to a production-based revenue model via Conifer Insurance Services (CIS) has occurred, with plans to transition to third-party A-rated insurers for commercial lines starting Q2 2024, partnering with Palomar and Accelerant. - Full year 2023 combined ratio was 135%, expense ratio was 37% (down from 38% in 2022), net investment income in Q4 was $1.4 million (up 27% from prior year).

For the full year 2023, personal lines production was roughly 26% of total premiums written, with the remaining 74% from commercial lines. In the fourth quarter, the overall combined ratio was 132%, and for the full year 2023 it was 135%. Net investment income in the fourth quarter was $1.4 million, up 27% from the prior year period. Total assets at quarter end were $312 million, with cash and total investments of $156 million.

• Expect to continue underwriting low-valued homeowners business in Texas and the Midwest for personal lines. - Starting in Q2 2024, substantially all commercial lines business will be directly written by third-party insurers with A.M. Best ratings of A- or better. - Partnering with Palomar and Accelerant to provide A-rated paper for commercial lines insurance going forward.

• Statements made in the call may constitute forward-looking statements, and actual results may differ materially due to various risks and uncertainties outlined in Conifer's filings with the SEC, including potential differences from forward-looking expectations. - Risks associated with the transition to new revenue models and underwriting in changing market conditions.

Q: A: Q: A: There appear to be no questions at this time