Presurance Holdings, Inc. Q1 FY2024 earnings call

• Made significant strides in shifting to a revenue model focused on a wholesale agency production-based approach.
• Pivoted commercial lines to a wholesale agency model to leverage agency partners, enhance distribution channels, and mitigate market risks.
• Progressed in directing premium to capacity providers across multiple lines of business and started ramping up transfer of cannabis premium to capacity partners.
• Remain committed to preserving a strong top line, streamlining expense structure, and maintaining operational profitability.
• Personal lines production is retained by operating subsidiaries, with strong performance in low-valued homeowners business in Texas and Midwest, resulting in a combined ratio of 83% for the first quarter.

In the first quarter, gross written premium decreased 33% to $24 million. Commercial lines represented roughly 52% of total gross written premiums, while personal lines made up 48%. Conifer's combined ratio was 97% in the first quarter, down 280 basis points from the same period last year. The loss ratio was 62%, steady from the first quarter of 2023. The accident year loss ratio in personal lines was 53% for the first quarter, down 20 percentage points compared to the first quarter of last year. The expense ratio was 35% for the first quarter, down 260 basis points from the same period last year. Net investment income was $1.6 million during the first quarter, up 19% from $1.3 million in the prior year period.

• Anticipate continued positive movement in results as the non-risk-based revenue model continues to progress.

• Actual results may differ materially from forward-looking statements due to various risks and uncertainties underlying forward-looking statements, as described in Conifer's filings with the SEC, including latest Form 10-K and subsequent reports.

Q: A: Q: A: