CNFR Shareholder/Stockholder Letter Transcript:
2023 ANNUAL REPORT
TO OUR FELLOW SHAREHOLDERS:
As we reflect on 2023, I want to take a moment to provide some insight into the numbers
we ve reported for the full year. Despite the challenges presented by the dynamic landscape of the
insurance industry and the broader economic environment, I am proud to report that our company
has navigated through the complexities with resilience and determination. Our steadfast
commitment to our core values, prudent risk management, and strategic decision-making has
positioned us well for a bright future
When looking to the future, and across the insurance landscape, it has become increasingly clear that
we need to adapt to a production-based world, in order to thrive in a rapidly changing market.
In this dynamic insurance landscape, we've made the strategic decision to transition away from the
limitations of a carrier-based revenue model towards a wholesale agency non-risk revenue model.
This shift empowers us to foster greater agility in meeting evolving market demands, while reducing
exposure to market fluctuations and enhancing stability in our bottom line. By prioritizing non-risk
revenues, we're fortifying our resilience against industry uncertainties while ensuring sustainable
growth for our company.
Whereby in years past, we had employed a risk retention model, utilizing our operating insurance
companies to write and retain underwriting risk, for commercial lines premium, we have moved to a
production-based revenue model, through our wholly-owned managing general agency Conifer
Insurance Services, or CIS.
Under this new model, starting in the second quarter of 2024, substantially all of our commercial
lines business will be directly written by third-party insurers with A.M. Best ratings of A- or better.
Utilizing third-party A-rated capacity providers for our MGA-produced business will provide a much
broader reach for existing profitable programs. Further, it will empower us to ensure a sustainable
business model going forward one that is more focused on commission revenue, and less on risk
retention through our subsidiary carriers.
I want to assure our shareholders, policyholders, and partners that this transition has been managed
thoughtfully and responsibly. We are working closely with all stakeholders to ensure a smooth and
seamless transition, minimizing any disruptions to our operations and maintaining the high
standards of service and integrity that remain our company s hallmark.
In closing, I would like to express my sincere gratitude to our shareholders for your continued
support and confidence in our company. Our success would not be possible without your trust and
partnership. As we embark on the journey ahead, I am excited about the prospects for our company
and remain committed to delivering superior returns and creating long-term value.
Sincerely,
Nicholas J. Petcoff
Director and CEO
4/26/2024 Letter Continued (Full PDF)