 Company to Host Conference Call at 8:30 AM ET on Thursday, August 13, 2020BIRMINGHAM, Mich., Aug. 12, 2020 GLOBE NEWSWIRE -- Conifer Holdings, Inc. Nasdaq: CNFR Conifer or the Company today announced results for the second quarter ended June 30, 2020. Second Quarter 2020 Financial Highlights compared to the prior year period Gross written premium increased 9.4 to 27.5 million The Companys overall combined ratio was 100.5 accident year combined ratio was 86.6 Commercial lines represented approximately 93 of gross written premium Commercial Lines combined ratio improved 6 percentage points to 101.7 accident year combined ratio was 86.5 Personal Lines combined ratio was 85.7 accident year combined ratio was 86.9 Net income of 1.5 million, or 0.16 per share, based on 9.6 million average shares outstanding Book value per share of 4.51 as of June 30, 2020, an improvement of 18.4 sequentially from 3.81 at March 31, 2020Management Comments James Petcoff, Chairman and CEO, commented, We are pleased to report solid financial results for the period, and a return to profitability, led by growth in our core lines of business. We are continuing to take a conservative approach during an uncertain period due to the global pandemic, but we believe that our continued focus on our core specialty lines has produced anticipated positive results. We remain focused on improving our overall expense structure, and growing steadily in the lines of business where Conifer can be a profitable market leader. 2020 Second Quarter Financial Results Overview At and for the Three Months Ended June 30, At and for the Six Months Ended June 30, 2020 2019 Change 2020 2019 Change dollars in thousands, except share and per share amounts Gross written premiums27,545 25,169 9.4 52,629 49,385 6.6 Net written premiums 23,065 21,434 7.6 44,116 41,756 5.7 Net earned premiums 21,758 21,349 1.9 43,775 43,036 1.7 Net investment income 863 1,051 -17.9 1,817 1,961 -7.3 Net realized investment gains 245 715 1,173 734 Change in fair value of equity investments 1,576 915 1,510 350 Other gains 145 - 260 - Net income loss 1,505 2,884 3,220 3,564 Net income loss per share, diluted0.16 0.34 0.34 0.42 Adjusted operating income loss 461 5,597 3,143 9,844 Adjusted operating income loss per share, diluted0.04 0.67 0.33 1.17 Book value per common share outstanding4.51 4.89 4.51 4.89 Weighted average shares outstanding, basic and diluted 9,595,668 8,370,782 9,594,221 8,411,835 Underwriting ratios: Loss ratio 1 54.6 67.1 59.6 66.8 Expense ratio 2 45.9 45.9 46.5 43.7 Combined ratio 3 100.5 113.0 106.1 110.5 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 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. 2020 Second Quarter Premiums Gross Written Premiums Gross written premiums increased 9.4 in the second quarter of 2020 to 27.5 million, compared to 25.2 million in the prior year period. The increase was largely due to growth in commercial specialty lines, as retention levels remain higher than historical averages in addition to improved rate activity. The overall premium increase was supplemented by continued growth in the Companys personal lines, driven by its low-value dwelling line of business.Net Earned Premiums Net earned premiums increased 1.9 to 21.8 million for the second quarter of 2020, compared to 21.3 million for the prior year period.Commercial Lines Financial and Operational Review Commercial Lines Financial Review Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Change 2020 2019 Change dollars in thousands Gross written premiums25,600 23,459 9.1 49,044 46,043 6.5 Net written premiums 21,377 20,178 5.9 41,064 39,484 4.0 Net earned premiums 20,105 20,154 -0.2 40,536 40,852 -0.8 Underwriting ratios: Loss ratio 55.9 62.1 60.8 61.3 Expense ratio 45.8 45.6 46.5 43.0 Combined ratio 101.7 107.7 107.3 104.3 Contribution to combined ratio from net favorable adverse prior year development 15.2 7.2 16.6 5.8 Accident year combined ratio 1 86.5 100.5 90.7 98.5 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 years profitability and assists management in their evaluation of product pricing levels and quality of business written. The Companys commercial lines of business, representing 93 of total gross written premium in the second quarter of 2020, primarily consists of property and liability coverage offered to owner-operated small- to mid-sized businesses. Commercial lines gross written premium increased 9.1 in the second quarter of 2020, as the Company continues to shift its mix towards more profitable specialty lines.Commercial lines combined ratio was 101.7 for the three months ended June 30, 2020, compared to 107.7 in the prior year period, largely due to a 6.2 percentage point improvement in the loss ratio. Commercial lines accident year combined ratio was 86.5 for the quarter.Personal Lines Financial and Operational Review Personal Lines Financial Review Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Change 2020 2019 Change dollars in thousands Gross written premiums1,945 1,710 13.7 3,585 3,342 7.3 Net written premiums 1,688 1,256 34.4 3,052 2,272 34.3 Net earned premiums 1,653 1,195 38.3 3,239 2,184 48.3 Underwriting ratios: Loss ratio 39.6 147.8 44.6 165.7 Expense ratio 46.1 50.1 46.6 57.4 Combined ratio 85.7 197.9 91.2 223.1 Contribution to combined ratio from net favorable adverse prior year development 1.2 74.8 1.4 88.5 Accident year combined ratio 86.9 123.1 89.8 134.6 Personal lines, representing 7 of total gross written premium for the second quarter of 2020, consists largely of low-value dwelling homeowners insurance. Personal lines gross written premium increased 13.7 to 2.0 million in the second quarter of 2020 compared to the prior year period, largely due to renewed growth in the Companys low-value dwelling line of business.Personal lines combined ratio was 85.7 for the three months ended June 30, 2020, compared to 197.9 in the prior year period. Personal lines loss ratio for the three months ended June 30, 2020 improved considerably to 39.6, compared to 147.8 in the prior year period, largely driven by significantly lower losses from wind-exposed homeowners lines specifically Florida homeowners.The personal lines accident year combined ratio was 86.9 for the quarter.Combined Ratio Analysis Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 dollars in thousands Underwriting ratios: Loss ratio54.6 67.1 59.6 66.8 Expense ratio45.9 45.9 46.5 43.7 Combined ratio100.5 113.0 106.1 110.5 Contribution to combined ratio from net favorable adverse prior year development13.9 11.2 15.4 10.1 Accident year combined ratio86.6 101.8 90.7 100.4 Combined Ratio The Companys combined ratio was 100.5 for the quarter ended June 30, 2020, compared to 113.0 for the same period in 2019. The Companys accident year combined ratio for the quarter ended June 30, 2020 was 86.6, compared to 101.8 in the prior year period.Loss Ratio: The Companys losses and loss adjustment expenses were 11.9 million for the three months ended June 30, 2020, compared to 14.4 million in the prior year period. This resulted in a lower loss ratio of 54.6, compared to 67.1 in the prior year period.Expense Ratio: The expense ratio was 45.9 for the second quarter of 2020, remaining flat compared to the prior year period.Net Investment Income Net investment income was 863,000 during the quarter ended June 30, 2020, compared to 1.1 million in the prior year period. Net realized gains during the second quarter were 245,000, compared to net realized gain of 715,000 in the prior year period.Change in Fair Value of Equity Securities During the quarter, the Company reported a gain from change in fair value of equity investments of 1. 