Conifer Holdings, Inc. (CNFR): Business Model Canvas [Dec-2025 Updated]

You're digging into Presurance Holdings, Inc.'s (formerly CNFR) new game plan after their late 2025 restructuring, and honestly, it's a sharp pivot you need to map out. This isn't the old conglomerate; the new model is laser-focused on specialty personal lines-think low-value dwellings in storm-prone Texas and the Midwest-backed by a conservative investment portfolio that brought in $1.3 million in net investment income in Q2 2025. To really understand the near-term risks, like managing the costs from that new quota share treaty or servicing the debt from those 9.75% Senior Notes, you need to see the whole picture; check out the nine building blocks below to see exactly how they plan to underwrite and grow this streamlined operation.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Key Partnerships

Conifer Holdings, Inc. relies on several external entities to manage risk, distribute products, and support its capital structure, especially following the strategic shift away from its agency operations.

Reinsurance Support

The core insurance subsidiary, TIC, secured a new 50% homeowners quota share treaty, effective June 1, 2025, to manage risk exposure in that line of business. This reinsurance arrangement is critical as Personal Lines represented 87.4% of total gross written premium for the first quarter of 2025.

Distribution Network

Conifer Holdings, Inc. continues to market its specialty insurance coverage largely through its network of independent agents across all 50 states. While the company aimed to decrease concentration, in 2022, the top four independent agencies still accounted for approximately 45% of personal lines gross written premiums.

MGA Unit Divestiture

The former specialty commercial Managing General Agency (MGA) unit, Conifer Insurance Services, was sold to Bishop Street Underwriters. The transaction closed in September 2024. The initial sale price was $45 million, with a potential for up to an additional $25 million based on future performance. Bishop Street Underwriters is a platform owned by RedBird Capital Partners.

Capacity Providers and Investment Management

The current business model relies on commission revenues generated by the MGA function, which is supported by producer agreements with third-party insurers providing capacity. The investment portfolio, which helps fund operations and service debt, is managed conservatively, with a majority allocation to fixed income securities.

Key financial and operational metrics related to these partnerships as of late 2025 reporting periods:

The company's insurer subsidiary, TIC, reported an estimated RBC ratio improvement to approximately 261% following a capital contribution and the new quota share.

The investment portfolio's tax-equivalent yield was reported at 3.4% in Q2 2024 data. Conifer Holdings, Inc. reported $0.894 million in cash at the parent company level as of September 30, 2025, with quarterly public debt interest around $412,000.

The company's strategy involves treating agents as partners, actively soliciting their input for business method improvements and new product development. The MGA unit that was sold operated three programs, focusing on main street small and medium sized enterprises (SMEs), hospitality, and auto dealers.

• Conifer Holdings, Inc. utilizes a variety of distribution channels, but largely markets through independent agents.
• The company retains sole binding authority on the majority of its business.
• The investment strategy emphasizes holding only investment grade securities from high credit quality issuers.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Key Activities

You're looking at the core engine of Conifer Holdings, Inc. after its major 2024 restructuring. The key activities now heavily favor specialty personal lines production while managing the wind-down of the old commercial book. Here's the quick math on what they are actively doing right now.

Disciplined underwriting of specialty personal lines

This activity centers on growing the profitable personal lines book, specifically low-value dwelling homeowner's insurance in Texas and the Midwest. For the first quarter ended March 31, 2025, personal lines gross written premiums (GWP) increased 22.3% year-over-year to $14.1 million. This segment represented 87.4% of total GWP for that quarter. You saw personal lines production up 22% for the period. The focus here is on quality over volume, which is why the underwriting results are so important.

The performance metrics for this core activity look like this:

Claims management and loss adjustment for personal lines

Managing claims effectively is what keeps that personal lines combined ratio under control. For the first quarter of 2025, the loss ratio was noted as being impacted by ordinary seasonal storms, largely in Texas. Honestly, if onboarding takes 14+ days, churn risk rises, and the same applies to claims resolution speed.

• The Personal Lines combined ratio for the three months ended March 31, 2024, was 83.0%.
• Losses and loss adjustment expenses were $10.5 million for Q1 2024, resulting in a loss ratio of 62.0% for that period.

Active management of the investment portfolio

You'll see the investment portfolio activity reflected in the non-underwriting income. For the second quarter ending June 30, 2025, the company reported total comprehensive income of $2.6 million, which was driven by unrealized investment gains. Net investment income for the first quarter of 2025 was $1,289 thousand. This compares to $1.5 million in net investment income for Q2 2024. The full year 2024 net investment income was $5.8 million.

Runoff management of legacy Commercial Lines exposures

This activity is about shrinking the legacy commercial book and managing the associated liabilities. As of Q2 2025, Conifer Holdings, Inc. is actively managing its run-off commercial lines. This follows a massive strategic shift; for the full year 2024, total Gross Written Premium was down almost 50% from the prior year. In Q1 2025, commercial lines represented only 12.6% of total GWP, a considerable decrease from when it was 74% of the total book in 2023. The company moved its catastrophe-hit Oklahoma homeowners business into runoff as well, starting in 2024.

Regulatory compliance and financial reporting

This is the necessary infrastructure supporting the business model shift. Looking at the balance sheet as of June 30, 2025, total assets were $283.3 million, and shareholders' equity rose to $28.2 million. Book value per common share outstanding increased to $2.09 as of March 31, 2025. Management's focus going forward includes improving the risk-based capital ratio and maintaining regulatory compliance.

• Shareholders' equity as of June 30, 2025: $28.2 million.
• Total assets as of June 30, 2025: $283.3 million.
• Book value per common share outstanding as of March 31, 2025: $2.09.

Finance: draft 13-week cash view by Friday.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Key Resources

You're looking at the core assets Conifer Holdings, Inc. (CNFR) relies on to execute its strategy as of late 2025, right after the rebrand to Presurance Holdings, Inc. in September 2025. These are the tangible and intangible things the business must have to make its model work.

The financial foundation supporting the underwriting risk is a key asset. You see the statutory capital and surplus figures directly reflecting the solvency position of the insurance subsidiaries.

The investment portfolio is definitely a resource, generating income even as the core underwriting business navigates a pivot. That Q2 2025 net investment income came in at $1.3 million. That's a concrete number you can track.

The intellectual property, specifically the underwriting expertise, is crucial for their focused strategy. While the search didn't explicitly name a 'proprietary model,' the focus is clearly on specific risk classes where they maintain in-house authority.

• Underwriting teams retain authority in-house for select specialty programs.
• Focus is on Personal Lines, specifically low-value dwelling homeowners' insurance.
• The company has experience with specialty insurance products allowing reaction to new market opportunities.

The management team is a resource, especially one driving a significant strategic shift away from agency operations and commercial runoff. CEO Brian Roney has been vocal about streamlining the organization and focusing on core lines going forward. That pivot is a management-driven action.

Finally, the legal right to transact business is non-negotiable for an insurer. You need to know where they are licensed to write policies.

• The company is Michigan-based.
• Homeowners lines are offered in Texas, Illinois, and Indiana.
• Other lines are offered in Nevada and Michigan.
• The subsidiaries generally write E&S (Excess & Surplus) in 49 States (Exc. NY).

Finance: draft 13-week cash view by Friday.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Conifer Holdings, Inc. (which is rebranding to Presurance Holdings, Inc. effective September 30, 2025). The value proposition centers on a highly focused, specialized underwriting niche supported by a proven distribution channel.

Specialty insurance coverage for low-value dwellings is the heart of the offering. This isn't about insuring every home; it's about providing specialty homeowners insurance and dwelling fire insurance products specifically tailored for owners of lower-valued homes. This focus helps Conifer Holdings, Inc. target profitable classes of policyholders often underserved by larger, more commoditized carriers.

The geographic concentration is key to managing this specialty risk. The growth engine is clearly the Personal Lines business, which is primarily this low-value dwelling coverage in specific storm-prone areas. Here's the quick math on how focused the business is as of mid-2025:

This pivot away from Commercial Lines is a direct result of the restructuring, including the sale of agency operations in August 2024. The Commercial Lines segment, which saw significant reserve strengthening in 2024, is now a minimal part of the book, with its Q2 2025 GWP share at just 15.1%. What this estimate hides is the ongoing runoff and reserve management in that legacy book.

Financial stability is buttressed by a disciplined approach to the balance sheet, particularly in investments. The company emphasizes a conservative investment strategy. You can see this reflected in the investment income:

• Net Investment Income for Q2 2025 was $1.3 million.
• Net Investment Income for Q1 2025 was $1.3 million.
• As of Q2 2024, the investment portfolio featured an average credit quality of AA+ and an average duration of 2.6 years, indicating a preference for high-quality, shorter-duration fixed income securities.

The resulting book value per common share stood at $2.31 as of June 30, 2025. That's a solid number, though management noted the increase was largely due to GAAP treatment of an expected earnout payment.

Access to coverage is delivered through a well-established distribution channel. Conifer Holdings, Inc. uses a network of independent agents, which they view as key partners in risk selection. They market and sell products through this network, which includes over 4,500 independent agents operating out of approximately 2,200 sales offices across 44 states. This broad network helps drive the growth in their core Personal Lines business.

Finally, the product offering is simplified and focused post-restructuring. The value proposition is now almost entirely centered on the Personal Lines portfolio, specifically the low-value dwelling homeowners' insurance in Texas and the Midwest. The company stopped writing homeowners business in Oklahoma by the end of the second half of 2024, further streamlining the underwriting footprint. This focus lets them concentrate underwriting expertise where they believe they have a sustainable advantage. It's a much cleaner business model now, defintely.

Finance: draft 13-week cash view by Friday.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Customer Relationships

The Customer Relationships for Presurance Holdings, Inc. (formerly Conifer Holdings, Inc.) are structured to support a specialty insurance model that relies heavily on external distribution partners while maintaining direct, high-touch service for the insured when it matters most.

Indirect relationship managed primarily through independent agents remains the core distribution strategy, even after the divestiture of the company's own agency operations in August 2024. This structure positions the agents as key partners in risk selection, serving the ultimate client-the insured.

The scale of this indirect network, based on prior reporting, involves a substantial number of external partners:

High-touch claims service for policyholders during storm events is a critical component, especially given the focus on personal lines like homeowners and low-value dwelling coverage in states such as Texas. For the three months ended March 31, 2025, the loss ratio was impacted by ordinary seasonal storms, largely in Texas, indicating active claims exposure management during that period.

The company supports its distribution channel through several means, though specific 2025 metrics are not public:

• Agent support and training for product knowledge, necessary for specialty niche insureds.
• Digital tools for agents to quote and bind policies, aiming for short turn-around times and responsiveness.

Focus on long-term policyholder retention is implied by the strategic shift toward personal lines, which generally seeks more stable, recurring revenue streams compared to the commercial lines segment the company is moving away from. The company reported net income allocable to common shareholders of $522,000 for the first quarter of 2025, showing a return to profitability following the agency sale restructuring.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Channels

The primary distribution channel for Conifer Holdings, Inc. (CNFR), now rebranding to Presurance Holdings, Inc. as of September 29, 2025, is through independent wholesale and retail insurance agents. This aligns with the strategic pivot to a wholesale agency production-based revenue model, where revenue is derived from commissions and policy fees rather than direct premiums written. For the second quarter of 2025, Personal Lines, which is heavily marketed through these agents, represented 84.9% of the total Gross Written Premium (GWP) for the quarter.

The company's corporate website, located at www.cnfrh.com, serves as a channel primarily for investor relations and basic corporate information. While the company has been actively reporting financial results, such as the Q2 2025 results showing net income allocable to common shareholders of $2.1 million, or $0.17 per share, this website is not the primary point of sale for insurance products.

Internal underwriting teams remain key to supporting agent submissions, especially for the core Personal Lines business, which consists primarily of low-value dwelling homeowners insurance in Texas and the Midwest. The company underwrites substantially all policies to its specific guidelines using this in-house team. Furthermore, risk transfer mechanisms, which support the MGA model, include a new 50% homeowners quota share treaty that became effective June 1, 2025, which impacts net earned premium.

Regarding claims handling, while the prompt specifies Third-Party Administrators (TPAs), the company's structure emphasizes proactive claims handling and risk transfer. The strategic shift to the MGA model means that for MGA-produced business, the company utilizes third-party insurers as underwriters, which is a related channel component for risk placement. The company's total assets stood at $301 million at the end of Q1 2025.

Here's a look at the premium production mix for the second quarter of 2025, reflecting the channel focus:

The reliance on the agent network is further detailed by the following operational focus areas:

• Marketing specialty insurance coverage for both commercial and personal lines.
• Focusing underwriting efforts on Personal Lines, notably the Texas and Midwest homeowners portfolio.
• The wholesale agency business provides non-risk bearing revenue through commissions and policy fees.
• The company's structure allows offering both admitted and Excess and Surplus lines (E&S) products.

For the first quarter of 2025, the expense ratio, which includes policy acquisition costs from agents, was 50.8%, leading to a combined ratio of 140.5%.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Customer Segments

You're looking at the core groups Conifer Holdings, Inc. serves as of late 2025, right after their strategic pivot. The focus has clearly narrowed, which you see reflected in the premium mix.

Owners of low-value dwelling properties in Texas and the Midwest represent the primary customer base, driving the growth in the Personal Lines segment. This is where the underwriting effort is concentrated.

• Personal Lines gross written premium (GWP) was 87.4% of total GWP for the first quarter of 2025.
• In the second quarter of 2025, this segment grew to represent 84.9% of total GWP.
• Personal Lines GWP saw a 22.3% year-over-year increase in Q1 2025, reaching $14.1 million.
• By Q2 2025, Personal Lines GWP had increased 46.8% from the prior year to $17.9 million.
• The Personal Lines combined ratio for the third quarter of 2025 stood at 95.2%.

Individuals seeking specialty homeowners' insurance coverage are essentially the same group as above, specifically targeted through the low-value dwelling line of business. The company is committed to this niche, which is a key differentiator from larger, standard carriers.

Small commercial businesses (shrinking segment in runoff) are the legacy book that Conifer Holdings, Inc. is actively moving away from, largely due to the 2024 agency sale. This segment is now in a runoff phase, meaning new business is minimal, and the focus is on managing existing policies and reserves.

The transition away from Commercial Lines is stark; for context, in the fourth quarter of 2024, commercial lines premium had dropped 79% year-over-year, making up just 23% of total GWP then. That trend of shrinkage definitely continued into 2025.

Independent insurance agents seeking specialty market access are critical as the main distribution channel, not direct customers, but they connect the product to the end-user. Conifer Holdings, Inc. markets and sells its insurance products across all 50 states using this network.

• The distribution network consists of approximately 4,600 independent agents.
• The wholesale agency business, which supports this channel, generates non-risk bearing revenue through commissions and policy fees.

For a sense of the overall scale as of late 2025, the trailing twelve-month revenue, as of September 30, 2025, was $44.2M. The company's market capitalization on November 12, 2025, was $14.3M, with 12.2M shares outstanding. Finance: draft 13-week cash view by Friday.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Cost Structure

You're looking at the core costs driving Conifer Holdings, Inc.'s operations as of late 2025, focusing on the numbers that hit the bottom line. Honestly, the expense structure shows the ongoing impact of the strategic shift and new reinsurance arrangements.

Net Losses and Loss Adjustment Expenses (LAE) from Underwriting

For the third quarter of 2025, Conifer Holdings reported a net loss of $3.97 million. This loss was an improvement compared to the $6.89 million loss reported in the third quarter of 2024. The losses and LAE component of the cost structure also showed improvement in the quarter, declining to $6.39 million in Q3 2025 from $15.15 million in Q3 2024. The company is clearly managing the severity of claims better, though the overall underwriting result remains a cost center.

Here's a look at the underwriting results for the first half of 2025 versus 2024:

High Expense Ratio, Which Increased Due to a Quota Share Treaty in Q2 2025

The expense ratio, which covers policy acquisition costs and general overhead, has been elevated due to a key reinsurance change. Specifically, the expense ratio for the second quarter of 2025 rose to 52.3%, a significant jump from 32.1% in the second quarter of 2024. This increase was partly attributed to a new 50% homeowners quota share treaty effective June 1, 2025, which reduces net earned premium, thus mechanically lifting the ratio. For the first six months of 2025, the expense ratio stood at 51.5%, compared to 33.4% for the first six months of 2024.

The resulting combined ratio for Q2 2025 was 121.1%, indicating an underwriting loss, even with the loss ratio improving to 68.8%.

Policy Acquisition Costs (Commissions to Independent Agents)

Policy acquisition costs are bundled into the expense ratio calculation. While the specific dollar amount for policy acquisition costs isn't broken out separately from other underwriting expenses in the latest reports, we know they are a major driver of the expense ratio.

• Policy acquisition costs contribute directly to the expense ratio.
• The expense ratio for Q2 2025 was 52.3% of net earned premiums.
• The new quota share treaty reduces net earned premium, magnifying the impact of fixed acquisition costs.

General and Administrative Expenses (G&A) for Corporate Overhead

General and administrative expenses (G&A) for corporate overhead are also captured within the expense ratio calculation. The company has been focused on streamlining its organization, but the overhead costs relative to the shrinking net earned premium base are currently high.

• G&A is included in the expense ratio, which was 52.3% in Q2 2025.
• The expense ratio for the first six months of 2025 was 51.5%.

Interest Expense on the 9.75% Senior Notes due 2028

Debt servicing is a fixed cost you need to track. The 9.75% Senior Notes due 2028 carry a fixed coupon rate. For the third quarter of 2025, the quarterly public debt interest expense was approximately $412,000. The notes mature on September 30, 2028.

The gross principal amount of these notes outstanding was $16.9 million, with a net amount of $12.12 million on the balance sheet as of September 30, 2025. The interest is paid quarterly on March 31, June 30, September 30, and December 31.

Conifer Holdings, Inc. (CNFR) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Conifer Holdings, Inc. (CNFR) as of late 2025, which clearly shows the company's pivot away from its agency operations and a heavy reliance on its core Personal Lines underwriting business, supplemented by investment performance and earn-out recognition.

The primary engine for earned revenue remains the insurance operations, specifically the Personal Lines segment, which is the focus following the strategic sale of the agency business in 2024. Net Earned Premiums (NEP) from Personal Lines underwriting form the base, though this figure has seen significant fluctuation year-over-year due to the runoff of the Commercial Lines book.

For the second quarter ended June 30, 2025, Net Earned Premiums declined 42.6% year over year to $9.56 million. Looking at the first half of 2025, the total Net Earned Premiums decreased 40.8% to $19.88 million. This reflects the planned contraction as the Commercial Lines business runs off, which represented only 15.1% of total gross written premium in Q2 2025. The Personal Lines business, which is the focus, saw its gross written premium grow 46.8% to $17.9 million in Q2 2025.

Investment-related income provides a secondary, yet important, stream. Net investment income was reported at $1.3 million for Q2 2025, a slight dip from the prior year period. This income stream is crucial for offsetting underwriting volatility.

The revenue profile is significantly impacted by non-operating, transaction-related items. The recognition of contingent consideration gains, tied to the earn-out from the prior year's CIS sale, provided a material boost to reported net income in the first half of 2025. Specifically, Q1 2025 included a $4.395 million positive change in the fair value of contingent considerations. For Q2 2025, the results were positively impacted by the partial recognition of this earnout, contributing $5.4 million to the revenue/net income for that quarter.

The volatility of the investment portfolio also contributes to the top line through realized and unrealized gains/losses. For Q2 2025, this included a net realized investment loss of $28,000 and a $65,000 decline in the fair value of equity investments. This contrasts with Q1 2025, which saw a loss from the change in fair value of equity investments of $192,000.

Regarding commission and fee income from MGA-like arrangements, the data strongly suggests this stream is diminishing as planned. The strategic sale of the insurance agency operations in August 2024 was explicitly intended to reduce Commercial Lines revenue, which is now running off. While a specific dollar figure for this fee income stream in 2025 isn't itemized separately in the latest reports, its source (Commercial Lines) represented only about 12.6% of Gross Written Premium in Q1 2025 and 15.1% in Q2 2025, confirming the planned reduction.

Here's a quick look at some key revenue-related components for the first half of 2025:

• Net Earned Premiums (Six Months Ended June 30, 2025): $19.88 million.
• Net Investment Income (Six Months Ended June 30, 2025): $2.587 million.
• Personal Lines Gross Written Premium (Q2 2025): $17.9 million.
• Commercial Lines Gross Written Premium (Q2 2025): Represented 15.1% of total GWP.

You can see the quarterly breakdown of these key revenue drivers below:

The structure definitely shows that while underwriting is the core business, the GAAP earnings are heavily influenced by the non-operating contingent consideration recognition this year. Finance: draft 13-week cash view by Friday.