NEW YORK - Bishop Street Underwriters, a subsidiary of private investment firm RedBird Capital Partners, has expanded its insurance offerings by acquiring Conifer Insurance Services from Conifer Holdings, Inc. (NASDAQ:CNFR). The acquisition, announced today, marks Bishop Street's first foray into the commercial property and casualty (P&C) managing general agency (MGA) market.
Conifer Insurance Services, a specialty commercial MGA, brings a portfolio that includes small and medium-sized enterprises (SMEs), hospitality, and auto dealers. This move is expected to bolster Bishop Street's capabilities through geographic expansion, product development, and the potential for further acquisitions.
Chad Levine, CEO of Bishop Street, expressed enthusiasm about the strategic growth opportunity presented by the acquisition. "Conifer has transitioned to a specialty MGA over the last year, and this strategic carrier carve-out will serve as a strong foundation that checks many boxes as our first commercial platform acquisition," Levine stated.
Nick Petcoff, CEO of Conifer Insurance Services, highlighted the benefits of joining the Bishop Street platform, including the ability to leverage new underwriting technology and expand distribution. Petcoff also emphasized the potential for enhanced service delivery to clients through the partnership.
The transaction is seen as a strategic step for Bishop Street, which aims to leverage shared services and technology offerings to strengthen its position in the insurance market. With the backing of RedBird Capital, which manages $10 billion in assets, Bishop Street is poised to capitalize on growth opportunities in the sector.
This press release statement serves as the basis for the information provided in this article.
In other recent news, Michigan-based insurance holding company, Conifer Holdings, has made significant changes in its operations. The company has finalized the divestiture of its insurance agency operations for $45 million, with the potential for additional earn-out payments of up to $25 million. Additionally, Conifer divested its remaining interest in Sycamore Specialty Underwriters for $6.5 million. These transactions mark Conifer's exit from all insurance agency operations, which is expected to substantially reduce the company's revenue streams.
Conifer Holdings has also received a notice from the Nasdaq Stock Market regarding non-compliance with the minimum stockholders' equity requirement for continued listing. In response, the company has until the end of September 2024 to submit a plan to regain compliance with Nasdaq's listing rules.
In a strategic shift, Conifer Holdings has transitioned to a commission-based revenue model, which resulted in a 58% reduction in gross written premium, down to $19 million. Despite a net loss allocable to common shareholders of $4 million, the company's net investment income increased by 11% to $1.5 million. The company expects that the transition to a commission-based model will enhance profitability and scalability in the long run. These are among the recent developments at Conifer Holdings as it continues to navigate its strategic shift.
InvestingPro Insights
As Bishop Street Underwriters enters the commercial P&C managing general agency market with its acquisition of Conifer Insurance Services, it's crucial to understand the financial health and market performance of Conifer Holdings, Inc. (NASDAQ:CNFR). According to InvestingPro data, Conifer Holdings currently holds a market capitalization of $17.85 million, reflecting its size within the insurance industry. Despite a challenging environment, evidenced by a revenue decline of 7.18% over the last twelve months as of Q2 2024, Conifer has experienced significant price returns, with a 113.58% increase over the last week alone.
InvestingPro Tips suggest that while Conifer has seen a substantial return over the last week, month, and three months, analysts are cautious about its near-term prospects. They anticipate a sales decline in the current year and do not expect the company to be profitable this year. This information may be particularly relevant to Bishop Street as it integrates Conifer's operations and seeks to enhance service delivery to clients.
For investors and industry watchers interested in a deeper dive into Conifer's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/CNFR. With comprehensive metrics and expert analysis, these tips can provide a clearer picture of Conifer's position in the market and potential future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.