TROY, Mich., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Presurance Holdings, Inc. (Nasdaq: PRHI) ("Presurance" or the "Company") today announced results for the second quarter and six months ended June 30, 2026.
First Half 2026 Financial Highlights
-- Net income doubled to $5.2 million, or $1.66 per share, compared to $2.6
million, or $1.47 per share versus same period last year.
-- Combined ratio improved to 86.4% from 131.2%.
-- Book value is now $7.41 per share.
-- Weighted average share count stands at 3,105,236.
Management Comments
Brian Roney, CEO of Presurance, commented, "Over the past 21 months under new leadership, we have begun to see the benefits of a changed management approach. We materially improved our underwriting results and delivered another profitable quarter for shareholders by strengthening both underwriting and claims management. These results reinforce our belief that disciplined operations, appropriate risk selection, and careful capital management are essential to driving future performance."
2026 Second Quarter Financial Results Overview
At and for the Three Months Ended June 30, At and for the Six Months Ended June 30,
------------------------------------------ ------------------------------------------
2026 2025 % Change 2026 2025 % Change
--------- --------- ---------- --------- --------- ----------
(dollars in thousands, except share and per share
amounts)
Gross written
premiums $ 13,070 $ 21,079 -38.0% $ 24,539 $ 37,252 -34.1%
Net written
premiums 16,652 1,383 * 22,727 12,223 85.9%
Net earned
premiums 6,808 9,564 -28.8% 12,733 19,879 -35.9%
Net investment
income 1,040 1,298 -19.9% 2,150 2,587 -16.9%
Net realized
investment
gains
(losses) (87) (28) * (101) (25) *
Change in fair
value of
equity
investments 81 (65) * 111 (257) *
Net income
(loss) 2,536 2,051 23.6% 5,158 2,573 100.5%
Earnings
(loss) per
common
share, basic
and diluted $ 0.68 $ 1.17 -42.4% $ 1.66 $ 1.47 12.7%
Adjusted
operating
income
(loss)* 1,322 (2,070) * 384 (5,754) *
Adjusted
operating
income
(loss) per
share,
diluted* $ 0.35 $ (1.19) $ 0.12 $ (3.30)
Book value per
common share
outstanding $ 7.41 $ 16.15 $ 7.41 $ 16.15
Weighted
average
shares
outstanding,
basic and
diluted 3,746,114 1,746,125 3,105,236 1,746,125
Underwriting
ratios:
Loss ratio
(1) 24.6% 68.8% 39.3% 79.7%
Expense ratio
(2) 44.9% 52.3% 47.1% 51.5%
--------- --------- --------- ---------
Combined
ratio (3) 69.5% 121.1% 86.4% 131.2%
========= ========= ========= =========
* 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.
(2) The expense ratio is the ratio, expressed as a
percentage, of policy acquisition costs and segment
operating expenses to net earned premiums.
(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.
2026 Second Quarter Gross Written Premium
Gross written premiums declined significantly quarter over quarter, reflecting the Company's continued focus on underwriting discipline and appropriate risk selection. The Company's improved underwriting results demonstrate the early benefits of this strategy. Presurance has continued to reshape its underwriting portfolio toward select personal lines homeowners' risks with attractive long-term characteristics, while moving away from previously written commercial lines risks that contributed substantially to prior losses.
Personal Lines Financial and Operational Review
Personal Lines Financial Review
-------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------ ------------------------------------
2026 2025 % Change 2026 2025 % Change
------ ------ ---------- ------ ------ ----------
(dollars in thousands)
Gross written
premiums $13,073 $17,889 -26.9% $24,560 $32,015 -23.3%
Net written
premiums 16,632 1,816 * 22,723 14,259 59.4%
Net earned
premiums 6,703 9,096 -26.3% 12,495 18,080 -30.9%
Underwriting
ratios:
Loss ratio 60.2% 61.2% 61.1% 73.7%
Expense
ratio 35.2% 53.0% 35.4% 53.8%
------ ------ ------ ------
Combined
ratio 95.4% 114.2% 96.5% 127.5%
====== ====== ====== ======
Contribution to
combined ratio
from net
(favorable)
adverse
prior year
development 4.5% 4.7% 3.3% 6.6%
------ ------ ------ ------
Accident year
combined
ratio 90.9% 109.5% 93.2% 120.9%
====== ====== ====== ======
* Percentage not meaningful
Continued improvement and sustained profitability in personal lines during the second quarter of 2026 further support the Company's focus on earnings quality over scale. This strategy prioritizes business with attractive risk-adjusted returns and promotes more consistent, sustainable performance over time.
Personal lines premium represented 100% of total gross written premium for the second quarter of 2026, largely driven by Texas homeowners premium and supplemented by continuing business in select Midwestern states.
Commercial Lines Financial and Operational Review
Commercial Lines Financial Review
------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
---- ----- -------- ---- ------ ----------
(dollars in thousands)
Gross written
premiums $ (3) $3,190 * $ (21) $ 5,237 *
Net written
premiums 20 (433) * 4 (2,036) *
Net earned
premiums 105 468 * 238 1,799 -86.8%
Underwriting
ratios:
Loss ratio * 216.4% * 140.0%
Expense
ratio * 40.9% * 29.5%
------ ----- ------ ------
Combined
ratio * 257.3% * 169.5%
====== ===== ====== ======
Contribution to
combined ratio
from net
(favorable)
adverse
prior year
development * 26.7% * -27.5%
------ ----- ------ ------
Accident year
combined ratio
(1) * 230.6% * 197.0%
====== ===== ====== ======
(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 year's profitability and assists management
in their evaluation of product pricing levels and
quality of business written.
* Percentage not meaningful
Commercial lines represented 0% of the Company's total gross written premium in the second quarter of 2026, reflecting the continued runoff of legacy commercial exposures.
This planned reduction has strengthened the Company's risk profile, lowered earnings volatility, and supported its move toward a more focused, sustainable business mix.
Combined Ratio Analysis
Three Months Ended June
30, Six Months Ended June 30,
2026 2025 2026 2025
------------ ------------ ------------- ------------
Underwriting
ratios:
Loss ratio 24.6% 68.8% 39.3% 79.7%
Expense
ratio 44.9% 52.3% 47.1% 51.5%
------ --- ------- ------- --- -------
Combined
ratio 69.5% 121.1% 86.4% 131.2%
====== === ======= ======= === =======
Contribution to
combined ratio
from net
(favorable)
adverse
prior year
development -31.0% 5.8% -17.9% 3.5%
------ --- ------- ------- --- -------
Accident year
combined
ratio 100.5% 115.3% 104.3% 127.7%
====== === ======= ======= === =======
The Company reported a significantly improved overall loss ratio of 24.6% for the second quarter of 2026, compared to 68.8% in the prior-year period. The loss ratio for the quarter benefited from 31 percentage points of net favorable prior year reserve development.
Although favorable reserve development meaningfully supported the quarter's results, the improvement also reflects the Company's ongoing efforts to streamline its risk profile and build a sustainable, profitable underwriting portfolio.
Net Investment Income
Net investment income was $1.0 million for the quarter ending June 30, 2026, compared to $1.3 million in the prior year period.
Change in Fair Value of Equity Securities
During the quarter, the Company reported a gain of $81,000 from the change in fair value of equity securities, compared to a loss of $65,000 in the prior year period.
Net Income (Loss) allocable to common shareholders
The Company reported net income allocable to common shareholders of $2.5 million, or $0.68 per share, for the second quarter of 2026.
Adjusted Operating Income (Loss)
The Company reported adjusted operating income of $1.3 million, or $0.35 per share, for the second quarter ending June 30, 2026, compared to an adjusted operating loss of $2.1 million, or $1.19 per share, for the same period in 2025. For the six months ended June 30, 2026, the Company reported adjusted operating income of $384,000, or $0.12 per share, compared to an adjusted operating loss of $5.8 million, or $3.30 per share for the same period in 2025. See Definitions of Non-GAAP Measures.
About Presurance Holdings
Presurance Holdings, Inc. is a specialty insurance property and casualty holding company with a focus on disciplined growth and long-term value creation. The Company trades on the Nasdaq Capital Market under the symbol PRHI. Additional information can be found on the Company's website at IR.PREHLD.com.
Definitions of Non-GAAP Measures
Presurance prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual and therefore is not reconciled to GAAP data.
We believe that investors' understanding of the Company's performance is enhanced by our disclosure of adjusted operating income. Our method of calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding: 1) net realized investment gains (losses), 2) change in fair value of equity securities, 3) Change in fair value of contingent considerations, 4) Contingent consideration bonus expense and 5) Additional accretion of warrants from Series B Preferred Stock payoff. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into the results of our operations and underlying business performance.
Forward-Looking Statement
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include the Company's expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release are based on management's good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our form 10-K ("Item 1A Risk Factors") filed with the SEC on March 27, 2026, and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this report speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.
Reconciliations of adjusted operating income (loss) and adjusted operating income (loss) per share:
Three Months Ended June
30, Six Months Ended June 30,
------------------------ --------------------------
2026 2025 2026 2025
--------- --------- --------- ---------
(dollar in thousands, except share and per share
amounts)
Net income (loss) $ 2,536 $ 2,051 $ 5,158 $ 2,573
Less:
Net realized
investment
gains
(losses) (87) (28) (101) (25)
Change in fair
value of
equity
securities 81 (65) 111 (257)
Change in fair
value of
contingent
considerations 1,220 5,355 5,710 9,750
Contingent
consideration
bonus expense - (1,141) - (1,141)
Additional
accretion of
warrants from
Series B
Preferred
Stock payoff - - (946) -
Impact of
income tax
expense
(benefit) from
adjustments * - - - -
Adjusted operating
income (loss) $ 1,322 $ (2,070) $ 384 $ (5,754)
========= ========= ========= =========
Weighted average
common shares,
diluted 3,746,114 1,746,125 3,105,236 1,746,125
Diluted income
(loss) per common
share:
Net income (loss) $ 0.68 $ 1.17 $ 1.66 $ 1.47
Less:
Net realized
investment
gains
(losses) (0.02) (0.02) (0.03) (0.01)
Change in fair
value of
equity
securities 0.02 (0.04) 0.04 (0.15)
Change in fair
value of
contingent
considerations 0.33 3.07 1.84 5.58
Contingent
consideration
bonus expense - (0.65) - (0.65)
Additional
accretion of
warrants from
Series B
Preferred
Stock payoff - - (0.31) -
Impact of
income tax
expense
(benefit) from
adjustments * - - - -
Adjusted operating
income (loss),
per share $ 0.35 $ (1.19) $ 0.12 $ (3.30)
========= ========= ========= =========
* The Company has recorded a full valuation allowance against its deferred tax assets as of June 30, 2026 and June 30, 2025, respectively. As a result, there were no taxable impacts to adjusted operating income (loss) from the adjustments to net income (loss) in the table above after taking into account the use of net operating losses and the change in the valuation allowance.
Presurance Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands)
June 30 December 31,
2026 2025
Assets (Unaudited)
Investment securities:
Debt securities, at fair value
(amortized cost of $94,063 and $ 85,556 $ 88,305
$96,669, respectively)
Equity securities, at fair value (cost
of $883 and $1,276, respectively) 995 1,277
Short-term investments, at fair value 28,389 24,725
-------- ---------
Total investments 114,940 114,307
Cash and cash equivalents 12,798 27,362
Premiums and agents' balances receivable,
net 5,562 5,521
Reinsurance recoverables on unpaid losses 60,410 63,909
Reinsurance recoverables on paid losses 6,170 5,929
Prepaid reinsurance premiums 3,244 12,024
Deferred policy acquisition costs 6,301 2,696
Receivable from contingent consideration 10,000 4,290
Other assets 3,049 3,245
-------- ---------
Total assets $ 222,474 $ 239,283
======== =========
Liabilities and Shareholders' Equity
Liabilities:
Unpaid losses and loss adjustment
expenses $ 125,242 $ 146,262
Unearned premiums 24,288 25,703
Reinsurance premiums payable - 2,501
Debt 12,314 12,187
Mandatorily redeemable preferred stock 8,000 14,380
Funds held under reinsurance agreements 20,040 24,233
Accounts payable and other liabilities 4,845 5,051
Total liabilities 194,729 230,317
Commitments and contingencies - -
Shareholders' equity:
Common stock, no par value (100,000,000 shares
authorized; 3,746,092 and
1,746,125 issued and outstanding,
respectively) 113,922 100,158
Accumulated deficit (76,433) (81,591)
Accumulated other comprehensive income
(loss) (9,744) (9,601)
Total shareholders' equity 27,745 8,966
-------- ---------
Total liabilities and shareholders'
equity $ 222,474 $ 239,283
======== =========
Presurance Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(dollars in thousands, except share and per share
data)
Three Months Ended Six Months Ended
June 30 June 30,
------------------------ --------------------------
2026 2025 2026 2025
Revenue and Other
Income
Premiums
Gross earned
premiums $ 12,239 $ 16,484 $ 25,953 $ 32,602
Ceded earned
premiums (5,431) (6,920) (13,220) (12,723)
--------- --------- --------- ---------
Net earned
premiums 6,808 9,564 12,733 19,879
Net investment
income 1,040 1,298 2,150 2,587
Net realized
investment
gains
(losses) (87) (28) (101) (25)
Change in fair
value of
equity
securities 81 (65) 111 (257)
Other income 80 10 86 75
Change in fair
value of
contingent
considerations 1,220 5,355 5,710 9,750
Total
revenue
and other
income 9,142 16,134 20,689 32,009
Expenses
Losses and loss
adjustment
expenses, net 1,672 6,564 5,001 15,838
Policy
acquisition
costs 1,926 2,287 3,484 4,964
Operating and
other
expenses 2,331 4,368 4,431 7,229
Interest
expense 677 864 2,653 1,405
Total
expenses 6,606 14,083 15,569 29,436
--------- --------- --------- ---------
Income (loss)
before income
taxes 2,536 2,051 5,120 2,573
Income tax
expense
(benefit) - - (38) -
--------- --------- --------- ---------
Net income (loss) $ 2,536 $ 2,051 $ 5,158 $ 2,573
========= ========= ========= =========
Earnings (loss)
per common
share, basic and
diluted $ 0.68 $ 1.17 $ 1.66 $ 1.47
========= ========= ========= =========
Weighted average
common shares
outstanding,
basic and
diluted 3,746,114 1,746,125 3,105,236 1,746,125
========= ========= ========= =========
For Further Information:
Jessica Gulis, 248.509.9202
ir@prehld.com