TROY, Mich., May 13, 2026 (GLOBE NEWSWIRE) -- Presurance Holdings, Inc. (Nasdaq: PRHI) ("Presurance" or the "Company") today announced results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
-- Net income of $2.6 million, or $0.15 per share, compared to net income of
$522,000, or $0.04 per share, in the prior year period
-- Personal lines profitable: Combined ratio in the first quarter of 2026
improved to 97.9%, compared to 140.9% in the first quarter of 2025
-- Overall loss ratio improved significantly to 56.2%, compared to 89.7% in
the prior year period
Results for the quarter reflected meaningful improvement in underwriting performance and continued progress in the Company's strategic repositioning toward areas that have shown a strong track record of performance.
Management Comments
Brian Roney, CEO of Presurance, commented, "Our first quarter results demonstrate the meaningful progress we are making as we continue repositioning the Company around a more focused and disciplined underwriting strategy. While gross written premiums declined as expected due to our exit from commercial lines business, the quality and profitability of our remaining portfolio improved significantly. Our focus remains on building a profitable operating platform capable of generating sustainable long-term results."
2026 First Quarter Financial Results Overview
At and for the
Three Months Ended March 31,
2026 2025 % Change
--------------------- --------------------- -----------
(dollars in thousands, except share and per share
amounts)
Gross written
premiums $ 11,469 $ 16,173 -29.1%
Net written
premiums 6,075 10,840 -44.0%
Net earned
premiums 5,925 10,315 -42.6%
Net investment
income 1,110 1,289 -13.9%
Net realized
investment
gains
(losses) (14) 3 **
Change in fair
value of
equity
investments 30 (192) **
Net income
(loss) 2,622 522 **
Earnings
(loss) per
common
share, basic
and diluted $ 0.15 $ 0.04 **
Adjusted
operating
income
(loss)* (2,830) (3,684) **
Adjusted
operating
income
(loss) per
share,
diluted* $ (0.16) $ (0.30)
Book value per
common share
outstanding $ 0.96 $ 2.09
Weighted
average
shares
outstanding,
basic and
diluted 17,200,659 12,222,881
Underwriting
ratios:
Loss ratio
(1) 56.2% 89.7%
Expense ratio
(2) 49.5% 50.8%
------------ ------------
Combined
ratio (3) 105.7% 140.5%
============ ============
* 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 other 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.
2026 First Quarter Gross Written Premium
Gross written premiums decreased 29.1% year over year, reflecting the Company's continued exit from legacy commercial lines business. The Company's underwriting portfolio is now concentrated on select personal lines homeowners' business that aligns with its long-term underwriting objectives and risk appetite.
Personal Lines Financial and Operational Review
Three Months Ended March 31,
2026 2025 % Change
---------------- ----------- ----------
(dollars in thousands)
Gross written premiums $ 11,487 $14,126 -18.7%
Net written premiums 6,091 12,444 -51.1%
Net earned premiums 5,792 8,984 -35.5%
Underwriting ratios:
Loss ratio 62.2% 86.3%
Expense ratio 35.7% 54.6%
------- ------
Combined ratio 97.9% 140.9%
======= ======
Contribution to combined
ratio from net
(favorable) adverse prior
year development 2.1% 8.6%
------- ------
Accident year combined
ratio 95.8% 132.3%
======= ======
Profitability in personal lines for the first quarter of 2026 reflects the Company's strategic decision to prioritize quality of earnings over scale--focusing on business that offers more attractive risk-adjusted returns and greater consistency over time. Personal lines premium represented 100% of total gross written premium for the first quarter of 2026, largely driven by Texas homeowners premium and supplemented by continuing business in select Midwestern states.
Commercial Lines Financial and Operational Review
Three Months Ended March 31,
2026 2025 % Change
------------ ------------ ----------
(dollars in thousands)
Gross written premiums $ (18) $ 2,047 *
Net written premiums (16) (1,604) *
Net earned premiums 133 1,331 *
Underwriting ratios:
Loss ratio * 113.1%
Expense ratio * 25.3%
------------ -------
Combined ratio * 138.4%
============ =======
Contribution to combined ratio
from net
(favorable) adverse prior
year development * -46.6%
------------ -------
Accident year combined ratio
(1) * 185.0%
============ =======
(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
The Company's commercial lines of business represented 0% of total gross written premium in the first quarter of 2026, as the runoff of legacy commercial lines exposures remains ongoing; however, the strategic reduction of these exposures has continued to streamline the Company's risk profile and reduce earnings volatility associated with prior business concentrations.
Combined Ratio Analysis
Three Months Ended March 31,
2026 2025
---------------- ----------------
Underwriting ratios:
Loss ratio 56.2% 89.7%
Expense ratio 49.5% 50.8%
---------- --- ---------- ---
Combined ratio 105.7% 140.5%
========== === ========== ===
Contribution to combined ratio from
net (favorable)
adverse prior year development -3.0% 1.4%
---------- --- ---------- ---
Accident year combined ratio 108.7% 139.1%
========== === ========== ===
The Company reported a significantly improved overall loss ratio of 56.2% for the first quarter of 2026, compared to 89.7% in the prior year period. This improvement bears out the Company's decision to meaningfully streamline its risk profile.
Net Investment Income
Net investment income was $1.1 million for the quarter ended March 31, 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 $30,000 from the change in fair value of equity securities, compared to a loss of $192,000 in the prior year period.
Net Income (Loss) allocable to common shareholders
The Company reported net income allocable to common shareholders of $2.6 million, or $0.15 per share, for the first quarter of 2026.
Adjusted Operating Income (Loss)
The Company reported an adjusted operating loss of $2.8 million, or $0.16 per share, for the quarter ended March 31, 2026. See Definitions of Non-GAAP Measures.
About Presurance Holdings
Presurance Holdings, Inc. is a Michigan-based property and casualty holding company. Through its subsidiaries, the Company provides specialty insurance coverage 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 and 4) 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 March 31,
------------------------------------------------------
2026 2025
--------------------------- -------------------------
(dollar in thousands, except share and per share
amounts)
Net income (loss) $ 2,622 $ 522
Less:
Net realized
investment gains
(losses) (14) 3
Change in fair
value of equity
securities 30 (192)
Change in fair
value of
contingent
considerations 4,490 4,395
Additional
accretion of
Warrants from
Series B
Preferred Stock
payoff 946 -
Impact of income
tax expense
(benefit) from
adjustments * - -
Adjusted operating
income (loss) $ (2,830) $ (3,684)
=== ================= =================
Weighted average
common shares,
diluted 17,200,659 12,222,881
Diluted income
(loss) per common
share:
Net income (loss) $ 0.15 $ 0.04
Less:
Net realized
investment gains
(losses) - -
Change in fair
value of equity
securities - (0.02)
Change in fair
value of
contingent
considerations 0.26 0.36
Additional
accretion of
Warrants from
Series B
Preferred Stock
payoff 0.05 -
Impact of income
tax expense
(benefit) from
adjustments * - -
Adjusted operating
income (loss),
per share $ (0.16) $ (0.30)
=== ================= =================
* The Company has recorded a full valuation allowance against its deferred tax assets as of March 31, 2026 and March 31, 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)
March 31 December 31,
2026 2025
------------- ----------------
Assets (Unaudited)
Investment securities:
Debt securities, at fair value
(amortized cost of $88,838 and $ 80,314 $ 88,305
$96,669, respectively)
Equity securities, at fair value
(cost of $1,257 and $1,276,
respectively) 1,288 1,277
Short-term investments, at fair
value 32,464 24,725
-------- ---------
Total investments 114,066 114,307
Cash and cash equivalents 25,469 27,362
Premiums and agents' balances
receivable, net 6,540 5,521
Reinsurance recoverables on unpaid
losses 62,014 63,909
Reinsurance recoverables on paid
losses 3,617 5,929
Prepaid reinsurance premiums 9,629 12,024
Deferred policy acquisition costs 2,825 2,696
Receivable from contingent
considerations at fair value 8,780 4,290
Other assets 3,670 3,245
-------- ---------
Total assets $ 236,610 $ 239,283
Liabilities and Shareholders'
Equity
Liabilities:
Unpaid losses and loss adjustment
expenses $ 137,501 $ 146,262
Unearned premiums 23,457 25,703
Reinsurance premiums payable 4,547 2,501
Debt 12,250 12,187
Mandatorily redeemable preferred
stock 8,000 14,380
Funds held under reinsurance
agreements 20,549 24,233
Accounts payable and other
liabilities 5,116 5,051
Total liabilities 211,420 230,317
Commitments and contingencies - -
Shareholders' equity:
Common stock, no par value (100,000,000 shares
authorized; 26,222,881 and
12,222,881 issued and
outstanding, respectively) 113,919 100,158
Accumulated deficit (78,969) (81,591)
Accumulated other comprehensive
income (loss) (9,760) (9,601)
Total shareholders' equity 25,190 8,966
-------- ---------
Total liabilities and
shareholders' equity $ 236,610 $ 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
March 31,
----------------------------
2026 2025
------------ --------------
Revenue and Other Income
Premiums
Gross earned premiums $ 13,714 $ 16,118
Ceded earned premiums (7,789) (5,803)
---------- ----------
Net earned premiums 5,925 10,315
Net investment income 1,110 1,289
Net realized investment gains
(losses) (14) 3
Change in fair value of equity
securities 30 (192)
Other income 6 65
Change in fair value of
contingent considerations 4,490 4,395
Total revenue and other
income 11,547 15,875
Expenses
Losses and loss adjustment
expenses, net 3,329 9,274
Policy acquisition costs 1,558 2,677
Operating expenses 2,100 2,861
Interest expense 1,976 541
Total expenses 8,963 15,353
---------- ----------
Income (loss) before income
taxes 2,584 522
Income tax expense (benefit) (38) -
---------- ----------
Net income (loss) $ 2,622 $ 522
========== ==========
Earnings (loss) per common
share, basic and diluted $ 0.15 $ 0.04
========== ==========
Weighted average common shares
outstanding,
basic and diluted 17,200,659 12,222,881
========== ==========
For Further Information:
Jessica Gulis, 248.509.9202
ir@prehld.com
(END) Dow Jones Newswires
May 13, 2026 16:01 ET (20:01 GMT)