Presurance Holdings Reports 2025 Third Quarter Financial Results

Rhea-AI Summary

Presurance Holdings (Nasdaq: CNFR) reported results for the quarter ended September 30, 2025. Key metrics: personal lines combined ratio 95.2%, overall combined ratio 141.2%, net investment income $1.3M, book value per share $2.07. Gross written premiums were $14.6M (down 2.9% YoY) with personal lines up slightly to $11.16M (+0.8% YoY) while commercial lines continued runoff.

The company recorded a net loss allocable to common shareholders of $3.97M (‑$0.32 per share) and an adjusted operating loss of $2.71M (‑$0.22 per share). Management emphasizes a strategic shift toward data‑driven personal lines underwriting.

Positive

• Personal lines combined ratio of 95.2% (under 100%)
• Personal lines gross written premiums +0.8% YoY to $11.16M
• Net investment income of $1.3M for the quarter

Negative

• Net loss allocable to common shareholders of $3.97M (‑$0.32 per share)
• Overall combined ratio of 141.2% for the quarter
• Book value per share declined to $2.07 from $4.01 (period comparison shown)
• Commercial lines combined ratio of 500.8% and material premium runoff

Insights

Insurance financial analyst

Mixed operational progress: personal lines improving, but overall underwriting and a quarterly net loss keep near-term outlook neutral.

The company reported a net loss allocable to common shareholders of $3.97 million (loss per share $0.32) for the quarter ended September 30, 2025, and adjusted operating loss of $2.71 million (adjusted loss per share $0.22). Gross written premium fell modestly to $14.6 million, while book value per share declined to $2.07.

Performance splits matter: the Personal Lines portfolio produced a third‑quarter combined ratio of 95.2%, which is inside an underwriting profit range, and personal gross written premium rose slightly to $11.16 million. By contrast, Commercial Lines showed severely impaired underwriting metrics (quarterly combined ratio of 500.8%), reflecting runoff and a large adverse prior‑year development contribution.

Key dependencies and risks include the pace of the commercial runoff, the ability to sustain personal lines underwriting at or below 100, and whether investment income trends hold near $1.3 million per quarter. Monitorable near-term items include follow‑through in personal lines accident‑year combined ratios, any change in contribution from prior‑year development, and next quarterly results for momentum; treat those as the most direct indicators of a durable shift in profitability over the coming quarters.

TROY, Mich., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Presurance Holdings, Inc. (Nasdaq: PRHI) (“Presurance” or the “Company”) today announced results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights

• Personal lines business combined ratio of 95.2%
• Net investment income of $1.3 million
• Book value of $2.07 per common share outstanding
  
  

Management Comments

Brian Roney, CEO of Presurance, commented, "This past year has been one of transformation and re-definition. While the runoff of legacy commercial lines continues as expected, we are building an insurance carrier defined by data, knowledge, and focus."

2025 Third Quarter Financial Results Overview

		At and for the Three Months Ended September 30,											At and for the Nine Months Ended September 30,
		2025				2024				% Change			2025				2024				% Change
		(dollars in thousands, except share and per share amounts)
Gross written premiums		$	14,642			$	15,086			-2.9	%		$	51,894			$	58,370			-11.1	%
Net written premiums			5,427				11,174			-51.4	%			17,650				39,812			-55.7	%
Net earned premiums			6,821				14,601			-53.3	%			26,700				48,154			-44.6	%
Net investment income			1,301				1,391			-6.5	%			3,888				4,411			-11.9	%
Net realized investment gains (losses)			4				(7	)		**				(21	)			(125	)		-83.2	%
Change in fair value of equity investments			13				(29	)		**				(244	)			(182	)		34.1	%
Net income (loss) allocable to common shareholders			(3,970	)			52,788			**				(1,397	)			48,912			**
Net income (loss) allocable to common shareholders per share, diluted		$	(0.32	)		$	4.32			**			$	(0.11	)		$	4.00			**
Adjusted operating income (loss)*			(2,706	)			(6,850	)		-60.5	%			(8,460	)			(8,737	)		-3.2	%
Adjusted operating income (loss) per share, diluted*		$	(0.22	)		$	(0.56	)		-60.7	%		$	(0.69	)		$	(0.71	)		-2.8	%
Book value per common share outstanding		$	2.07			$	4.01						$	2.07			$	4.01
Weighted average shares outstanding, basic and diluted			12,222,881				12,222,881							12,222,881				12,222,881
Underwriting ratios:
Loss ratio (1)			93.7	%			103.8	%						83.2	%			84.8	%
Expense ratio (2)			47.5	%			39.3	%						50.5	%			35.2	%
Combined ratio (3)			141.2	%			143.1	%						133.7	%			120.0	%
* 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.

2025 Third Quarter Gross Written Premium

Gross written premiums fell slightly year over year in the third quarter of 2025 to $14.6 million, compared to $15.1 million in the prior year period. This modest decrease reflects a deliberate recalibration, as we streamline our book of business to emphasize personal lines that deliver stronger risk-adjusted returns and align within our long-term strategy.

Metrics across the portfolio are beginning to line up with expected targets, and the Company anticipates continued positive performance due to refined underwriting focus, prioritizing quality over volume in pursuit of more sustainable, profitable growth.

Commercial Lines Financial and Operational Review

Commercial Lines Financial Review
		Three Months Ended September 30,											Nine Months Ended September 30,
		2025				2024				% Change			2025				2024				% Change
		(dollars in thousands)
Gross written premiums		$	3,483			$	4,018			-13.3	%		$	8,720			$	23,562			-63.0	%
Net written premiums			495				1,481			-66.6	%			(1,541	)			14,053			**
Net earned premiums			771				6,428			-88.0	%			2,570				23,906			-89.2	%
Underwriting ratios:
Loss ratio			420.4	%			168.0	%						224.1	%			102.1	%
Expense ratio			80.4	%			29.1	%						44.8	%			29.1	%
Combined ratio			500.8	%			197.1	%						268.9	%			131.2	%
Contribution to combined ratio from net (favorable) adverse prior year development			335.7	%			123.4	%						81.5	%			41.9	%
Accident year combined ratio (1)			165.1	%			73.7	%						187.4	%			89.3	%
** Percentage is not meaningful
(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.

The Company’s commercial lines of business represented 23.8% of total gross written premium in the third quarter of 2025. As reflected above, premiums decreased considerably year over year as Presurance continues to focus its underwriting efforts on Personal Lines business – notably our homeowners’ insurance portfolio in Texas and the Midwest.

Personal Lines Financial and Operational Review

Personal Lines Financial Review
		Three Months Ended September 30,											Nine Months Ended September 30,
		2025				2024				% Change			2025				2024				% Change
		(dollars in thousands)
Gross written premiums		$	11,159			$	11,068			0.8	%		$	43,174			$	34,808			24.0	%
Net written premiums			4,932				9,693			-49.1	%			19,191				25,759			-25.5	%
Net earned premiums			6,050				8,173			-26.0	%			24,130				24,248			-0.5	%
Underwriting ratios:
Loss ratio			51.9	%			53.3	%						68.2	%			67.8	%
Expense ratio			43.3	%			47.4	%						51.1	%			41.2	%
Combined ratio			95.2	%			100.7	%						119.3	%			109.0	%
Contribution to combined ratio from net (favorable) adverse prior year development			4.4	%			-0.7	%						6.0	%			0.6	%
Accident year combined ratio			90.8	%			101.4	%						113.3	%			108.4	%

Personal lines premium, representing 76.2% of total gross written premium for the third quarter of 2025, increased slightly from the prior year period to $11.2 million. Personal lines premium for the period was led by logical growth in the Company’s low-value dwelling line of business.

Combined Ratio Analysis

		Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Underwriting ratios:
Loss ratio		93.7	%		103.8	%		83.2	%		84.8	%
Expense ratio		47.5	%		39.3	%		50.5	%		35.2	%
Combined ratio		141.2	%		143.1	%		133.7	%		120.0	%
Contribution to combined ratio from net (favorable) adverse prior year development		41.9	%		53.9	%		13.3	%		21.1	%
Accident year combined ratio		99.3	%		89.2	%		120.4	%		98.9	%

Net Investment Income

Net investment income was $1.3 million for the quarter ended September 30, 2025, compared to $1.4 million in the prior year period.

Change in Fair Value of Equity Securities

During the quarter, the Company reported a modest gain from the change in fair value of equity investments of $13,000, compared to a $29,000 loss in the prior year period.

Net Income (Loss) allocable to common shareholders

The Company reported net loss allocable to common shareholders of $4.0 million, or $0.32 per share, for the third quarter of 2025.

Adjusted Operating Income (Loss)

The Company reported an adjusted operating loss of $2.7 million, or $0.22 per share, for the third quarter ended September 30, 2025. 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 designed to protect individuals, businesses, and communities, 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) Change in contingent consideration bonus expense and 5) net income (loss) from discontinued operations. 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 28, 2025, 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 September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
		(dollar in thousands, except share and per share amounts)
Net income (loss)		$	(3,970	)		$	53,290			$	(1,397	)		$	49,729
Less:
Net realized investment gains (losses)			4				(7	)			(21	)			(125	)
Change in fair value of equity securities			13				(29	)			(244	)			(182	)
Change in fair value of contingent considerations			(1,500	)			–				8,250				–
Change in contingent consideration bonus expense			219				–				(922	)			–
Net income (loss) from discontinued operations			–				60,176				–				58,773
Impact of income tax expense (benefit) from adjustments *			–				–				–				–
Adjusted operating income (loss)		$	(2,706	)		$	(6,850	)		$	(8,460	)		$	(8,737	)
Weighted average common shares, diluted			12,222,881				12,222,881				12,222,881				12,222,881
Diluted income (loss) per common share:
Net income (loss)		$	(0.32	)		$	4.36			$	(0.11	)		$	4.07
Less:
Net realized investment gains (losses)			–				–				–				(0.01	)
Change in fair value of equity securities			–				–				(0.02	)			(0.02	)
Change in fair value of contingent considerations			(0.12	)			–				0.67				–
Change in contingent consideration bonus expense			0.02				–				(0.07	)			–
Net income (loss) from discontinued operations			–				4.92				–				4.81
Impact of income tax expense (benefit) from adjustments *			–				–				–				–
Adjusted operating income (loss), per share		$	(0.22	)		$	(0.56	)		$	(0.69	)		$	(0.71	)

Presurance Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands)
		September 30,				December 31,
			2025				2024
Assets		(Unaudited)
Investment securities:
Debt securities, at fair value (amortized cost of $103,629 and $117,827, respectively)		$	94,576			$	105,665
Equity securities, at fair value (cost of $1,819 and $1,836, respectively)			1,342				1,603
Short-term investments, at fair value			54,914				21,151
Total investments			150,832				128,419
Cash and cash equivalents			7,414				27,654
Premiums and agents' balances receivable, net			7,503				9,901
Reinsurance recoverables on unpaid losses			76,161				84,490
Reinsurance recoverables on paid losses			12,957				6,919
Prepaid reinsurance premiums			17,200				6,088
Deferred policy acquisition costs			2,992				6,380
Receivable from contingent considerations			6,320				8,070
Other assets			3,616				3,735
Total assets		$	284,995			$	281,656
Liabilities and Shareholders' Equity
Liabilities:
Unpaid losses and loss adjustment expenses		$	154,330			$	189,285
Unearned premiums			32,867				30,590
Reinsurance premiums payable			12,774				1
Debt			12,123				11,932
Mandatorily redeemable preferred stock			6,127				–
Funds held under reinsurance agreements			21,297				25,829
Payables for investments purchased			15,903				–
Accounts payable and other liabilities			4,271				2,494
Total liabilities			259,692				260,131
Commitments and contingencies
Shareholders' equity:
Common stock, no par value (100,000,000 shares authorized; 12,222,881 issued and outstanding, respectively)			100,145				98,178
Accumulated deficit			(64,550	)			(63,153	)
Accumulated other comprehensive income (loss)			(10,292	)			(13,500	)
Total shareholders' equity			25,303				21,525
Total liabilities and shareholders' equity		$	284,995			$	281,656

Presurance Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(dollars in thousands, except share and per share data)
		Three Months Ended								Nine Months Ended
		September 30								September 30
			2025				2024				2025				2024
Revenue and Other Income
Premiums
Gross earned premiums		$	17,015			$	23,278			$	49,617			$	86,891
Ceded earned premiums			(10,194	)			(8,677	)			(22,917	)			(38,737	)
Net earned premiums			6,821				14,601				26,700				48,154
Net investment income			1,301				1,391				3,888				4,411
Net realized investment gains (losses)			4				(7	)			(21	)			(125	)
Change in fair value of equity securities			13				(29	)			(244	)			(182	)
Other income			40				61				115				287
Change in fair value of contingent considerations			(1,500	)			–				8,250				–
Total revenue and other income			6,679				16,017				38,688				52,545
Expenses
Losses and loss adjustment expenses, net			6,389				15,152				22,227				40,953
Policy acquisition costs			1,895				3,249				6,859				9,800
Operating and other expenses			1,491				3,594				8,720				8,666
Interest expense			874				2,275				2,279				4,021
Total expenses			10,649				24,270				40,085				63,440
Income (loss) from continuing operations before income taxes			(3,970	)			(8,253	)			(1,397	)			(10,895	)
Income tax expense (benefit)			–				(1,367	)			–				(1,851	)
Net income (loss) from continuing operations		$	(3,970	)		$	(6,886	)		$	(1,397	)		$	(9,044	)
Net income (loss) from discontinued operations			–				60,176				–				58,773
Net income (loss)			(3,970	)			53,290				(1,397	)			49,729
Series A Preferred Stock dividends			–				502				–				817
Net income (loss) allocable to common shareholders		$	(3,970	)		$	52,788			$	(1,397	)		$	48,912
Earnings (loss) per common share, basic and diluted
Net income (loss) from continuing operations		$	(0.32	)		$	(0.60	)		$	(0.11	)		$	(0.81	)
Net income (loss) from discontinued operations		$	–			$	4.92			$	–			$	4.81
Net income (loss) allocable to common shareholders		$	(0.32	)		$	4.32			$	(0.11	)		$	4.00
Weighted average common shares outstanding, basic and diluted			12,222,881				12,222,881				12,222,881				12,222,881

For Further Information:
Jessica Gulis, 248.559.0840
ir@prehld.com

FAQ

What were Presurance (CNFR) third quarter 2025 key results?

Presurance reported a net loss of $3.97M (‑$0.32 per share), net investment income $1.3M, and book value per share $2.07 for Q3 2025.

Why did Presurance (CNFR) overall combined ratio reach 141.2% in Q3 2025?

The high combined ratio reflects elevated loss and expense ratios driven by commercial line runoff and underwriting results; Q3 combined ratio was reported at 141.2%.

How is Presurance (CNFR) performing in personal lines for Q3 2025?

Personal lines GWP rose slightly to $11.16M and the personal lines combined ratio improved to 95.2%, indicating underwriting profitability in that segment.

What was Presurance (CNFR) adjusted operating income (loss) for Q3 2025?

Adjusted operating loss was $2.71M, or $0.22 per diluted share for the quarter ended September 30, 2025.

How significant was the commercial lines decline for Presurance (CNFR) in 2025?

Commercial GWP fell to $3.48M in Q3 2025 (23.8% of total GWP) with a reported commercial combined ratio of 500.8% in the quarter.