Presurance Holdings Reports 2026 Second Quarter Financial Results
Rhea-AI Summary
Presurance Holdings (Nasdaq: PRHI) reported 2026 second quarter net income of $2.5 million, or $0.68 per share, up 23.6% in dollars but lower per share than $1.17 in 2025 due to a higher share count. First half 2026 net income doubled to $5.2 million, or $1.66 per share, versus $2.6 million, or $1.47 per share, a year earlier.
The consolidated combined ratio improved to 69.5% for Q2 and 86.4% for the first half, from 121.1% and 131.2%, helped by 31 points of favorable prior-year reserve development in Q2 and portfolio reshaping. Gross written premiums fell 38.0% in Q2 and 34.1% year-to-date as the company exited commercial lines and concentrated on Texas and Midwest homeowners. Personal lines produced a Q2 combined ratio of 95.4% and represented 100% of gross written premium, while commercial lines moved into runoff. Book value per share declined to $7.41 from $16.15 a year earlier. Adjusted operating income was $1.3 million in Q2 2026 and $384,000 year-to-date, versus adjusted operating losses in 2025.
Positive
- First half 2026 net income $5.2 million, up 100.5% year over year
- Consolidated combined ratio improved to 69.5% in Q2 and 86.4% YTD
- Q2 2026 adjusted operating income $1.3 million vs $(2.1) million in 2025
- Personal lines Q2 combined ratio improved to 95.4% from 114.2%
- Commercial lines reduced to 0% of Q2 gross written premium, reflecting runoff
- Change in fair value of equity securities swung to a Q2 gain of $81,000 from a loss of $65,000
Negative
- Q2 2026 gross written premiums down 38.0%; first half down 34.1% year over year
- Net earned premiums declined 28.8% in Q2 and 35.9% for first half 2026
- Net investment income decreased 19.9% in Q2 and 16.9% year to date
- Book value per share fell to $7.41 from $16.15 a year earlier
- Q2 accident year combined ratio remained above 100% at 100.5%
- Commercial lines segment reported very high combined ratios, including 257.3% in prior-year Q2 and 169.5% for prior-year first half
News Explained
At June 30, the reported cash and cash equivalents balance was lower than at December 31, 2025, leaving Presurance Holdings with less cash on hand at the latest disclosed balance-sheet date.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 13 | First-quarter earnings | Positive | +0.0% | Net income increased and combined ratio improved, but adjusted operating loss remained. |
| Mar 27 | Fourth-quarter earnings | Negative | -11.1% | Net loss and adjusted operating loss widened amid commercial lines runoff. |
| Nov 12 | Third-quarter earnings | Negative | -4.3% | Net loss and overall combined ratio remained unfavorable despite personal lines metrics. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were aligned in all three available events, while the average move was -5.1%.
Key Terms
combined ratio technical
loss ratio technical
expense ratio technical
reinsurance recoverables technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
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% from131.2% . - 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 | ||||||||||||||||||||||
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
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
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
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
Change in Fair Value of Equity Securities
During the quarter, the Company reported a gain of
Net Income (Loss) allocable to common shareholders
The Company reported net income allocable to common shareholders of
Adjusted Operating Income (Loss)
The Company reported adjusted operating income of
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 | $ | 85,556 | $ | 88,305 | |||
| Equity securities, at fair value (cost of | 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
