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 Nine Months Ended
September 30, 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 Nine Months Ended
September 30, 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 Nine Months Ended
September 30, 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 Nine Months Ended
September 30, 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
(END) Dow Jones Newswires
November 12, 2025 16:01 ET (21:01 GMT)