Presurance Holdings Reports 2025 Third Quarter Financial Results

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 millionBook 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 SubsidiariesCondensed 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 SubsidiariesCondensed 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 [email protected] Source: Presurance Holdings, Inc.