TROY, Mich., March 27, 2026 (GLOBE NEWSWIRE) -- Presurance Holdings, Inc. (Nasdaq: PRHI) (“Presurance” or the “Company”) today announced results for the fourth quarter ended December 31, 2025.
Year-end 2025 Financial Highlights
- Personal Lines production up 12.7% on the year
- Commercial Lines were down 67% and continue to run off
- Personal lines production comprised 100% of gross written premiums in Q4
- Commercial Lines – zero premium production for the fourth quarter
While gross written premiums declined in the fourth quarter, as the Company continued its disciplined shift away from previously written commercial lines, on the other hand, personal lines premium was up 12.7% on the year, reflecting a concerted focus going forward. With the exit from commercial lines business on-going, the Company has meaningfully simplified its risk profile and reduced exposure to volatility associated with the old legacy business.
Management Comments
Brian Roney, CEO of Presurance, commented, "We are taking decisive steps to manage the lingering effects of the legacy commercial lines run-off. Continued adverse development, largely from our previously written commercial lines business under prior management, has significantly impacted our financial results for the quarter and the year. Going forward, the Company continues to focus on select personal lines homeowners’ business, a segment that aligns with our underwriting goals and offers attractive opportunities.”
2025 Fourth Quarter Financial Results Overview
| At and for the Three Months Ended December 31, | At and for the Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||
| (dollars in thousands, except share and per share amounts) | |||||||||||||||||||||
| Gross written premiums | $ | 7,946 | $ | 13,683 | -41.9% | $ | 59,840 | $ | 72,053 | -17.0% | |||||||||||
| Net written premiums | 3,698 | 9,526 | -61.2% | 21,348 | 49,338 | -56.7% | |||||||||||||||
| Net earned premiums | 5,687 | 12,708 | -55.2% | 32,387 | 60,862 | -46.8% | |||||||||||||||
| Net investment income | 1,149 | 1,352 | -15.0% | 5,037 | 5,763 | -12.6% | |||||||||||||||
| Net realized investment gains (losses) | (695 | ) | - | ** | (716 | ) | (125 | ) | ** | ||||||||||||
| Change in fair value of equity investments | 478 | (21 | ) | ** | 234 | (203 | ) | ** | |||||||||||||
| Net income (loss) allocable to common shareholders | (17,041 | ) | (25,382 | ) | ** | (18,438 | ) | 23,530 | ** | ||||||||||||
| Net income (loss) allocable to common shareholders per share, diluted | $ | (1.39 | ) | $ | (2.08 | ) | ** | $ | (1.51 | ) | $ | 1.93 | ** | ||||||||
| Adjusted operating income (loss)* | (15,216 | ) | (25,821 | ) | ** | (25,634 | ) | (34,558 | ) | ** | |||||||||||
| Adjusted operating income (loss) per share, diluted* | $ | (1.24 | ) | $ | (2.11 | ) | $ | (2.10 | ) | $ | (2.83 | ) | |||||||||
| Book value per common share outstanding | $ | 0.73 | $ | 1.76 | $ | 0.73 | $ | 1.76 | |||||||||||||
| Weighted average shares outstanding, basic and diluted | 12,222,881 | 12,222,881 | 12,222,881 | 12,222,881 | |||||||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio (1) | 286.9 | % | 254.6 | % | 119.0 | % | 120.2 | % | |||||||||||||
| Expense ratio (2) | 46.6 | % | 38.3 | % | 49.8 | % | 35.8 | % | |||||||||||||
| Combined ratio (3) | 333.5 | % | 292.9 | % | 168.8 | % | 156.0 | % | |||||||||||||
| * 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 Fourth Quarter Gross Written Premium
Gross written premiums decreased year over year in the fourth quarter of 2025 to $7.9 million, compared to $13.7 million in the prior year period. This reduction reflects a deliberate recalibration, as we streamline our book of business to emphasize personal lines that deliver better risk-adjusted returns and further aligns within our long-term strategy.
Commercial Lines Financial and Operational Review
| Commercial Lines Financial Review | |||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Gross written premiums | $ | (8 | ) | $ | 3,124 | -100.3 | % | $ | 8,712 | $ | 26,686 | -67.4 | % | ||||||||
| Net written premiums | (88 | ) | 488 | 118.0 | % | (1,629 | ) | 14,541 | -111.2 | % | |||||||||||
| Net earned premiums | (17 | ) | 4,254 | -100.4 | % | 2,553 | 28,160 | -90.9 | % | ||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio | * | 650.8 | % | 624.7 | % | 184.8 | % | ||||||||||||||
| Expense ratio | * | 33.8 | % | 51.6 | % | 29.8 | % | ||||||||||||||
| Combined ratio | * | 684.6 | % | 676.3 | % | 214.6 | % | ||||||||||||||
| Contribution to combined ratio from net | |||||||||||||||||||||
| (favorable) adverse prior year development | * | 550.9 | % | 439.9 | % | 118.5 | % | ||||||||||||||
| Accident year combined ratio (1) | * | 133.7 | % | 236.4 | % | 96.1 | % | ||||||||||||||
| (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 fourth quarter of 2025. As reflected above, Commercial Lines premiums have decreased year over year, largely as a result of the commercial lines run-off and the decision to move away from the underperforming legacy commercial lines.
Personal Lines Financial and Operational Review
| Personal Lines Financial Review | |||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Gross written premiums | $ | 7,954 | $ | 10,559 | -24.7 | % | $ | 51,128 | $ | 45,367 | 12.7 | % | |||||||||
| Net written premiums | 3,786 | 9,038 | -58.1 | % | 22,977 | 34,797 | -34.0 | % | |||||||||||||
| Net earned premiums | 5,704 | 8,454 | -32.5 | % | 29,834 | 32,702 | -8.8 | % | |||||||||||||
| Underwriting ratios: | |||||||||||||||||||||
| Loss ratio | 107.3 | % | 55.2 | % | 75.7 | % | 64.6 | % | |||||||||||||
| Expense ratio | 43.6 | % | 40.6 | % | 49.7 | % | 41.1 | % | |||||||||||||
| Combined ratio | 150.9 | % | 95.8 | % | 125.4 | % | 105.7 | % | |||||||||||||
| Contribution to combined ratio from net | |||||||||||||||||||||
| (favorable) adverse prior year development | 17.9 | % | 0.9 | % | 8.3 | % | 0.8 | % | |||||||||||||
| Accident year combined ratio | 133.0 | % | 94.9 | % | 117.1 | % | 104.9 | % | |||||||||||||
Personal lines premium represented 100% of total gross written premium for the fourth quarter of 2025. Net written premiums were impacted by an in-force quota share reinsurance treaty to support the business. Personal lines production was largely driven by Texas premium and supplemented by continuing business in select Midwestern states.
Combined Ratio Analysis
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Underwriting ratios: | ||||||||||||
| Loss ratio | 286.9 | % | 254.6 | % | 119.0 | % | 120.2 | % | ||||
| Expense ratio | 46.6 | % | 38.3 | % | 49.8 | % | 35.8 | % | ||||
| Combined ratio | 333.5 | % | 292.9 | % | 168.8 | % | 156.0 | % | ||||
| Contribution to combined ratio from net (favorable) | ||||||||||||
| adverse prior year development | 178.7 | % | 185.0 | % | 42.3 | % | 55.3 | % | ||||
| Accident year combined ratio | 154.8 | % | 107.9 | % | 126.5 | % | 100.7 | % | ||||
Continued adverse development significantly impacted the financial results for the year, especially in the fourth quarter, and the impact of the quota share reinsurance treaty exacerbated select ratios for the period as well.
Net Investment Income
Net investment income was $1.1 million for the quarter ended December 31, 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 loss from the change in fair value of equity securities of $695,000, compared to no changes in the fair value of equity securities in the prior year period.
Net Income (Loss) allocable to common shareholders
The Company reported net loss allocable to common shareholders of $17.0 million, or $1.39 per share, for the fourth quarter of 2025.
Adjusted Operating Income (Loss)
The Company reported an adjusted operating loss of $15.2 million, or $1.24 per share, for the fourth quarter ended December 31, 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 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) Other gains, 4) Change in fair value of contingent considerations, 5) Change in contingent consideration bonus expense and 6) 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 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 December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (dollar in thousands, except share and per share amounts) | |||||||||||||||
| Net income (loss) | $ | (17,041 | ) | $ | (25,382 | ) | $ | (18,438 | ) | $ | 24,347 | ||||
| Less: | |||||||||||||||
| Net realized investment gains (losses) | (695 | ) | - | (716 | ) | (125 | ) | ||||||||
| Change in fair value of equity securities | 478 | (21 | ) | 234 | (203 | ) | |||||||||
| Other gains | - | 500 | - | 500 | |||||||||||
| Change in fair value of contingent considerations | (2,145 | ) | 146 | 6,220 | 146 | ||||||||||
| Change in contingent consideration bonus expense * | 537 | - | 1,458 | - | |||||||||||
| Net income from discontinued operations | - | (186 | ) | - | 58,587 | ||||||||||
| Impact of income tax expense (benefit) from adjustments ** | - | - | - | - | |||||||||||
| Adjusted operating income (loss) | $ | (15,216 | ) | $ | (25,821 | ) | $ | (25,634 | ) | $ | (34,558 | ) | |||
| 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) | $ | (1.39 | ) | $ | (2.08 | ) | $ | (1.51 | ) | $ | 1.99 | ||||
| Less: | |||||||||||||||
| Net realized investment gains (losses) | (0.06 | ) | - | (0.06 | ) | (0.01 | ) | ||||||||
| Change in fair value of equity securities | 0.04 | (0.01 | ) | 0.02 | (0.02 | ) | |||||||||
| Other gains | - | 0.04 | - | 0.04 | |||||||||||
| Change in fair value of contingent considerations | (0.18 | ) | 0.02 | 0.51 | 0.02 | ||||||||||
| Change in contingent consideration bonus expense * | 0.05 | - | 0.12 | - | |||||||||||
| Net income from discontinued operations | - | (0.02 | ) | - | 4.79 | ||||||||||
| Impact of income tax expense (benefit) from adjustments ** | - | - | - | - | |||||||||||
| Adjusted operating income (loss), per share | $ | (1.24 | ) | $ | (2.11 | ) | $ | (2.10 | ) | $ | (2.83 | ) | |||
* Amount is included in Operating Expenses on the Consolidated Statement of Operations.
** The Company has recorded a full valuation allowance against its deferred tax assets as of December 31, 2025 and 2024. As a result, there were no taxable impacts to adjusted operating income 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.
| Conifer Holdings, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (dollars in thousands) | ||||||||
| December 31 | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Investment securities: | ||||||||
| Debt securities, at fair value (amortized cost of $96,669 and | $ | 88,305 | $ | 105,665 | ||||
| $117,827, respectively) | ||||||||
| Equity securities, at fair value (cost of $1,276 and $1,836, respectively) | 1,277 | 1,603 | ||||||
| Short-term investments, at fair value | 24,725 | 21,151 | ||||||
| Total investments | 114,307 | 128,419 | ||||||
| Cash and cash equivalents | 27,362 | 27,654 | ||||||
| Premiums and agents' balances receivable, net | 5,521 | 9,901 | ||||||
| Reinsurance recoverables on unpaid losses | 63,909 | 84,490 | ||||||
| Reinsurance recoverables on paid losses | 5,929 | 6,919 | ||||||
| Prepaid reinsurance premiums | 12,024 | 6,088 | ||||||
| Deferred policy acquisition costs | 2,696 | 6,380 | ||||||
| Receivable from contingent considerations at fair value | 4,290 | 8,070 | ||||||
| Other assets | 3,245 | 3,735 | ||||||
| Total assets | $ | 239,283 | $ | 281,656 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities: | ||||||||
| Unpaid losses and loss adjustment expenses | $ | 146,262 | $ | 189,285 | ||||
| Unearned premiums | 25,703 | 30,590 | ||||||
| Reinsurance premiums payable | 2,501 | 1 | ||||||
| Debt | 12,187 | 11,932 | ||||||
| Mandatorily redeemable preferred stock | 14,380 | - | ||||||
| Funds held under reinsurance agreements | 24,233 | 25,829 | ||||||
| Accounts payable and other liabilities | 5,051 | 2,494 | ||||||
| Total liabilities | 230,317 | 260,131 | ||||||
| Commitments and contingencies | - | - | ||||||
| Shareholders' equity: | ||||||||
| Common stock, no par value (100,000,000 shares authorized; 12,222,881 | ||||||||
| issued and outstanding, respectively) | 100,158 | 98,178 | ||||||
| Accumulated deficit | (81,591 | ) | (63,153 | ) | ||||
| Accumulated other comprehensive income (loss) | (9,601 | ) | (13,500 | ) | ||||
| Total shareholders' equity | 8,966 | 21,525 | ||||||
| Total liabilities and shareholders' equity | $ | 239,283 | $ | 281,656 | ||||
| Conifer Holdings, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| (dollars in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue and Other Income | ||||||||||||||||
| Premiums | ||||||||||||||||
| Gross earned premiums | $ | 15,111 | $ | 19,721 | $ | 64,728 | $ | 106,612 | ||||||||
| Ceded earned premiums | (9,424 | ) | (7,013 | ) | (32,341 | ) | (45,750 | ) | ||||||||
| Net earned premiums | 5,687 | 12,708 | 32,387 | 60,862 | ||||||||||||
| Net investment income | 1,149 | 1,352 | 5,037 | 5,763 | ||||||||||||
| Net realized investment gains (losses) | (695 | ) | - | (716 | ) | (125 | ) | |||||||||
| Change in fair value of equity securities | 478 | (21 | ) | 234 | (203 | ) | ||||||||||
| Other gains | - | 500 | - | 500 | ||||||||||||
| Other income | 142 | 41 | 142 | 328 | ||||||||||||
| Change in fair value of contingent considerations | (2,145 | ) | 146 | 6,220 | 146 | |||||||||||
| Total revenue and other income | 4,616 | 14,726 | 43,304 | 67,271 | ||||||||||||
| Expenses | ||||||||||||||||
| Losses and loss adjustment expenses, net | 16,314 | 32,349 | 38,541 | 73,302 | ||||||||||||
| Policy acquisition costs | 1,546 | 3,535 | 8,405 | 13,335 | ||||||||||||
| Operating expenses | 2,750 | 3,165 | 11,470 | 11,831 | ||||||||||||
| Interest expense | 906 | 862 | 3,185 | 4,883 | ||||||||||||
| Total expenses | 21,516 | 39,911 | 61,601 | 103,351 | ||||||||||||
| Income (loss) from continuing operations before income taxes | (16,900 | ) | (25,185 | ) | (18,297 | ) | (36,080 | ) | ||||||||
| Income tax expense (benefit) | 141 | 11 | 141 | (1,840 | ) | |||||||||||
| Net income (loss) from continuing operations | $ | (17,041 | ) | $ | (25,196 | ) | $ | (18,438 | ) | $ | (34,240 | ) | ||||
| Net income (loss) from discontinued operations | - | (186 | ) | - | 58,587 | |||||||||||
| Net income (loss) | (17,041 | ) | (25,382 | ) | (18,438 | ) | 24,347 | |||||||||
| Series A Preferred Stock Dividends and Redemption premium | - | - | - | 817 | ||||||||||||
| Net income (loss) allocable to common shareholders | (17,041 | ) | (25,382 | ) | (18,438 | ) | 23,530 | |||||||||
| Earnings (loss) per common share, basic and diluted | ||||||||||||||||
| Net income (loss) from continuing operations | $ | (1.39 | ) | $ | (2.06 | ) | $ | (1.51 | ) | $ | (2.87 | ) | ||||
| Net income (loss) from discontinued operations | $ | - | $ | (0.02 | ) | $ | - | $ | 4.79 | |||||||
| Net income (loss) allocable to common shareholders | $ | (1.39 | ) | $ | (2.08 | ) | $ | (1.51 | ) | $ | 1.93 | |||||
| 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, 248.509.9202
ir@prehld.com
