Presurance Holdings — Q2 2026 Earnings Summary

Financial Performance

• Net income doubled to $5.2 million ($1.66 per share) for the six months ended June 30, 2026, compared to $2.6 million ($1.47 per share) in the prior year period.
• Net income for the three months ended June 30, 2026, was $2.5 million ($0.68 per share), a 23.6% increase from $2.1 million ($1.17 per share) in the prior year quarter.
• Combined ratio improved to 86.4% for the six months ended June 30, 2026, from 131.2% in the prior year period; for the quarter, it improved to 69.5% from 121.1%.
• Gross written premiums declined 34.1% year-over-year for the six months to $24.5 million, and 38.0% for the quarter to $13.1 million.
• Net written premiums increased 85.9% year-over-year for the six months to $22.7 million, driven by a shift in premium recognition timing, while declining 38.0% for the quarter.
• Net earned premiums decreased 35.9% year-over-year for the six months to $12.7 million and 28.8% for the quarter to $6.8 million.
• Net investment income decreased 16.9% year-over-year for the six months to $2.2 million and 19.9% for the quarter to $1.0 million.
• Book value per share is $7.41.
• Weighted average shares outstanding for the six months ended June 30, 2026, stood at 3,105,236.
• Adjusted operating income for the six months was $384,000 ($0.12 per share), compared to an adjusted operating loss of $5.8 million ($3.30 per share) in the prior year; for the quarter, adjusted operating income was $1.3 million ($0.35 per share) versus a loss of $2.1 million ($1.19 per share).
• Debt on the balance sheet was $12.3 million as of June 30, 2026, compared to $12.2 million as of December 31, 2025.
• Total assets were $222.5 million as of June 30, 2026, down from $239.3 million at year-end 2025.

Business Segments and Product Lines

• Personal lines represented 100% of total gross written premiums in the second quarter of 2026, primarily driven by Texas homeowners' premium and select Midwestern states.
• Commercial lines represented 0% of total gross written premiums in the second quarter of 2026, reflecting the continued runoff of legacy commercial exposures.
• The Company reshaped its underwriting portfolio toward select personal lines homeowners' risks with attractive long-term characteristics, moving away from previously written commercial lines risks that contributed substantially to prior losses.
• Personal lines combined ratio for the six months ended June 30, 2026, improved to 96.5% from 127.5% in the prior year period.
• Personal lines loss ratio for the six months ended June 30, 2026, was 61.1%, compared to 73.7% in the prior year period.
• Commercial lines loss ratio was not meaningful for the quarter due to negligible premiums, compared to 216.4% in the prior year quarter.

Market and Competitive Landscape

• The Company's strategy focuses on earnings quality over scale, prioritizing business with attractive risk-adjusted returns to promote consistent, sustainable performance.
• The planned reduction of commercial lines has strengthened the Company's risk profile and lowered earnings volatility.

Risks and Challenges

• Forward-looking statements are qualified by risks and uncertainties, including those described in the Company's Form 10-K filed on March 27, 2026, which could cause actual results to differ materially from expectations.
• The Company has recorded a full valuation allowance against its deferred tax assets as of June 30, 2026, and June 30, 2025.

Management Commentary and Tone

• CEO Brian Roney stated that over the past 21 months under new leadership, the Company has begun to see benefits from a changed management approach, materially improving underwriting results.
• Management emphasized that disciplined operations, appropriate risk selection, and careful capital management are essential to driving future performance.
• Management noted that improved underwriting results demonstrate the early benefits of the strategy to streamline the risk profile and build a sustainable, profitable underwriting portfolio.

Other Key Points

• The second quarter loss ratio of 24.6% benefited from 31 percentage points of net favorable prior year reserve development.
• Change in fair value of equity securities resulted in a gain of $81,000 for the quarter, compared to a loss of $65,000 in the prior year period.
• Change in fair value of contingent considerations contributed $1.2 million to income for the quarter and $5.7 million for the six-month period.
• Reinsurance recoverables on unpaid losses decreased to $60.4 million as of June 30, 2026, from $63.9 million at December 31, 2025.
• Unpaid losses and loss adjustment expenses decreased to $125.2 million as of June 30, 2026, from $146.3 million at December 31, 2025.