Presurance Holdings — Q3 2026 Earnings Summary

Financial Performance:

• Net income for the nine months ended September 30, 2026, was $3.5 million, a significant improvement from a net loss of $1.4 million in the prior-year period; Q3 2026 net loss was $1.6 million compared to a $4.0 million loss in Q3 2025.
• Earnings per share (basic and diluted) for the nine months ended September 30, 2026, were $1.06, compared to a loss of $0.80 per share in the prior-year period; Q3 2026 EPS was a loss of $0.43 compared to a loss of $2.27 per share in Q3 2025.
• Gross written premiums decreased 57.8% to $6.2 million in Q3 2026 and 40.8% to $30.7 million for the nine months ended September 30, 2026, compared to prior-year periods.
• Net earned premiums decreased 20.7% to $21.2 million for the nine months ended September 30, 2026, compared to $26.7 million in the prior-year period; Q3 2026 net earned premiums increased 23.7% to $8.4 million.
• Net investment income was $1.1 million for Q3 2026 (down 13.3% from prior year) and $3.3 million for the nine months ended September 30, 2026 (down 15.7% from prior year).
• Adjusted operating loss was $1.2 million ($0.36 per share) for the nine months ended September 30, 2026, a substantial improvement from an $8.5 million loss ($4.85 per share) in the prior-year period; Q3 2026 adjusted operating loss was $1.6 million ($0.42 per share) compared to $2.7 million ($1.55 per share) in Q3 2025.
• Book value per common share was $6.45 as of September 30, 2026, down from $14.49 as of December 31, 2025.
• Total assets were $202.2 million as of September 30, 2026, compared to $239.3 million as of December 31, 2025; total liabilities were $178.0 million compared to $230.3 million.
• Debt increased to $12.4 million as of September 30, 2026, from $12.2 million as of December 31, 2025.
• Unpaid losses and loss adjustment expenses decreased to $115.0 million as of September 30, 2026, from $146.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Management stated the Company continues to execute strategic priorities while addressing legacy portfolio obligations, with a focus on lessening legacy impacts.
• The Company remains focused on its Personal Lines homeowners business and managing its legacy Commercial Lines portfolio in runoff.
• Management emphasized a disciplined approach to underwriting and risk selection in potentially softening market conditions.
• The Company aims to maintain prudent reserve management and reduce the impact of historical Commercial Lines exposures on future financial results.

Business Segments and Product Lines:

• Personal Lines: The segment generated a combined ratio of 82.7% for Q3 2026 (improved from 95.2% in Q3 2025) and 91.0% for the nine months ended September 30, 2026 (improved from 119.3% in the prior-year period). Gross written premiums decreased 44.6% to $6.2 million in Q3 2026 and 28.8% to $30.7 million for the nine months ended September 30, 2026.
• Commercial Lines: The portfolio remains in runoff with no ongoing new business production. Gross written premiums were negative ($8,000) in Q3 2026 and negative ($29,000) for the nine months ended September 30, 2026. Reserve strengthening in Q3 2026 was largely attributable to adverse development in the discontinued Security Guard book of business.
• Geographic Focus: Following the non-renewal of its Midwest homeowners business, the Personal Lines portfolio now consists exclusively of Texas homeowners policies.

Market and Competitive Landscape:

• The reduction in premium volume reflects the Company's emphasis on underwriting discipline and selective risk acceptance in potentially softening market conditions.
• The Company's refined underwriting strategy and focused Personal Lines portfolio contributed to year-to-date underwriting improvements.

Risks and Challenges:

• Legacy Commercial Lines exposures continue to impact results, specifically through reserve strengthening in the discontinued Security Guard book of business.
• The Company faces the challenge of managing and mitigating the impact of historical Commercial Lines exposures on future financial results.
• The press release notes forward-looking statements are qualified by risks and uncertainties described in the Company's Annual Report on Form 10-K, including factors that could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• Brian Roney, CEO, stated the Company is pleased to report lessening legacy impacts as the core Personal Lines business continues to perform profitably.
• Management highlighted the transition to an exclusively Texas homeowners portfolio as a move to reinforce a dedicated operating model centered on disciplined risk selection and overall profitability.
• The tone reflects confidence in the ongoing underwriting operations and the benefit of the refined underwriting strategy, despite the continued runoff of legacy commercial lines.

Other Key Points:

• The Company reported a net favorable prior year development contribution of 12.7% to the combined ratio in Q3 2026, compared to 41.9% in Q3 2025; for the nine months ended September 30, 2026, the contribution was negative 5.7% compared to 13.3% in the prior-year period.
• The Company recorded a full valuation allowance against its deferred tax assets as of September 30, 2026, and September 30, 2025.
• Weighted average shares outstanding, basic and diluted, increased to 3.75 million in Q3 2026 from 1.75 million in Q3 2025.
• The Company trades on the Nasdaq Capital Market under the symbol PRHI.