Presurance Holdings has reported another heavy quarterly loss as it accelerates its exit from legacy commercial lines and pivots fully into personal lines homeowners' business.
For the fourth quarter of 2025, the company posted a net loss attributable to common shareholders of $17.0 million, or $1.39 per share, compared with a loss of $25.4 million, or $2.08 per share, a year earlier. For the full year, Presurance swung from net income of $23.5 million in 2024 to a net loss of $18.4 million in 2025.
Management said results continue to be dominated by adverse development on commercial lines written under prior management, even as commercial production has been shut off and personal lines now account for all new premiums.
“We are taking decisive steps to manage the lingering effects of the legacy commercial lines run-off,” said Brian Roney, CEO of Presurance. “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.”
Gross written premiums fell 41.9% year over year in the quarter to $7.9 million from $13.7 million, and were down 17.0% for the full year to $59.8 million from $72.1 million. Net written premiums dropped 61.2% in the quarter to $3.7 million and 56.7% for the year to $21.3 million, reflecting both the commercial run-off and the impact of an in-force quota share treaty on the personal lines portfolio.
Net earned premiums more than halved in the quarter to $5.7 million from $12.7 million and were down 46.8% for the year to $32.4 million. Fourth-quarter net investment income slipped to $1.1 million from $1.4 million. The company also recorded a $695,000 loss from changes in the fair value of equity securities.
Adjusted operating loss for the quarter was $15.2 million, or $1.24 per diluted share, versus a loss of $25.8 million a year earlier. For the full year, adjusted operating loss narrowed to $25.6 million from $34.6 million in 2024. Book value per share fell to $0.73 at December 31, 2025, from $1.76 a year earlier, highlighting the impact of reserve development and operating losses.
Underwriting results remained severely negative. The group loss ratio for the quarter rose to 286.9% from 254.6%, while the expense ratio increased to 46.6% from 38.3%. The combined ratio deteriorated to 333.5%, up from 292.9% in the fourth quarter of 2024.
For the full year, the loss ratio was 119.0%, the expense ratio 49.8%, and the combined ratio 168.8%. Net adverse prior-year reserve development contributed 178.7 percentage points to the combined ratio in the quarter and 42.3 points for the full year. On an accident-year basis, excluding prior-year reserve movements, the combined ratio was 154.8% for the quarter and 126.5% for the year, indicating that current-year underwriting is still significantly loss-making before legacy development.
Commercial lines are now effectively in run-off. Gross written premium from commercial lines was slightly negative in the fourth quarter, at $(8,000), compared with $3.1 million a year earlier, and full-year commercial gross written premiums fell 67.4% to $8.7 million from $26.7 million.
For 2025, the commercial lines loss ratio was 624.7%, the expense ratio 29.8%, and the combined ratio 214.6%. Adverse prior-year development alone contributed 118.5 points to the full-year commercial combined ratio. In the quarter, commercial lines generated no new premium and represented 0% of total gross written premium.
Personal lines, largely homeowners', now account for all new business. Personal lines gross written premiums represented 100% of total GWP in the quarter at $8.0 million, down 24.7% year over year, but grew 12.7% for the full year to $51.1 million from $45.4 million as the company concentrated on this segment.
Net written premiums for personal lines were $3.8 million in the quarter (down 58.1%) and $23.0 million for the year (down 34.0%), with the declines driven largely by the quota share reinsurance treaty Presurance is using to manage risk and capital.
The personal lines combined ratio in the fourth quarter of 2025 was 150.9%, up sharply from 95.8% a year earlier, driven by a loss ratio of 107.3% and an expense ratio of 43.6%. For the full year, personal lines posted a combined ratio of 125.4% (2024: 105.7%), with an accident-year combined ratio of 117.1%, showing the homeowners-focused book is not yet at an underwriting profit.
Presurance’s numbers stand in contrast to some regional peers that have begun to normalize results after similar restructurings.
Florida-based Heritage Insurance, which also writes residential property in Texas and other states, reported a combined ratio of 84.5% in the first quarter of 2025, improving from 94.0% a year earlier as rate actions and re-underwriting took hold - well below Presurance’s 2025 accident-year combined ratio of 126.5%.
AM Best and other analysts have also highlighted broader strain among smaller US personal lines carriers, particularly in cat-exposed homeowners' markets, with adverse reserve development and reinsurance costs pressuring results.
Against that backdrop, Presurance’s pivot away from long-tail commercial casualty and toward quota-share-backed homeowners in Texas and the Midwest is directionally in line with industry efforts to simplify and de-risk books. But with accident-year combined ratios still well above 100% in both the group and personal lines segments, the company remains at an early stage in proving that its go-forward strategy can deliver sustainable underwriting profits.
