Presurance Holdings reported net income of $2.5 million for the second quarter of 2026, compared to $2.1 million in the same period a year earlier. The Troy, Michigan-based holding company has narrowed its focus to Texas homeowners insurance. That line represented 100% of gross written premiums in Q2. The company wrote $13.1 million in gross written premiums for the quarter, down 38% year-over-year, as it continued to exit its legacy commercial lines book.
The headline combined ratio of 69.5% for the quarter requires context. Of that figure, 31 percentage points came from favorable prior year reserve development. That means the improvement reflects losses from prior periods settling below earlier estimates, not current-year underwriting performance alone. The accident year combined ratio, which strips out prior year development, was 100.5% for Q2 - essentially breakeven on current business. For the first half of 2026, the accident year combined ratio was 104.3%, compared to 127.7% a year earlier.
Brian Roney, CEO of Presurance, attributed the results to changes in management approach over the past 21 months. "We materially improved our underwriting results and delivered another profitable quarter for shareholders by strengthening both underwriting and claims management," Roney said.
Presurance has narrowed its personal lines book to Texas homeowners. The Texas market has seen significant disruption from hail and severe convective storm losses, particularly across the Dallas-Fort Worth corridor and central Texas. Texas homeowners premiums rose an average of 21% in 2023 and 19% in 2024, according to Texas Department of Insurance data cited by United Policyholders. Rate increases have slowed heading into 2026. Average filed rate requests ran at -0.8% for the 90-day period from November 2025 through February 2026. That moderation follows several years of sharp increases that have reset the pricing base.
The Texas homeowners market has faced persistent pressure from hail and severe convective storm losses, particularly across the Dallas-Fort Worth corridor and central Texas. Severe convective storms generated more than $52 billion in insured losses nationally in 2025, according to Insurify. Texas also accounted for a disproportionate share of that exposure, with more than 235,000 homes were impacted by hail alone, according to Cotality's 2026 Severe Convective Storm Risk Report.
Presurance's personal lines accident year combined ratio for Q2 was 90.9%, compared to 109.5% a year earlier. That is an improvement of 18.6 percentage points on current business. The personal lines combined ratio, including prior year development was 95.4%, compared to 114.2% in Q2 2025. The personal lines book has not yet crossed into accident year underwriting profit for the first half. That figure stands at 93.2% for the six months ended June 30.
The commercial lines book is in runoff. Gross written premiums in commercial lines were negative $3,000 for Q2 2026, reflecting policy cancellations in a book the company is no longer writing. Net earned premiums in commercial lines fell to $105,000, down from $468,000 in Q2 2025. The commercial book previously carried a combined ratio above 250%.
The company's accumulated deficit of $76.4 million reflects years of losses across both commercial and personal lines prior to the current management restructuring. According to Presurance, the commercial lines reduction has strengthened the company's risk profile and lowered earnings volatility.
Presurance writes Texas homeowners as its primary line, supplemented by select Midwestern states. The company assumed just 81 policies from Citizens Property Insurance Corporation during the quarter, citing underwriting standards as the limiting factor.
AM Best elevated its homeowners outlook from negative to stable in December 2025, reflecting improvement in carrier profitability. That stabilization is geographically uneven. Texas remains among the more complex markets given its combination of hail, hurricane, flood, and wildfire exposure.
A reverse stock split effective June 1 reduced Presurance's share count to maintain Nasdaq listing requirements. Book value per share stands at $7.41, down from $16.15 a year earlier. Net written premiums of $16.7 million exceeded gross written premiums of $13.1 million in Q2. That relationship reflects reduced ceded reinsurance premiums following a restructuring of the company's reinsurance program at the start of 2026.
