Presurance Holdings reported net income of $2.5 million for the second quarter of 2026, against $2.1 million in Q2 2025. The Troy, Michigan-based holding company has narrowed its focus entirely to Texas homeowners insurance, which 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 careful reading. Of that figure, 31 percentage points came from favourable prior year reserve development - losses from earlier periods settling below their initial estimates. The accident year combined ratio, which strips out that prior year development and measures current-year underwriting performance alone, was 100.5% for Q2. For the first half of 2026, the accident year combined ratio was 104.3%, compared to 127.7% in the same period a year earlier. That 23-point accident year improvement is genuine underwriting progress. The headline combined ratio on its own is not.
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.
Texas homeowners premiums rose an average of 21% in 2023 and 19% in 2024, according to Texas Department of Insurance data, resetting the pricing base substantially from the levels that contributed to industry losses through the prior cycle. Rate increases have since moderated: average filed rate requests ran at -0.8% for the 90-day period from November 2025 through February 2026.
The moderation follows a period of severe convective storm losses concentrated in the state. Severe convective storms generated more than $52 billion in insured losses nationally in 2025, per Insurify, with Texas accounting for a disproportionate share. Cotality's 2026 Severe Convective Storm Risk Report found more than 235,000 Texas homes were impacted by hail alone. The Dallas-Fort Worth corridor and central Texas have been the primary loss concentrations. Any carrier focused exclusively on Texas homeowners carries that exposure profile in its book.
Presurance's personal lines accident year combined ratio for Q2 was 90.9%, compared to 109.5% a year earlier - an 18.6-point improvement on current business. The personal lines combined ratio including prior year development was 95.4% for Q2, compared to 114.2% in Q2 2025. For the first half of 2026, the personal lines accident year combined ratio was 93.2%.
The commercial book is effectively closed. Gross written premiums in commercial lines were negative $3,000 for Q2 2026, reflecting cancellations on 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%. Its removal from the active book has reduced the company's earnings volatility significantly, which is the primary rationale Presurance has cited for the exit strategy.
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.
Presurance is now a single-state, single-line personal property carrier with an improving accident year result and a completed commercial exit. Brokers placing Texas homeowners business should note several things. The Citizens Property Insurance Corporation comparison is relevant context: Presurance assumed just 81 policies from Citizens during the quarter, a modest figure by the standards of carriers participating in the Florida depopulation programme - though Texas does not operate an equivalent large-scale depopulation, the comparison signals Presurance is selective about its growth sources and is not pursuing volume for its own sake.
AM Best elevated its homeowners insurance sector outlook from negative to stable in December 2025, reflecting improvement in carrier profitability across the segment. That stabilisation is geographically uneven, and Texas remains among the more complex markets given its combination of hail, severe convective storm, hurricane, flood, and wildfire exposure. Brokers placing homeowners business with Presurance in the current environment should confirm current appetite for specific geographies within Texas - particularly DFW corridor and Gulf Coast exposures - rather than assuming uniform availability across the state.
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 the restructuring of Presurance's reinsurance programme at the start of 2026, a change that concentrates more underwriting risk within the carrier's own balance sheet and is worth monitoring as the Texas hail and hurricane season progresses into Q3.
