Presurance Holdings posted a personal lines combined ratio of 82.7% for the third quarter of 2026, the strongest quarterly underwriting result the Troy, Michigan-based carrier has produced in its current form. It arrived alongside a decision that reshapes what comes next: the company has non-renewed its remaining Midwest homeowners business, meaning its entire active book now consists of Texas homeowners policies.
A year ago the same ratio was 95.2%. The accident year combined ratio, which strips out prior year reserve development and measures current-year underwriting performance on its own, was 91.4% in Q3. That compares with 90.8% in the same quarter a year earlier. That narrow year-on-year movement on the accident year basis suggests the core book is stable, rather than surging.
The headline figure benefits from 8.7 percentage points of favorable prior year development, meaning the strong Q3 number partly reflects old losses settling below earlier estimates rather than current-year underwriting alone.
Gross written premiums in personal lines fell 44.6% in Q3, from $11.2 million to $6.2 million, as Presurance shed the Midwest policies it had run since its days as Conifer Holdings. Year-to-date, personal lines gross written premiums are down 28.8%. The book is shrinking even as its profitability per dollar of retained premium improves.
What is growing is Presurance’s net retention. Personal lines net written premiums for the nine months are up 40.6% year-on-year, even as gross written premiums fell 28.8% over the same period. The company is ceding less of its Texas book to reinsurers than it did a year ago, keeping more risk on its own balance sheet. The Q2 2026 results showed that dynamic taking hold, and Q3 confirms it. The logic is straightforward: if you believe your underwriting is profitable, retaining more of the premium makes sense. The exposure, though, concentrates in a single state.
The state Presurance has concentrated in is moving in a direction that works against it. Texas homeowners rates averaged a 4.3% decrease in filings since July 1, according to the Texas Department of Insurance (TDI), following average weighted increases of 21.1% in 2023 and 18.7% in 2024. The rate environment that rebuilt carrier economics in Texas after several punishing loss years is moderating, and more competition is entering. Nearly 160 companies now sell homeowners insurance in Texas, according to TDI data.
The policies Presurance underwrote at elevated rates are still earning through. The ones it writes from here are priced into a softer market, by a carrier that has just removed the Midwest diversification it had and increased its own share of underwriting exposure. Whether that combination holds the accident year ratio below 100% depends heavily on Texas weather, which has driven political pressure on insurance affordability and continues to generate the kind of severe convective storm losses that have defined the state’s loss experience.
The commercial lines book remains in runoff and contributed to an overall company adjusted operating loss of $1.6 million for Q3, down from $2.7 million in the same period of 2025. Reserve strengthening in the quarter, attributable to development in the legacy security guard book, was the primary reason the overall combined ratio for the quarter came in at 113.2% despite the strong personal lines result.
CEO Brian Roney described it as “lessening legacy impacts.” The nine-month overall adjusted operating loss has narrowed to $1.2 million from $8.5 million in the same period of 2025, confirming the runoff drag is receding, if not yet gone.
