For PRHIZ noteholders, the improving credit profile (GAAP profit, equity growth, preferred reduction) supports the 9.75% coupon. Monitor next quarter for sustained personal lines underwriting profitability and further debt reduction. The share count dilution from the capital raise is a common-stock concern but credit-neutral for the notes.
Price Chart
Executive Summary
Presurance Holdings reported Q1 2026 net income of $2.6M ($0.15/share), a significant improvement from $0.5M ($0.04/share) in Q1 2025, driven by a sharp improvement in underwriting performance as the personal lines combined ratio fell to 97.9% from 140.9%. However, gross written premiums declined 29.1% YoY to $11.5M as the company continues its exit from legacy commercial lines, and the adjusted operating loss was still -$2.8M. For the 9.75% Senior Notes due 2028 (PRHIZ), the credit story is improving — the issuer swung to a GAAP profit, reduced mandatorily redeemable preferred stock from $14.4M to $8.0M, and grew shareholders' equity from $9.0M to $25.2M, strengthening the equity cushion below the notes.
Key Financial Metrics
Key Facts
- Net income of $2.6M ($0.15/share) vs $0.5M ($0.04/share) in Q1 2025
- Personal lines combined ratio improved to 97.9% from 140.9% YoY
- Overall loss ratio improved to 56.2% from 89.7% YoY
- Gross written premiums declined 29.1% to $11.5M due to commercial lines exit
- Shareholders' equity increased to $25.2M from $9.0M at year-end 2025
- Mandatorily redeemable preferred stock reduced to $8.0M from $14.4M
- Weighted average shares outstanding increased to 17.2M from 12.2M (share issuance for capital)
- Adjusted operating loss improved to -$2.8M from -$3.7M in Q1 2025
Financial Impact
Credit-positive: equity cushion grew ~$16M, preferred stock reduced $6.4M, GAAP profitability restored
Risk Factors
- Gross written premiums continue to decline sharply (-29.1% YoY), shrinking the premium base
- Adjusted operating income remains negative (-$2.8M), indicating core underwriting still unprofitable
- Commercial lines runoff could produce further adverse development surprises
- Share count dilution (40% increase) signals reliance on equity issuance for capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-223815 |
| Document: prhi-20260513.htm | 0001193125-26-223815 |
| Document: 0001193125-26-223815-index-headers.html | 0001193125-26-223815 |
| Document: 0001193125-26-223815-index.html | 0001193125-26-223815 |
| Document: 0001193125-26-223815.txt | 0001193125-26-223815 |
| 8-K Data (Synthetic) | 0001193125-26-223815 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 28, 2026 21w ago | 8-K | $18.29 $21.55 | ▲ +17.86% | ▲ +16.61% | $25.17 (+37.65%) |
May 14, 2026 23w ago | 8-K | $17.58 $18.75 | ▲ +6.66% | ▲ +3.07% | $25.17 (+43.17%) |
Mar 30, 2026 30w ago | 8-K | $17.05 $19.20 | ▼ −12.62% | ▼ −0.24% | $25.17 (−47.64%) |
US Market Status
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