Presurance Holdings (CNFR) Q1 2025 earnings summary

Executive summary

• Gross written premiums fell 33.5% year-over-year to $16.2M in Q1 2025, driven by an 84% decline in commercial lines and a 22.3% increase in personal lines.

• Net income from continuing operations was $522K ($0.04/share), up from $74K ($0.01/share) prior year.

• Adjusted operating loss was $3.7M ($0.30/share) compared to adjusted operating income of $1.3M ($0.11/share) in Q1 2024.

• Book value per share rose to $2.09 from $0.21 at March 31, 2024.

• The company completed the sale of its agency business in August 2024, reducing future revenue and staff to nine employees.

Financial highlights

• Net earned premiums declined 38.9% to $10.3M; net written premiums dropped 29.6% to $10.8M.

• Net investment income decreased 16.6% to $1.3M.

• Underwriting loss was $4.4M vs. a $494K gain in Q1 2024.

• Combined ratio deteriorated to 140.5% from 96.7% year-over-year, with loss ratio at 89.7% and expense ratio at 50.8%.

• Loss from change in fair value of equity securities was $192K, compared to a $43K gain prior year.

Outlook and guidance

• Commercial lines are in runoff; minimal new commercial business is expected.

• Personal lines growth is expected to be modest, focused on Texas and Midwest homeowners programs.

• Management expects the personal lines loss ratio to moderate as the year progresses.

• No dividends from insurance subsidiaries are anticipated in the near term due to capital constraints.

• Management expects to meet obligations over the next 12 months, supported by cash, a $10M earnout, and potential asset sales.