false--12-310001502292Q1http://fasb.org/srt/2025#PartnershipInterestMemberhttp://fasb.org/srt/2025#PartnershipInterestMemberhttp://fasb.org/srt/2025#ChiefExecutiveOfficerMember0001502292prhi:BackstoppedRightsOfferingMemberus-gaap:SeriesBPreferredStockMember2026-02-272026-02-2700015022922025-03-310001502292prhi:MeasurementInputGrossRevenueRiskAdjustmentMember2025-12-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-310001502292us-gaap:CommonStockMember2025-12-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001502292prhi:OperatingAndOtherExpensesMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel2Member2026-03-310001502292us-gaap:WarrantMember2025-01-012025-03-310001502292prhi:TriassicInsuranceCompanyMember2025-12-310001502292prhi:NonVestedSharesOfStockOptionsMember2026-01-012026-03-310001502292us-gaap:FairValueMeasurementsRecurringMember2025-12-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:FairValueMeasurementsRecurringMember2026-03-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001502292srt:MinimumMemberprhi:SpecificCommercialPropertyAndLiabilityRisksMember2025-01-012025-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesMember2026-03-310001502292us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2026-03-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001502292us-gaap:FairValueInputsLevel2Memberprhi:CommercialMortgageAndAssetBackedMember2025-12-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001502292us-gaap:PreferredStockMemberus-gaap:SeriesBPreferredStockMember2026-03-310001502292us-gaap:FairValueInputsLevel1Memberprhi:CommercialMortgageAndAssetBackedMember2026-03-310001502292us-gaap:FairValueInputsLevel2Memberprhi:CommercialMortgageAndAssetBackedMember2026-03-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2026-03-310001502292us-gaap:CorporateDebtSecuritiesMember2026-03-310001502292prhi:StockRepurchaseProgramDecember2018Memberus-gaap:CommonStockMember2025-01-012025-12-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:PrivatePlacementMember2025-12-232025-12-2300015022922024-12-310001502292us-gaap:MeasurementInputRiskFreeInterestRateMember2026-03-310001502292us-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2026-05-112026-05-110001502292us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2025-12-310001502292prhi:ConiferInsuranceServicesMember2026-03-310001502292us-gaap:MeasurementInputExpectedTermMember2026-03-310001502292prhi:CommercialMortgageAndAssetBackedMember2026-03-310001502292us-gaap:CommercialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310001502292us-gaap:CommercialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:EmployeeStockOptionMember2026-01-012026-03-310001502292prhi:TriassicInsuranceCompanyMember2025-12-312025-12-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310001502292prhi:NonVestedSharesOfStockOptionsMember2025-01-012025-03-310001502292us-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001502292us-gaap:PreferredStockMemberus-gaap:SeriesBPreferredStockMember2026-01-012026-03-310001502292prhi:PropertyCatastropheReinsuranceTreatyMembersrt:MinimumMember2025-07-012025-07-010001502292us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2026-05-110001502292us-gaap:WarrantMember2026-01-012026-03-310001502292us-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-310001502292prhi:HomeownersQuotaShareMembersrt:MaximumMember2025-01-012025-03-310001502292prhi:TriassicInsuranceCompanyMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:PreferredStockMemberus-gaap:InterestExpenseMemberus-gaap:SeriesBPreferredStockMember2025-01-012025-03-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:PrivatePlacementMember2025-12-230001502292stpr:TXprhi:GrossWrittenPremiumsMemberus-gaap:GeographicConcentrationRiskMember2026-01-012026-03-310001502292us-gaap:DebtSecuritiesMember2026-01-012026-03-310001502292us-gaap:CommonStockMember2025-03-310001502292us-gaap:OperatingSegmentsMemberprhi:CommercialLines1Member2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2026-03-310001502292prhi:CededHomeownersSpecificRisksInExcessOfFiveHundredThousandDollarMembersrt:MinimumMember2025-01-012025-03-310001502292us-gaap:FairValueInputsLevel3Memberprhi:CommercialMortgageAndAssetBackedMember2025-12-310001502292us-gaap:MeasurementInputRiskFreeInterestRateMember2025-12-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:FairValueInputsLevel1Member2026-03-310001502292prhi:LossPortfolioTransferReinsuranceAgreementMember2026-01-012026-03-310001502292prhi:TriassicInsuranceCompanyMember2025-01-012025-12-310001502292srt:FederalHomeLoanBankOfIndianapolisMemberprhi:SeniorUnsecuredNotesMember2025-12-310001502292stpr:TXprhi:GrossWrittenPremiumsMemberus-gaap:GeographicConcentrationRiskMember2025-01-012025-03-310001502292us-gaap:EquitySecuritiesMember2025-01-012025-03-310001502292prhi:MeasurementInputGrossRevenueVolatilityMember2026-03-310001502292us-gaap:SeriesDPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2026-05-110001502292us-gaap:EmployeeStockOptionMember2026-03-310001502292us-gaap:RetainedEarningsMember2026-01-012026-03-310001502292us-gaap:PreferredStockMemberus-gaap:PrivatePlacementMemberus-gaap:SeriesBPreferredStockMember2025-02-272025-02-270001502292prhi:NewQuotaShareReinsuranceAgreementMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel1Memberprhi:CommercialMortgageAndAssetBackedMember2025-12-3100015022922025-12-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001502292us-gaap:EquitySecuritiesMember2026-01-012026-03-310001502292us-gaap:CommonStockMember2026-01-012026-03-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-012026-03-310001502292us-gaap:MeasurementInputDiscountRateMember2025-12-310001502292us-gaap:PreferredStockMemberus-gaap:PrivatePlacementMemberus-gaap:SeriesBPreferredStockMember2025-03-030001502292us-gaap:PrivatePlacementMemberus-gaap:SeriesBPreferredStockMember2025-02-272025-02-270001502292us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2025-12-310001502292us-gaap:CashAndCashEquivalentsMember2026-01-012026-03-310001502292prhi:BackstoppedRightsOfferingMember2026-02-012026-02-280001502292us-gaap:OperatingSegmentsMemberprhi:CommercialLines1Member2025-01-012025-03-310001502292us-gaap:RetainedEarningsMember2024-12-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2026-03-310001502292prhi:TriassicInsuranceCompanyMember2026-02-270001502292prhi:SeniorSecuredNotesMember2026-03-310001502292us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001502292us-gaap:ResidentialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:SeriesCPreferredStockMember2025-12-012025-12-310001502292srt:FederalHomeLoanBankOfIndianapolisMemberprhi:SeniorUnsecuredNotesMember2026-03-310001502292us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2026-03-310001502292prhi:HomeownersQuotaShareMembersrt:MaximumMember2026-01-012026-03-310001502292prhi:ConiferInsuranceServicesMember2025-12-310001502292us-gaap:CommonStockMember2025-01-012025-03-310001502292us-gaap:EmployeeStockOptionMember2022-03-080001502292prhi:ConiferInsuranceServicesMember2026-01-012026-03-310001502292prhi:PersonalLines1Memberus-gaap:OperatingSegmentsMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Member2026-03-310001502292us-gaap:FairValueInputsLevel2Memberprhi:ConiferInsuranceServicesMember2026-03-310001502292us-gaap:PreferredStockMemberus-gaap:InterestExpenseMemberus-gaap:SeriesBPreferredStockMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2025-12-310001502292prhi:NinePointSevenFivePercentSeniorUnsecuredNotesEffectiveSeptember2023Memberprhi:SeniorUnsecuredNotesMember2026-01-012026-03-310001502292us-gaap:SeriesDPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2026-05-112026-05-110001502292us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001502292us-gaap:PreferredStockMemberus-gaap:PrivatePlacementMemberus-gaap:SeriesBPreferredStockMember2025-03-032025-03-030001502292us-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:FairValueInputsLevel1Memberprhi:ConiferInsuranceServicesMember2025-12-310001502292us-gaap:CommonStockMembersrt:MaximumMember2025-02-270001502292us-gaap:EmployeeStockOptionMember2022-03-082022-03-080001502292us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310001502292us-gaap:FairValueInputsLevel1Memberprhi:ConiferInsuranceServicesMember2026-03-310001502292prhi:ConiferInsuranceServicesMember2025-01-012025-12-310001502292prhi:LossPortfolioTransferReinsuranceAgreementMember2026-03-310001502292us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2025-12-310001502292prhi:MeasurementInputWeightedAverageRisk-FreeRateMember2026-03-310001502292srt:MaximumMemberprhi:LossPortfolioTransferReinsuranceAgreementMember2022-11-012022-11-010001502292prhi:ContingentConsiderationMember2025-12-310001502292prhi:NinePointSevenFivePercentSeniorUnsecuredNotesEffectiveSeptember2023Memberprhi:SeniorUnsecuredNotesMember2026-03-310001502292us-gaap:DebtSecuritiesMember2025-01-012025-03-310001502292prhi:MeasurementInputGrossRevenueRiskAdjustmentMember2026-03-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-12-310001502292prhi:ContingentConsiderationMember2026-01-012026-03-310001502292prhi:OperatingAndOtherExpensesMember2025-01-012025-03-310001502292us-gaap:CommonStockMember2026-03-310001502292us-gaap:MeasurementInputCreditSpreadMember2026-03-310001502292us-gaap:MandatorilyRedeemablePreferredStockMember2026-01-012026-03-310001502292prhi:CatastropheReinsuranceCoverageMembersrt:MaximumMember2026-01-012026-03-310001502292prhi:StockRepurchaseProgramDecember2018Memberus-gaap:CommonStockMembersrt:MaximumMember2018-12-050001502292us-gaap:CorporateNonSegmentMember2025-01-012025-03-310001502292prhi:SpecificCommercialPropertyAndLiabilityRisksMember2026-01-012026-03-310001502292us-gaap:RetainedEarningsMember2026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-03-3100015022922026-05-130001502292prhi:MeasurementInputWeightedAverageCostOfCapitalMember2026-03-310001502292us-gaap:CashAndCashEquivalentsMember2025-01-012025-03-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001502292us-gaap:FairValueInputsLevel1Member2025-12-310001502292us-gaap:FairValueInputsLevel3Memberprhi:ConiferInsuranceServicesMember2025-12-310001502292prhi:PropertyCatastropheReinsuranceTreatyMembersrt:MaximumMember2025-07-010001502292prhi:ConiferInsuranceCompanyMember2025-04-012025-06-300001502292us-gaap:SeriesBPreferredStockMember2025-01-012025-03-310001502292us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2025-12-3100015022922025-01-012025-12-3100015022922026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Member2025-12-310001502292us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001502292us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2026-03-310001502292us-gaap:CommonStockMember2025-02-272025-02-270001502292us-gaap:CommonStockMember2024-12-310001502292us-gaap:FairValueInputsLevel2Member2025-12-310001502292us-gaap:RetainedEarningsMember2025-03-310001502292us-gaap:MortgageBackedSecuritiesMember2025-12-310001502292prhi:LossPortfolioTransferReinsuranceAgreementMember2025-12-312025-12-310001502292us-gaap:CommonStockMember2026-01-012026-03-310001502292prhi:NinePointSevenFivePercentSeniorNotesDue2028Member2026-01-012026-03-310001502292prhi:StockRepurchaseProgramDecember2018Memberus-gaap:CommonStockMember2026-01-012026-03-310001502292us-gaap:MortgageBackedSecuritiesMember2026-03-310001502292prhi:SeniorSecuredNotesMemberprhi:TriassicInsuranceCompanyMember2026-03-310001502292us-gaap:FairValueInputsLevel3Memberprhi:ConiferInsuranceServicesMember2026-03-310001502292prhi:MeasurementInputWeightedAverageCostOfCapitalMember2025-12-310001502292us-gaap:CommonStockMember2025-03-030001502292prhi:CommercialMortgageAndAssetBackedMember2025-12-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2026-05-112026-05-110001502292us-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310001502292us-gaap:EmployeeStockOptionMember2025-01-012025-03-310001502292us-gaap:CorporateNonSegmentMember2026-01-012026-03-310001502292us-gaap:CommonStockMemberprhi:BackstoppedRightsOfferingMember2026-02-272026-02-270001502292us-gaap:WarrantMemberus-gaap:PrivatePlacementMember2025-03-032025-03-030001502292us-gaap:CommonStockMemberprhi:BackstoppedRightsOfferingMember2026-02-270001502292prhi:CededHomeownersSpecificRisksInExcessOfFiveHundredThousandDollarMembersrt:MinimumMember2026-01-012026-03-310001502292us-gaap:RetainedEarningsMember2025-12-310001502292prhi:SeniorUnsecuredNotesMember2026-03-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001502292prhi:TriassicInsuranceCompanyMember2026-02-280001502292us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2026-03-310001502292prhi:LossPortfolioTransferReinsuranceAgreementMember2025-12-310001502292prhi:MeasurementInputYieldVolatilityMember2026-03-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2026-03-310001502292us-gaap:MeasurementInputDiscountRateMember2026-03-310001502292us-gaap:CommonStockMember2025-02-270001502292us-gaap:SeriesBPreferredStockMember2026-02-012026-02-280001502292us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001502292us-gaap:RetainedEarningsMember2025-01-012025-03-310001502292us-gaap:WarrantMember2025-02-272025-02-270001502292us-gaap:FairValueInputsLevel2Memberprhi:ConiferInsuranceServicesMember2025-12-310001502292us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2026-03-310001502292us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-12-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-3100015022922025-01-012025-03-310001502292prhi:MeasurementInputGrossRevenueVolatilityMember2025-12-310001502292us-gaap:SeriesCPreferredStockMemberus-gaap:PreferredStockMemberus-gaap:InterestExpenseMember2026-01-012026-03-310001502292us-gaap:FairValueInputsLevel3Memberprhi:CommercialMortgageAndAssetBackedMember2026-03-310001502292prhi:PersonalLines1Memberus-gaap:OperatingSegmentsMember2025-01-012025-03-310001502292prhi:CatastropheReinsuranceCoverageMembersrt:MaximumMember2025-01-012025-03-310001502292us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310001502292prhi:NewQuotaShareReinsuranceAgreementMember2025-06-012025-06-0100015022922026-03-310001502292us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2025-12-310001502292us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001502292prhi:ContingentConsiderationMember2026-03-310001502292us-gaap:PreferredStockMemberus-gaap:SeriesBPreferredStockMember2026-02-272026-02-270001502292us-gaap:PreferredStockMemberus-gaap:SeriesBPreferredStockMember2025-01-012025-03-310001502292us-gaap:CorporateDebtSecuritiesMember2025-12-310001502292prhi:ReceivableInTwoThousandTwentySixMember2026-03-310001502292us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310001502292us-gaap:PreferredStockMemberus-gaap:PrivatePlacementMemberus-gaap:SeriesBPreferredStockMember2025-02-27prhi:Businessxbrli:pureiso4217:USDxbrli:sharesprhi:Securityxbrli:sharesprhi:Voteiso4217:USDutr:Y

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-37536

Presurance Holdings, Inc.

(Exact name of registrant as specified in its charter)


Michigan		27-1298795
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3001 West Big Beaver Road, Suite 319
Troy, Michigan		48084
(Address of principal executive offices)		(Zip code)

(248) 559-0840

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	PRHI	The Nasdaq Stock Market LLC
9.75% Senior Notes due 2028	PRHIZ	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☑	Smaller reporting company ☑	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of outstanding shares of the registrant’s common stock, no par value, as of May 13, 2026, was 26,222,881.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Form 10-Q

INDEX


	Page No.
Part I — Financial Information
Item 1 — Condensed Financial Statements	3
Condensed Consolidated Balance Sheets (Unaudited)	3
Condensed Consolidated Statements of Operations (Unaudited)	4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	5
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	6
Condensed Consolidated Statements of Cash Flows (Unaudited)	7
Notes to Condensed Consolidated Financial Statements (Unaudited)	8
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3 — Quantitative and Qualitative Disclosures about Market Risk	33
Item 4 — Controls and Procedures	33
Part II — Other Information
Item 1 — Legal Proceedings	34
Item 1A — Risk Factors	34
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3 - Defaults Upon Senior Securities	34
Item 4 - Mine Safety Disclosures	34
Item 5 - Other Information	34
Item 6 — Exhibits	35
Signatures	36

PART 1 - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(dollars in thousands)


	March 31, 2026			December 31, 2025
	(Unaudited)
Assets
Investment securities:
Debt securities, at fair value (amortized cost of $88,838 and $96,669, respectively)	$	80,314		$	88,305
Equity securities, at fair value (cost of $1,257 and $1,276, respectively)		1,288			1,277
Short-term investments, at fair value		32,464			24,725
Total investments		114,066			114,307

Cash and cash equivalents		25,469			27,362
Premiums and agents' balances receivable, net		6,540			5,521
Reinsurance recoverables on unpaid losses		62,014			63,909
Reinsurance recoverables on paid losses		3,617			5,929
Prepaid reinsurance premiums		9,629			12,024
Deferred policy acquisition costs		2,825			2,696
Receivable from contingent considerations at fair value		8,780			4,290
Other assets		3,670			3,245
Total assets	$	236,610		$	239,283

Liabilities and Shareholders' Equity
Liabilities:
Unpaid losses and loss adjustment expenses	$	137,501		$	146,262
Unearned premiums		23,457			25,703
Reinsurance premiums payable		4,547			2,501
Debt		12,250			12,187
Mandatorily redeemable preferred stock		8,000			14,380
Funds held under reinsurance agreements		20,549			24,233
Accounts payable and other liabilities		5,116			5,051
Total liabilities		211,420			230,317

Commitments and contingencies

Shareholders' equity:
Common stock, no par value (100,000,000 shares authorized; 26,222,881 and 12,222,881 issued and outstanding, respectively)		113,919			100,158
Accumulated deficit		(78,969	)		(81,591	)
Accumulated other comprehensive income (loss)		(9,760	)		(9,601	)
Total shareholders' equity		25,190			8,966
Total liabilities and shareholders' equity	$	236,610		$	239,283

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(dollars in thousands, except per share data)


	Three Months Ended March 31,
	2026			2025
Revenue and Other Income
Premiums
Gross earned premiums	$	13,714			16,118
Ceded earned premiums		(7,789	)		(5,803	)
Net earned premiums		5,925			10,315
Net investment income		1,110			1,289
Net realized investment gains (losses)		(14	)		3
Change in fair value of equity securities		30			(192	)
Other income		6			65
Change in fair value of contingent considerations		4,490			4,395
Total revenue and other income		11,547			15,875

Expenses
Losses and loss adjustment expenses, net		3,329			9,274
Policy acquisition costs		1,558			2,677
Operating and other expenses		2,100			2,861
Interest expense		1,976			541
Total expenses		8,963			15,353

Income (loss) before income taxes		2,584			522
Income tax expense (benefit)		(38	)		—

Net income (loss)	$	2,622		$	522

Earnings (loss) per common share, basic and diluted	$	0.15		$	0.04

Weighted average common shares outstanding, basic and diluted		17,200,659			12,222,881

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2026			2025
Net income (loss)	$	2,622		$	522

Other comprehensive income (loss), net of tax:
Unrealized investment gains (losses):
Unrealized investment gains (losses) during the period		(172	)		1,599
Income tax (benefit) expense		—			—
Unrealized investment gains (losses), net of tax		(172	)		1,599
Less: reclassification adjustments to:
Net realized investment gains (losses) included in net income (loss)		(13	)		—
Income tax expense (benefit)		—			—
Total reclassifications included in net income (loss), net of tax		(13	)		—

Other comprehensive income (loss)		(159	)		1,599

Total comprehensive income (loss)	$	2,463		$	2,121

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited)

(dollars in thousands)


	No Par, Common Stock					Accumulated			Accumulated Other Comprehensive			Total Shareholders'
	Shares		Amount			Deficit			Income (Loss)			Equity
Balances at December 31, 2025		12,222,881	$	100,158		$	(81,591	)	$	(9,601	)	$	8,966
Net income (loss)		—		—			2,622			—			2,622
Issuance of common stock		14,000,000		14,000			—			—			14,000
Common stock issuance costs		—		(252	)		—			—			(252	)
Stock-based compensation expense		—		13			—			—			13
Other comprehensive income (loss)		—		—			—			(159	)		(159	)
Balances at March 31, 2026		26,222,881	$	113,919		$	(78,969	)	$	(9,760	)	$	25,190


Balances at December 31, 2024		12,222,881	$	98,178		$	(63,153	)	$	(13,500	)		21,525
Net income (loss)		—		—			522			—			522
Issuance of warrants		—		1,924			—			—			1,924
Stock-based compensation expense		—		15			—			—			15
Other comprehensive income (loss)		—		—			—			1,599			1,599
Balances at March 31, 2025		12,222,881	$	100,117		$	(62,631	)	$	(11,901	)	$	25,585

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2026			2025
Cash Flows From Operating Activities
Net income (loss) from continuing operations	$	2,622		$	522
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of debt issuance costs		63			64
Accretion of Series B Preferred Stock		1,120			75
Amortization of bond premium and discount, net		(84	)		(108	)
Net realized investment (gains) losses		14			(3	)
Change in fair value of equity securities		(30	)		192
Stock-based compensation expenses		13			15
Change in fair value of contingent considerations		(4,490	)		(4,395	)
Changes in operating assets and liabilities:
(Increase) decrease in:
Premiums and agents' balances and other receivables		(1,019	)		333
Reinsurance recoverables		4,207			1,871
Prepaid reinsurance premiums		2,395			685
Deferred policy acquisition costs		(129	)		(267	)
Other assets		(410	)		71
Increase (decrease) in:
Unpaid losses and loss adjustment expenses		(8,761	)		(12,923	)
Unearned premiums		(2,246	)		55
Funds held under reinsurance agreements		(3,684	)		(4,823	)
Reinsurance premiums payable		2,046			2,487
Accounts payable and other liabilities		64			889
Net cash provided by (used in) operating activities		(8,309	)		(15,260	)
Cash Flows From Investing Activities
Purchase of investments		(67,469	)		(64,055	)
Proceeds from maturities and redemptions of investments		27,892			7,428
Proceeds from sales of investments		39,745			47,014
Net cash provided by (used in) investing activities		168			(9,613	)
Cash Flows From Financing Activities
Issuance of Common Stock		14,000			—
Repayment of Series B Preferred Stock		(7,500	)		—
Issuance of stock warrants		—			1,924
Issuance of Series B Preferred Stock		—			5,576
Common stock issuance costs		(252	)		—
Net cash provided by (used in) financing activities		6,248			7,500
Net increase (decrease) in cash		(1,893	)		(17,373	)
Cash at beginning of period		27,362			27,654
Cash at end of period		25,469			10,281
Supplemental Disclosure of Cash Flow Information:
Interest paid	$	885		$	541
Income taxes paid (refunded), net	$	(38	)	$	(75	)

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

PRESURANCE HOLDINGS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Summary of Significant Accounting Policies

Basis of Presentation and Management Representation

On September 30, 2025, Conifer Holdings, Inc. changed its name to Presurance Holdings, Inc. On August 21, 2025, Conifer Insurance Company changed its name to Triassic Insurance Company.

The condensed consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Presurance Holdings, Inc., its wholly owned subsidiaries, Triassic Insurance Company ("TIC"), White Pine Insurance Company ("WPIC"), Red Cedar Insurance Company ("RCIC"), and VSRM, Inc. ("VSRM"). TIC, WPIC and RCIC are collectively referred to as the "Insurance Company Subsidiaries." On a stand-alone basis, Presurance Holdings, Inc. is referred to as the "Parent Company" or "PHI." The consolidated entity is also referred to as the "Company."

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. The Company has applied the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting and therefore the condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the condensed consolidated interim financial statements, have been included.

These condensed consolidated financial statements and the notes thereto should be read in conjunction with the Company's audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.

The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results expected for the year ended December 31, 2026.

Business

The Company is engaged in the sale of property and casualty insurance products and has organized its business model around two classes of insurance businesses: commercial lines and personal lines business. Within these two businesses, the Company offers various insurance products to niche commercial businesses in the commercial lines reportable segment and homeowners in the personal lines reportable segment. All commercial lines business is in runoff. While this business is no longer written by the Company, the historical business contributes significantly to our exposure to loss reserve development and operating expenses.

As of March 31, 2026, the Company offers only homeowners insurance products in Texas, Illinois and Indiana. The Company’s corporate headquarters are located in Troy, Michigan.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the condensed consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates.

Cash, Cash Equivalents, and Short-term Investments

Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money market funds, are classified as investments in the condensed consolidated balance sheets as they relate to the Company’s investment activities.

Funds-Withheld Obligations

Funds-withheld obligations under reinsurance agreements with risk exposures that are not clearly and closely related to the host contract are considered an embedded derivative. A gain or loss on such derivative instruments is recognized in earnings.

Accounting Guidance Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which will require disclosure of additional information about specific expense categories in the notes to financial statements for all public business entities. ASU 2024-03 is effective for annual reporting beginning with the fiscal year ending December 31, 2027, and for interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

Company Liquidity

At March 31, 2026, the Company had $57.9 million in cash, cash equivalents and short-term investments. Our principal sources of funds are insurance premiums, investment income and proceeds from maturities and sales of invested assets. These funds are primarily used to pay claims, commissions, employee compensation, taxes and other operating expenses, and service debt and mandatorily redeemable preferred stock.

We conduct our business operations primarily through our Insurance Company Subsidiaries. Our Parent Company's ability to service debt and mandatorily redeemable preferred stock, and pay administrative expenses is primarily reliant upon our intercompany service fees paid by the Insurance Company Subsidiaries to the Parent Company for management, administrative, and information technology services provided to the Insurance Company Subsidiaries by the Parent Company. Secondarily, the Parent Company may receive dividends from the Insurance Company Subsidiaries; however, this is not the primary means in which the Parent Company supports its funding as state insurance laws restrict the ability of our Insurance Company Subsidiaries to declare dividends to the Parent Company. Generally, the limitations are based on the greater of statutory net income for the preceding year or 10% of statutory surplus at the end of the preceding year. There were no dividends paid from our Insurance Company Subsidiaries for the three months ended March 31, 2026 and 2025. We do not anticipate any dividends being paid to the Parent Company from our insurance subsidiaries in the near term.

Due to significant losses in 2025, much of which is attributable to the legacy commercial liability lines of business (which are now all in runoff), both Insurance Company Subsidiaries lacked sufficient capital to continue to underwrite the volume of business they have historically written. Accordingly, PHI contributed $17.5 million into TIC during 2025 and the first quarter of 2026. In addition, PHI contributed all of its $7.6 million ownership interest in WPIC to TIC effective December 31, 2025. Even with these contributions, TIC fell within the Company Action Level of the Risk Based Capital ("RBC") with an RBC ratio of 236% as of December 31, 2025, and was required to submit an updated plan of remediation to its domiciliary regulator. TIC is also subject to additional regulatory monitoring requirements as a result of the Company not being above the minimum required RBC levels as of December 31, 2025.

To fund these additional contributions, PHI raised $7.5 million from the issuance of the Series B Preferred Stock in the first quarter of 2025, utilized proceeds from the second $10.0 million earnout from the CIS Sale, which were received in the second quarter of 2025 and raised $8.0 million from the issuance of the Series C Preferred Stock in December 2025. In February 2026, PHI completed a backstopped rights offering for $14.0 million utilizing a portion of the proceeds to redeem the $7.5 million Series B Preferred Stock and contribute the $3.0 million of cash to TIC in February 2026. WPIC no longer writes any business and TIC’s writings are significantly constrained by its diminished capital position.

As an effort to support TIC and WPIC, PHI received no intercompany service fees from the Insurance Company Subsidiaries during 2025 and only $500,000 in the first quarter of 2026. PHI has relied significantly on proceeds from sales of assets and capital raises over the last two years in order to ensure its ability to meet its obligations as they became due.

With the anticipated go-forward revenue from TIC and the potential receipt of a $10.0 million third earnout payment, management believes the Company has the ability to meet its obligations as they become due over the next twelve months.

2. Rights Offering

On February 27, 2026, the Company issued 14,000,000 shares of common stock at a purchase price of $1.00 per share pursuant to a rights offering backstopped by Clarkston Companies, Inc. A portion of the proceeds were used to redeem the $7.5 million of the Company's outstanding Series B Preferred Stock and to contribute $3.0 million to TIC in February 2026. The remaining proceeds are being used for working capital and general corporate purposes.

3. Investments

The Company analyzed its investment portfolio in accordance with its credit loss review policy and determined it did not need to record a credit loss for the three months ended March 31, 2026, or for the year-ended December 31, 2025. The Company holds only investment grade securities from high credit quality issuers. The gross unrealized losses were $8.5 million

and $8.4 million as of March 31, 2026 and December 31, 2025, respectively. The gross unrealized losses were from the Company's available-for-sale securities, due to market conditions and interest rate changes. Management believes it will not need to sell its available-for-sale securities at significant losses as it has the ability and intention to hold them until maturity or until their values improve.

The cost or amortized cost, gross unrealized gains or losses, and estimated fair value of the investments in securities classified as available for sale as of March 31, 2026 and December 31, 2025 were as follows (dollars in thousands):


	March 31, 2026
	Cost or		Gross Unrealized					Estimated
	Amortized Cost		Gains		Losses			Fair Value
Debt Securities:
U.S. Government	$	4,716	$	7	$	(19	)	$	4,704
State and local government		20,185		2		(2,987	)		17,200
Corporate debt		23,559		—		(1,483	)		22,076
Asset-backed securities		15,167		—		(43	)		15,124
Mortgage-backed securities		21,681		—		(3,709	)		17,972
Commercial mortgage-backed securities		1,169		—		(46	)		1,123
Collateralized mortgage obligations		2,361		—		(246	)		2,115
Total debt securities available for sale	$	88,838	$	9	$	(8,533	)	$	80,314


	December 31, 2025
	Cost or		Gross Unrealized					Estimated
	Amortized Cost		Gains		Losses			Fair Value
Debt Securities:
U.S. Government	$	4,596	$	21	$	(12	)	$	4,605
State and local government		20,194		4		(2,982	)		17,216
Corporate debt		25,170		1		(1,407	)		23,764
Asset-backed securities		20,962		33		(22	)		20,973
Mortgage-backed securities		22,258		—		(3,690	)		18,568
Commercial mortgage-backed securities		1,054		—		(48	)		1,006
Collateralized mortgage obligations		2,435		—		(262	)		2,173
Total debt securities available for sale	$	96,669	$	59	$	(8,423	)	$	88,305

The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands):


	March 31, 2026
	Less than 12 months							Greater than 12 months							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt Securities:
U.S. Government		4	$	2,453	$	(9	)		2	$	552	$	(10	)		6	$	3,005	$	(19	)
State and local government		1		144		(1	)		95		16,170		(2,986	)		96		16,314		(2,987	)
Corporate debt		1		998		(2	)		44		21,078		(1,481	)		45		22,076		(1,483	)
Asset-backed securities		10		12,805		(26	)		1		195		(17	)		11		13,000		(43	)
Mortgage-backed securities		4		17		(1	)		60		17,955		(3,708	)		64		17,972		(3,709	)
Commercial mortgage-backed securities		2		277		(1	)		2		846		(45	)		4		1,123		(46	)
Collateralized mortgage obligations		—		—		—			24		2,115		(246	)		24		2,115		(246	)
Total debt securities available for sale		22	$	16,694	$	(40	)		228	$	58,911	$	(8,493	)		250	$	75,605	$	(8,533	)


	December 31, 2025
	Less than 12 months							Greater than 12 months							Total
	No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses			No. of Issues		Fair Value of Investments with Unrealized Losses		Gross Unrealized Losses
Debt Securities:
U.S. Government		—	$	—	$	—			2	$	550	$	(12	)		2	$	550	$	(12	)
State and local government		—		—		—			96		16,327		(2,982	)		96		16,327		(2,982	)
Corporate debt		—		—		—			48		22,763		(1,407	)		48		22,763		(1,407	)
Asset-backed securities		3		3,531		(2	)		1		209		(20	)		4		3,740		(22	)
Mortgage-backed securities		—		—		—			64		18,563		(3,690	)		64		18,563		(3,690	)
Commercial mortgage-backed securities		1		145		(1	)		2		861		(47	)		3		1,006		(48	)
Collateralized mortgage obligations		—		—		—			25		2,172		(262	)		25		2,172		(262	)
Total debt securities available for sale		4	$	3,676	$	(3	)		238	$	61,445	$	(8,420	)		242	$	65,121	$	(8,423	)

The Company’s sources of net investment income and losses are as follows (dollars in thousands):


	Three Months Ended March 31,
	2026			2025
Debt securities	$	784		$	958
Equity securities		2			2
Cash, cash equivalents and short-term investments		368			387
Total investment income		1,154			1,347
Investment expenses		(44	)		(58	)
Net investment income	$	1,110		$	1,289

The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt and equity securities, as follows (dollars in thousands):


	Three Months Ended March 31,
	2026			2025
Debt securities:
Gross realized gains	$	4		$	5
Gross realized losses		(5	)		(2	)
Total debt securities		(1	)		3
Equity securities:
Gross realized gains	$	—		$	—
Gross realized losses		(13	)		—
Total equity securities		(13	)		—
Total net realized investment gains (losses)	$	(14	)	$	3

Proceeds from the sales of available-for-sale securities were $344,000 and $24.5 million for the three months ended March 31, 2026 and 2025, respectively.

The gross realized gains from sales of available-for-sale securities for the three months ended March 31, 2026 and 2025 were $4,000 and $5,000, respectively. The gross realized losses from sales of available-for-sale securities for the three months ended March 31, 2026 and 2025 were $5,000 and $2,000, respectively.

As of March 31, 2026 and December 31, 2025, there were $1,000 and $0 of payables from securities purchased, respectively. As of March 31, 2026 and December 31, 2025, there were $13,000 and $0 of receivables from securities sold, respectively.

The Company's gross unrealized gains related to its equity investments were $112,000 and $80,000 as of March 31, 2026 and December 31, 2025, respectively. The Company’s gross unrealized losses related to its equity investments were $81,000 and $79,000 as of March 31, 2026 and December 31, 2025, respectively.

Proceeds from sales of short-term investments were $39.3 million and $24.7 million for the three months ended March 31, 2026 and 2025, respectively. Purchases of short-term investments were $65.4 million and $62.4 million for the three months ended March 31, 2026 and 2025, respectively.

The Company also carries other equity investments that do not have a readily determinable fair value and are recorded at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded for the three months ended March 31, 2026 and 2025, respectively, related to the Company's equity securities without a readily determinable fair value. These investments are a component of Other Assets in the Condensed Consolidated Balance Sheets. The value of these investments as of March 31, 2026 and December 31, 2025 were $250,000, respectively.

The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at March 31, 2026. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands):


	Amortized Cost		Estimated Fair Value
Due in one year or less	$	8,906	$	8,803
Due after one year through five years		20,817		19,691
Due after five years through ten years		9,858		8,691
Due after ten years		8,879		6,795
Securities with contractual maturities		48,460		43,980
Asset-backed securities		15,167		15,124
Mortgage-backed securities		21,681		17,972
Commercial mortgage-backed securities		1,169		1,123
Collateralized mortgage obligations		2,361		2,115
Total debt securities	$	88,838	$	80,314

At March 31, 2026 and December 31, 2025, the Insurance Companies Subsidiaries had an aggregate of $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At March 31, 2026 and December 31, 2025, the Company had $99.5 million and $98.8 million, respectively, held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. At March 31, 2026, approximately $98.7 million of the trust account balances are for collateral of gross unearned premiums and gross loss reserves of the fronted business on the security program and the quick service restaurant program. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. As the unearned premiums run off to zero and loss reserves are paid on these programs, the remaining trust balances will be released and available for general use. It is expected to take approximately seven years for a large majority of the balances to be released with approximately 50% being released in the next few years.

4. Fair Value Measurements

The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, and are disclosed at fair value in this note. All fair values disclosed in this note are determined on a recurring basis other than the debt which is a non-recurring fair value measure. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows:

Level 1 - Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar
assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable,
either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 - Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the
Company’s best assumption of how market participants would price the assets or liabilities.

Net Asset Value (NAV) - The fair values of investment company limited partnership investments and mutual funds are
based on the capital account balances reported by the investment funds subject to their management review and adjustment.
These capital account balances reflect the fair value of the investment funds.

The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of March 31, 2026 and December 31, 2025 (dollars in thousands):


	March 31, 2026
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Debt Securities:
U.S. Government	$	4,704	$	—	$	4,704	$	—
State and local government		17,200		—		17,200		—
Corporate debt		22,076		—		22,076		—
Asset-backed securities		15,124		—		15,124		—
Mortgage-backed securities		17,972		—		17,972		—
Commercial mortgage-backed securities		1,123		—		1,123		—
Collateralized mortgage obligations		2,115		—		2,115		—
Total debt securities		80,314		—		80,314		—
Equity Securities		311		91		220		—
Short-term investments		32,464		32,464		—		—
Total marketable investments measured at fair value	$	113,089	$	32,555	$	80,534	$	—

Investments measured at NAV:
Investments in limited partnerships		977
Total investments measured at fair value	$	114,066

Contingent considerations from CIS Sale		8,780		—		—		8,780
Total assets measured at fair value	$	122,846

Liabilities:
Funds-withheld obligation		20,541		—		20,541		—
Total Liabilities fair value measure	$	20,541	$	—	$	20,541	$	—


	December 31, 2025
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Debt Securities:
U.S. Government	$	4,605	$	—	$	4,605	$	—
State and local government		17,216		—		17,216		—
Corporate debt		23,764		—		23,764		—
Asset-backed securities		20,973		—		20,973		—
Mortgage-backed securities		18,568		—		18,568		—
Commercial mortgage-backed securities		1,006		—		1,006		—
Collateralized mortgage obligations		2,173		—		2,173		—
Total debt securities		88,305		—		88,305		—
Equity securities		313		93		220		—
Short-term investments		24,725		22,204		2,521		—
Total marketable investments measured at fair value	$	113,343	$	22,297	$	91,046	$	—

Investments measured at NAV:
Investments in limited partnerships		964
Total investments measured at fair value		114,307

Contingent considerations from CIS Sale		4,290		—		—		4,290
Total assets measured at fair value	$	118,597

Liabilities:
Funds-withheld obligation		21,284		—		21,284		—
Total Liabilities fair value measure	$	21,284	$	—	$	21,284	$	—

Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. The fair value measurements that were based on Level 1 inputs comprise 29% and 20% of the fair value of the total marketable investments measured at fair value as of March 31, 2026 and December 31, 2025, respectively.

Level 2 investments include debt securities and equity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. The fair value of securities included in the Level 2 category were based on the market values obtained from a third-party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third-party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 71% and 80% of the fair value of the total marketable investments measured at fair value as of March 31, 2026 and December 31, 2025, respectively.

The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, such as (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants.

As of March 31, 2026, the Company had an asset for its contingent consideration related to the CIS Sale. The fair value measurement of the contingent considerations asset was determined using Level 3 inputs. The Company determined the fair value of the third contingent payment to be $8.8 million as of March 31, 2026. The fair value was calculated based on the average of 20,000 simulations of a Monte Carlo analysis performed using Geometric Brownian Motion. Key assumptions in the analysis included the following as of March 31, 2026:


	Contingent Consideration

Discount rate		13.9	%
Gross revenue risk adjustment		2.9	%
Gross revenue volatility		15.0	%
Weighted average risk-free rate		3.7	%
Weighted average cost of capital		10.5	%

As of December 31, 2025, the Company had an asset for contingent consideration related to the CIS Sale. The fair value measurement of the contingent considerations asset was determined using Level 3 inputs. The Company determined the fair value of the third contingent payment to be $4.3 million as of December 31, 2025. The fair value was calculated based on the average of 20,000 simulations of a Monte Carlo analysis performed using Geometric Brownian Motion. Key assumptions in the analysis included the following as of December 31, 2025:


	Contingent Consideration

Discount rate		12.5	%
Gross revenue risk adjustment		2.9	%
Gross revenue volatility		15.0	%
Risk-free rate		3.5	%
Weighted average cost of capital		10.5	%

The Company's policy on recognizing transfers between hierarchies is applied at the end of each reporting period. The tables below show a roll forward of Level 3 assets and liabilities held at fair value during the three months ended March 31, 2026 (dollars in thousands):


	Balance as of January 1, 2026		Additions into Level 3		Subtractions out of Level 3		Change in Fair Value		Balance as of March 31, 2026
Contingent considerations	$	4,290	$	—	$	—	$	4,490	$	8,780
Total recurring Level 3 assets	$	4,290	$	—	$	—	$	4,490	$	8,780

5. Deferred Policy Acquisition Costs

The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the three months ended March 31, 2026 and 2025. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands):


	Three Months Ended March 31,
	2026		2025
Balance at beginning of period	$	2,696

Presurance Holdings, Inc. 10-Q