Standard Premium Finance Holdings, Inc.

What they do

The company, operating since 1991 through subsidiary Standard Premium Finance Management Corporation, lends borrowers the balance of an annual commercial insurance premium after a 20%-25% down payment and collects fixed monthly payments over 9-11 months, mainly in Florida with licenses in 43 states. Loans are originated through insurance agents and brokers and are secured by the unearned premium of the financed policy, which the company can recover by cancelling the policy on default. Typical loan sizes are $1,000 to $100,000, with repayment terms of 6 to 11 months. Interest is charged solely using the Rule of 78, the industry standard for premium finance.

Revenue drivers

• Interest and finance income — The majority of gross revenue comes from interest and one-time finance charges on premium finance loans; gross revenue was $12.47M in 2025 and $6.78M for the six months ended June 30, 2026.
• Associated loan fees — Late fees and NSF fees are earned as applicable to each loan and supplement interest income.
• Loan originations volume — Originations drive the earning asset base: $158.1M in 2025 versus $149.5M in 2024, and $93.5M in the first half of 2026 versus $77.9M a year earlier.
• Marketing representative and agent network — Loans originate primarily through insurance agents solicited by the in-house sales team and marketing representatives, the stated source of all new and renewal business.

Recent performance

Gross revenue rose to $12.47M in 2025 from $12.14M in 2024, with net income of $1.2M and diluted EPS of $0.29. For the six months ended June 30, 2026, gross revenue was $6.78M versus $6.01M a year earlier, and originations grew to $93.5M from $77.9M. Return on equity improved to 20.50% for the six months of 2026 from 17.98% a year earlier, and return on assets rose to 1.76% from 1.56%. Interest earned rate declined to 16.79% for the first half of 2026 from 18.12% a year earlier, while the gross cost of funds fell to 6.46% from 6.97%. Latest quarterly revenue, per XBRL data, was $3.5M for the quarter ended June 30, 2026.

Strategy

Management intends to continue expanding into new states as part of an organic growth strategy, having obtained licenses covering 43 states as of the 2026 10-Q. The company targets loans of $1,000 to $100,000 with 6-11 month terms and encourages repeat business from qualified customers with multiple concurrent loans. Funding relies primarily on a bank line of credit, supplemented by unsecured subordinated notes and operating cash flow. In June 2025 the First Horizon Bank line was increased from $45M to $50M, then in September 2025 to $75M with maturity extended to September 25, 2028.

Risks

• Credit facility dependence — The business model depends on borrowing to fund lending, and failure to renew or replace the First Horizon line of credit or a default would materially impair liquidity.
• Concentration in Florida — Loans originate primarily in Florida, so regional insurance-market or economic disruptions could disproportionately affect the portfolio.
• Interest rate and spread pressure — The interest earned rate fell to 16.79% in the first half of 2026 from 18.12% a year earlier, which could compress net interest income if funding costs do not fall correspondingly.
• Capital constraints on growth — Because the revolving line is based on a percentage of the loan portfolio less ineligible items, other corporate debt plus retained earnings and equity may limit growth in the loan portfolio.

Outlook

Management states it intends to continue expanding into new states as part of its organic growth strategy and to grow its loan portfolio, using the expanded $75M First Horizon line of credit maturing in September 2028. The company reports it is currently financing insurance premiums in eighteen states while holding licenses for 43. No specific forward revenue or earnings guidance is provided in the excerpts.