Palomar Holdings Stock Earnings Reports

Palomar reported a strong start to 2026 with broad-based growth across its specialty insurance portfolio. Key financial results: Q1 gross written premium up 42% to $629.8M; adjusted net income +23% to $63.1M ($2.31/share); adjusted combined ratio 76%; annualized adjusted ROE ~27%. Management raised full-year adjusted net income guidance to $262M–$278M (midpoint ~25% y/y growth) and reiterated a mid‑70s adjusted combined ratio expectation for 2026. Business highlights: continued strength and high retention (≈97%) in residential earthquake; commercial earthquake faces mid‑to‑high‑teens rate decreases but residential growth and reinsurance savings should offset this; casualty is growing (85%+ of reserves are IBNR) with disciplined underwriting and willingness to prune unattractive business; crop grew 82% and benefits from Farm Bill subsidy-driven demand; surety and credit (including Gray acquisition) grew 131% and are scaling toward a top‑20 surety franchise. Reinsurance activity included six treaty placements with improved economics and a $410M multi‑year catastrophe bond (Torrey Pines Re) covering CA quake and a standalone Hawaii hurricane, with risk‑adjusted pricing down ~15%. Capital actions: repurchased ~190.3K shares in Q1 (~$23.1M) and Board authorized a new two‑year $200M buyback program. Management is investing in AI and technology to drive efficiency and underwriting/claims enhancements. Balance sheet: cash and invested assets ~ $1.6B; net written premiums-to-equity ~1.1x; stockholders' equity ~$959M. Overall message: diversified specialty portfolio, disciplined underwriting, continued profitable growth, and shareholder‑friendly capital deployment.