Palomar Holdings, Inc. Reports Fourth Quarter & Full Year 2025 Results

Rhea-AI Summary

Palomar Holdings (NASDAQ:PLMR) reported strong fourth quarter and full year 2025 results with revenue and profit gains. Q4 net income was $56.2M ($2.06 diluted EPS) and Q4 adjusted net income was $61.1M ($2.24 adjusted EPS). Gross written premiums rose ~32% to $492.6M in Q4 and $2.0B for full-year 2025. The company posted a Q4 adjusted combined ratio of 73.4% and FY2025 adjusted combined ratio of 72.7%. Palomar expects 2026 adjusted net income of $260M–$275M, including $8M–$12M estimated catastrophe losses.

Positive

• Gross written premiums +31.8% to $492.6M in Q4
• Full-year gross written premiums +31.5% to $2.0B
• Q4 adjusted net income +48.0% to $61.1M
• Full-year adjusted net income +61.9% to $216.1M
• FY2025 adjusted combined ratio improved to 72.7%

Negative

• Q4 total loss ratio rose to 30.4% from 25.7%
• Q4 adjusted combined ratio widened to 73.4% from 71.7%
• Effective tax rate ~22.7% in Q4, slightly elevated

News Market Reaction

+1.85%

16 alerts

+1.85% News Effect

-15.2% Trough in 18 hr 26 min

+$63M Valuation Impact

$3.49B Market Cap

0.9x Rel. Volume

On the day this news was published, PLMR gained 1.85%, reflecting a mild positive market reaction. Argus tracked a trough of -15.2% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $63M to the company's valuation, bringing the market cap to $3.49B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $56.2M Q4 2025 adjusted net income: $61.1M Q4 2025 diluted EPS: $2.06 +5 more

8 metrics

Q4 2025 net income $56.2M Fourth quarter 2025 vs $35.0M in Q4 2024

Q4 2025 adjusted net income $61.1M Fourth quarter 2025 vs $41.3M in Q4 2024

Q4 2025 diluted EPS $2.06 Per diluted share in fourth quarter 2025 vs $1.29 in Q4 2024

Q4 2025 gross written premiums $492.6M Fourth quarter 2025, up 31.8% from $373.7M in Q4 2024

Full year 2025 net income $197.1M 2025 vs $117.6M in 2024

Full year 2025 gross written premiums $2.0B 2025 vs $1.5B in 2024, up 31.5%

Full year 2025 combined ratio 76.9% 2025 combined ratio vs 78.1% in 2024

2026 adjusted net income outlook $260M–$275M Company’s full year 2026 adjusted net income guidance

Market Reality Check

Price: $127.01 Vol: Volume 270,714 is 18% abo...

normal vol

$127.01 Last Close

Volume Volume 270,714 is 18% above the 20-day average of 230,271. normal

Technical Price 129.25 is trading below the 200-day MA 132.58, after a 2.14% pre-news gain.

Peers on Argus

PLMR was up 2.14% pre-release while key peers were mixed: KMPR -4.41%, LMND -1.3...

PLMR was up 2.14% pre-release while key peers were mixed: KMPR -4.41%, LMND -1.31%, HCI +1.57%, SIGI and MCY modestly positive. This points to stock-specific positioning rather than a clear sector rotation.

Previous Earnings Reports

5 past events · Latest: Nov 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	+0.9%	Q3 2025 net income and adjusted net income grew sharply with strong premiums.
Aug 04	Q2 2025 earnings	Positive	-14.7%	Strong Q2 2025 results and guidance raise despite subsequent double-digit price drop.
May 05	Q1 2025 earnings	Positive	+0.4%	Q1 2025 net income and adjusted net income rose with better combined ratio.
Feb 12	Q4 2024 earnings	Positive	+14.7%	Q4 and full-year 2024 delivered strong premium and earnings growth with solid ROE.
Nov 04	Q3 2024 earnings	Positive	+2.1%	Q3 2024 premiums and adjusted net income increased despite heightened catastrophe activity.

Pattern Detected

Earnings releases have generally been positive and most often met with aligned, modestly positive price reactions, with one notable negative divergence.

Recent Company History

Over the last five earnings cycles, Palomar has consistently reported strong growth in net income, gross written premiums, and returns on equity. Q3 and Q2 2025 showed rising profitability, improved combined ratios, and repeated guidance raises. Q4 2024 and Q3 2024 also highlighted robust premium growth and solid underwriting performance. The current Q4 and full-year 2025 report extends this pattern with higher earnings, strong adjusted metrics, and continued emphasis on specialty lines and disciplined underwriting.

Historical Comparison

earnings

+0.7 %

Average Historical Move

Historical Analysis

In the past five earnings reports, PLMR moved about 0.7% on average, with mostly positive but generally modest post-earnings reactions.

Typical Pattern

Earnings releases from late 2024 through 2025 show consistent growth in net income, rising gross written premiums, improving or stable combined ratios, and multiple guidance raises, reflecting a steady financial progression.

Market Pulse Summary

This announcement details strong Q4 and full-year 2025 performance, including higher net income, adj...

Analysis

This announcement details strong Q4 and full-year 2025 performance, including higher net income, adjusted earnings, and growth in gross written premiums alongside solid combined ratios and returns on equity. Compared with prior earnings releases, it continues a pattern of steady expansion and disciplined underwriting. Investors may focus on how the $260M–$275M adjusted net income outlook for 2026 compares to recent results, as well as future loss ratios, combined ratios, and capital deployment decisions.

Key Terms

loss ratio, combined ratio, adjusted combined ratio, return on equity, +3 more

7 terms

loss ratio financial

"Total loss ratio of 30.4% compared to 25.7% in the fourth quarter of 2024"

Loss ratio is the percentage of an insurer’s collected premiums that is paid out to cover claims and related costs, showing how much of customer payments are used to settle losses. Investors treat it like a fuel-efficiency gauge for an insurance business—lower loss ratios suggest pricing and risk selection leave more room for profit, while consistently high ratios signal weak pricing, rising claims, or not enough money set aside, which can hurt returns.

combined ratio financial

"Combined ratio of 76.8% compared to 75.9% in the fourth quarter of 2024"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

adjusted combined ratio financial

"Adjusted combined ratio(1) of 73.4% compared to 71.7%, in the fourth quarter of 2024"

A measure used by insurance companies to show how profitable their core insurance business is after making specific adjustments to the raw underwriting numbers. It starts with the combined ratio — losses paid plus operating costs as a share of premiums — then removes or smooths one‑off items (like big natural disaster losses, prior‑year reserve changes, or unusual fees) so investors can see whether regular insurance operations are making or losing money, much like looking at a company’s “everyday” earnings without one‑time spikes.

return on equity financial

"Return on equity of 23.6% compared to 19.6% in 2024"

Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.

annualized return on equity financial

"Annualized return on equity of 24.7% compared to 19.5% in the fourth quarter of 2024"

Annualized return on equity measures how much profit a company generates each year for every dollar investors have left in the business after liabilities are subtracted. Think of shareholder equity as seeds you plant and annualized ROE as the yearly harvest rate—higher values mean the company is generally better at turning investor money into profit, and annualizing lets investors compare performance on a common yearly basis.

tangible stockholders’ equity financial

"Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill"

Tangible stockholders’ equity is the amount of a company’s net worth on the balance sheet after subtracting intangible items like goodwill, patents and trademarks. Think of it as the concrete, sellable value left for owners if you removed non-physical assets—investors use it to judge the company’s real asset cushion, compare valuation per share, and assess downside risk if the business underperforms or is liquidated.

diluted adjusted earnings per share financial

"Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares"

Diluted adjusted earnings per share is a per-share profit figure that first adjusts a company’s reported earnings to remove one-time items and accounting adjustments, then divides that cleaned-up profit by a share count that includes potential new shares (like stock options or convertible securities). Investors use it as a conservative, apples-to-apples measure of ongoing profit per share—think of slicing a pie fairly after removing unusual toppings and allowing for extra diners who might join.

AI-generated analysis. Not financial advice.

LA JOLLA, Calif., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $56.2 million, or $2.06 per diluted share, for the fourth quarter of 2025 compared to net income of $35.0 million, or $1.29 per diluted share, for the fourth quarter of 2024. Adjusted net income⁽¹⁾ was $61.1 million, or $2.24 per diluted share, for the fourth quarter of 2025 as compared to $41.3 million, or $1.52 per diluted share, for the fourth quarter of 2024.

Fourth Quarter 2025 Highlights

• Gross written premiums increased by 31.8% to $492.6 million compared to $373.7 million in the fourth quarter of 2024
• Net income increased 60.6% to $56.2 million compared to $35.0 million in the fourth quarter of 2024
• Adjusted net income⁽¹⁾ increased 48.0% to $61.1 million compared to $41.3 million in the fourth quarter of 2024
• Total loss ratio of 30.4% compared to 25.7% in the fourth quarter of 2024
• Catastrophe loss ratio⁽¹⁾ of -0.9% compared to 5.6% in the fourth quarter of 2024
• Combined ratio of 76.8% compared to 75.9% in the fourth quarter of 2024
• Adjusted combined ratio⁽¹⁾ of 73.4% compared to 71.7%, in the fourth quarter of 2024
• Annualized return on equity of 24.7% compared to 19.5% in the fourth quarter of 2024
• Annualized adjusted return on equity⁽¹⁾ of 26.9% compared to 23.1% in the fourth quarter of 2024
  
  

Full Year 2025 Highlights

• Gross written premiums increased by 31.5% to $2.0 billion compared to $1.5 billion in 2024
• Net income increased 67.6% to $197.1 million compared to $117.6 million in 2024
• Adjusted net income⁽¹⁾ increased 61.9% to $216.1 million compared to $133.5 million in 2024
• Total loss ratio of 28.5% compared to 26.4% in 2024
• Catastrophe loss ratio⁽¹⁾ of -0.1% compared to 5.5% in 2024
• Combined ratio of 76.9% compared to 78.1% in 2024
• Adjusted combined ratio⁽¹⁾ of 72.7% compared to 73.7% in 2024
• Return on equity of 23.6% compared to 19.6% in 2024
• Adjusted return on equity⁽¹⁾ of 25.9% compared to 22.2% in 2024
  
  

(1)         See discussion of “Non-GAAP and Key Performance Indicators” below.

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our strong fourth quarter results provided a superb culmination to what was an exceptional 2025. The quarter was highlighted by record adjusted net income, strong top and bottom-line growth as gross written premium grew 32% and adjusted net income increased 48% across our unique and diverse portfolio. Our specialty product suite is purpose-built to navigate any market cycle and generate strong, consistent returns. The fourth quarter further demonstrated this capability as we generated an adjusted combined ratio of 73% and a 27% adjusted return on equity.”

Mr. Armstrong continued, “The accomplishments of the 2025 were myriad and not limited to strong financial performance. Noteworthy accomplishments include the successful acquisitions of Advanced Ag Protection and The Gray Casualty and Surety Company and the addition of numerous exceptional leaders across the organization. These investments should sustain our long-term profitable growth trajectory and our Palomar 2X strategic imperative.”

Underwriting Results
Gross written premiums increased 31.8% to $492.6 million compared to $373.7 million in the fourth quarter of 2024, while net earned premiums increased 61.1% compared to the prior year’s fourth quarter.

Losses and loss adjustment expenses for the fourth quarter were $70.9 million, comprised of $72.9 million of attritional losses and $2.1 million of favorable development on catastrophe losses. The loss ratio for the quarter was 30.4%, comprised of an attritional loss ratio of 31.3% and a catastrophe loss ratio⁽¹⁾ of -0.9% compared to a loss ratio of 25.7% during the same period last year comprised of an attritional loss ratio of 20.1% and a catastrophe loss ratio⁽¹⁾ of 5.6%. Additionally, our fourth quarter results include $2.8 million of favorable prior year development primarily from our short tail Inland Marine and Other Property business.

Underwriting income⁽¹⁾ for the fourth quarter was $54.4 million resulting in a combined ratio of 76.8% compared to underwriting income of $34.9 million resulting in a combined ratio of 75.9% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $62.3 million, an increase of 51.8%, resulting in an adjusted combined ratio⁽¹⁾ of 73.4% in the fourth quarter compared to adjusted underwriting income⁽¹⁾ of $41.0 million and an adjusted combined ratio⁽¹⁾ of 71.7% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 74.2% compared to 66.1% during the same period last year.

Investment Results
Net investment income increased by 41.3% to $16.0 million compared to $11.3 million in the prior year’s fourth quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended December 31, 2025 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 3.81 years at December 31, 2025. Cash and invested assets totaled $1.5 billion at December 31, 2025. During the fourth quarter, the Company recorded $2.4 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized losses of $1.2 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended December 31, 2025 was 22.7% compared to 22.2% for the three months ended December 31, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to non-deductible executive compensation expense offset by the tax impact of the permanent component of employee stock options.

Stockholders’ Equity and Returns
Stockholders’ equity was $942.7 million at December 31, 2025, compared to $729.0 million at December 31, 2024. For the three months ended December 31, 2025, the Company’s annualized return on equity was 24.7% compared to 19.5% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 26.9% compared to 23.1% for the same period in the prior year. During the current quarter, the Company did not repurchase any shares of its common stock. As of December 31, 2025, approximately $112.7 million remains available for future repurchases under the previously announced $150 million share repurchase authorization.

Full Year 2026 Outlook
For the full year 2026, the Company expects to achieve adjusted net income of $260 million to $275 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.

Conference Call
As previously announced, Palomar will host a conference call Thursday, February 12, 2026, to discuss its fourth quarter 2025 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Fourth Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on February 12, 2026, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13758018. The replay will be available until 11:59 p.m. (Eastern Time) on February 19, 2026.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), Palomar Crop Insurance Services, Inc. (“PCIS”), and Palomar Casualty and Surety Company (“PCSC”), formerly known as The Gray Casualty & Surety Company. Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of “A” (Excellent) from A.M. Best and PCSC has a financial strength rating of “A-” (Excellent) from A.M. Best.

To learn more, visit PLMR.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com

Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com
Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three months and year ended December 31, 2025 and 2024:

	Three Months Ended
	December 31,
	2025				2024				Change				% Change
	(in thousands, except per share data)
Gross written premiums	$	492,629			$	373,723			$	118,906				31.8	%
Ceded written premiums		(245,059	)			(204,492	)			(40,567	)			19.8	%
Net written premiums		247,570				169,231				78,339				46.3	%
Net earned premiums		233,460				144,890				88,570				61.1	%
Commission and other income		1,541				750				791				105.5	%
Total underwriting revenue(1)		235,001				145,640				89,361				61.4	%
Losses and loss adjustment expenses		70,856				37,176				33,680				90.6	%
Acquisition expenses, net of ceding commissions and fronting fees		62,867				40,585				22,282				54.9	%
Other underwriting expenses		46,894				32,947				13,947				42.3	%
Underwriting income(1)		54,384				34,932				19,452				55.7	%
Interest expense		(87	)			(87	)			—			NM
Net investment income		15,991				11,318				4,673				41.3	%
Net realized and unrealized gains (losses) on investments		2,370				(1,201	)			3,571				(297.3	)%
Income before income taxes		72,658				44,962				27,696				61.6	%
Income tax expense		16,493				9,997				6,496				65.0	%
Net income	$	56,165			$	34,965			$	21,200				60.6	%
Adjustments:
Net realized and unrealized (gains) losses on investments		(2,370	)			1,201				(3,571	)			(297.3	)%
Expenses associated with transactions		1,075				922				153				16.6	%
Stock-based compensation expense		5,543				4,779				764				16.0	%
Amortization of intangibles		1,284				389				895				230.1	%
Tax impact		(581	)			(964	)			383				(39.7	)%
Adjusted net income(1)	$	61,116			$	41,292			$	19,824				48.0	%
Key Financial and Operating Metrics
Annualized return on equity		24.7	%			19.5	%
Annualized adjusted return on equity(1)		26.9	%			23.1	%
Loss ratio		30.4	%			25.7	%
Expense ratio		46.4	%			50.2	%
Combined ratio		76.8	%			75.9	%
Adjusted combined ratio(1)		73.4	%			71.7	%
Diluted earnings per share	$	2.06			$	1.29
Diluted adjusted earnings per share(1)	$	2.24			$	1.52
Catastrophe losses	$	(2,063	)		$	8,122
Catastrophe loss ratio(1)		-0.9	%			5.6	%
Adjusted combined ratio excluding catastrophe losses(1)		74.2	%			66.1	%
Adjusted underwriting income(1)	$	62,286			$	41,022			$	21,264				51.8	%
NM - not meaningful

(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

	Year Ended
	December 31,
	2025				2024				Change				% Change
	(in thousands, except per share data)
Gross written premiums	$	2,028,252			$	1,541,962			$	486,290				31.5	%
Ceded written premiums		(1,064,230	)			(897,111	)			(167,119	)			18.6	%
Net written premiums		964,022				644,851				319,171				49.5	%
Net earned premiums		802,635				510,687				291,948				57.2	%
Commission and other income		5,496				2,784				2,712				97.4	%
Total underwriting revenue(1)		808,131				513,471				294,660				57.4	%
Losses and loss adjustment expenses		228,594				134,759				93,835				69.6	%
Acquisition expenses, net of ceding commissions and fronting fees		217,133				149,657				67,476				45.1	%
Other underwriting expenses		176,458				117,113				59,345				50.7	%
Underwriting income(1)		185,946				111,942				74,004				66.1	%
Interest expense		(392	)			(1,138	)			746				(65.6	)%
Net investment income		56,005				35,824				20,181				56.3	%
Net realized and unrealized gains on investments		11,831				4,568				7,263				159.0	%
Income before income taxes		253,390				151,196				102,194				67.6	%
Income tax expense		56,320				33,623				22,697				67.5	%
Net income	$	197,070			$	117,573			$	79,497				67.6	%
Adjustments:
Net realized and unrealized gains on investments		(11,831	)			(4,568	)			(7,263	)			159.0	%
Expenses associated with transactions		4,644				1,479				3,165				214.0	%
Stock-based compensation expense		21,014				16,685				4,329				25.9	%
Amortization of intangibles		4,683				1,558				3,125				200.6	%
Expenses associated with catastrophe bond		2,660				2,483				177				7.1	%
Tax impact		(2,124	)			(1,699	)			(425	)			25.0	%
Adjusted net income(1)	$	216,116			$	133,511			$	82,605				61.9	%
Key Financial and Operating Metrics
Annualized return on equity		23.6	%			19.6	%
Annualized adjusted return on equity(1)		25.9	%			22.2	%
Loss ratio		28.5	%			26.4	%
Expense ratio		48.4	%			51.7	%
Combined ratio		76.9	%			78.1	%
Adjusted combined ratio(1)		72.7	%			73.7	%
Diluted earnings per share	$	7.17			$	4.48
Diluted adjusted earnings per share(1)	$	7.86			$	5.09
Catastrophe losses	$	(728	)		$	27,846
Catastrophe loss ratio(1)		-0.1	%			5.5	%
Adjusted combined ratio excluding catastrophe losses(1)		72.8	%			68.3	%
Adjusted underwriting income(1)	$	218,947			$	134,147			$	84,800				63.2	%
NM - not meaningful

(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

Condensed Consolidated Balance sheets

Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except shares and par value data)
	December 31,				December 31,
	2025				2024
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,227,605 in 2025; $973,330 in 2024)	$	1,224,187			$	939,046
Equity securities, at fair value (cost: $81,772 in 2025; $32,987 in 2024)		99,333				40,529
Equity method investment		—				2,277
Other investments		28,503				5,863
Total investments		1,352,023				987,715
Cash and cash equivalents		106,875				80,438
Restricted cash		17				101
Accrued investment income		11,545				8,440
Premiums receivable		452,908				305,724
Deferred policy acquisition costs, net of ceding commissions and fronting fees		127,718				94,881
Reinsurance recoverable on paid losses and loss adjustment expenses		56,428				47,076
Reinsurance recoverable on unpaid losses and loss adjustment expenses		412,273				348,083
Ceded unearned premiums		355,918				276,237
Prepaid expenses and other assets		110,896				91,086
Deferred tax assets, net		761				8,768
Property and equipment, net		2,551				429
Goodwill and intangible assets, net		61,054				13,242
Total assets	$	3,050,967			$	2,262,220
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	115,663			$	70,079
Reserve for losses and loss adjustment expenses		688,231				503,382
Unearned premiums		988,143				741,692
Ceded premium payable		271,413				190,168
Funds held under reinsurance treaty		44,850				27,869
Total liabilities		2,108,300				1,533,190
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2025 and December 31, 2024		—				—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,520,417 and 26,529,402 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively		3				3
Additional paid-in capital		523,168				493,656
Accumulated other comprehensive loss		(2,506	)			(26,845	)
Retained earnings		422,002				262,216
Total stockholders’ equity		942,667				729,030
Total liabilities and stockholders’ equity	$	3,050,967			$	2,262,220

Condensed Consolidated Income Statement

Palomar Holdings,Inc. and Subsidiaries
Condensed Consolidated Statements ofIncome and Comprehensive Income (Unaudited)
(in thousands, except shares and per share data)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
Revenues:
Gross written premiums	$	492,629			$	373,723			$	2,028,252			$	1,541,962
Ceded written premiums		(245,059	)			(204,492	)			(1,064,230	)			(897,111	)
Net written premiums		247,570				169,231				964,022				644,851
Change in unearned premiums		(14,110	)			(24,341	)			(161,387	)			(134,164	)
Net earned premiums		233,460				144,890				802,635				510,687
Net investment income		15,991				11,318				56,005				35,824
Net realized and unrealized gains (losses) on investments		2,370				(1,201	)			11,831				4,568
Commission and other income		1,541				750				5,496				2,784
Total revenues		253,362				155,757				875,967				553,863
Expenses:
Losses and loss adjustment expenses		70,856				37,176				228,594				134,759
Acquisition expenses, net of ceding commissions and fronting fees		62,867				40,585				217,133				149,657
Other underwriting expenses		46,894				32,947				176,458				117,113
Interest expense		87				87				392				1,138
Total expenses		180,704				110,795				622,577				402,667
Income before income taxes		72,658				44,962				253,390				151,196
Income tax expense		16,493				9,997				56,320				33,623
Net income	$	56,165			$	34,965			$	197,070			$	117,573
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale		1,586				(16,707	)			24,339				(2,854	)
Net comprehensive income	$	57,751			$	18,258			$	221,409			$	114,719
Per Share Data:
Basic earnings per share	$	2.12			$	1.32			$	7.40			$	4.61
Diluted earnings per share	$	2.06			$	1.29			$	7.17			$	4.48
Weighted-average common shares outstanding:
Basic		26,508,803				26,491,939				26,639,733				25,520,343
Diluted		27,321,828				27,206,225				27,485,250				26,223,842

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (“GWP”) by product, location and company are presented below:

	Three Months Ended December 31,
	2025								2024
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product
Casualty	$	150,477				30.6	%		$	68,484				18.3	%		$	81,993				119.7	%
Earthquake		143,516				29.1	%			146,757				39.3	%			(3,241	)			(2.2	)%
Inland Marine and Other Property		110,722				22.5	%			85,396				22.9	%			25,326				29.7	%
Fronting		47,808				9.7	%			57,418				15.4	%			(9,610	)			(16.7	)%
Crop		40,106				8.1	%			15,668				4.2	%			24,438				156.0	%
Total gross written premiums	$	492,629				100.0	%		$	373,723				100.0	%		$	118,906				31.8	%

	Year Ended December 31,
	2025								2024
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product
Earthquake	$	571,392				28.2	%		$	522,864				33.9	%		$	48,528				9.3	%
Casualty		542,949				26.8	%			235,592				15.3	%			307,357				130.5	%
Inland Marine and Other Property		446,184				22.0	%			334,079				21.7	%			112,105				33.6	%
Crop		247,547				12.2	%			116,239				7.5	%			131,308				113.0	%
Fronting		220,180				10.8	%			333,188				21.6	%			(113,008	)			(33.9	)%
Total gross written premiums	$	2,028,252				100.0	%		$	1,541,962				100.0	%		$	486,290				31.5	%

	Three Months Ended December 31,																Year Ended December 31,
	2025								2024								2025								2024
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
State
California	$	154,123				31.3	%		$	157,786				42.2	%		$	626,399				30.9	%		$	668,635				43.4	%
Texas		41,331				8.4	%			28,002				7.5	%			160,639				7.9	%			124,416				8.1	%
Florida		30,373				6.2	%			8,855				2.4	%			96,764				4.8	%			67,008				4.3	%
Hawaii		21,278				4.3	%			18,636				5.0	%			92,585				4.6	%			72,558				4.7	%
Washington		19,772				4.0	%			16,007				4.3	%			70,188				3.5	%			57,900				3.8	%
New York		16,879				3.4	%			14,756				3.9	%			68,119				3.3	%			38,919				2.5	%
Illinois		14,858				3.0	%			7,176				1.9	%			54,406				2.7	%			20,901				1.4	%
Oklahoma		12,962				2.6	%			4,605				1.2	%			29,497				1.4	%			15,655				1.0	%
Other		181,053				36.8	%			117,900				31.6	%			829,655				40.9	%			475,970				30.8	%
Total Gross Written Premiums	$	492,629				100.0	%		$	373,723				100.0	%		$	2,028,252				100.0	%		$	1,541,962				100.0	%

	Three Months Ended December 31,																Year Ended December 31,
	2025								2024								2025								2024
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
Subsidiary
PESIC	$	255,923				52.0	%		$	188,496				50.4	%		$	936,971				46.2	%		$	661,404				42.9	%
PSIC		214,823				43.6	%			170,275				45.6	%			995,901				49.1	%			823,263				53.4	%
Laulima		17,753				3.6	%			14,952				4.0	%			76,727				3.8	%			57,295				3.7	%
FIA		4,130				0.8	%			—				—	%			18,653				0.9	%			—				—	%
Total Gross Written Premiums	$	492,629				100.0	%		$	373,723				100.0	%		$	2,028,252				100.0	%		$	1,541,962				100.0	%

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

	Three Months Ended																Year Ended
	December 31,												%				December 31,												%
	2025				2024				Change				Change				2025				2024				Change				Change
	($ in thousands)																($ in thousands)
Gross earned premiums	$	483,861			$	371,654			$	112,207				30.2	%		$	1,787,184			$	1,397,369			$	389,815				27.9	%
Ceded earned premiums		(250,401	)			(226,764	)			(23,637	)			10.4	%			(984,549	)			(886,682	)			(97,867	)			11.0	%
Net earned premiums	$	233,460			$	144,890			$	88,570				61.1	%		$	802,635			$	510,687			$	291,948				57.2	%
Net earned premium ratio		48.2	%			39.0	%											44.9	%			36.5	%

Loss detail

	Three Months Ended																Year Ended
	December 31,																December 31,
	2025				2024				Change				% Change				2025				2024				Change				% Change
	($ in thousands)																($ in thousands)
Catastrophe losses	$	(2,063	)		$	8,122			$	(10,185	)			(125.4	)%		$	(728	)		$	27,846			$	(28,574	)			(102.6	)%
Non-catastrophe losses		72,919				29,054				43,865				151.0	%			229,322				106,913				122,409				114.5	%
Total losses and loss adjustment expenses	$	70,856			$	37,176			$	33,680				90.6	%		$	228,594			$	134,759			$	93,835				69.6	%
Catastrophe loss ratio		-0.9	%			5.6	%											-0.1	%			5.5	%
Non-catastrophe loss ratio		31.3	%			20.1	%											28.6	%			20.9	%
Total loss ratio		30.4	%			25.7	%											28.5	%			26.4	%

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

	Three Months Ended December 31,								Year Ended December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	243,713			$	137,274			$	155,299			$	97,653
Add: Balance acquired from FIA(1)		—				—				6,788				—
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year		73,646				37,575				248,365				137,798
Prior years		(2,790	)			(399	)			(19,771	)			(3,039	)
Total incurred		70,856				37,176				228,594				134,759
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		37,586				15,675				75,913				43,582
Prior years		1,025				3,476				38,810				33,531
Total payments		38,611				19,151				114,723				77,113
Reserve for losses and LAE net of reinsurance recoverables at end of period		275,958				155,299				275,958				155,299
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		412,273				348,083				412,273				348,083
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	688,231			$	503,382			$	688,231			$	503,382

(1) - Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.

Reconciliation of Non-GAAP Financial Measures

For the three months and year ended December 31, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Total revenue	$	253,362			$	155,757			$	875,967			$	553,863
Net investment income		(15,991	)			(11,318	)			(56,005	)			(35,824	)
Net realized and unrealized (gains) losses on investments		(2,370	)			1,201				(11,831	)			(4,568	)
Underwriting revenue	$	235,001			$	145,640			$	808,131			$	513,471

Underwriting income and adjusted underwriting income

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Income before income taxes	$	72,658			$	44,962			$	253,390			$	151,196
Net investment income		(15,991	)			(11,318	)			(56,005	)			(35,824	)
Net realized and unrealized (gains) losses on investments		(2,370	)			1,201				(11,831	)			(4,568	)
Interest expense		87				87				392				1,138
Underwriting income	$	54,384			$	34,932			$	185,946			$	111,942
Expenses associated with transactions		1,075				922				4,644				1,479
Stock-based compensation expense		5,543				4,779				21,014				16,685
Amortization of intangibles		1,284				389				4,683				1,558
Expenses associated with catastrophe bond		—				—				2,660				2,483
Adjusted underwriting income	$	62,286			$	41,022			$	218,947			$	134,147

Adjusted net income

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Net income	$	56,165			$	34,965			$	197,070			$	117,573
Adjustments:
Net realized and unrealized (gains) losses on investments		(2,370	)			1,201				(11,831	)			(4,568	)
Expenses associated with transactions		1,075				922				4,644				1,479
Stock-based compensation expense		5,543				4,779				21,014				16,685
Amortization of intangibles		1,284				389				4,683				1,558
Expenses associated with catastrophe bond		—				—				2,660				2,483
Tax impact		(581	)			(964	)			(2,124	)			(1,699	)
Adjusted net income	$	61,116			$	41,292			$	216,116			$	133,511

Annualized adjusted return on equity

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Annualized adjusted net income	$	244,464			$	165,168			$	216,116			$	133,511
Average stockholders’ equity	$	910,389			$	716,171			$	835,849			$	600,140
Annualized adjusted return on equity		26.9	%			23.1	%			25.9	%			22.2	%

Adjusted combined ratio

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	179,076			$	109,958			$	616,689			$	398,745
Denominator: Net earned premiums	$	233,460			$	144,890			$	802,635			$	510,687
Combined ratio		76.8	%			75.9	%			76.9	%			78.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(1,075	)		$	(922	)		$	(4,644	)		$	(1,479	)
Stock-based compensation expense		(5,543	)			(4,779	)			(21,014	)			(16,685	)
Amortization of intangibles		(1,284	)			(389	)			(4,683	)			(1,558	)
Expenses associated with catastrophe bond		—				—				(2,660	)			(2,483	)
Adjusted combined ratio		73.4	%			71.7	%			72.7	%			73.7	%

Diluted adjusted earnings per share

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	(in thousands, except per share data)								(in thousands, except per share data)
Adjusted net income	$	61,116			$	41,292			$	216,116			$	133,511
Weighted-average common shares outstanding, diluted		27,321,828				27,206,225				27,485,250				26,223,842
Diluted adjusted earnings per share	$	2.24			$	1.52			$	7.86			$	5.09

Catastrophe loss ratio

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Numerator: Losses and loss adjustment expenses	$	70,856			$	37,176			$	228,594			$	134,759
Denominator: Net earned premiums	$	233,460			$	144,890			$	802,635			$	510,687
Loss ratio		30.4	%			25.7	%			28.5	%			26.4	%
Numerator: Catastrophe losses	$	(2,063	)		$	8,122			$	(728	)		$	27,846
Denominator: Net earned premiums	$	233,460			$	144,890			$	802,635			$	510,687
Catastrophe loss ratio		-0.9	%			5.6	%			-0.1	%			5.5	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended								Year Ended
	December 31,								December 31,
	2025				2024				2025				2024
	($ in thousands)								($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	179,076			$	109,958			$	616,689			$	398,745
Denominator: Net earned premiums	$	233,460			$	144,890			$	802,635			$	510,687
Combined ratio		76.8	%			75.9	%			76.9	%			78.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(1,075	)		$	(922	)		$	(4,644	)		$	(1,479	)
Stock-based compensation expense		(5,543	)			(4,779	)			(21,014	)			(16,685	)
Amortization of intangibles		(1,284	)			(389	)			(4,683	)			(1,558	)
Expenses associated with catastrophe bond		—				—				(2,660	)			(2,483	)
Catastrophe losses		2,063				(8,122	)			728				(27,846	)
Adjusted combined ratio excluding catastrophe losses		74.2	%			66.1	%			72.8	%			68.3	%

Tangible Stockholders’ equity

	December 31,				December 31,
	2025				2024
	($ in thousands)
Stockholders’ equity	$	942,667			$	729,030
Goodwill and intangible assets		(61,054	)			(13,242	)
Tangible stockholders’ equity	$	881,613			$	715,788

FAQ

What were Palomar (PLMR) fourth quarter 2025 earnings per share results?

Palomar reported Q4 2025 net income of $2.06 per diluted share and adjusted EPS of $2.24. According to the company, adjusted net income was $61.1 million, reflecting higher premiums and investment income versus Q4 2024.

How much did Palomar (PLMR) gross written premiums grow in 2025?

Gross written premiums increased about 31.5% to $2.0 billion for full-year 2025. According to the company, growth was broad-based and drove higher net earned premiums and underwriting scale.

What is Palomar's (PLMR) 2026 adjusted net income outlook and assumptions?

Palomar expects adjusted net income of $260M to $275M for 2026, including $8M–$12M of estimated catastrophe losses. According to the company, this outlook reflects expected underwriting and investment performance for the year.

How did Palomar's (PLMR) combined ratio perform in Q4 2025 and FY2025?

Q4 2025 adjusted combined ratio was 73.4% while FY2025 adjusted combined ratio was 72.7%. According to the company, adjusted ratios exclude select items and indicate continued underwriting profitability.

Did Palomar (PLMR) repurchase shares during Q4 2025 and how much remains authorized?

Palomar did not repurchase shares in Q4 2025; approximately $112.7 million remained available under the $150 million authorization. According to the company, the repurchase program availability is unchanged as of December 31, 2025.