Palomar Holdings, Inc. Reports Second Quarter 2025 Results

Rhea-AI Summary

Palomar Holdings (NASDAQ:PLMR) reported strong Q2 2025 results with net income of $46.5 million ($1.68 per diluted share), up from $25.7 million in Q2 2024. The company achieved significant growth with gross written premiums increasing 28.8% to $496.3 million.

Key performance metrics include a total loss ratio of 25.7%, a combined ratio of 78.8%, and an impressive adjusted return on equity of 23.7%. The company announced a new $150 million share repurchase program through July 2027 and raised its full-year 2025 adjusted net income guidance to $198-208 million.

The company's reinsurance program secured a favorable 10% rate decrease, and investment income grew 68% to $13.4 million. Stockholders' equity reached $847.2 million as of June 30, 2025.

Positive

• Net income increased 81% year-over-year to $46.5 million
• Gross written premiums grew 28.8% to $496.3 million
• Investment income surged 68% to $13.4 million
• Secured 10% rate decrease in reinsurance program
• Strong adjusted return on equity of 23.7%
• Announced $150 million share repurchase program
• Raised full-year 2025 guidance

Negative

• Attritional loss ratio increased to 25.7% from 22.1% year-over-year
• Adjusted combined ratio excluding catastrophe losses deteriorated to 73.1% from 70.3%

Insights

Financial Analyst

Palomar delivered exceptional Q2 results with 29% premium growth and 52% adjusted net income growth, demonstrating strong execution of their diversification strategy.

Palomar Holdings delivered remarkable growth in Q2 2025, with gross written premiums increasing 28.8% to $496.3 million and adjusted net income jumping 51.8% to $48.5 million. This performance translated to diluted EPS of $1.68 and adjusted EPS of $1.76, significantly outpacing the prior year.

The insurer's underwriting discipline remains excellent, evidenced by a 73.1% adjusted combined ratio that matches last year's performance despite challenging market conditions. The total loss ratio increased slightly to 25.7% from 24.9% year-over-year, but notably, the company had 0% catastrophe losses this quarter compared to 2.8% last year.

The balance sheet continues to strengthen, with stockholders' equity reaching $847.2 million, up 59% from $532.6 million a year ago. This capital position supported an impressive 23.7% adjusted return on equity, slightly down from 24.7% last year but still exceptional for the insurance sector.

Management's confidence is apparent in two significant decisions: raising full-year adjusted net income guidance to $198-208 million (up from $195-205 million) and authorizing a substantial $150 million share repurchase program. The company also secured favorable reinsurance terms with an adjusted rate decrease of approximately 10%, which should support profit margins through 2026.

Palomar's diversified approach across property, casualty, and specialty lines appears to be paying dividends, as their balanced portfolio helps mitigate catastrophe exposure while capturing growth opportunities. The investment portfolio performance also contributed significantly, with net investment income jumping 68% to $13.4 million, benefiting from higher interest rates and increased assets under management.

Insurance Industry Specialist

Palomar's zero catastrophe losses and 10% reinsurance rate reduction demonstrate exceptional risk management while driving 29% premium growth.

Palomar's Q2 results highlight their superior catastrophe exposure management, achieving the rare feat of a 0% catastrophe loss ratio during a quarter that typically sees heightened natural disaster activity. This exceptional risk selection and underwriting discipline stands in stark contrast to many property insurers struggling with climate-related losses.

The company's reinsurance strategy deserves particular attention. Securing a 10% rate reduction in their June 1 renewal represents a significant achievement in a market where many competitors face rate increases or capacity constraints. This favorable reinsurance structure not only provides earnings stability but creates a competitive advantage in pricing that should fuel further growth.

Palomar's 28.8% premium growth is especially impressive considering the challenging market conditions in catastrophe-exposed regions. The growth across their diverse portfolio suggests they're successfully executing their expansion strategy without compromising underwriting standards, as evidenced by the 73.1% adjusted combined ratio.

The $6.5 million in favorable prior year development from short-tail lines reflects conservative initial loss picks and effective claims management. This positive development primarily from Inland Marine and Other Property segments indicates strong fundamental underwriting in their diversification business lines.

The newly announced $150 million share repurchase program through July 2027 demonstrates management's confidence in sustainable underwriting profitability. With strong capital generation and an A.M. Best "A" rating, Palomar has positioned itself as a specialized market leader capable of maintaining disciplined growth while returning capital to shareholders – a rare combination in the specialty insurance sector.

LA JOLLA, Calif., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $46.5 million, or $1.68 per diluted share, for the second quarter of 2025 compared to net income of $25.7 million, or $1.00 per diluted share, for the second quarter of 2024. Adjusted net income⁽¹⁾ was $48.5 million, or $1.76 per diluted share, for the second quarter of 2025 as compared to $32.0 million, or $1.25 per diluted share, for the second quarter of 2024.

Second Quarter 2025 Highlights

• Gross written premiums increased by 28.8% to $496.3 million compared to $385.2 million in the second quarter of 2024
• Net income of $46.5 million compared to $25.7 million in the second quarter of 2024
• Adjusted net income⁽¹⁾ increased 51.8% to $48.5 million compared to $32.0 million in the second quarter of 2024
• Total loss ratio of 25.7% compared to 24.9% in the second quarter of 2024
• Catastrophe loss ratio⁽¹⁾ of 0.0% compared to 2.8% in the second quarter of 2024
• Combined ratio of 78.8% compared to 79.1% in the second quarter of 2024
• Adjusted combined ratio⁽¹⁾ of 73.1% compared to 73.1%, in the second quarter of 2024
• Adjusted combined ratio excluding catastrophe losses⁽¹⁾ of 73.1% compared to 70.3%, in the second quarter of 2024
• Annualized return on equity of 22.7% compared to 19.9% in the second quarter of 2024
• Annualized adjusted return on equity⁽¹⁾ of 23.7% compared to 24.7% in the second quarter of 2024

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

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our second quarter results highlight the sustained execution of our Palomar 2X strategic imperative. We achieved strong top and bottom-line growth in the quarter as gross written premium grew 29% across our diverse portfolio and adjusted net income increased 52%. This strong growth underscores the strength of our product set and the efficacy of our balanced book of property and casualty and residential and commercial products. Our financial metrics were equally stout as we generated an adjusted combined ratio of 73%, and a 24% adjusted return on equity.”

Mr. Armstrong continued, “Beyond our financial performance, we remain focused on achieving our 2025 strategic imperatives. Notably, the successful execution of our June 1 reinsurance program at an adjusted rate decrease of approximately 10% year-over-year should help drive consistent earnings the remainder of 2025 and into 2026.  We continue to make investments across our organization, that enhance the talent and operational scale of our business and ultimately strengthen the near-term and long-term prospects of Palomar.”

Underwriting Results

Gross written premiums increased 28.8% to $496.3 million compared to $385.2 million in the second quarter of 2024, while net earned premiums increased 47.2% compared to the prior year’s second quarter.

Losses and loss adjustment expenses for the second quarter were $46.2 million, all attritional losses. The loss ratio for the quarter was 25.7%, comprised of an attritional loss ratio of 25.7% and a catastrophe loss ratio⁽¹⁾ of 0.0% compared to a loss ratio of 24.9% during the same period last year comprised of an attritional loss ratio of 22.1% and a catastrophe loss ratio⁽¹⁾ of 2.8%. Additionally, our second quarter results include $6.5 million of favorable prior year development primarily from our short tail Inland Marine and Other Property business.

Underwriting income⁽¹⁾ for the second quarter was $38.3 million resulting in a combined ratio of 78.8% compared to underwriting income of $25.6 million resulting in a combined ratio of 79.1% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $48.4 million resulting in an adjusted combined ratio⁽¹⁾ of 73.1% in the second quarter compared to adjusted underwriting income⁽¹⁾ of $32.9 million and an adjusted combined ratio⁽¹⁾ of 73.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 73.1% compared to 70.3% during the same period last year.

Investment Results
Net investment income increased by 68.0% to $13.4 million compared to $8.0 million in the prior year’s second 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 June 30, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.13 years at June 30, 2025. Cash and invested assets totaled $1.3 billion at June 30, 2025. During the second quarter, the Company recorded $8.3 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of an immaterial amount during the same period last year.

Tax Rate
The effective tax rate for the three months ended June 30, 2025 was 22.3% compared to 22.9% for the three months ended June 30, 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 $847.2 million at June 30, 2025, compared to $532.6 million at June 30, 2024. For the three months ended June 30, 2025, the Company’s annualized return on equity was 22.7% compared to 19.9% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 23.7% compared to 24.7% for the same period in the prior year.

Share Repurchase Program
The Company’s Board of Directors approved a share repurchase program effective July 31, 2025. The program authorizes the repurchase by the Company of up to $150 million of its outstanding shares of common stock over the period ending on July 31, 2027. Under the share repurchase program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws.

There is no guarantee as to the exact number or value of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that management determines additional repurchases are not warranted. The timing and amount of share repurchases under the share repurchase program will depend on several factors, including the Company's stock price performance, ongoing capital planning considerations, general market conditions and applicable legal requirements.

Full Year 2025 Outlook
For the full year 2025, the Company expects to achieve adjusted net income of $198 million to $208 million, an increase from the previously announced range of $195 million to $205 million. This range includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.

Conference Call
As previously announced, Palomar will host a conference call Tuesday, August 5, 2025, to discuss its second 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 Second Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on August 5, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13754413. The replay will be available until 11:59 p.m. (Eastern Time) on August 12, 2025.

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”), and Palomar Crop Insurance Services, Inc. (“PCIS”). 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, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating 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 and six months ended June 30, 2025 and 2024:

	Three Months Ended
	June 30,
	2025				2024				Change				% Change
	($ in thousands, except per share data)
Gross written premiums	$	496,288			$	385,184			$	111,104				28.8	%
Ceded written premiums		(266,506	)			(209,181	)			(57,325	)			27.4	%
Net written premiums		229,782				176,003				53,779				30.6	%
Net earned premiums		179,958				122,285				57,673				47.2	%
Commission and other income		1,677				792				885				111.7	%
Total underwriting revenue (1)		181,635				123,077				58,558				47.6	%
Losses and loss adjustment expenses		46,183				30,431				15,752				51.8	%
Acquisition expenses, net of ceding commissions and fronting fees		51,637				35,806				15,831				44.2	%
Other underwriting expenses		45,525				31,233				14,292				45.8	%
Underwriting income (1)		38,290				25,607				12,683				49.5	%
Interest expense		(86	)			(225	)			139				(61.8	)%
Net investment income		13,370				7,960				5,410				68.0	%
Net realized and unrealized gains on investments		8,306				32				8,274			NM
Income before income taxes		59,880				33,374				26,506				79.4	%
Income tax expense		13,352				7,645				5,707				74.7	%
Net income	$	46,528			$	25,729			$	20,799				80.8	%
Adjustments:
Net realized and unrealized gains on investments		(8,306	)			(32	)			(8,274	)		NM
Expenses associated with transactions		754				472				282				59.7	%
Stock-based compensation expense		5,347				3,968				1,379				34.8	%
Amortization of intangibles		1,346				389				957				246.0	%
Expenses associated with catastrophe bond		2,661				2,483				178				7.2	%
Tax impact		202				(1,029	)			1,231				(119.6	)%
Adjusted net income (1)	$	48,532			$	31,980			$	16,552				51.8	%
Key Financial and Operating Metrics
Annualized return on equity		22.7	%			19.9	%
Annualized adjusted return on equity (1)		23.7	%			24.7	%
Loss ratio		25.7	%			24.9	%
Expense ratio		53.1	%			54.2	%
Combined ratio		78.8	%			79.1	%
Adjusted combined ratio (1)		73.1	%			73.1	%
Diluted earnings per share	$	1.68			$	1.00
Diluted adjusted earnings per share (1)	$	1.76			$	1.25
Catastrophe losses	$	(22	)		$	3,441
Catastrophe loss ratio (1)		0	%			2.8	%
Adjusted combined ratio excluding catastrophe losses (1)		73.1	%			70.3	%
Adjusted underwriting income (1)	$	48,398			$	32,919			$	15,479				47.0	%
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.

	Six Months Ended
	June 30,
	2025				2024				Change				% Change
	($ in thousands, except per share data)
Gross written premiums	$	938,452			$	753,262			$	185,190				24.6	%
Ceded written premiums		(497,251	)			(437,352	)			(59,899	)			13.7	%
Net written premiums		441,201				315,910				125,291				39.7	%
Net earned premiums		344,029				230,151				113,878				49.5	%
Commission and other income		2,507				1,320				1,187				89.9	%
Total underwriting revenue (1)		346,536				231,471				115,065				49.7	%
Losses and loss adjustment expenses		84,927				57,268				27,659				48.3	%
Acquisition expenses, net of ceding commissions and fronting fees		97,996				67,604				30,392				45.0	%
Other underwriting expenses		81,258				56,036				25,222				45.0	%
Underwriting income (1)		82,355				50,563				31,792				62.9	%
Interest expense		(171	)			(965	)			794				(82.3	)%
Net investment income		25,441				15,098				10,343				68.5	%
Net realized and unrealized gains on investments		5,968				3,034				2,934				96.7	%
Income before income taxes		113,593				67,730				45,863				67.7	%
Income tax expense		24,143				15,619				8,524				54.6	%
Net income	$	89,450			$	52,111			$	37,339				71.7	%
Adjustments:
Net realized and unrealized gains on investments		(5,968	)			(3,034	)			(2,934	)			96.7	%
Expenses associated with transactions		2,841				472				2,369			NM
Stock-based compensation expense		10,092				7,789				2,303				29.6	%
Amortization of intangibles		2,054				779				1,275				163.7	%
Expenses associated with catastrophe bond		2,661				2,483				178				7.2	%
Tax impact		(1,293	)			(825	)			(468	)			56.7	%
Adjusted net income (1)	$	99,837			$	59,775			$	40,062				67.0	%
Key Financial and Operating Metrics
Annualized return on equity		22.7	%			20.8	%
Annualized adjusted return on equity (1)		25.3	%			23.8	%
Loss ratio		24.7	%			24.9	%
Expense ratio		51.4	%			53.1	%
Combined ratio		76.1	%			78.0	%
Adjusted combined ratio (1)		70.9	%			73.0	%
Diluted earnings per share	$	3.24			$	2.04
Diluted adjusted earnings per share (1)	$	3.62			$	2.34
Catastrophe losses	$	(565	)		$	6,800
Catastrophe loss ratio (1)		(0.2	)%			3.0	%
Adjusted combined ratio excluding catastrophe losses (1)		71.1	%			70.1	%
Adjusted underwriting income (1)	$	100,003			$	62,086			$	37,917				61.1	%
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)
	June 30,				December 31,
	2025				2024
	(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,130,737 in 2025; $973,330 in 2024)	$	1,113,366			$	939,046
Equity securities, at fair value (cost: $38,486 in 2025; $32,987 in 2024)		49,222				40,529
Equity method investment		—				2,277
Other investments		12,405				5,863
Total investments		1,174,993				987,715
Cash and cash equivalents		81,297				80,438
Restricted cash		18				101
Accrued investment income		10,180				8,440
Premiums receivable		490,240				305,724
Deferred policy acquisition costs, net of ceding commissions and fronting fees		116,356				94,881
Reinsurance recoverable on paid losses and loss adjustment expenses		37,397				47,076
Reinsurance recoverable on unpaid losses and loss adjustment expenses		399,471				348,083
Ceded unearned premiums		332,970				276,237
Prepaid expenses and other assets		120,740				91,086
Deferred tax assets, net		3,063				8,768
Property and equipment, net		2,929				429
Goodwill and intangible assets, net		62,837				13,242
Total assets	$	2,832,491			$	2,262,220
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	153,760			$	70,079
Reserve for losses and loss adjustment expenses		598,656				503,382
Unearned premiums		900,987				741,692
Ceded premium payable		293,967				190,168
Funds held under reinsurance treaty		37,914				27,869
Income taxes payable		10				—
Total liabilities		1,985,294				1,533,190
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024		—				—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,777,198 and 26,529,402 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		3				3
Additional paid-in capital		509,161				493,656
Accumulated other comprehensive loss		(13,633	)			(26,845	)
Retained earnings		351,666				262,216
Total stockholders’ equity		847,197				729,030
Total liabilities and stockholders’ equity	$	2,832,491			$	2,262,220

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (in thousands, except shares and per share data)
	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
Revenues:
Gross written premiums	$	496,288			$	385,184			$	938,452			$	753,262
Ceded written premiums		(266,506	)			(209,181	)			(497,251	)			(437,352	)
Net written premiums		229,782				176,003				441,201				315,910
Change in unearned premiums		(49,824	)			(53,718	)			(97,172	)			(85,759	)
Net earned premiums		179,958				122,285				344,029				230,151
Net investment income		13,370				7,960				25,441				15,098
Net realized and unrealized gains on investments		8,306				32				5,968				3,034
Commission and other income		1,677				792				2,507				1,320
Total revenues		203,311				131,069				377,945				249,603
Expenses:
Losses and loss adjustment expenses		46,183				30,431				84,927				57,268
Acquisition expenses, net of ceding commissions and fronting fees		51,637				35,806				97,996				67,604
Other underwriting expenses		45,525				31,233				81,258				56,036
Interest expense		86				225				171				965
Total expenses		143,431				97,695				264,352				181,873
Income before income taxes		59,880				33,374				113,593				67,730
Income tax expense		13,352				7,645				24,143				15,619
Net income	$	46,528			$	25,729			$	89,450			$	52,111
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale		3,009				(1,550	)			13,213				(4,064	)
Net comprehensive income	$	49,537			$	24,179			$	102,663			$	48,047
Per Share Data:
Basic earnings per share	$	1.74			$	1.03			$	3.35			$	2.09
Diluted earnings per share	$	1.68			$	1.00			$	3.24			$	2.04
Weighted-average common shares outstanding:
Basic		26,756,095				24,946,987				26,707,371				24,904,677
Diluted		27,628,733				25,617,916				27,568,913				25,554,445

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 June 30,
	2025								2024
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product
Earthquake	$	147,702				29.8	%		$	135,029				35.1	%		$	12,673				9.4	%
Casualty		128,222				25.8	%			58,605				15.2	%			69,617				118.8	%
Inland Marine and Other Property		120,031				24.2	%			93,453				24.3	%			26,578				28.4	%
Fronting		60,869				12.2	%			95,896				24.9	%			(35,027	)			(36.5	)%
Crop		39,464				8.0	%			2,201				0.5	%			37,263			NM
Total Gross Written Premiums	$	496,288				100.0	%		$	385,184				100.0	%		$	111,104				28.8	%

	Six Months Ended June 30,
	2025								2024
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product
Earthquake	$	277,929				29.7	%		$	240,759				32.0	%		$	37,170				15.4	%
Casualty		238,932				25.5	%			110,539				14.7	%			128,393				116.2	%
Inland Marine and Other Property		219,098				23.3	%			170,329				22.6	%			48,769				28.6	%
Fronting		114,810				12.2	%			190,727				25.3	%			(75,917	)			(39.8	)%
Crop		87,683				9.3	%			40,908				5.4	%			46,775				114.3	%
Total Gross Written Premiums	$	938,452				100.0	%		$	753,262				100.0	%		$	185,190				24.6	%

  

	Three Months Ended June 30,																Six Months Ended June 30,
	2025								2024								2025								2024
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
State
California	$	163,814				33.0	%		$	183,396				47.6	%		$	303,536				32.3	%		$	340,614				45.2	%
Texas		35,708				7.2	%			28,600				7.4	%			80,699				8.6	%			69,396				9.2	%
Hawaii		24,544				4.9	%			18,235				4.7	%			44,901				4.8	%			30,751				4.1	%
Florida		23,979				4.8	%			29,796				7.7	%			42,621				4.5	%			43,720				5.8	%
New York		17,462				3.5	%			7,980				2.1	%			32,857				3.5	%			16,010				2.1	%
Washington		17,188				3.5	%			13,063				3.4	%			32,059				3.4	%			25,066				3.3	%
Illinois		13,048				2.7	%			4,870				1.3	%			18,637				2.0	%			8,168				1.1	%
Minnesota		12,004				2.4	%			1,243				0.3	%			13,042				1.4	%			2,440				0.3	%
Other		188,541				38.0	%			98,001				25.5	%			370,100				39.5	%			217,097				28.9	%
Total Gross Written Premiums	$	496,288				100.0	%		$	385,184				100.0	%		$	938,452				100.0	%		$	753,262				100.0	%

	Three Months Ended June 30,																Six Months Ended June 30,
	2025								2024								2025								2024
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
Subsidiary
PSIC	$	232,983				46.9	%		$	193,709				50.3	%		$	463,900				49.4	%		$	416,366				55.3	%
PESIC		237,943				47.9	%			177,109				46.0	%			428,730				45.7	%			313,603				41.6	%
Laulima		20,134				4.1	%			14,366				3.7	%			36,171				3.9	%			23,293				3.1	%
FIA		5,228				1.1	%			—				—	%			9,651				1.0	%			—				—	%
Total Gross Written Premiums	$	496,288				100.0	%		$	385,184				100.0	%		$	938,452				100.0	%		$	753,262				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																Six Months Ended
	June 30,												%				June 30,												%
	2025				2024				Change				Change				2025				2024				Change				Change
	($ in thousands)																($ in thousands)
Gross earned premiums	$	408,764			$	326,964			$	81,800				25.0	%		$	784,540			$	629,835			$	154,705				24.6	%
Ceded earned premiums		(228,806	)			(204,679	)			(24,127	)			11.8	%			(440,511	)			(399,684	)			(40,827	)			10.2	%
Net earned premiums	$	179,958			$	122,285			$	57,673				47.2	%		$	344,029			$	230,151			$	113,878				49.5	%
Net earned premium ratio		44.0	%			37.4	%											43.9	%			36.5	%

Loss detail

	Three Months Ended																Six Months Ended
	June 30,																June 30,
	2025				2024				Change				% Change				2025				2024				Change				% Change
	($ in thousands)																($ in thousands)
Catastrophe losses	$	(22	)		$	3,441			$	(3,463	)			(100.6	)%		$	(565	)		$	6,800			$	(7,365	)			(108.3	)%
Non-catastrophe losses		46,205				26,990				19,215				71.2	%			85,492				50,468				35,024				69.4	%
Total losses and loss adjustment expenses	$	46,183			$	30,431			$	15,752				51.8	%		$	84,927			$	57,268			$	27,659				48.3	%
Catastrophe loss ratio		—	%			2.8	%											(0.2	)%			3.0	%
Non-catastrophe loss ratio		25.7	%			22.1	%											24.9	%			21.9	%
Total loss ratio		25.7	%			24.9	%											24.7	%			24.9	%

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

	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	182,661			$	110,163			$	155,299			$	97,653
Add: Balance acquired from FIA(1)		—				—			$	6,788				—
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year		52,698				33,355				95,757				59,688
Prior years		(6,515	)			(2,924	)			(10,830	)			(2,420	)
Total incurred		46,183				30,431				84,927				57,268
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		17,659				6,861				22,657				11,756
Prior years		12,000				14,972				25,172				24,404
Total payments		29,659				21,833				47,829				36,160
Reserve for losses and LAE net of reinsurance recoverables at end of period		199,185				118,761				199,185				118,761
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		399,471				347,840				399,471				347,840
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	598,656			$	466,601			$	598,656			$	466,601

 (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 and six months ended June 30, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Total revenue	$	203,311			$	131,069			$	377,945			$	249,603
Net investment income		(13,370	)			(7,960	)			(25,441	)			(15,098	)
Net realized and unrealized gains on investments		(8,306	)			(32	)			(5,968	)			(3,034	)
Underwriting revenue	$	181,635			$	123,077			$	346,536			$	231,471

Underwriting income and adjusted underwriting income

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Income before income taxes	$	59,880			$	33,374			$	113,593			$	67,730
Net investment income		(13,370	)			(7,960	)			(25,441	)			(15,098	)
Net realized and unrealized gains on investments		(8,306	)			(32	)			(5,968	)			(3,034	)
Interest expense		86				225				171				965
Underwriting income	$	38,290			$	25,607			$	82,355			$	50,563
Expenses associated with transactions		754				472				2,841				472
Stock-based compensation expense		5,347				3,968				10,092				7,789
Amortization of intangibles		1,346				389				2,054				779
Expenses associated with catastrophe bond		2,661				2,483				2,661				2,483
Adjusted underwriting income	$	48,398			$	32,919			$	100,003			$	62,086

Adjusted net income

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Net income	$	46,528			$	25,729			$	89,450			$	52,111
Adjustments:
Net realized and unrealized gains on investments		(8,306	)			(32	)			(5,968	)			(3,034	)
Expenses associated with transactions		754				472				2,841				472
Stock-based compensation expense		5,347				3,968				10,092				7,789
Amortization of intangibles		1,346				389				2,054				779
Expenses associated with catastrophe bond		2,661				2,483				2,661				2,483
Tax impact		202				(1,029	)			(1,293	)			(825	)
Adjusted net income	$	48,532			$	31,980			$	99,837			$	59,775

Annualized adjusted return on equity

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Annualized adjusted net income	$	194,128			$	127,920			$	199,674			$	119,550
Average stockholders’ equity	$	819,685			$	517,131			$	788,975			$	501,928
Annualized adjusted return on equity		23.7	%			24.7	%			25.3	%			23.8	%

Adjusted combined ratio

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	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	$	141,668			$	96,678			$	261,674			$	179,588
Denominator: Net earned premiums	$	179,958			$	122,285			$	344,029			$	230,151
Combined ratio		78.8	%			79.1	%			76.1	%			78.0	%
Adjustments to numerator:
Expenses associated with transactions	$	(754	)		$	(472	)		$	(2,841	)		$	(472	)
Stock-based compensation expense		(5,347	)			(3,968	)			(10,092	)			(7,789	)
Amortization of intangibles		(1,346	)			(389	)			(2,054	)			(779	)
Expenses associated with catastrophe bond		(2,661	)			(2,483	)			(2,661	)			(2,483	)
Adjusted combined ratio		73.1	%			73.1	%			70.9	%			73.0	%

Diluted adjusted earnings per share

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands, except per share data)								(in thousands, except per share data)
Adjusted net income	$	48,532			$	31,980			$	99,837			$	59,775
Weighted-average common shares outstanding, diluted		27,628,733				25,617,916				27,568,913				25,554,445
Diluted adjusted earnings per share	$	1.76			$	1.25			$	3.62			$	2.34

Catastrophe loss ratio  

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2025				2024				2025				2024
	(in thousands)								(in thousands)
Numerator: Losses and loss adjustment expenses	$	46,183			$	30,431			$	84,927			$	57,268
Denominator: Net earned premiums	$	179,958			$	122,285			$	344,029			$	230,151
Loss ratio		25.7	%			24.9	%			24.7	%			24.9	%
Numerator: Catastrophe losses	$	(22	)		$	3,441			$	(565	)		$	6,800
Denominator: Net earned premiums	$	179,958			$	122,285			$	344,029			$	230,151
Catastrophe loss ratio		—	%			2.8	%			(0.2	)%			3.0	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	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	$	141,668			$	96,678			$	261,674			$	179,588
Denominator: Net earned premiums	$	179,958			$	122,285			$	344,029			$	230,151
Combined ratio		78.8	%			79.1	%			76.1	%			78.0	%
Adjustments to numerator:
Expenses associated with transactions	$	(754	)		$	(472	)		$	(2,841	)		$	(472	)
Stock-based compensation expense		(5,347	)			(3,968	)			(10,092	)			(7,789	)
Amortization of intangibles		(1,346	)			(389	)			(2,054	)			(779	)
Expenses associated with catastrophe bond		(2,661	)			(2,483	)			(2,661	)			(2,483	)
Catastrophe losses		22				(3,441	)			565				(6,800	)
Adjusted combined ratio excluding catastrophe losses		73.1	%			70.3	%			71.1	%			70.1	%

Tangible Stockholders’ equity

	June 30,				December 31,
	2025				2024
	(in thousands)
Stockholders’ equity	$	847,197			$	729,030
Goodwill and intangible assets		(62,837	)			(13,242	)
Tangible stockholders’ equity	$	784,360			$	715,788

FAQ

What were Palomar Holdings (PLMR) key financial results for Q2 2025?

Palomar reported net income of $46.5 million ($1.68 per share), with gross written premiums of $496.3 million, up 28.8% year-over-year. The company achieved an adjusted combined ratio of 73.1% and adjusted ROE of 23.7%.

How much is PLMR's new share repurchase program and when does it expire?

Palomar's Board approved a $150 million share repurchase program effective July 31, 2025, which will run through July 31, 2027.

What is Palomar's updated guidance for full year 2025?

Palomar raised its full year 2025 adjusted net income guidance to $198-208 million, up from the previous range of $195-205 million, including $8-12 million in estimated catastrophe losses for the remainder of the year.

How did PLMR's investment income perform in Q2 2025?

Investment income increased 68% to $13.4 million compared to $8.0 million in Q2 2024, driven by higher yields and larger investment balance.

What was PLMR's stockholders' equity as of Q2 2025?

Stockholders' equity reached $847.2 million as of June 30, 2025, compared to $532.6 million in the same period last year.