Palomar Holdings, Inc. Reports Second Quarter 2026 Results

Rhea-AI Summary

Palomar Holdings (NASDAQ: PLMR) reported second quarter 2026 net income of $52.6 million ($1.94 diluted EPS), up 13.0% from $46.5 million ($1.68) a year earlier. Adjusted net income rose 31.4% to $63.8 million, or $2.36 per diluted share, from $48.5 million, or $1.76.

Gross written premiums increased 27.0% to $630.5 million, while net earned premiums grew 59.5% to $287.0 million. The loss ratio rose to 34.5% from 25.7%, and the combined ratio increased to 83.3% from 78.8%, though the adjusted combined ratio was 76.7% versus 73.1%.

Net investment income grew 49.2% to $20.0 million. Stockholders’ equity reached $980.9 million. Annualized return on equity was 21.7%, and annualized adjusted ROE was 26.3%. The board authorized an initial quarterly dividend of $0.45 per share and the company repurchased 368,719 shares for $41.0 million. Palomar guided full-year 2026 adjusted net income to $270–$280 million, including $8–$12 million of estimated catastrophe losses.

Positive

• Gross written premiums +27.0% YoY to $630.5 million
• Adjusted net income +31.4% YoY to $63.8 million
• Diluted adjusted EPS +34.1% YoY to $2.36
• Net investment income +49.2% YoY to $20.0 million
• Annualized adjusted ROE improved to 26.3% from 23.7%
• Initial quarterly dividend of $0.45 per share plus $41.0 million buybacks

Negative

• Loss ratio increased to 34.5% from 25.7% YoY
• Combined ratio worsened to 83.3% from 78.8% YoY
• Adjusted combined ratio rose to 76.7% from 73.1%
• Effective tax rate increased to 24.7% from 22.3%
• Net realized/unrealized gains fell to $6.8 million from $8.3 million
• 2026 outlook includes $8–$12 million estimated catastrophe losses

News Explained

Palomar’s board declared its initial quarterly cash dividend of $0.45 per common share on July 30, 2026, payable on September 2, 2026 to stockholders of record on August 19, 2026; the disclosure therefore establishes a scheduled cash distribution to existing common holders.

Market Context

The tag-specific earnings history averaged a -1.3% reaction across five events. That record frames t...

Analysis

The tag-specific earnings history averaged a -1.3% reaction across five events. That record frames the report’s earnings growth and dividend against a risk backdrop that includes recent Net Selling activity.

Key Figures

Net Income: $52.6 million Adjusted Net Income: $63.8 million Gross Written Premiums: $630.5 million +5 more

8 metrics

Net Income $52.6 million Q2 2026, compared to $46.5 million in Q2 2025

Adjusted Net Income $63.8 million Q2 2026, compared to $48.5 million in Q2 2025

Gross Written Premiums $630.5 million Q2 2026, increased 27.0% from Q2 2025

Diluted Adjusted EPS $2.36 Q2 2026, compared to $1.76 in Q2 2025

Combined Ratio 83.3% Q2 2026, compared to 78.8% in Q2 2025

Adjusted Return on Equity 26.3% Q2 2026, compared to 23.7% in Q2 2025

Quarterly Dividend $0.45 per share Initial quarterly cash dividend declared July 30, 2026

Adjusted Net Income Guidance $270 million to $280 million Full-year 2026 outlook

Previous Earnings Reports

5 past events · Latest: May 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 06	Q1 earnings report	Positive	+2.5%	Q1 earnings growth, acquisition completion, buyback authorization, and raised full-year guidance
Feb 11	Q4 earnings report	Positive	-3.5%	Quarterly profit growth and increased 2026 adjusted net income outlook
Nov 06	Q3 earnings report	Positive	+8.7%	Profit, premium, adjusted efficiency, investment income, and guidance growth
Aug 04	Q2 earnings report	Positive	-14.7%	Strong quarterly profit and premium growth, improved returns, and raised guidance
May 05	Q1 earnings report	Positive	+0.4%	Profit, premium, adjusted earnings, efficiency, acquisition, and guidance improvements

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Historical earnings reactions were mixed despite generally positive results, with three aligned moves and two divergences.

Key Terms

combined ratio, loss ratio, catastrophe loss ratio, non-gaap financial measure

4 terms

combined ratio financial

"Combined ratio of 83.3% compared to 78.8%"

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.

loss ratio financial

"The loss ratio for the quarter was 34.5%"

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.

catastrophe loss ratio financial

"a catastrophe loss ratio of -0.1%"

The catastrophe loss ratio measures the portion of an insurer’s collected premiums that is paid out to cover claims from major disasters, like storms, earthquakes or large-scale accidents. It matters to investors because a high ratio is like a household draining its savings after an unexpected storm: it can squeeze profits, force the company to raise prices or tap capital, and reveal whether disaster coverage is priced and managed sustainably.

non-gaap financial measure financial

"Adjusted net income is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LA JOLLA, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $52.6 million, or $1.94 per diluted share, for the second quarter of 2026 compared to net income of $46.5 million, or $1.68 per diluted share, for the second quarter of 2025. Adjusted net income⁽¹⁾ was $63.8 million, or $2.36 per diluted share, for the second quarter of 2026 as compared to $48.5 million, or $1.76 per diluted share, for the second quarter of 2025.

Second Quarter 2026 Highlights

• Gross written premiums increased by 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025
• Net income increased 13.0% to $52.6 million compared to $46.5 million in the second quarter of 2025
• Adjusted net income⁽¹⁾ increased 31.4% to $63.8 million compared to $48.5 million in the second quarter of 2025
• Diluted earnings per share increased by 15.5% to $1.94 compared to $1.68 in the second quarter of 2025
• Diluted adjusted earnings per share⁽¹⁾ increased by 34.1% to $2.36 compared to $1.76 in the second quarter of 2025
• Total loss ratio of 34.5% compared to 25.7% in the second quarter of 2025
• Combined ratio of 83.3% compared to 78.8% in the second quarter of 2025
• Adjusted combined ratio⁽¹⁾ of 76.7% compared to 73.1%, in the second quarter of 2025
• Annualized return on equity of 21.7% compared to 22.7% in the second quarter of 2025
• Annualized adjusted return on equity⁽¹⁾ of 26.3% compared to 23.7% in the second quarter of 2025

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

Mac Armstrong, Chairman and Chief Executive Officer, commented, “The second quarter of 2026 was another strong one for Palomar; highlighted by record adjusted net income, our 15^th consecutive earnings beat and the third increase to our full-year adjusted net income guidance. Gross written premium increased 27% year-over-year, adjusted net income grew 31%, adjusted earnings per share grew 34%, adjusted combined ratio was 77% and our adjusted return on equity was 26% - all outstanding results. Bolstering our financial performance were several operational achievements including the launch of the PLMR.Farm, our innovative crop policy administration system, and exceptional new additions to our team. These results demonstrate our ability to execute in a dynamic insurance market while maintaining discipline in underwriting and capital allocation.

Mr. Armstrong continued, “Our strong and consistent earnings, attractive returns and healthy balance sheet provide ample capacity to not only invest in the businesses driving our Palomar 2X strategy but also return capital to shareholders. As such our Board authorized the introduction of a quarterly dividend of $0.45 per share. Importantly, the dividend does not change our growth strategy or the execution of Palomar 2X; it only enhances our ability to create shareholder value.” 

Underwriting Results

Gross written premiums increased 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025, while net earned premiums increased 59.5% compared to the prior year’s second quarter.

Losses and loss adjustment expenses for the second quarter were $99.0 million, comprised of $99.4 million of attritional losses, offset by $0.4 million of favorable development on catastrophe events. The loss ratio for the quarter was 34.5%, comprised of an attritional loss ratio of 34.6% and a catastrophe loss ratio⁽¹⁾ of -0.1% compared to a loss ratio of 25.7% during the same period last year comprised entirely of attritional losses. Additionally, our second quarter results include $14.1 million of attritional and $0.2 million of catastrophe loss favorable prior year development. The majority of the attritional loss prior year favorability related to Inland Marine and Property lines and previous years’ Crop results.

Underwriting income⁽¹⁾ for the second quarter was $48.0 million resulting in a combined ratio of 83.3% compared to underwriting income of $38.3 million resulting in a combined ratio of 78.8% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $67.0 million, an increase of 38.4%, resulting in an adjusted combined ratio⁽¹⁾ of 76.7% in the second quarter compared to adjusted underwriting income⁽¹⁾ of $48.4 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 76.8% compared to 73.1% during the same period last year.

Investment Results
Net investment income increased by 49.2% to $20.0 million compared to $13.4 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, 2026 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.33 years at June 30, 2026. Cash and invested assets totaled $1.7 billion at June 30, 2026. During the second quarter, the Company recorded $6.8 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $8.3 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended June 30, 2026 was 24.7% compared to 22.3% for the three months ended June 30, 2025. For the current quarter, the Company’s income tax rate differed from the statutory rate of 21% due primarily to the non-deductible executive compensation expense.

Stockholders’ Equity and Capital Matters
Stockholders’ equity was $980.9 million at June 30, 2026, compared to $847.2 million at June 30, 2025. For the three months ended June 30, 2026, the Company’s annualized return on equity was 21.7% compared to 22.7% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 26.3% compared to 23.7% for the same period in the prior year.

During the current quarter, the Company repurchased 368,719 shares of its common stock for $41.0 million.

On July 30, 2026, the Company’s Board of Directors declared an initial quarterly cash dividend of $0.45 per share of common stock, payable on September 2, 2026, to stockholders of record as of August 19, 2026.

Full Year 2026 Outlook
For the full year 2026, the Company expects to achieve adjusted net income of $270 million to $280 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 on Wednesday, August 5, 2026, to discuss its second quarter 2026 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 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on August 5, 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 13761138. The replay will be available until 11:59 p.m. (Eastern Time) on August 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”). 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 Property, Casualty, Surety & Credit, 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. Management uses these non-GAAP measures internally to evaluate the Company’s underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company’s operating 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, 2026 and 2025:

		Three Months Ended
		June 30,
		2026				2025				Change				% Change
		(in thousands, except per share data)
Gross written premiums		$	630,456			$	496,288			$	134,168			27.0	%
Ceded written premiums			(305,279	)			(266,506	)			(38,773	)		14.5	%
Net written premiums			325,177				229,782				95,395			41.5	%
Net earned premiums			286,951				179,958				106,993			59.5	%
Commission and other income			769				1,677				(908	)		(54.1	)%
Total underwriting revenue(1)			287,720				181,635				106,085			58.4	%
Losses and loss adjustment expenses			98,988				46,183				52,805			114.3	%
Acquisition expenses, net of ceding commissions and fronting fees			71,256				51,637				19,619			38.0	%
Other underwriting expenses			69,429				45,525				23,904			52.5	%
Underwriting income(1)			48,047				38,290				9,757			25.5	%
Interest expense			(4,947	)			(86	)			(4,861	)		NM
Net investment income			19,950				13,370				6,580			49.2	%
Net realized and unrealized gains on investments			6,753				8,306				(1,553	)		(18.7	)%
Income before income taxes			69,803				59,880				9,923			16.6	%
Income tax expense			17,211				13,352				3,859			28.9	%
Net income		$	52,592			$	46,528			$	6,064			13.0	%
Adjustments:
Net realized and unrealized gains on investments			(6,753	)			(8,306	)			1,553			(18.7	)%
Expenses associated with transactions			6				754				(748	)		(99.2	)%
Stock-based compensation expense			7,438				5,347				2,091			39.1	%
Amortization of intangibles			9,180				1,346				7,834			NM
Expenses associated with catastrophe bond			2,330				2,661				(331	)		(12.4	)%
Tax impact			(1,025	)			202				(1,227	)		NM
Adjusted net income(1)		$	63,768			$	48,532			$	15,236			31.4	%
Key Financial and Operating Metrics
Annualized return on equity			21.7	%			22.7	%
Annualized adjusted return on equity(1)			26.3	%			23.7	%
Loss ratio			34.5	%			25.7	%
Expense ratio			48.8	%			53.1	%
Combined ratio			83.3	%			78.8	%
Adjusted combined ratio(1)			76.7	%			73.1	%
Diluted earnings per share		$	1.94			$	1.68
Diluted adjusted earnings per share(1)		$	2.36			$	1.76
Catastrophe losses		$	(418	)		$	(22	)
Catastrophe loss ratio(1)			-0.1	%			0.0	%
Adjusted combined ratio excluding catastrophe losses(1)			76.8	%			73.1	%
Adjusted underwriting income(1)		$	67,001			$	48,398			$	18,603			38.4	%
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,
	2026				2025				Change				% Change
	(in thousands, except per share data)
Gross written premiums	$	1,260,284			$	938,452			$	321,832			34.3	%
Ceded written premiums		(597,192	)			(497,251	)			(99,941	)		20.1	%
Net written premiums		663,092				441,201				221,891			50.3	%
Net earned premiums		548,389				344,029				204,360			59.4	%
Commission and other income		2,178				2,507				(329	)		(13.1	)%
Total underwriting revenue(1)		550,567				346,536				204,031			58.9	%
Losses and loss adjustment expenses		186,085				84,927				101,158			119.1	%
Acquisition expenses, net of ceding commissions and fronting fees		141,571				97,996				43,575			44.5	%
Other underwriting expenses		134,336				81,258				53,078			65.3	%
Underwriting income(1)		88,575				82,355				6,220			7.6	%
Interest expense		(8,105	)			(171	)			(7,934	)		NM
Net investment income		37,934				25,441				12,493			49.1	%
Net realized and unrealized gains on investments		4,860				5,968				(1,108	)		(18.6	)%
Income before income taxes		123,264				113,593				9,671			8.5	%
Income tax expense		27,725				24,143				3,582			14.8	%
Net income	$	95,539			$	89,450			$	6,089			6.8	%
Adjustments:
Net realized and unrealized gains on investments		(4,860	)			(5,968	)			1,108			(18.6	)%
Expenses associated with transactions		7,412				2,841				4,571			160.9	%
Stock-based compensation expense		16,224				10,092				6,132			60.8	%
Amortization of intangibles		15,235				2,054				13,181			NM
Expenses associated with catastrophe bond		2,330				2,661				(331	)		(12.4	)%
Tax impact		(4,976	)			(1,293	)			(3,683	)		284.8	%
Adjusted net income(1)	$	126,904			$	99,837			$	27,067			27.1	%
Key Financial and Operating Metrics
Annualized return on equity		19.9	%			22.7	%
Annualized adjusted return on equity(1)		26.4	%			25.3	%
Loss ratio		33.9	%			24.7	%
Expense ratio		49.9	%			51.4	%
Combined ratio		83.8	%			76.1	%
Adjusted combined ratio(1)		76.3	%			70.9	%
Diluted earnings per share	$	3.51			$	3.24
Diluted adjusted earnings per share(1)	$	4.66			$	3.62
Catastrophe losses	$	(149	)		$	(565	)
Catastrophe loss ratio(1)		0.0	%			-0.2	%
Adjusted combined ratio excluding catastrophe losses(1)		76.4	%			71.1	%
Adjusted underwriting income(1)	$	129,776			$	100,003			$	29,773			29.8	%
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.

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,
	2026				2025
	(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,523,005 in 2026; $1,227,605 in 2025)	$	1,502,860			$	1,224,187
Equity securities, at fair value (cost: $109,595 in 2026; $81,772 in 2025)		129,515				99,333
Other investments		45,877				28,503
Total investments		1,678,252				1,352,023
Cash and cash equivalents		62,689				106,875
Restricted cash		15				17
Accrued investment income		14,742				11,545
Premiums receivable		655,876				452,908
Deferred policy acquisition costs, net of ceding commissions and fronting fees		153,824				127,718
Reinsurance recoverable on paid losses and loss adjustment expenses		62,237				56,428
Reinsurance recoverable on unpaid losses and loss adjustment expenses		523,790				412,273
Ceded unearned premiums		445,449				355,918
Prepaid expenses and other assets		127,870				110,896
Deferred tax assets, net		—				761
Property and equipment, net		2,665				2,551
Goodwill and intangible assets, net		236,756				61,054
Total assets	$	3,964,165			$	3,050,967
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	159,331			$	115,663
Reserve for losses and loss adjustment expenses		944,737				688,231
Unearned premiums		1,226,105				988,143
Ceded premium payable		295,430				271,413
Funds held under reinsurance treaty		50,910				44,850
Term loan		295,773				—
Deferred tax liabilities, net		10,937				—
Total liabilities		2,983,223				2,108,300
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025		—				—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,186,979 and 26,520,417 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively		3				3
Additional paid-in capital		542,662				523,168
Accumulated other comprehensive loss		(15,159	)			(2,506	)
Retained earnings		453,436				422,002
Total stockholders’ equity		980,942				942,667
Total liabilities and stockholders’ equity	$	3,964,165			$	3,050,967

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								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
Revenues:
Gross written premiums	$	630,456			$	496,288			$	1,260,284			$	938,452
Ceded written premiums		(305,279	)			(266,506	)			(597,192	)			(497,251	)
Net written premiums		325,177				229,782				663,092				441,201
Change in unearned premiums		(38,226	)			(49,824	)			(114,703	)			(97,172	)
Net earned premiums		286,951				179,958				548,389				344,029
Net investment income		19,950				13,370				37,934				25,441
Net realized and unrealized gains on investments		6,753				8,306				4,860				5,968
Commission and other income		769				1,677				2,178				2,507
Total revenues		314,423				203,311				593,361				377,945
Expenses:
Losses and loss adjustment expenses		98,988				46,183				186,085				84,927
Acquisition expenses, net of ceding commissions and fronting fees		71,256				51,637				141,571				97,996
Other underwriting expenses		69,429				45,525				134,336				81,258
Interest expense		4,947				86				8,105				171
Total expenses		244,620				143,431				470,097				264,352
Income before income taxes		69,803				59,880				123,264				113,593
Income tax expense		17,211				13,352				27,725				24,143
Net income	$	52,592			$	46,528			$	95,539			$	89,450
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale		1,294				3,009				(12,653	)			13,213
Net comprehensive income	$	53,886			$	49,537			$	82,886			$	102,663
Per Share Data:
Basic earnings per share	$	2.00			$	1.74			$	3.61			$	3.35
Diluted earnings per share	$	1.94			$	1.68			$	3.51			$	3.24
Weighted-average common shares outstanding:
Basic		26,346,887				26,756,095				26,458,904				26,707,371
Diluted		27,056,554				27,628,733				27,208,113				27,568,913

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,
	2026						2025
	($ in thousands)
				% of						% of							%
	Amount			GWP			Amount			GWP			Change				Change
Product(1)
Casualty	$	197,494		31.3	%		$	144,388		29.1	%		$	53,106			36.8	%
Inland Marine and Property		169,728		26.9	%			153,040		30.8	%			16,688			10.9	%
Earthquake		146,648		23.3	%			147,709		29.8	%			(1,061	)		(0.7	)%
Crop		77,368		12.3	%			39,464		8.0	%			37,904			96.0	%
Surety & Credit		39,218		6.2	%			11,687		2.3	%			27,531			235.6	%
Total gross written premiums	$	630,456		100.0	%		$	496,288		100.0	%		$	134,168			27.0	%

____________________

(1)	Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.

	Six Months Ended June 30,
	2026						2025
	($ in thousands)
				% of						% of							%
	Amount			GWP			Amount			GWP				Change			Change
Product(1)
Casualty	$	403,793		32.0	%		$	277,490			29.6	%		$	126,303		45.5	%
Inland Marine and Property		336,291		26.7	%			266,366			28.4	%			69,925		26.3	%
Earthquake		283,964		22.5	%			281,405			30.0	%			2,559		0.9	%
Crop		165,142		13.1	%			87,683			9.3	%			77,459		88.3	%
Surety & Credit		71,094		5.7	%			25,508			2.7	%			45,586		178.7	%
Total gross written premiums	$	1,260,284		100.0	%		$	938,452			100.0	%		$	321,832		34.3	%

____________________

(1)	Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.

	Three Months Ended June 30,												Six Months Ended June 30,
	2026						2025						2026						2025
	($ in thousands)												($ in thousands)
				% of						% of						% of						% of
	Amount			GWP			Amount			GWP			Amount			GWP			Amount			GWP
State
California	$	165,306		26.2	%		$	163,814		33.0	%		$	322,925		25.6	%		$	303,536		32.3	%
Texas		61,497		9.7	%			35,708		7.2	%			125,081		9.9	%			80,699		8.6	%
Florida		34,462		5.5	%			23,979		4.8	%			64,350		5.1	%			42,621		4.5	%
Hawaii		27,259		4.3	%			24,544		4.9	%			50,104		4.0	%			44,901		4.8	%
New York		26,971		4.3	%			17,462		3.5	%			51,454		4.1	%			32,857		3.5	%
Washington		18,207		2.9	%			17,188		3.5	%			37,406		3.0	%			32,059		3.4	%
Illinois		18,179		2.9	%			13,048		2.7	%			25,271		2.0	%			18,637		2.0	%
Minnesota		15,644		2.5	%			12,004		2.4	%			17,656		1.4	%			13,042		1.4	%
Other		262,931		41.7	%			188,541		38.0	%			566,037		44.9	%			370,100		39.5	%
Total gross written premiums	$	630,456		100.0	%		$	496,288		100.0	%		$	1,260,284		100.0	%		$	938,452		100.0	%

	Three Months Ended June 30,												Six Months Ended June 30,
	2026						2025						2026						2025
	($ in thousands)												($ in thousands)
				% of						% of						% of						% of
	Amount			GWP			Amount			GWP			Amount			GWP			Amount			GWP
Subsidiary
PESIC	$	304,276		48.3	%		$	237,943		47.9	%		$	574,346		45.6	%		$	428,730		45.7	%
PSIC		278,176		44.1	%			232,983		46.9	%			601,929		47.8	%			463,900		49.4	%
Laulima		23,407		3.7	%			20,134		4.1	%			42,078		3.3	%			36,171		3.9	%
PCSC		21,558		3.4	%			—		—	%			33,979		2.7	%			—		—	%
FIA		3,039		0.5	%			5,228		1.1	%			7,952		0.6	%			9,651		1.0	%
Total gross written premiums	$	630,456		100.0	%		$	496,288		100.0	%		$	1,260,284		100.0	%		$	938,452		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,												%
	2026				2025				Change				Change				2026				2025				Change				Change
	($ in thousands)																($ in thousands)
Gross earned premiums	$	552,859			$	408,764			$	144,095				35.3	%		$	1,056,731			$	784,540			$	272,191				34.7	%
Ceded earned premiums		(265,908	)			(228,806	)			(37,102	)			16.2	%			(508,342	)			(440,511	)			(67,831	)			15.4	%
Net earned premiums	$	286,951			$	179,958			$	106,993				59.5	%		$	548,389			$	344,029			$	204,360				59.4	%
Net earned premium ratio	51.9		%		44.0		%										51.9		%		43.9		%

Loss detail

	Three Months Ended																Six Months Ended
	June 30,																June 30,
	2026				2025				Change				% Change				2026				2025				Change			% Change
	($ in thousands)																($ in thousands)
Catastrophe losses	$	(418	)		$	(22	)		$	(396	)		NM				$	(149	)		$	(565	)		$	416		(73.6	)%
Non-catastrophe losses		99,406				46,205				53,201			115.1		%			186,234				85,492				100,742		117.8	%
Total losses and loss adjustment expenses	$	98,988			$	46,183			$	52,805			114.3		%		$	186,085			$	84,927			$	101,158		119.1	%
Catastrophe loss ratio	-0.1		%		0.0		%										0.0		%		(0.2		)%
Non-catastrophe loss ratio	34.6		%		25.7		%										33.9		%		24.9		%
Total loss ratio	34.5		%		25.7		%										33.9		%		24.7		%

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,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	341,016			$	182,661			$	275,959			$	155,299
Add: Balances acquired(1)		—				—				22,178				6,788
Add: Incurred losses and LAE, net of reinsurance, related to:(2)
Current year		113,312				52,698				210,741				95,757
Prior years		(14,324	)			(6,515	)			(24,656	)			(10,830	)
Total incurred		98,988				46,183				186,085				84,927
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		7,262				17,659				27,980				22,657
Prior years		11,795				12,000				35,295				25,172
Total payments		19,057				29,659				63,275				47,829
Reserve for losses and LAE net of reinsurance recoverables at end of period		420,947				199,185				420,947				199,185
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		523,790				399,471				523,790				399,471
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	944,737			$	598,656			$	944,737			$	598,656

____________________

(1)	Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of The Gray Casualty and Surety Company (“Gray Surety”) and FIA on 1/31/2026 and 1/1/2025, respectively, in accordance with ASC 805, Business Combinations. See Note 23 of the Notes to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K and Note 14 of our June 30, 2026 Quarterly Report on Form 10-Q for additional information regarding the acquisitions.
(2)	Losses for the three months ended June 30, 2026 and 2025 include $6.2 million and an insignificant amount, respectively, of losses on derivative instruments. Losses for the six months ended June 30, 2026 and 2025 include $18.5 million and an insignificant amount, respectively, of losses on derivative instruments.

Reconciliation of Non-GAAP Financial Measures

For the three and six months ended June 30, 2026 and 2025, 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,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Total revenue	$	314,423			$	203,311			$	593,361			$	377,945
Net investment income		(19,950	)			(13,370	)			(37,934	)			(25,441	)
Net realized and unrealized gains on investments		(6,753	)			(8,306	)			(4,860	)			(5,968	)
Underwriting revenue	$	287,720			$	181,635			$	550,567			$	346,536

Underwriting income and adjusted underwriting income

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Income before income taxes	$	69,803			$	59,880			$	123,264			$	113,593
Net investment income		(19,950	)			(13,370	)			(37,934	)			(25,441	)
Net realized and unrealized gains on investments		(6,753	)			(8,306	)			(4,860	)			(5,968	)
Interest expense		4,947				86				8,105				171
Underwriting income	$	48,047			$	38,290			$	88,575			$	82,355
Expenses associated with transactions		6				754				7,412				2,841
Stock-based compensation expense		7,438				5,347				16,224				10,092
Amortization of intangibles		9,180				1,346				15,235				2,054
Expenses associated with catastrophe bond		2,330				2,661				2,330				2,661
Adjusted underwriting income	$	67,001			$	48,398			$	129,776			$	100,003

Adjusted net income

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Net income	$	52,592			$	46,528			$	95,539			$	89,450
Adjustments:
Net realized and unrealized gains on investments		(6,753	)			(8,306	)			(4,860	)			(5,968	)
Expenses associated with transactions		6				754				7,412				2,841
Stock-based compensation expense		7,438				5,347				16,224				10,092
Amortization of intangibles		9,180				1,346				15,235				2,054
Expenses associated with catastrophe bond		2,330				2,661				2,330				2,661
Tax impact		(1,025	)			202				(4,976	)			(1,293	)
Adjusted net income	$	63,768			$	48,532			$	126,904			$	99,837

  
Annualized adjusted return on equity

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Annualized adjusted net income	$	255,072			$	194,128			$	253,808			$	199,674
Average stockholders’ equity	$	969,991			$	818,823			$	961,805			$	788,114
Annualized adjusted return on equity		26.3	%			23.7	%			26.4	%			25.3	%

Adjusted combined ratio

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	238,904			$	141,668			$	459,814			$	261,674
Denominator: Net earned premiums	$	286,951			$	179,958			$	548,389			$	344,029
Combined ratio		83.3	%			78.8	%			83.8	%			76.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(6	)		$	(754	)		$	(7,412	)		$	(2,841	)
Stock-based compensation expense		(7,438	)			(5,347	)			(16,224	)			(10,092	)
Amortization of intangibles		(9,180	)			(1,346	)			(15,235	)			(2,054	)
Expenses associated with catastrophe bond		(2,330	)			(2,661	)			(2,330	)			(2,661	)
Adjusted combined ratio		76.7	%			73.1	%			76.3	%			70.9	%

Diluted adjusted earnings per share

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	(in thousands, except per share data)								(in thousands, except per share data)
Adjusted net income	$	63,768			$	48,532			$	126,904			$	99,837
Weighted-average common shares outstanding, diluted		27,056,554				27,628,733				27,208,113				27,568,913
Diluted adjusted earnings per share	$	2.36			$	1.76			$	4.66			$	3.62

Catastrophe loss ratio

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Numerator: Losses and loss adjustment expenses	$	98,988			$	46,183			$	186,085			$	84,927
Denominator: Net earned premiums	$	286,951			$	179,958			$	548,389			$	344,029
Loss ratio		34.5	%			25.7	%			33.9	%			24.7	%
Numerator: Catastrophe losses	$	(418	)		$	(22	)		$	(149	)		$	(565	)
Denominator: Net earned premiums	$	286,951			$	179,958			$	548,389			$	344,029
Catastrophe loss ratio		-0.1	%			0.0	%			0.0	%			-0.2	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	238,904			$	141,668			$	459,814			$	261,674
Denominator: Net earned premiums	$	286,951			$	179,958			$	548,389			$	344,029
Combined ratio		83.3	%			78.8	%			83.8	%			76.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(6	)		$	(754	)		$	(7,412	)		$	(2,841	)
Stock-based compensation expense		(7,438	)			(5,347	)			(16,224	)			(10,092	)
Amortization of intangibles		(9,180	)			(1,346	)			(15,235	)			(2,054	)
Expenses associated with catastrophe bond		(2,330	)			(2,661	)			(2,330	)			(2,661	)
Catastrophe losses		418				22				149				565
Adjusted combined ratio excluding catastrophe losses		76.8	%			73.1	%			76.4	%			71.1	%

Tangible Stockholders’ equity

	June 30,				December 31,
	2026				2025
	($ in thousands)
Stockholders’ equity	$	980,942			$	942,667
Goodwill and intangible assets		(236,756	)			(61,054	)
Tangible stockholders’ equity	$	744,186			$	881,613

FAQ

How did Palomar Holdings (PLMR) perform in Q2 2026 earnings?

Palomar reported Q2 2026 net income of $52.6 million, or $1.94 diluted EPS, and adjusted net income of $63.8 million, or $2.36 per diluted share. According to Palomar, premiums and investment income grew strongly, while underwriting ratios rose versus the prior year.

What were the key underwriting metrics for Palomar (PLMR) in Q2 2026?

Palomar’s Q2 2026 loss ratio was 34.5% and combined ratio was 83.3%, with an adjusted combined ratio of 76.7%. According to Palomar, gross written premiums rose 27.0% to $630.5 million and net earned premiums increased 59.5% year over year.

What dividend did Palomar Holdings (PLMR) announce with its Q2 2026 results?

Palomar’s board declared an initial quarterly cash dividend of $0.45 per share, payable September 2, 2026, to shareholders of record on August 19, 2026. According to Palomar, the dividend is intended to complement its existing growth strategy and capital deployment plans.

What is Palomar’s (PLMR) full-year 2026 adjusted net income guidance?

For full-year 2026, Palomar expects adjusted net income of $270–$280 million. According to Palomar, this guidance includes an estimated $8–$12 million of catastrophe losses for the year, reflecting anticipated weather and catastrophe exposure within its specialty insurance portfolio.

How did Palomar’s investment income and portfolio look in Q2 2026?

Palomar’s Q2 2026 net investment income rose 49.2% to $20.0 million, driven by higher yields and larger balances. According to Palomar, cash and invested assets totaled $1.7 billion, with a weighted average fixed-maturity portfolio duration of 4.33 years at June 30, 2026.

What was Palomar Holdings’ (PLMR) return on equity in Q2 2026?

Palomar reported an annualized return on equity of 21.7% and annualized adjusted return on equity of 26.3% for Q2 2026. According to Palomar, stockholders’ equity increased to $980.9 million, supported by earnings growth and overall balance sheet expansion during the period.

Did Palomar (PLMR) repurchase shares in Q2 2026 and what was the impact?

Palomar repurchased 368,719 shares of common stock for $41.0 million during Q2 2026. According to Palomar, these repurchases formed part of its capital management strategy alongside strong earnings, supporting per-share metrics and balancing capital returns with growth investment.