Palomar raises 2026 adjusted profit view to $280M–$285M
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Rhea-AI Filing Summary
Palomar Holdings, Inc. updated its investor presentation with third-quarter 2026 results, reporting gross written premiums of $767.046 million, up 28.4% year over year, and adjusted net income of $81.311 million, up 47.4%. Net income was $65.335 million, compared with $51.455 million, and diluted adjusted earnings per share was $3.01, compared with $2.01. Adjusted measures are non-GAAP.
Net earned premiums were $365.391 million, up 62.3%. The loss ratio was 41.5%, compared with 32.3%, and the adjusted combined ratio was 76.3%, compared with 74.8%. Crop losses represented 38% of third-quarter overall losses, compared with 24% in the third quarter of 2025. Palomar raised full-year 2026 adjusted net income guidance to $280 million–$285 million; the presentation says the range midpoint implies 31% growth from 2025 and adjusted return on equity above 20%. Palomar also declared a quarterly cash dividend of $0.45 per share, payable December 2, 2026, and repurchased 70,000 shares.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted net income guidance rose to $280 million–$285 million.
- Moderate pointThird-quarter adjusted net income grew 47.4% year over year.
Negative
- Moderate pointThird-quarter loss ratio increased to 41.5% from 32.3%.
Filing Explained
The attached presentation reports net losses of
8-K Event Classification
Key Figures
Key Terms
Adjusted combined ratio financial
Excess of Loss (XOL) financial
IBNR financial
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
On November 12, 2026, Palomar Holdings, Inc. (the “Company”) updated its corporate presentation that it uses for presentations at conferences and to analysts, current stockholders, and others. A copy of the Company’s presentation that it intends to use at such events is attached as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
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Description |
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Investor Presentation, dated November 12, 2026 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PALOMAR HOLDINGS, INC. |
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November 12, 2026 |
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/s/ T. Christopher Uchida |
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T. Christopher Uchida |
Investor Presentation November 2026
Disclaimer This presentation contains forward-looking statements about Palomar Holdings, Inc. (the “Company”). These statements involve known and unknown risks that relate to the Company’s future events or future financial performance and the actual results could differ materially from those discussed in this presentation. This presentation also includes financial measures which are not prepared in accordance with generally accepted accounting principles (“GAAP”). For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the appendix to this presentation, other than the Company has not provided a reconciliation of its full year 2026 adjusted net income outlook to net income, the most directly comparable GAAP financial measure, because it is unable to predict, without unreasonable efforts, certain reconciling items which could be material to net income. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact net income that have not yet occurred, are out of the Company’s control and/or cannot reasonable by predicted. Such forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measure may vary materially from the corresponding GAAP financial measure. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as ‘‘may’’, ‘‘will’’, ‘‘should’’, ‘‘expects’’, ‘‘plans’’, ‘‘anticipates’’, ‘‘could’’, ‘‘intends’’, ‘‘target’’, ‘‘projects’’, ‘‘contemplates’’, ‘‘believes’’, ‘‘estimates’’, ‘‘predicts’’, ‘‘would’’, ‘‘potential’’ or ‘‘continue’’ or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. These forward-looking statements include, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs and other similar matters. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others, the frequency and severity of catastrophe events; the adequacy of the Company's loss reserves; the availability, cost and collectability of reinsurance; investment performance and interest rate fluctuations; weather conditions and crop price volatility affecting the Company's Crop business; the Company's ability to integrate PCSC and realize the anticipated benefits of acquisitions; competitive conditions; and regulatory developments. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company’s forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company makes. While the Company may elect to update these forward-looking statements at some point in the future, the Company has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this presentation. Additional risks and uncertainties relating to the Company and its business can be found in the "Risk Factors" section of Palomar Holdings, Inc.’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other filings with the United States Securities and Exchange Commission.
AM Best rated “A” (Excellent) & Financial Size Category XI Company Profile TRACK RECORD OF DELIVERING STRONG GROWTH AND CONTINUED PROFITABILITY Includes PSIC, PESIC, FIA and Palomar Re. This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix. THIRD QUARTER HIGHLIGHTS (2) Gross written premium (GWP) of $767.0M; 28% YoY growth Adjusted net income of $81.3M; 47% YoY growth Annualized adjusted return on equity of 33% Adjusted combined ratio of 76% Diluted adjusted earnings per share (EPS) increased to $3.01; 50% YoY growth 16 consecutive quarters of beating consensus adjusted EPS Repurchased 70,000 shares for $8.9M Declared quarterly cash dividend of $0.45 per share, payable December 2, 2026 Raised full-year adjusted net income guidance: $280M - $285M Balanced mix of admitted & E&S, residential & commercial property and casualty products Diversified growth engine anchored by Earthquake and strengthened by growing Casualty, Inland Marine & Property, Crop and Surety & Credit platforms Purpose built risk transfer strategy and reinsurance approach enabling earnings stability and growth Experienced management team committed to PLMR 2X — doubling adjusted net income every 3–5 years while sustaining ROE above 20% Leading specialty insurer with a portfolio intentionally designed to perform through all cycles (1)
Diversification Within One-of-One Specialty Portfolio: YTD Balanced Business mix Drives attractive risk-adjusted returns 4 Portfolio Structure: Categories and Products YTD Business Mix YTD YTD 2026 GWP $2.0B ▲+32% YoY Casualty 29% Non-P&C 25% Property 46%
Palomar 2X Strategy STRATEGY TO DOUBLE ADJUSTED NET INCOME and ACHIEVE AN ADJUSTED ROE + 20% OVER THE INTERMEDIATE TERM Profitable growth Anchored by earthquake franchise Low volatility – specialty lines focus Conservative and comprehensive risk transfer strategy Selective entry into new markets Sustain attractive margins Fundamental Principles and Drivers Greater gross / net line sizes enabled by surplus growth Reinsurance program supports margin expansion Investment leverage drives higher net investment income Gray Surety acquisition adds scale and earnings Adjusted Net Income Levers Leverage Scale to Enhance Profitable Growth Curate a “One-of-One” Specialty Portfolio Deepen our Position in Existing Markets and Unlock New Opportunities Integrate, Optimize and Execute 2026 Strategic Initiatives
Profitable and Diverse Portfolio Positioned for Long-Term Value Diversification has driven growth while preserving strong margins and profitability Disciplined Business Mix Shift Supporting Consistent Profitability Diversified portfolio enhances resilience across market cycles Business mix has evolved but not at the sacrifice of combined ratio and overall profitability Larger balance sheet and consistent catastrophe retentions reduce earnings volatility from a severe event Despite a higher attritional loss ratio, the combined ratio remains consistent with 2021–2022 levels Value of the approach best demonstrated by results beating consensus 16 consecutive quarters Adjusted Net Income Continued Strong Growth Adjusted Combined Ratio Steady Performance Adjusted ROE Consistent and Performing EQ GWP Non-EQ GWP
AI-enabled development lifecycle from Crop now extending to Surety AI agents handle routine policyholder requests instantly Technology spend held to measurable return on investment Scalable core systems leveraging best-in-class vendors Proven playbooks for new product launches Early adoption of business process outsourcing services for rapid scaling and cost efficiency Technology, Data and AI Key enabler of SPEED-TO-MARKET AND DIFFERENTIATION enhanced by ai Palomar Automated Submission System Built for Speed Building on Palomar’s …. Core Advantages PASS(1) and frontends endorsed by Producer and Carrier partners Sophisticated pricing tools with automated external data ingestion Performance and exposure management data assets Leveraging AI and …….......New Technologies Automated ingestion of catastrophe, hazard, exposure and market data Granular exposure analytics supporting optimized XOL and quota share structures Real-time portfolio monitoring enhancing pricing, retention and concentration management Data & Analytics Incoming AI underwriting workbench for property team to drive greater efficiency AI agent absorbed Hawaii hurricane service surge without added staff during a weekend hurricane AI data enrichment cut hundreds of hours of manual data entry for EQ underwriters PLMR.Farm live in Q3, supporting livestock and winter wheat products
Comprehensive & Diverse Utilization of Reinsurance A Broad SUITE OF Risk Transfer PRODUCTS helps to MANAGE RISK, REDUCE VOLATILITY AND SUPPORT GROWTH Inland Marine Other Property Casualty Other Property Inland Marine Earthquake Casualty Crop Facultative Individual risk-specific protection ‘Second set of eyes’ for individual risk underwriting Effective for newer lines of business or complex risks Excess of Loss (XOL) Applies on either a per-risk or a portfolio basis (e.g. Catastrophe XOL) Efficient protection against severity of a single event or loss above a fixed dollar retention Quota Share ‘First dollar' pro-rata partner for portfolio Control net line size and volatility for new and existing business Mitigate shock losses Generate fee income Catastrophe Bond Provides fixed economics and capacity via multi-year treaties Diversify beyond traditional reinsurance market Fully collateralized model Earthquake Other Property Earthquake Crop Inland Marine Earthquake Hawaii Hurricane Surety Bonds
Reinsurance – Recent Activity Disciplined and Diversified Reinsurance Strategy Provides Margin Stability Recent Activity Treaty Activity: Renewed five treaties and completed one new placement. All renewals except Cyber improved economics on a more favorable reinsurance market; Cyber risk participation was reduced during re-underwriting. Hawaii Hurricane Losses: Net losses across three storms were $3.0M; only one triggered treaty coverage, with limited losses into the tower. No impact expected on Laulima XOL pricing; its own program has a $1.5M per-event retention. Surety Renewal: 6/1 Surety renewal added capacity and increased treaty limits, enabling larger bonds and use of the group's combined T-listing authority. Per-risk retention rose but fell as a share of total limit procured. Cession Strategy: Cession and participation are set line by line to weigh risk-adjusted returns and earnings volatility; Casualty quota share cession was held flat on 6/1. Outlook: Favorable property catastrophe reinsurance conditions expected through the 1/1 renewal and into 2027; higher cat retention and quota share will be weighed against pricing, volatility and the current structure.
Reserving Philosophy Responsible growth with a “Walk before we run” approach within niche market segments Conservative Approach Highly conservative reserving philosophy supports balance sheet strength Respond quickly to adverse news and recognize favorable trends deliberately Establish reserves with appropriate margin Crop was 38% of Q3 overall losses, up from 24% in Q3 2025; YTD Crop losses represent 33% of overall losses, compared to 16% in the same period last year Conservatism supports modest releases as claims mature, particularly in short-tail property lines Philosophy prioritizes long-term reserve adequacy and earnings stability 82% of Casualty reserves held as IBNR: Casualty reserves represent less than 30% of stockholders’ equity Total Reserves All Other Reserves 48% Casualty Reserves 52%
Investment Portfolio High quality, liquid investment portfolio provides complementary earnings stream Objectives: Maintain liquidity, preserve capital, and generate income within a disciplined risk framework. Portfolio Construction: Deploy capacity to improve risk-adjusted returns through a modest, disciplined increase in credit and duration risk. Investment Leverage and Earnings Contribution: Attractive investment leverage with a conservative risk profile; new money yields are over 5% with a YoY 49% increase in portfolio assets; positions investment income to meaningfully contribute to our financial results. Weighted Average Duration 4.6 Years Average Portfolio Credit Quality “A1/A+” Average Fixed Income Book Yield 5.1% Investment Leverage 1.8x Credit Rating AAA A AA BBB High Yield $1.8B AUM Corporate Bonds Municipal Bonds ABS Corporate HY Bonds MBS / CMBS Cash Equities Treasuries/Agencies
Q3 2026 Performance Continues Track Record of Strong Results ATTRACTIVE BUSINESS MODEL GENERATING PROFITABLE GROWTH GROWTH PROFITABILITY Gross Written Premium ($M) Adjusted Return on Equity Adjusted Net Income ($M) CAGR: +33% CAGR: +44% +47% This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix Midpoint of full year 2026 adjusted net income guidance +28% RETURNS (2)
2026 Full Year Guidance 2026 Guidance implies exceeding 2024 Palomar 2X goal in two years 2026 FULL YEAR OUTLOOK Adjusted Net Income $280–$285 Current range IMPLIES: Adjusted net income growth of 31% from 2025 based on the midpoint of the range Higher growth percentage on an EPS basis Adjusted ROE above the Palomar 2X goal of 20% $8M–$12M of catastrophe losses in 2026 2024 2026 Estimated 2023 Actual $93.5M Adjusted Net Income 2025 Palomar 2X Goal $187.0M Adjusted Net Income Actual $133.5M Palomar 2X Goal $267.0M Adjusted Net Income Actual $216.1M Palomar 2X Goal $432.2M Adjusted Net Income Est. ANI $282.5M Palomar 2X Goal $550.0M Historic Performance & Outlook for Palomar 2X
Modeling and Seasonality Modeling reflects expected growth, seasonality dynamics and strong profitability Q1 Q2 10-15% 10-20% 15-30% 45-55% Crop Premium Seasonality: 2026 GEP Forecast 2026 Forecast: Percent of Premium Earned Q3 Q4 OUTLOOK Sequential drop in GEP and NEP; still up YoY Loss ratio in mid to upper 30s 2026 GUIDANCE Raised adjusted net income to $280-285M Adjusted net income growth of 31% based on the midpoint of updated guidance; higher EPS growth Adjusted ROE above 20% FULL YEAR MODELING NEP ratio: around 50%, low point was in Q3 Acquisition expense ratio: in line with 2025 at ~12% of GEP Other underwriting expense ratio: in line with 2025, ~8% of GEP Loss ratio: mid to upper 30s Adjusted combined ratio: mid 70s CROP PREMIUM SEASONALITY: HISTORICALS AND FORECAST % of Q1 Q2 Q3 Q4 2024 GWP 33% 2% 51% 14% GEP 12% 8% 56% 24% 2025 GWP 19% 14% 50% 17% GEP 8% 13% 53% 26% 2026 FORECAST GWP 20-25% 15-20% 40-65% 5-10% GEP 10-15% 10-20% 45-55% 15-30% Q4
Beat Initial guidance midpoint for the past three years, underscoring execution and earnings visibility Sustained Earnings Outperformance vs. Initial Guidance +7% vs. initial guidance +19% vs. initial guidance +16% vs. initial guidance 14x +44% Guidance Raises since 2023 ANI CAGR 2023-2026E(1) Source: CAGR calculated using midpoint of 2026E guidance Reflects midpoint of FY guidance through Q3 2026 (2)
Palomar Performance & Valuation vs. Peers Compared to Peers - Top Tier Performance with Uncorrelated valuation Valuation Metrics Performance Metrics (1) Source: Capital IQ, data through 11/09/26
Entrepreneurial and Experienced Management Team LEADING SPECIALTY INSURANCE TALENT CONTINUE TO EXECUTE AND ADD DEPTH TO THE ORGANIZATION NAME EXPERIENCE (YRS) PRIOR PROFESSIONAL EXPERIENCE Mac Armstrong | Chairman & Chief Executive Officer 25+ Arrowhead General Insurance Agency | Spectrum Equity | Alex. Brown & Sons Jon Christianson | President 20+ Holborn Corporation | John B. Collins Associates | Guy Carpenter Chris Uchida | Chief Financial Officer 25+ Arrowhead General Insurance Agency | PwC Angela Grant | Chief Legal Officer 30+ CSE Insurance Group | Hippo | Esurance | Kemper | GEICO Jon Knutzen | Chief Risk Officer 25+ TigerRisk Partners | Holborn Corporation | Guy Carpenter Robert Beyerle | Chief Underwriting Officer 25+ Great American Insurance Company | Acordia Southeast Rudy Herve | Chief Operating Officer 25+ SCOR | QBE North America | Bain & Company | Orange Ventures Sheri Scott | Chief Actuarial Officer 35+ Milliman | Bank of America | AON Risk Services | Electric Insurance | Canadian Direct Insurance | AAA Insurance Tim Carter | Chief People Officer 20+ LPL Financial | G4S Integrated Services | Parexcel | Home Depot Kyle Morgan | Chief Strategy Officer 20+ W Capital Partners | Insight Partners Jim Davis1 | Chief Information Officer 20+ Okta | CrowdStrike | First Data Corporation | U.S. Army Gabriel Miller1 | Chief Technology Officer 30+ AGI | Endurance Specialty Holdings | Tyler Technologies | Bell Laboratories Reflects roles effective as of December 7, 2026
Appendix
Q3 Seasonality Q3 Seasonality GEP increases while NEP Ratio decreases Q4 seasonality decreases GEP and Increases NEP Ratio Modeling and Seasonality Gross Earned Premium in $M (1) Modeling Implication Expect the same seasonal patterns as in previous years for the fourth quarter: Gross earned premium decreases after Crops Q3 peak, still grows YoY NEP ratio rises from Q3 low of 49.6% Q3 Seasonality GEP increases while NEP Ratio decreases
Modeling and Seasonality Near-term ratios reflect business mix and gray integration; full-year guidance RAISED Acquisition expense dollars trend higher with earned premium growth 9.8% in Q3 2026 vs. 10.8% in Q3 2025 and 12.9% in Q2 2026. YoY decrease driven by mix, including growth in crop which caries lower acquisition expenses vs other lines FY26: consistent with 2025 at ~12%; higher in first half, lower in second half with Crop earned premium. Adjusted UW expense dollars will continue to increase with growth in investments across the organization 7.7% in Q3 2026 vs. 7.9% in Q3 2025 and 9.1% in Q2 2026. FY26: in line with 2025's 8.0%; will vary quarterly as we invest in talent, technology and systems under Palomar 2X. Higher in first half, lower in second half with the seasonal peak in Crop earned premium. While not shown, loss ratio is trending as expected despite seasonality 41.5% in Q3 2026 vs. 32.3% in Q3 2025 and 34.5% in Q2 2026, on higher attritional losses from Crop and Casualty growth. Includes $4.0M attritional loss unfavorable prior-year development FY26: mid to upper 30s, with the high point in Q3 on Crop timing. General Modeling Guidance
Indicates non-GAAP financial measure; see “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP. NM – Not Meaningful Three Months Ended Nine Months Ended September 30, September 30, 2026 2025 Change % Change 2026 2025 Change % Change (in thousands, except per share data) Gross written premiums $ 767,046 $ 597,171 $ 169,875 28.4 % $ 2,027,330 $ 1,535,623 $ 491,707 32.0 % Ceded written premiums (378,477 ) (321,927 ) (56,550 ) 17.6 % (975,669 ) (819,171 ) (156,498 ) 19.1 % Net written premiums 388,569 275,244 113,325 41.2 % 1,051,661 716,452 335,209 46.8 % Net earned premiums 365,391 225,147 140,244 62.3 % 913,781 569,175 344,606 60.5 % Commission and other income 1,485 1,448 37 2.6 % 3,664 3,954 (290 ) (7.3 )% Total underwriting revenue (1) 366,876 226,595 140,281 61.9 % 917,445 573,129 344,316 60.1 % Losses and loss adjustment expenses 151,646 72,812 78,834 108.3 % 337,732 157,739 179,993 114.1 % Acquisition expenses, net of ceding commissions and fronting fees 72,352 56,270 16,082 28.6 % 213,923 154,266 59,657 38.7 % Other underwriting expenses 72,722 48,306 24,416 50.5 % 207,057 129,563 77,494 59.8 % Underwriting income (1) 70,156 49,207 20,949 42.6 % 158,733 131,561 27,172 20.7 % Interest expense (5,138 ) (133 ) (5,005 ) NM (13,243 ) (304 ) (12,939 ) NM Net investment income 22,406 14,572 7,834 53.8 % 60,340 40,014 20,326 50.8 % Net realized and unrealized (losses) gains on investments (2,692 ) 3,493 (6,185 ) (177.1 )% 2,167 9,461 (7,294 ) (77.1 )% Income before income taxes 84,732 67,139 17,593 26.2 % 207,997 180,732 27,265 15.1 % Income tax expense 19,397 15,684 3,713 23.7 % 47,123 39,827 7,296 18.3 % Net income $ 65,335 $ 51,455 $ 13,880 27.0 % $ 160,874 $ 140,905 $ 19,969 14.2 % Adjustments: Net realized and unrealized losses (gains) on investments 2,692 (3,493 ) 6,185 (177.1 )% (2,167 ) (9,461 ) 7,294 (77.1 )% Expenses associated with transactions 3,133 728 2,405 NM 10,545 3,570 6,975 195.4 % Stock-based compensation expense 7,022 5,379 1,643 30.5 % 23,246 15,471 7,775 50.3 % Amortization of intangibles 6,161 1,346 4,815 NM 21,396 3,400 17,996 NM Expenses associated with catastrophe bond — — 2,330 2,661 (331 ) (12.4 )% Tax impact (3,032 ) (251 ) (2,781 ) NM (8,008 ) (1,543 ) (6,465 ) NM Adjusted net income (1) $ 81,311 $ 55,164 $ 26,147 47.4 % $ 208,216 $ 155,003 $ 53,213 34.3 % Key Financial and Operating Metrics Annualized return on equity 26.6 % 23.9 % 22.3 % 23.4 % Annualized adjusted return on equity (1) 33.1 % 25.6 % 28.8 % 25.7 % Loss ratio 41.5 % 32.3 % 37.0 % 27.7 % Expense ratio 39.3 % 45.8 % 45.7 % 49.2 % Combined ratio 80.8 % 78.1 % 82.7 % 76.9 % Adjusted combined ratio (1) 76.3 % 74.8 % 76.3 % 72.5 % Diluted earnings per share $ 2.42 $ 1.87 $ 5.93 $ 5.12 Diluted adjusted earnings per share (1) $ 3.01 $ 2.01 $ 7.67 $ 5.63 Catastrophe losses $ 4,452 $ 1,900 $ 4,302 $ 1,335 Catastrophe loss ratio (1) 1.2 % 0.8 % 0.5 % 0.2 % Adjusted combined ratio excluding catastrophe losses (1) 75.1 % 74.0 % 75.9 % 72.2 % Adjusted underwriting income (1) $ 86,472 $ 56,660 $ 29,812 52.6 % $ 216,250 $ 156,663 $ 59,587 38.0 % Third Quarter Financial Highlights
Three Months Ended Nine Months Ended September 30, September 30, 2026 2025 2026 2025 ($ in thousands, except per share data) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 295,235 $ 175,940 $ 755,048 $ 437,614 Denominator: Net earned premiums $ 365,391 $ 225,147 $ 913,781 $ 569,175 Combined ratio 80.8 % 78.1 % 82.7 % 76.9 % Adjustments to numerator: Expenses associated with transactions $ (3,133 ) $ (728 ) $ (10,545 ) $ (3,570 ) Stock-based compensation expense (7,022 ) (5,379 ) (23,246 ) (15,471 ) Amortization of intangibles (6,161 ) (1,346 ) (21,396 ) (3,400 ) Expenses associated with catastrophe bond — — (2,330 ) (2,661 ) Adjusted combined ratio 76.3 % 74.8 % 76.3 % 72.5 % Adjusted net income $ 81,311 $ 55,164 $ 208,216 $ 155,003 Weighted-average common shares outstanding, diluted 26,995,574 27,446,519 27,143,378 27,533,533 Diluted adjusted earnings per share $ 3.01 $ 2.01 $ 7.67 $ 5.63 Numerator: Losses and loss adjustment expenses $ 151,646 $ 72,812 $ 337,732 $ 157,739 Denominator: Net earned premiums $ 365,391 $ 225,147 $ 913,781 $ 569,175 Loss ratio 41.5 % 32.3 % 37.0 % 27.7 % Numerator: Catastrophe losses $ 4,452 $ 1,900 $ 4,302 $ 1,335 Denominator: Net earned premiums $ 365,391 $ 225,147 $ 913,781 $ 569,175 Catastrophe loss ratio 1.2 % 0.8 % 0.5 % 0.2 % Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 295,235 $ 175,940 $ 755,048 $ 437,614 Denominator: Net earned premiums $ 365,391 $ 225,147 $ 913,781 $ 569,175 Combined ratio 80.8 % 78.1 % 82.7 % 76.9 % Adjustments to numerator: Expenses associated with transactions $ (3,133 ) $ (728 ) $ (10,545 ) $ (3,570 ) Stock-based compensation expense (7,022 ) (5,379 ) (23,246 ) (15,471 ) Amortization of intangibles (6,161 ) (1,346 ) (21,396 ) (3,400 ) Expenses associated with catastrophe bond — — (2,330 ) (2,661 ) Catastrophe losses (4,452 ) (1,900 ) (4,302 ) (1,335 ) Adjusted combined ratio excluding catastrophe losses 75.1 % 74.0 % 75.9 % 72.2 % Reconciliation Of Non-GAAP Metrics Used In This Presentation
Three Months Ended Nine Months Ended September 30, September 30, 2026 2025 2026 2025 ($ in thousands, except per share data) Total revenue $ 386,590 $ 244,660 $ 979,952 $ 622,604 Net investment income (22,406 ) (14,572 ) (60,340 ) (40,014 ) Net realized and unrealized losses (gains) on investments 2,692 (3,493 ) (2,167 ) (9,461 ) Underwriting revenue $ 366,876 $ 226,595 $ 917,445 $ 573,129 Income before income taxes $ 84,732 $ 67,139 $ 207,997 $ 180,732 Net investment income (22,406 ) (14,572 ) (60,340 ) (40,014 ) Net realized and unrealized losses (gains) on investments 2,692 (3,493 ) (2,167 ) (9,461 ) Interest expense 5,138 133 13,243 304 Underwriting income $ 70,156 $ 49,207 $ 158,733 $ 131,561 Expenses associated with transactions 3,133 728 10,545 3,570 Stock-based compensation expense 7,022 5,379 23,246 15,471 Amortization of intangibles 6,161 1,346 21,396 3,400 Expenses associated with catastrophe bond — — 2,330 2,661 Adjusted underwriting income $ 86,472 $ 56,660 $ 216,250 $ 156,663 Net income $ 65,335 $ 51,455 $ 160,874 $ 140,905 Adjustments: Net realized and unrealized losses (gains) on investments 2,692 (3,493 ) (2,167 ) (9,461 ) Expenses associated with transactions 3,133 728 10,545 3,570 Stock-based compensation expense 7,022 5,379 23,246 15,471 Amortization of intangibles 6,161 1,346 21,396 3,400 Expenses associated with catastrophe bond — — 2,330 2,661 Tax impact (3,032 ) (251 ) (8,008 ) (1,543 ) Adjusted net income $ 81,311 $ 55,164 $ 208,216 $ 155,003 Annualized adjusted net income $ 325,244 $ 220,656 $ 277,621 $ 206,671 Average stockholders’ equity $ 982,957 $ 862,654 $ 963,820 $ 803,570 Annualized adjusted return on equity 33.1 % 25.6 % 28.8 % 25.7 % Reconciliation Of Non-GAAP Metrics Used In This Presentation