Palomar Holdings (NASDAQ: PLMR) lifts 2026 profit guidance after expanding catastrophe reinsurance
Rhea-AI Filing Summary
Palomar Holdings, Inc. completed its June 1, 2026 reinsurance placement and raised its full-year 2026 adjusted net income guidance. The company now expects adjusted net income of $266 million to $280 million, implying about 26% growth at the midpoint, with an adjusted return on equity above 20%.
Palomar procured roughly $421 million of incremental limit to support its Earthquake franchise, bringing earthquake reinsurance coverage to $3.92 billion and continental U.S. hurricane coverage to $135 million. Retentions remain at $20 million per earthquake event and $11 million per hurricane event, levels aligned with management’s thresholds relative to earnings and equity.
The company also renewed Laulima’s Hawaii hurricane excess-of-loss treaty, increasing per-occurrence coverage to $865 million, including $50 million via the Torrey Pines Re platform. A new Torrey Pines Re 2026-1 catastrophe bond contributed $360 million of earthquake limit and helped expand total multi-year insurance-linked securities capacity to $1.28 billion, supporting diversified reinsurance capital and earnings stability.
Positive
- Raised 2026 earnings guidance: Adjusted net income guidance increased to $266–$280 million, implying about 26% growth at the midpoint and an adjusted ROE above 20% for 2026.
- Stronger catastrophe protection: Earthquake reinsurance coverage increased to $3.92 billion and continental U.S. hurricane coverage to $135 million, with retentions kept within management’s stated earnings and equity thresholds.
- Expanded ILS and reinsurance capacity: A new Torrey Pines Re catastrophe bond and other placements brought total multi-year insurance-linked securities capacity to $1.28 billion, diversifying reinsurance capital sources.
Negative
- None.
Insights
Palomar pairs a stronger catastrophe reinsurance tower with a meaningful 2026 earnings guidance increase.
Palomar has expanded its catastrophe protection with about $421 million of incremental earthquake limit, lifting total earthquake coverage to $3.92 billion and continental U.S. hurricane coverage to $135 million. Event retentions of $20 million for earthquake and $11 million for hurricane remain within previously stated earnings and equity guideposts.
The company’s use of insurance-linked securities is significant, including a new Torrey Pines Re catastrophe bond that adds $360 million of earthquake limit and contributes to $1.28 billion of multi-year ILS capacity. This mix of traditional and collateralized reinsurance can help stabilize margins across market cycles, subject to reinsurance pricing and capacity conditions.
On the earnings side, Palomar raised its full-year 2026 adjusted net income guidance to $266 million–$280 million, implying around 26% growth at the midpoint and adjusted ROE above 20%. Future company filings may show how catastrophe activity and growth in earthquake and hurricane-exposed lines track against these guidance levels.
8-K Event Classification
Key Figures
Key Terms
catastrophe bond financial
Insurance Linked Securities financial
Probable Maximum Loss financial
excess of loss financial
adjusted combined ratio financial
adjusted return on equity financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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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).
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Item 7.01. Regulation FD Disclosure
On May 29, 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 8.01 Other Events.
On May 29, 2026, Palomar Holdings Inc. (“Palomar” or the “Company”) issued a press release announcing the successful completion of certain reinsurance programs incepting June 1, 2026, and increased the Company’s full year 2026 adjusted net income guidance. A copy of the press release is attached hereto as Exhibit 99.2.
The Company has procured approximately $421 million of incremental limit to support the growth of its Earthquake franchise. The Company’s reinsurance coverage now exhausts at $3.92 billion for earthquake events and $135 million for continental United States hurricane events. The reinsurance program provides ample capacity for the Company’s growth in the subject business lines as well as coverage to a level exceeding Palomar’s 1:250-year peak zone Probable Maximum Loss (“PML”).
The Company’s per occurrence catastrophe event retention will remain at $11 million for hurricane events and $20 million for earthquake events, levels that are meaningfully within management’s previously stated guideposts of less than one quarter’s adjusted net income and less than 5% of stockholders’ equity.
Of note, $360 million of the $3.92 billion earthquake limit was sourced through a new catastrophe bond, Torrey Pines Re Series 2026-1. The new catastrophe bond issuance is the seventh Insurance Linked Securities (“ILS”) transaction Palomar has sponsored.
Effective June 1, 2026, the Company also renewed its standalone excess of loss (“XOL”) treaty supporting the Hawaii hurricane policies issued by Laulima Exchange (“Laulima”). Laulima’s XOL reinsurance program consists of per occurrence coverage up to $865 million, representing a $130 million increase year-over-year, including $50 million sourced through the Torrey Pines Re platform. The program’s per-occurrence event retention remained unchanged at $1.5 million.
Other highlights of the Company’s reinsurance program include:
Item 9.01 Financial Statements and Exhibits.
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Exhibits. |
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Description |
99.1 |
Investor Presentation, dated May 29, 2026 |
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Press release, dated May 29, 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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May 29, 2026 |
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/s/ T. Christopher Uchida |
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T. Christopher Uchida |
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Chief Financial Officer |
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(Principal Financial and Accounting Officer) |
Investor Presentation May 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 present. 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, future results of operations; financial position; the impact of the ongoing and global COVID-19 pandemic; general economic, political and other risks, including currency and stock market fluctuations and uncertain economic environment; the volatility of the trading price of our common stock; and our expectations about market trends. 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. FIRST QUARTER and 6/1 HIGHLIGHTS (2) Gross written premium (GWP) of $629.8M; 42% YoY growth Adjusted net income of $63.1M, 23% YoY growth Adjusted return on equity of 27% Adjusted combined ratio of 76% Closed the acquisition of Gray Surety on 1/31/2026 14 consecutive quarters of beating consensus EPS Repurchased 190.3K shares for $23.1M; board authorized new two-year $200M share repurchase Successfully executed June 1st reinsurance renewal; $3.92 billion of total Earthquake limit Raised full year adjusted net income guidance: $266M - $280M Balanced mix of admitted and E&S, residential and 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 over intermediate time frame of 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 Balanced Business mix Drives attractive risk adjusted returns 4 Portfolio Structure: Categories and Products Non-P&C 19% Property 48% Casualty 33% Business Mix Q1 2026 GWP $629.8M ▲+42% YoY
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 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 Drivers 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 Value of this approach is best demonstrated by results beating consensus 14 consecutive quarters Adjusted Net Income Continued Strong Growth Adjusted Combined Ratio Steady performance Adjusted ROE Consistent and Performing
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 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 Completed six placements in the quarter—three Casualty and three Property treaties All treaties renewed at improved economics relative to expiring Casualty quota shares renewed at higher ceding commissions while maintaining expiring cession percentages Issued seventh Torrey Pines Re catastrophe bond securing $410M of collateralized multi-year protection Includes a first-time standalone Hawaii Hurricane tranche Approximately 15% down on a risk-adjusted basis Secured incremental Property capacity for Builders Risk, Construction Engineering, and Excess National Property Expands our ability to offer larger limits and opens new admitted market retail distribution channels Earthquake reinsurance program: Total ground-up earthquake coverage increased to approximately $3.92B Includes $1.23B of earthquake limit via Torrey Pines Re catastrophe bond program $20M per occurrence retention All perils excluding earthquake subject to separate reinsurance tower Total Continental US Hurricane coverage to $135M $11M per occurrence retention Standalone Laulima XOL treaty To total coverage to $865M Includes $50M of limit via Torrey Pines Re catastrophe bond program $1.5M per occurrence retention Program supported by over 100+ reinsurers and ILS investors Mix of one-year and multi-year limit to reduce reinsurance market price volatility 6/1 Core Catastrophe Placement Recent Activity
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 trends and recognize favorable trends deliberately Establish reserves with appropriate margin Favorable reserve development reflects long-standing conservatism Conservatism supports modest releases as claims mature, particularly in short-tail property lines Philosophy prioritizes long-term reserve adequacy and earnings stability 84% of Casualty reserves held as IBNR: Casualty reserves represent less than 20% of stockholders’ equity All Other Reserves 45% Casualty Reserves 55% Total Reserves
AI-driven automation to assist underwriting productivity and workflow Third-party data enrichment leveraging AI models for portfolio optimization Deploying AI to improve process optimization and drive operational efficiency 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 and Data Key enabler of SPEED-TO-MARKET AND DIFFERENTIATION 1. 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
Investment Portfolio as of March 31, 2026 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 of 5.2% and portfolio AUM up 45% YoY position investment income to meaningfully contribute to adjusted net income over time Weighted Average Duration: 4.2 Years Average Portfolio Credit Quality: “A1/A+” Average Fixed Income Book Yield: 4.9% Investment Leverage: 1.6x Credit Rating AAA A AA BBB High Yield $1.6B AUM Corporate Bonds Municipal Bonds ABS Corporate HY Bonds MBS / CMBS Cash Equities Treasuries/Agencies
Q1’ 2026 Performance Continues Track Record of Strong Results ATTRACTIVE BUSINESS MODEL GENERATING PROFITABLE GROWTH GROWTH PROFITABILITY Gross Written Premium ($M) Adjusted Return on Equity Adjusted Net Income ($M) CAGR: +32% CAGR: +43% +23% This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix Midpoint of of full year 2026 adjusted net income guidance +42% RETURNS (2)
2026 Full Year Guidance 2026 Guidance implies exceeding 2024 Palomar 2X goal in two years 2026 FULL YEAR OUTLOOK Adjusted Net Income $266M–$280M Current range IMPLIES: Adjusted net income growth of 26% based on the midpoint of the range Adjusted ROE above the Palomar 2X goal of 20% $8M–$12M of catastrophe losses in 2026 2024 2026 Estimated 2023 Actuals $93.5M Adjusted Net Income 2025 Palomar 2X Goal $187.0M Adjusted Net Income Actuals $133.5M Palomar 2X Goal $267.0M Adjusted Net Income Actuals $216.1M Palomar 2X Goal $432.2M Adjusted Net Income Est. ANI $273.0M(1) Palomar 2X Goal $546.0M Historic Performance & Outlook for Palomar 2X Reflects midpoint of FY guidance
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 12x +43% Guidance Raises since 2023 ANI CAGR 2023-2026E(1) Source: CAGR calculated using midpoint of 2026E guidance Reflects midpoint of FY guidance
Palomar Performance & Valuation vs. Peers Compared to Peers - Top Tier Performance with Uncorrelated valuation Valuation Metrics Industry Leading Performance (1) Source: Bloomberg, data through 5/27/2026
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 Jon Knutzen | Chief Risk Officer 25+ TigerRisk Partners | Holborn Corporation | Guy Carpenter Rudy Herve | Chief Operating Officer 25+ SCOR | QBE North America | Bain & Company | Orange Ventures Angela Grant | Chief Legal Officer 30+ CSE Insurance Group | Hippo | Esurance | Kemper | GEICO Tim Carter | Chief People Officer 25+ LPL Financial | G4S Integrated Services | Parexcel | Home Depot Robert Beyerle | Chief Underwriting Officer 25+ Great American Insurance Company | Acordia Southeast Althea Garvey | Chief Claims Officer 25+ LifeCare | AIG | Jacoby & Meyers James Long | Chief Technology Officer 25+ RenaissanceRe | Guy Carpenter | John B. Collins Associates Kyle Morgan | Chief Strategy Officer 20+ W Capital Partners | Insight Partners
Appendix 2025 Investor Day | March 20, 2025
Modeling and Seasonality Modeling reflects expected growth, seasonality dynamics and strong profitability 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% 5-15% 50-70% 5-10% GEP 10-15% 5-20% 50-60% 15-25% Q1 Q2 Q4 10-15% 5-20% 15-25% 50-60% Crop Premium Seasonality: 2026 GEP Forecast 2026 Forecast: Percent of Premium Earned Q3 Q2 OUTLOOK Crop losses emerging ahead of earned premium drive a sequential uptick in loss ratio and loss dollars First full quarter of increased operating expenses established in Q1 ANI pattern similar to 2025 2026 GUIDANCE Raised adjusted net income to $266-280 million Adjusted ANI growth of 26% based on the midpoint of updated guidance Adjusted ROE above 20% FULL YEAR MODELING NEP ratio: upper-40s, low point in Q3 Acquisition expense ratio: slight improvement from 2025 of 12.1% of GEP Other underwriting expense ratio: similar to 2025, ~8% of GEP Loss ratio: mid to upper 30s, high point in Q3 Adjusted combined ratio: mid 70s
Q3 Seasonality GEP increases while NEP Ratio decreases Q3 Seasonality GEP increases while NEP Ratio decreases Q3 seasonality increases GEP & decreases NEP Ratio Modeling and Seasonality Gross Earned Premium in $M (1) Expect same seasonal patterns as previous years. For the third quarter: Seasonal peak in GWP, GEP and NEP, driven by Crop earned premium Higher loss and acquisition expense dollars Decrease to NEP Ratio, tied to Crop earnings pattern Modeling Implication
Modeling and Seasonality Near-term ratios reflect business mix and gray integration; full-year guidance remains on track Acquisition expense continues to trend higher Acquisition expense ratio was 14.0% in Q1 2026, compared to 12.3% in Q1 2025 and 13.0% in Q4 2025. Sequential increase reflects growth in Casualty and Crop business mix. For the year, we expect this ratio to be slightly lower than last year’s 12.1%, higher the first half of the year with a low point in Q3 due to seasonal peak in earned premium Adjusted UW expense will continue to increase with growth in investments across the organization Adjusted underwriting expense ratio was 8.5% in Q1 2026, compared to 7.5% in Q1 2025 and 8.1% in Q4 2025. For the year, we expect the adjusted UW expense ratio to be around 8%, reflecting ongoing investments under Palomar 2X. Higher the first half of the year with the seasonal high point in Q2 and a dip expected in Q3 due to seasonal peak in earned premium. While not shown, loss ratio trending as expected despite seasonality Loss ratio for Q1 2026 was 33.3%, including catastrophe and attritional losses tied to growth in Casualty and Crop. We expect the loss ratio to continue to increase in Q2 and Q3 For the year, we expect the loss ratio to be in the mid to upper thirties, with a seasonal spike in Q3 due to Crop timing. General Modeling Guidance
6/1 Catastrophe Reinsurance Coverage COMPREHENSIVE PROPERTY CAT REINSURANCE PROGRAM EFFECTIVE 6/1/2026 $325M 10% CESSION CALIFORNIA COMMERCIAL EARTHQUAKE QUOTA SHARE $1.425B xs $325M CAT BONDS & TRADITIONAL LIMIT SINGLE SHOT INURING EQ XOL EQ ONLY ALL PERILS EXCLUDING EQ PLMR EQ RETENTION CORE EARTHQUAKE XOL TOWER $11M(3) $135M $20M $2.3B LAULIMA HAWAII HURRICANE XOL TOWER HI HU XOL RETENTION $865M $1.5M PLMR RETENTION ALL PERILS EXCLUDING EQ TOWER CONTINENTAL US HU ONLY $100M $1.75B Reinsurance Exhaustion Points(1) Earthquake: $3.92B(2) Laulima Hawaii HU: $865M Continental US HU: $135M CA Commercial EQ QS and the Single Shot Inuring EQ XOL inure to the benefit of the Core EQ XOL Tower $3.9B Total EQ Reinsurance tower graphics are not to scale Earthquake exhaustion of $2.16B for earthquake events outside CA All Perils excluding EQ retention has some modest additional premium on a first and second event loss
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 First Quarter Financial Highlights Three Months Ended March 31, 2026 2025 Change % Change (in thousands, except per share data) Gross written premiums $ 629,828 $ 442,163 $ 187,665 42.4 % Ceded written premiums (291,913 ) (230,745 ) (61,168 ) 26.5 % Net written premiums 337,915 211,418 126,497 59.8 % Net earned premiums 261,438 164,070 97,368 59.3 % Commission and other income 1,410 830 580 69.9 % Total underwriting revenue (1) 262,848 164,900 97,948 59.4 % Losses and loss adjustment expenses 87,097 38,743 48,354 124.8 % Acquisition expenses, net of ceding commissions and fronting fees 70,315 46,359 23,956 51.7 % Other underwriting expenses 64,907 35,733 29,174 81.6 % Underwriting income (1) 40,529 44,065 (3,536 ) (8.0 )% Interest expense (3,158 ) (85 ) (3,073 ) NM Net investment income 17,984 12,071 5,913 49.0 % Net realized and unrealized losses on investments (1,894 ) (2,338 ) 444 (19.0 )% Income before income taxes 53,461 53,713 (252 ) (0.5 )% Income tax expense 10,514 10,791 (277 ) (2.6 )% Net income $ 42,947 $ 42,922 $ 25 0.1 % Adjustments: Net realized and unrealized losses on investments 1,894 2,338 (444 ) (19.0 )% Expenses associated with transactions 7,406 2,088 5,318 254.7 % Stock-based compensation expense 8,786 4,745 4,041 85.2 % Amortization of intangibles 6,055 707 5,348 NM % Tax impact (3,951 ) (1,494 ) (2,457 ) 164.5 % Adjusted net income (1) $ 63,137 $ 51,306 $ 11,831 23.1 % Key Financial and Operating Metrics Annualized return on equity 18.1 % 22.6 % Annualized adjusted return on equity (1) 26.6 % 27.0 % Loss ratio 33.3 % 23.6 % Expense ratio 51.2 % 49.5 % Combined ratio 84.5 % 73.1 % Adjusted combined ratio (1) 76.0 % 68.5 % Diluted earnings per share $ 1.57 $ 1.57 Diluted adjusted earnings per share (1) $ 2.31 $ 1.87 Catastrophe losses $ 268 $ (542 ) Catastrophe loss ratio (1) 0.1 % (0.3 )% Adjusted combined ratio excluding catastrophe losses (1) 75.9 % 68.9 % Adjusted underwriting income (1) $ 62,776 $ 51,605 $ 11,171 21.6 % NM - not meaningful
Reconciliation Of Non-GAAP Metrics Used In This Presentation Three Months Ended March 31, 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 $ 220,909 120,005 Denominator: Net earned premiums $ 261,438 164,070 Combined ratio 84.5% 73.1% Adjustments to numerator: Expenses associated with transactions $ (7,406) $ (2,088) Stock-based compensation expense (8,786) (4,745) Amortization of intangibles (6,055) (707) Adjusted combined ratio 76.0% 68.5% Adjusted net income $ 63,137 $ 51,306 Weighted-average common shares outstanding, diluted 27,340,855 27,399,997 Diluted adjusted earnings per share $ 2.31 $ 1.87 Numerator: Losses and loss adjustment expenses $ 87,097 $ 38,743 Denominator: Net earned premiums $ 261,438 $ 164,070 Loss ratio 33.3% 23.6% Numerator: Catastrophe losses $ 268 $ (542) Denominator: Net earned premiums $ 261,438 $ 164,070 Catastrophe loss ratio 0.1% (0.3)% Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 220,909 $ 120,005 Denominator: Net earned premiums $ 261,438 $ 164,070 Combined ratio 84.5% 73.1% Adjustments to numerator: Expenses associated with transactions $ (7,406) $ (2,088) Stock-based compensation expense (8,786) (4,745) Amortization of intangibles (6,055) (707) Expenses associated with catastrophe bond — — Catastrophe losses (268) 542 Adjusted combined ratio excluding catastrophe losses 75.9% 68.9%
Reconciliation Of Non-GAAP Metrics Used In This Presentation Three Months Ended March 31, 2026 2025 ($ in thousands, except per share data) Total revenue $ 278,938 $ 174,633 Net investment income (17,984) (12,071) Net realized and unrealized (gains) losses on investments 1,894 2,338 Underwriting revenue $ 262,848 $ 164,900 Income before income taxes $ 53,461 $ 53,713 Net investment income (17,984) (12,071) Net realized and unrealized (gains) losses on investments 1,894 2,338 Interest expense 3,158 85 Underwriting income $ 40,529 $ 44,065 Expenses associated with transactions 7,406 2,088 Stock-based compensation expense 8,786 4,745 Amortization of intangibles 6,055 707 Expenses associated with catastrophe bond — — Adjusted underwriting income $ 62,776 $ 51,605 Net income $ 42,947 $ 42,922 Adjustments: Net realized and unrealized (gains) losses on investments 1,894 2,338 Expenses associated with transactions 7,406 2,088 Stock-based compensation expense 8,786 4,745 Amortization of intangibles 6,055 707 Expenses associated with catastrophe bond — — Tax impact (3,951) (1,494) Adjusted net income $ 63,137 $ 51,306 Annualized adjusted net income $ 252,548 $ 205,224 Average stockholders’ equity $ 950,853 $ 759,739 Annualized adjusted return on equity 26.6% 27.0%
Ex 99.2
Palomar Holdings, Inc. Announces Successful Completion of June 1 Reinsurance Placement
~ Full Year 2026 Adjusted Net Income Guidance Increased to $266 Million to $280 Million ~
LA JOLLA, Calif., May 29, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ: PLMR) (“Palomar” or the “Company”) today announced the successful completion of certain reinsurance programs incepting June 1, 2026, and increased the Company’s full year 2026 adjusted net income guidance.
The Company has procured approximately $421 million of incremental limit to support the growth of its Earthquake franchise. Palomar’s reinsurance coverage now extends to $3.92 billion for earthquake events and $135 million for continental United States hurricane events.
Palomar’s per occurrence event retentions will remain at $11 million for hurricane events and $20 million for earthquake events, levels that are meaningfully within management’s previously stated guideposts of less than one quarter’s adjusted net income and less than 5% of stockholders’ equity.
The reinsurance program continues to provide ample capacity for the Company’s growth in the subject business lines as well as coverage to a level exceeding Palomar’s 1:250-year peak zone Probable Maximum Loss. Of note, $360 million of the $3.92 billion earthquake limit was sourced through Palomar’s seventh Torrey Pines Re catastrophe bond issuance, priced at the lower end of the indicated range.
Palomar also renewed its standalone reinsurance treaty supporting the Hawaii hurricane policies issued by Laulima Exchange. The renewed program provides Laulima with up to $865 million of per-occurrence coverage, representing a $130 million increase year-over-year, including $50 million sourced through the Torrey Pines Re platform. The placement marked the first inclusion of a standalone Hawaii Hurricane tranche within Torrey Pines Re, further diversifying Palomar’s sources of reinsurance capacity. The program’s per-occurrence event retention remained unchanged at $1.5 million.
“We are very pleased with the outcome of our June 1 reinsurance placement and remain grateful for the support of our broad and diversified reinsurance panel,” commented Mac Armstrong, Chairman and Chief Executive Officer of Palomar. “We added meaningful incremental limit to support growth, maintain event retentions at levels consistent with the expiring treaty despite significant earnings and exposure growth, and expanding the role of collateralized reinsurance through another Torrey Pines Re catastrophe bond issuance. Importantly, we achieved these objectives at attractive economics which well-positions Palomar to deliver profitable growth and attractive returns for shareholders. As a result, we are increasing our full-year 2026 adjusted net income guidance range to $266 million to $280 million from the previously indicated range of $262 million to $278 million.”
Other highlights of the Company’s reinsurance program include:
Palomar’s Chief Risk Officer, Jon Knutzen, added, “This June 1 renewal further strengthens Palomar’s ability to manage peak catastrophe volatility while supporting continued profitable growth. The combination of incremental limit for our peak peril zones and expanded ILS capacity improves both the efficiency and diversification of our overall reinsurance program. We appreciate the continued support from our global reinsurance partners and believe this placement positions the Company favorably from both a capital management and earnings stability perspective.”
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.
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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.