PLMR · Palomar Holdings, Inc.

Palomar Holdings reported strong first quarter 2026 results, with gross written premiums increasing 42.4% to $629.8 million, driven by growth across all five product categories including Earthquake, Inland Marine and Property, Casualty, Surety & Credit, and Crop. The acquisition of The Gray Casualty & Surety Company (renamed Palomar Casualty & Surety Company) on January 31, 2026 contributed two months of results. Net income was flat at $42.9 million, while adjusted net income rose 23.1% to $63.1 million, or $2.31 per diluted share, reflecting improved underwriting profitability excluding certain items. The combined ratio increased to 84.5% from 73.1% in the prior year quarter, primarily due to a higher loss ratio (33.3% vs 23.6%), which included a catastrophe loss ratio of 0.1% and favorable prior year development. The adjusted combined ratio was 76.0% compared to 68.5% last year. Net investment income grew 49.0% to $18.0 million, supported by higher yields and a larger average invested asset base. Management highlighted the strength of the diversified specialty product portfolio and consistent earnings generation. The company also announced a new $200 million share repurchase program effective May 6, 2026, replacing the prior plan. For full year 2026, Palomar expects adjusted net income in the range of $262 million to $278 million, including $8 million to $12 million of catastrophe losses. The effective tax rate was 19.7% for the quarter. Stockholders' equity stood at $959.0 million as of March 31, 2026, and the company repurchased 190,255 shares for $23.1 million during the quarter.