Palomar Holdings, Inc. Earnings Recaps
Q1 2026
May 9, 2026
Palomar Holdings’ shares edged up 2.4% following Q1 results that showed solid premium growth and profitability, though market reaction suggests limited upside amid ongoing pricing pressure in key commercial lines and cautious competition dynamics.
Key takeaways
- Gross written premium rose 42% year-over-year, with broad-based growth across all five specialty product categories.
- Adjusted net income grew 23%, supported by a strong adjusted combined ratio of 76% and an adjusted return on equity of 27%.
- Commercial earthquake premiums declined due to approximately 18% rate decreases on renewals and higher average loss on new business, reflecting ongoing competitive and pricing challenges.
- Residential earthquake and admitted property segments showed stability with strong retention (~97%) and favorable rate increases, particularly in hurricane-exposed areas like Hawaii.
- Management emphasized disciplined underwriting amid persistent double-digit rate declines in larger commercial property and uneven casualty pricing, maintaining readiness to nonrenew unprofitable accounts.
Q3 2025
Nov 8, 2025
Palomar Holdings delivered an exceptional third quarter in 2025, achieving record gross written premiums and adjusted net income, marking the 12th consecutive quarter of earnings beats.
Key takeaways
- Gross written premiums increased by 44%, alongside a 70% rise in adjusted net income year-over-year.
- Adjusted combined ratio stood at 75%, with a robust adjusted return on equity of 26%, reflecting strong underwriting discipline.
- Recent acquisition of Gray Casualty and Surety Company is expected to significantly enhance Palomar's surety platform and market presence.
- All product lines showed strong double-digit growth, contributing to overall solid performance despite prevailing market challenges.
- Continued expansion in specialty markets and strategic partnerships is poised to sustain long-term growth and profitability.