Palomar Holdings, Inc. Q1 2026 Earnings Recap

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.