Palomar Holdings, Inc. · NASDAQ:PLMR
Palomar — Investor Presentation (May 2024)
20 slides from Palomar's investor presentation, May 13, 2024
Slide 1: Investor Presentation May 2024
@ Palomar Investor Presentation May 2024
Slide 2: Disclaimer
Disclaimer ‘This presentation contains forward-looking statements about Palomar Holdings, Inc. (the “Company"). These statements involve known and unknown risks that felate to the Company's future events or future financial performance and the actual results could differ materially from those discus
Slide 3: Company Profile
Company Profile TRACK RECORD OF DELIVERING STRONG GROWTH AND CONTINUED PROFITABILITY Specialty insurer using data analytics, underwriting acumen, and risk transfer expertise to capitalize on market dislocations Multi-channel distribution serving residential and commercial clients; products resonate
Slide 4: Palomar Portfolio of Specialty Insurance Products
Palomar Portfolio of Specialty Insurance Products FIRST QUARTER PRODUCT SUMMARY a1'2024 gt" 2023 Q1 % of Total GWP by Product Earthquake |Earthquat $105,729 $93,495 13.1: Intand Marine & OisenBroperty! inland Marine & Other Property $76,876 $52,705 45.9 OTGWE: 20.9% Z \Casualty $51,935 $12,157 327.2
Slide 5: Palomar 2X Strategy
Palomar 2X Strategy AN ORGANIC BUSINESS STRATEGY DESIGNED TO DOUBLE UNDERWRITING INCOME AND GENERATE AN ADJUSTED ROE IN EXCESS OF 20% IN APREDICTABLE MANNER OVER AN INTERMEDIATE TIMEFRAME, FUNDAMENTAL PRINCIPLES 2024 STRATEGIC INITIATIVES + Organic growth + Anchored by non-attrtional loss business +
Slide 6: Palomar Crop Insurance Thesis
Palomar Crop Insurance Thesis CROP WILL BE A SIGNIFICANT GROWTH CONTRIBUTOR IN 2024 AND BEYOND + Palomar is one of only 13 approved insurance providers recognized by the federal government STRATEGIC + Provides access to the $20 billon annual Crop insurance market RATIONALE + Establishes a new growth
Slide 7: Catastrophe Exposure Management & Reduced Volatility
Catastrophe Exposure Management & Reduced Volatility EXECUTION OF CONCENTRATED EFFORTS TO REDUCE VOLATILITY HAVE PRODUCED STRONG PROFITABLE RESULTS Portfolio Update Reduced Volatility While Generating Strong Adjusted Net income + Achievedtargeted Continental US wind 250-yr PML of 12000 35% $100 mill
Slide 8: Comprehensive Risk Transfer Program
Comprehensive Risk Transfer Program ROBUST RISK TRANSFER STRATEGY ENABLES PREDICTABLE EARNINGS AND REDUCED VOLATILITY + Reinsurance strategy combines the use of carne coverage DETET both excess ofloss ("XOL")and quota share + HI HU Coverage t S800 fnuwance 1 ContinontalUS HU to $100 sucus sir CORE C
Slide 9: Other Key Reinsurance Placements
Other Key Reinsurance Placements PALOMAR MAINTAINS COMPREHENSIVE PRODUCT SPECIFIC REINSURANCE STRUCTURES structure EITMETTOT Reinsurance Recent Developments land Marine Quota Share ‘Admitedand 8S May.24 + ‘1 enewals offered a broad perspective of 2 iia Quota Share &XOL AdmittedandE&S — Jun.23. Raira
Slide 10: Entrepreneurial and Experienced Management Team
Entrepreneurial and Experienced Management Team LEADING SPECIALTY INSURANCE TALENT CONTINUE TO EXECUTE AND ADD DEPTH TO THE ORGANIZATION NAME at PRIOR PROFESSIONAL EXPERIENCE Mac Armstrong | Chairman & Chief Executive Officer 25+ Arrowhead General insurance Agency | Spectrum Equty | Alex. Brown & So
Slide 11: Commitment to Sustainability
Commitment to Sustainability ACCESS THE SUSTAINABILITY PORTAL AND 2023 SUSTAINABILITY & CITIZENSHIP REPORT HERE: OVERVIEW SUSTAINABILITY PRIORITIES TRANSPARENCY + Committedto sustainable business practicesis driven by the Understanding that environmental stewardship, social responsibilty, and effect
Slide 12: Proven Business Model
Proven Business Model P y 21% fl io) H zor sa 130% Palomar
Slide 13: 2024 Full Year Guidance
2024 Full Year Guidance MIDPOINT OF 2024 GUIDANCE RANGE IMPLIES AN ADJUSTED ROE ABOVE PALOMAR 2X TARGET OF 204 2024 FULL YEAR OUTLOOK Adjusted Net Income $113 to $118 million + Raised 2024 full year guidance at Q1 earnings from $110-$115 milion to $113-$118 million + Current range includes: + Q1 los
Slide 14: Appendix
Appendix # Palomar
Slide 15: Five Key Specialty Products: 2023 GWP by Quarter
Five Key Specialty Products: 2023 GWP by Quarter Beginning in 2024, we updated the categorization of our products to align with our current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only
Slide 16: First Quarter 2024 Financial Highlights
First Quarter 2024 Financial Highlights (Sin novsands) “Troe Monts Ended -Mareh 31 2028 2023 Change % Change ‘oss writen premiums sosgore sasdstizstirses 472 ‘Ceaeavrtenpremums @zai7) (170348) 7827) 330% ‘etwrten premiums “ago0r 79788 e039 754% Neteamedpremums fo7ecs 83.241 24025 280% ‘Sommissenango
Slide 17: Reconciliation Of Non-GAAP Metrics Used In This Presentation
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Slide 18: Reconciliation Of Non-GAAP Metrics Used In This Presentation
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Slide 19: Theoretical Net Written Premium vs Net Earned Premium
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