Palomar Holdings, Inc. · NASDAQ:PLMR
Palomar — Investor Day (March 2025)
63 slides from Palomar's investor day presentation, Mar 20, 2025
Slide 1: 2025 Investor Day
@ Palomar mm > 2025 Investor Day March 20, 2025 plmr.com
Slide 2: Disclaimer
@ Palomar’ 2025 investorday} waren 20, 2025 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 result
Slide 3: Palomar's Leadership
® Palomar 3 Palomar’s Leadership PALOMAR INVESTOR DAY 2025 e e e Mac <2 2 Tim Armstrong Uchida Beveris Carter Chief Erecutve Ofer Chief Financial Oficer tet Underrtng Ofer Chief People Ofer Rudy Genteman Hervé ChietAcwarslO Boer Chief Operating Ofer Jon ~ Kyle 2 Jake Knutzen Morgan Long Armstrong Ch
Slide 4: Today's Agenda
@ Palomar’ 2025 imestorday} warcn 20, 2025 Today’s Agenda =» PALOMAR INVESTOR DAY 2025 8:30am — 9:00am 9:00am —- 10:15am 10:15am — 11:00am 11:00am — 11:15am 11:15am — 11:55am 11:55am — 12:15pm 12:15pm — 12:40pm 12:40pm — 12:45pm Executive Summary Specialty Product Lines Q8A Break Operational Departm
Slide 5: Executive Summary
Executive Summary Mac Armstrong Chief Executive Officer, Founder and Chairman of the Board ) Palomar
Slide 6: Palomar Overview
eo Palomar 2025 Investor Day| March 20, 2025 Palomar Overview PALOMAR IS BUILDING A SPECIALTY MARKET LEADER eo. \ Specialty insurer using data AM Best “A” (Excellent) Five product categories: 3rd largest analytics, underwriting Financial Strength Rating Earthquake, Inland Marine & earthquake insurer
Slide 7: Delivering Profitable Growth and Strong Returns for Investors
@ Palomar’ 2025 inestorday} waren 20, 2025 Delivering Profitable Growth and Strong Returns for Investors pD REDUCED VOLATILITY TO DRIVE CONSISTENT GROWTH AND MARKET-LEADING RETURNS Gross Written Premium and Adjusted Net Income 2019 2020 2021 2022 2023 2024 mms Gross Written Premium ($M) ~-Adjusted N
Slide 8: Industry Leading Profitability
@ Palomar’ 2025 investorDay| march 20, 2028 Industry Leading Profitability pD ATTRACTIVE BUSINESS MODEL GENERATING INDUSTRY LEADING PROFITS Combined Ratio Return on Equity (ROE) Adjusted Net Income (ANI) per Employee 9 100% 9% __—102% 22% 22% $527,711 97% 18% 14%, 76% 76% 74% 719 ee 7 6% ~ soon Sp 2
Slide 9: Palomar 2X Strategy
® Palomar 2025 Investor Day| March 20, 2025 Palomar 2X Strategy A STRATEGIC IMPERATIVE INTRODUCED IN 2022 TO DOUBLE ADJUSTED UNDERWRITING INCOME AND ACHIEVE AN ADJUSTED ROE ABOVE 20% OVER AN INTERMEDIATE TIMEFRAME i ORGANIC GROWTH ANCHORED BY OUR EARTHQUAKE FRANCHISE LOW VOLATILITY — SPECIALTY LINES
Slide 10: Since our Last Investor Day (June 2022)
@ Palomar’ 2025 inestorday} waren 20, 2025 10 Since our Last Investor Day (June 2022) » STRONG EARNINGS GROWTH AND BALANCE SHEET EXPANSION Adjusted Net Income ($M) sre wet $94 $71 2021 2022 2023 2024 1. Midpoint of 2025 adjusted net income guidance range $186 2025E Book Value ($M) and Adjusted ROE 1
Slide 11: Since Our Last Investor Day (June 2022)
® Palomar 2025 Investor Day| March 20, 2025 " Since Our Last Investor Day (June 2022) + Formed Laulima Reciprocal Exchange + Upgraded to “A” and achieved FSC X by AM Best + Scaled Casualty franchise and entered E&S Casualty market + Entered the Crop Market * Crop MGA acquisition: Advanced AgProtecti
Slide 12: 2025 Strategic Imperatives
@ Palomar’ 2025 investorday| waren 20,2025 2 2025 Strategic Imperatives Integrate and Operate + Monetize and scale 2024 investments * Integrate FIA and AAP + Execute on framework for operational excellence * Industry leader in analytics, data, talent development + Invest where clear ROE is achievabl
Slide 13: Key Themes for Today
@ Palomar’ 2025 investorday| waren 20,2025 Key Themes for Today pD DRIVING PROFITABLE GROWTH WITH A PROVEN STRATEGY AND INDUSTRY-LEADING TALENT C Company Vision: We are building a market-leading specialty insurer > C Business Strategy and Palomar 2X: We have a proven approach to execution and to del
Slide 14: Specialty Product Lines Presenters
Jon Christianson Robert Beyerle David Sapia Benson Latham Kyle Morgan eee Chief Underwriting Offi EVP, Head of E&S Ca EVP, Head of Crop Chief Strategy Officer Palomar
Slide 15: Portfolio of Specialty Insurance Products
@ Palomar’ 2025 inestorday} waren 20, 2025 18 Portfolio of Specialty Insurance Products pD THE EVOLUTION AND GROWTH OF A DIVERSIFIED SPECIALTY INSURANCE LEADER 2018 2022 2024 TOTAL GWP: TOTAL GWP: TOTAL GWP: $155M $1.5B i Earthquake i Inland Marine & 1 Fronting Other Property
Slide 16: Earthquake — Product Overview & Underwriting Focus
@ Palomar’ 2025 inestorday} waren 20, 2025 16 Earthquake — Product Overview & Underwriting Focus pD INDUSTRY LEADER IN THE COMMERCIAL AND RESIDENTIAL EARTHQUAKE MARKETS + Analytical underwriting with distinctive pricing model + Sector expert with specialized product offerings + Attractive risk-adjus
Slide 17: United States Earthquake Insurance Market
@ Palomar’ 2025 investorday| march 20, 2025 7 United States Earthquake Insurance Market » STEADILY TAKING SHARE IN A GROWING EARTHQUAKE MARKET United States Earthquake Insurance Market Growth $3,596 $3,251 2018 2019 2020 2021” 2022 mTotal Earthquake Market cwp’” =-ePalomar Market Share 4. Annual GWP
Slide 18: Earthquake — Current Outlook
@ Palomar’ 2025 imestorday} warcn 20, 2025 18 Earthquake — Current Outlook » CONTINUED MARKET EXPANSION AND PROFITABILITY Market Co jons * Continued dislocation in California (CEA and Homeowners) creates growth opportunity + Residential and Commercial products provide balance across all market cycle
Slide 19: Inland Marine & Other Property — Product Overview & Underwriting Focus
@ Palomar’ 2025 inestorday} waren 20, 2025 19 Inland Marine & Other Property — Product Overview & Underwriting Focus » A DEFINED APPETITE OF SPECIALTY PROPERTY PRODUCTS Mix of residential and commercial business Admitted and E&S product offerings Deliberate exposure management Controlled net line si
Slide 20: Inland Marine & Other Property — Current Outlook
@ Palomar’ 2025 investorDay| march 20, 2028 Inland Marine & Other Property — Current Outlook OPPORTUNITIES FOR EXPANSION AND OPERATIONAL EXCELLENCE Market Conditions Large market opportunity Stabilizing property market Favorable reinsurance capacity and pricing available Rate change varies by risk p
Slide 21: Inland Marine & Other Property — Primary Growth Vectors
@ Palomar’ 2025 investorday| waren 20,2025 a Inland Marine & Other Property — Primary Growth Vectors » PRODUCT DIVERSIFICATION AND STABLE GROWTH VECTORS + Proven line of business driven by top-tier underwriting expertise and long-term relationships * Significant market opportunity with strong growth
Slide 22: Fronting — Product Overview & Underwriting Focus
® Palomar 2025 Investor Day| March 20, 2025 Fronting — Product Overview & Underwriting Focus FEE GENERATIVE PROGRAMS PROVIDING PRODUCT DIVERSIFICATION $223 2022 4. Annual GWP in Sit 2023 = Fronting GWP. 2024 Deliver fee-generating services to a select group of MGAs, carriers, and reinsurers Offers R
Slide 23: Fronting — Current Outlook
@ Palomar’ 2025 imestorday} warcn 20, 2025 Fronting — Current Outlook pD STRONG GROWTH WITH EXISTING PARTNERS AND A HEALTHY PIPELINE OF POTENTIAL PARTNERSHIPS Monitor potential marketplace disruption Increased carrier competition softening the market Trend toward “participatory front” arrangements C
Slide 24: Casualty — Product Overview & Underwriting Focus
@ Palomar’ 2025 inestorday} waren 20, 2025 Casualty — Product Overview & Underwriting Focus pD INDUSTRY EXPERTS RESPONSIBLY GROWING PALOMAR’S FOOTPRINTIN ALARGE ADDRESSABLE MARKET + Specialty Casualty insurance for niche markets * Targeting shorter-tail Casualty lines * Complementary to property pro
Slide 25: Casualty — Current Outlook
@ Palomar’ 2025 imestorday} warcn 20, 2025 Casualty — Current Outlook NICHE PRODUCT FOCUS AND CONSERVATIVE RESERVING PRACTICES Market Co jons Ample opportunities within current risk appetite Inflation continues to cause industry-wide adverse development Outsized large loss activity Adequate reinsura
Slide 26: Casualty — E&S Casualty Case Study
® Palomar Ey Casualty — E&S Casualty Case Study pD E&S CASUALTY WILL BOLSTER CASUALTY FRANCHISE AND FUEL PROFITABLE GROWTH Market The: Underw: ig Appetite Managing Volatility * Post-COVID market hardening has * Two underwriting verticals: construction and non- + Leverage disciplined underwriting of
Slide 27: Crop — Product Overview & Underwriting Focus
@ Palomar’ 2025 investorday| march 20, 2025 Crop — Product Overview & Underwriting Focus pD EMERGING NEW LINE DIVERSIFIES EXISTING PRODUCT PORTFOLIO * Access to the $18 billion annual Crop insurance market * One of only 12 approved insurance providers (AIP) recognized by the federal government + Unc
Slide 28: Crop — Current Outlook
@ Palomar’ 2025 imestorday} warcn 20, 2025 Crop — Current Outlook SIGNIFICANT GROWTH CONTRIBUTOR IN 2025 AND BEYOND Market Conditions Consistent market growth over the past decade 2024 realized expected underwriting profitability Q3 earned premium seasonality Stable but reduced panel of long-term ma
Slide 29: Crop — Geographic Focus and Calendar
® Palomar Crop — Geographic Focus and Calendar CURRENT STATE OF THE MARKET + CORE TARGETAREAS 4. Projected premium range Imm Group 1 Production States lm Groups 2 & 3 Production States [1 Targeted Palomar States + Sales closing date for Mult.-Peril Crop Insurance (MPC!) the US + Majority of row crop
Slide 30: Strategy for Entering New Lines of Business
@ Palomar’ 2025 imestorday} warcn 20, 2025 Strategy for Entering New Lines of Business pD REPEATABLE AND SCALABLE PROCESS FOR EFFECTIVELY BRINGING PRODUCTS TO MARKET Leverage Apply Systems Talent & Analytics Buy or Comprehensive Risk Transfer Strategy Identify Market @ Palomar KEY ATTRIBUTES Strong
Slide 31: Crop Acquisition - Advanced AgProtection (AAP)
® Palomar 2025 Investor Day| March 20, 2025 ” Crop Acquisition - Advanced AgProtection (AAP) 45% 35% 25% © 20% 15% 5% 5% 15% 25% Eger Bese RRR RRRR A ” oer See SN RRR RRR RRR Average Underwriting Gain sss RR RR mmm P&C MPCI GWP =@=UW Gain 4. Annual GWP in $B EXPANSION INTO HIGHLY SPECIALIZED AND PRO
Slide 32: Surety Market Entry + Acquisition of First Indemnity of America
® Palomar 2025 Investor Day| March 20, 2025 Surety Market Entry + Acquisition of First Indemnity of America Combined Ratio — Surety vs P&C Industry 100% untae 102% 76% 76% Average Spread of 27% 2021 2022 2023 Surety” -eP&C Industry” 4. Source: Conning 2. Source: S&P Capla ENTRY INTO PROFITABLE, GROW
Slide 33: Q&A
Q&A @ Palomar
Slide 34: Break
Break @ Palomar
Slide 35: Operational Departments Presenters
Jon Knutzen Ethan Genteman Rudy Hervé Althea Garvey Chi tuarial eratin Chief Claim: Operations @ Palomar
Slide 36: Palomar Approach to Risk Transfer
ee Palomar™ 2025 investorday| waren 20, 2025 Palomar Approach to Risk Transfer RISK TRANSFER IS CENTRAL TO PALOMAR’S OVERALL STRATEGY AND 2X PHILOSOPHY Manage Volatility + Conservative risk tolerances that mitigate net exposure to catastrophe, shock, and attritional losses + Efficient management of
Slide 37: Comprehensive & Diverse Utilization of Risk Transfer Products
® Palomar 2025 Investor Day| March 20, 2025 a” Comprehensive & Diverse Utilization of Risk Transfer Products EMPLOY A DIVERSE SUITE OF PRODUCTS TO MANAGE RISK, REDUCE EARNINGS VOLATILITY AND SUPPORT GROWTH + Individual risk-specific protection * ‘Second set of eyes’ for individual risk underwriting
Slide 38: Risk Transfer Case Study
@ Palomar’ 2025 investorday| march 20, 2025 Risk Transfer Case Study Strategy blends Excess of Loss, Quota Share, and Insurance-Linked Securities Program supported by over 100 reinsurers, accessing both rated and fully collateralized markets Mix of one-year and multi-year limit to reduce reinsurance
Slide 39: Actuarial Strategy & Reserving Philosophy
@ Palomar’ 2025 investorDay| march 20, 2028 Actuarial Strategy & Reserving Philosophy Data-Driven Pre in: Leveraging Stochastic Models for Unbiased Estimates * Streamlined analysis using actuarial-standard models + Reserves set by experienced actuaries and claims professionals + Analysis of loss typ
Slide 40: Reserve History
@ Palomar’ 2025 inestorday} waren 20, 2025 40 Reserve History pD BUILT FOR STABILITY: RESERVING TRENDS AND FINANCIAL STRENGTH Gross and Net Reserves" Palomar Reserves & Surplus Overall Net Reserves $600 $500 $400 $300 $200 $100 2020 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 +m Tota
Slide 41: Technology & Operations
@ Palomar’ 2025 investorDay| march 20, 2028 a“ Technology & Operations » KEY ENABLER OF SPEED-TO-MARKETAND DIFFERENTIATION cD + Scalable core systems leveraging best-in-class vendors + Proven playbooks for new product launches + Early adoption of business process outsourcing services for rapid scali
Slide 42: Technology & Operations
@ Palomar’ 2025 imestorday} warcn 20, 2025 2 Technology & Operations pD INTEGRATE AND OPERATE: DRIVING EFFICIENCY GAINS WHILE BUILDING THE FUTURE PALOMAR 2025 Roa * Specific initiatives for the launch and integration of Crop and Surety * Continued investments in modernizing Producer, Underwriting an
Slide 43: Claims Management
@ Palomar’ 2025 investorday| waren 20,2025 Claims Management pD DIVERSIFIED USE OF THIRD-PARTY ADMINISTRATORS (TPAS) TO MANAGE CLAIMS AND LIMIT DOWNSIDE RISK a RELATIONSHIPS Constant communication with claims panel including TPAs, legal partners, reinsurers, claimants and regulators DATA MONITORING
Slide 44: Palomar 2X Strategy is Strengthened by Our People
@ Palomar’ 2025 investorday| march 20, 2025 Palomar 2X Strategy is Strengthened by Our People pD TALENT SYSTEMS ARE INFORMED BY OUR MISSION, VISION AND VALUES Palomar is built on a culture of agility, To build solutions that expand Authenticity, Agility, Innovation, innovation and problem-solving th
Slide 45: 2025 Talent Priorities
@ Palomar’ 2025 investorDay| march 20, 2028 2025 Talent Priorities pD FOCUS ON ATTRACTING AND DEVELOPING GREAT TALENT TO CREATE A DYNAMIC, RESILIENT, AND EFFICIENT WORKFORCE oro How We Work Support Palomar's "Integrate and Operate” strategic imperative + Optimize operational excellence through prove
Slide 46: Palomar 2X and Modeling Update
Palomar 2X and Modeling Update @ Palomar
Slide 47: Palomar 2X — Original Framework
@ Palomar’ 2025 investorday| march 20, 2025 a Palomar 2X — Original Framework Initial financial objectives included: * Double underwriting income over an intermediate timeframe + Adjusted ROE greater than 20% * Organic growth strategy New For 2025 + Double adjusted net income over an intermediate ti
Slide 48: Palomar 2X — Execution Versus First Cohort
@ Palomar’ 2025 inestorday} waren 20, 2025 Palomar 2X — Execution Versus First Cohort »D INITIAL 2021 PALOMAR 2X GOALS ACHIEVED WITHIN 3 YEARS Underwriting Income 2024 Goal 2024 Actuals “ (Ex-Overhead and Ex-Cat) $110.0M $220.0M $256.9M +17% ion Versus First Cohort Performance Above Goal Adjusted Un
Slide 49: 2025 Full Year Guidance
® Palomar 49 2025 Full Year Guidance pD GUIDANCE RANGE IMPLIES EXCEEDING 2022 PALOMAR 2X GOAL IN THREE YEARS 2025 FULLYEAR CURRENT RANGE IMPLIES: OUTLOOK + Adjusted net income growth of 39% at the midpoint of the guidance range ADJUSTED NET INCOME Midpoint of guidance range implies an adjusted ROE $
Slide 50: Palomar 2X — Modeling Update: Gross and Net Earned Premium
@ Palomar’ 2025 imestorday} warcn 20, 2025 Palomar 2X — Modeling Update pD 2023-2024 GROSS EARNED PREMIUM AND NET EARNED PREMUM RATIO Increase in GEP and decrease in NEP ratio are due to Crop Business Q3 seasonality Q1 2023 Q2 2023 Q3 2023 Q4 2023 Qi 2024 Q2 2024 Q3 2024 Q4 2024 |eNEP Ratio «Gross E
Slide 51: Palomar 2X — Modeling Update: Net Earned Premium
@ Palomar’ 2025 inestorday} waren 20, 2025 a Palomar 2X — Modeling Update » 2023-2024 NET EARNED PREMIUM 6/1/2023 XOL placement caused decrease in NEP Decrease in NEP Ratio due to Crop business seasonality Q1 2023 Q2 2023 Q3 2023 Q4 2023 4. Neteamed premium in SM MlNet Earned Premium” Q1 2024 Q2 202
Slide 52: Palomar 2X — Modeling Update: Acquisition Expense
@ Palomar’ 2025 investorday| march 20, 2025 Palomar 2X — Modeling Update » 2023-2024 ACQUISITION EXPENSE Decrease in Acquisition Expense Ratio due to Crop business seasonality Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 mm Acquisition Expense” e=Acquisition Expense Ratio 41. Acqu
Slide 53: Palomar 2X — Modeling Update: Adjusted Underwriting Expense
@ Palomar’ 2025 investorday| march 20, 2025 Palomar 2X — Modeling Update » 2023-2024 ADJUSTED UNDERWRITING EXPENSE Decrease in Adjusted Underwriting Expense Ratio due to Crop business ‘seasonality Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 mu Adjusted UW Expense” e=Adjusted UW E
Slide 54: Third Quarter Crop Seasonality and Net Earned Premium Ratio
eo Palomar™ 2025 investorday| waren 20, 2025 Palomar 2X — Modeling Update THIRD QUARTER CROP SEASONALITY AND ITS IMPACT ON NET EARNED PREMUMRATIO 45% rop Season at Palom: 1 Q1 2023 Q2 2023 Q32023 Q42023 Qi 2024 Q2 2024 Q32024 Q42024 . MME Net earned premiums” Gross andnet earned premium in SI MIB Gr
Slide 55: Crop Seasonality and Expense Ratios
@ Palomar’ 2025 imestorday} warcn 20, 2025 55 Palomar 2X — Modeling Update pD THIRD QUARTER CROP SEASONALITY AND ITS IMPACT ON ACQUISITION AND ADJUSTED UNDERWRITING EXPENSE RATIOS 0 155 oe nm p Season at Palom $400 14% Continued: $350 is + Acquisition Expense will continue to increase 12% + We expec
Slide 56: Investment Overview
@ Palomar’ 2025 investorday| march 20, 2025 Investment Overview pD HIGH QUALITY, LIQUID INVESTMENT PORTFOLIO PROVIDES COMPLEMENTARY EARNINGS STREAM Objectives: Maintain liquidity, preserve capital, and generate investment income within a comprehensive risk management framework. Portfolio Constructio
Slide 57: Q&A
Q&A @ Palomar
Slide 58: Closing Remarks
Closing Remarks @ Palomar
Slide 59: Closing Remarks
@ Palomar’ 2025 investorday| waren 20,2025 Closing Remarks » PALOMAR IS BUILDING A SPECIALTY MARKET LEADER C PLMR 2X: It is a philosophy that will sustain profitable growth C Growth: The growth vectors are numerous which affords Palomar the ability to be deliberate if not conservative C We are Inves
Slide 60: Appendix
Appendix @ Palomar
Slide 61: Reconciliation of Non-GAAP Measures Used in this Presentation
@ Palomar’ 2025 investorday| waren 20,2025 ot Reconciliation of Non-GAAP Measures Used in this Presentation WITHIN THIS PRESENTATION, WE HAVE USED CERTAIN NON-GAAP MEASURES. THESE MEASURES RECONCILE TO THEIR MOST COMPARABLE GAAP MEASURES AS FOLLOWS: Year Ended December 31, (in thousands) 2024 2023 2
Slide 62: Reconciliation of Non-GAAP Measures Used in this Presentation
@ Palomar’ 2025 investorday| waren 20,2025 Reconciliation of Non-GAAP Measures Used in this Presentation WITHIN THIS PRESENTATION, WE HAVE USED CERTAIN NON-GAAP MEASURES. THESE MEASURES RECONCILE TO THEIR MOST COMPARABLE GAAP MEASURES AS FOLLOWS: Year Ended December 31, (in thousands) 2024 2023 2022
Slide 63: Reconciliation of Non-GAAP Measures Used in this Presentation
@ Palomar’ 2025 investorday| waren 20,2025 Reconciliation of Non-GAAP Measures Used in this Presentation WITHIN THIS PRESENTATION, WE HAVE USED CERTAIN NON-GAAP MEASURES. THESE MEASURES RECONCILE TO THEIR MOST COMPARABLE GAAP MEASURES AS FOLLOWS: Year Ended December 31, (in thousands) 2024 2023 2022