Palomar Holdings, Inc. Reports Second Quarter 2026 Results

About this update from Palomar Holdings, Inc.

LA JOLLA, Calif. , Aug. 04, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $52.6 million , or $1.94 per diluted share, for the second quarter of 2026 compared to net income of $46.5 million , or $1.68 per diluted share, for the second quarter of 2025. Adjusted net income (1) was $63.8 million , or $2.36 per diluted share, for the second quarter of 2026 as compared to $48.5 million , or $1.76 per diluted share, for the second quarter of 2025. Second Quarter 2026 Highlights Gross written premiums increased by 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025 Net income increased 13.0% to $52.6 million compared to $46.5 million in the second quarter of 2025 Adjusted net income (1) increased 31.4% to $63.8 million compared to $48.5 million in the second quarter of 2025 Diluted earnings per share increased by 15.5% to $1.94 compared to $1.68 in the second quarter of 2025 Diluted adjusted earnings per share (1) increased by 34.1% to $2.36 compared to $1.76 in the second quarter of 2025 Total loss ratio of 34.5% compared to 25.7% in the second quarter of 2025 Combined ratio of 83.3% compared to 78.8% in the second quarter of 2025 Adjusted combined ratio (1) of 76.7% compared to 73.1%, in the second quarter of 2025 Annualized return on equity of 21.7% compared to 22.7% in the second quarter of 2025 Annualized adjusted return on equity (1) of 26.3% compared to 23.7% in the second quarter of 2025 (1)           See discussion of “ Non-GAAP and Key Performance Indicators ” below. Mac Armstrong , Chairman and Chief Executive Officer, commented, “The second quarter of 2026 was another strong one for Palomar; highlighted by record adjusted net income, our 15 th consecutive earnings beat and the third increase to our full-year adjusted net income guidance. Gross written premium increased 27% year-over-year, adjusted net income grew 31%, adjusted earnings per share grew 34%, adjusted combined ratio was 77% and our adjusted return on equity was 26% - all outstanding results. Bolstering our financial performance were several operational achievements including the launch of the PLMR.Farm, our innovative crop policy administration system, and exceptional new additions to our team. These results demonstrate our ability to execute in a dynamic insurance market while maintaining discipline in underwriting and capital allocation. Mr. Armstrong continued, “Our strong and consistent earnings, attractive returns and healthy balance sheet provide ample capacity to not only invest in the businesses driving our Palomar 2X strategy but also return capital to shareholders. As such our Board authorized the introduction of a quarterly dividend of $0.45 per share. Importantly, the dividend does not change our growth strategy or the execution of Palomar 2X; it only enhances our ability to create shareholder value.”  Underwriting Results Gross written premiums increased 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025, while net earned premiums increased 59.5% compared to the prior year’s second quarter. Losses and loss adjustment expenses for the second quarter were $99.0 million , comprised of $99.4 million of attritional losses, offset by $0.4 million of favorable development on catastrophe events. The loss ratio for the quarter was 34.5%, comprised of an attritional loss ratio of 34.6% and a catastrophe loss ratio (1) of -0.1% compared to a loss ratio of 25.7% during the same period last year comprised entirely of attritional losses. Additionally, our second quarter results include $14.1 million of attritional and $0.2 million of catastrophe loss favorable prior year development. The majority of the attritional loss prior year favorability related to Inland Marine and Property lines and previous years’ Crop results. Underwriting income (1) for the second quarter was $48.0 million resulting in a combined ratio of 83.3% compared to underwriting income of $38.3 million resulting in a combined ratio of 78.8% during the same period last year. The Company’s adjusted underwriting income (1) was $67.0 million , an increase of 38.4%, resulting in an adjusted combined ratio (1) of 76.7% in the second quarter compared to adjusted underwriting income (1) of $48.4 million and an adjusted combined ratio (1) of 73.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses (1) was 76.8% compared to 73.1% during the same period last year. Investment Results Net investment income increased by 49.2% to $20.0 million compared to $13.4 million in the prior year’s second quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended June 30, 2026 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.33 years at June 30, 2026 . Cash and invested assets totaled $1.7 billion at June 30, 2026 . During the second quarter, the Company recorded $6.8 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $8.3 million during the same period last year. Tax Rate The effective tax rate for the three months ended June 30, 2026 was 24.7% compared to 22.3% for the three months ended June 30, 2025 . For the current quarter, the Company’s income tax rate differed from the statutory rate of 21% due primarily to the non-deductible executive compensation expense. Stockholders ’ Equity and Capital Matters Stockholders’ equity was $980.9 million at June 30, 2026 , compared to $847.2 million at June 30, 2025 . For the three months ended June 30, 2026 , the Company’s annualized return on equity was 21.7% compared to 22.7% for the same period in the prior year while adjusted return on equity (1) was 26.3% compared to 23.7% for the same period in the prior year. During the current quarter, the Company repurchased 368,719 shares of its common stock for $41.0 million . On July 30, 2026 , the Company’s Board of Directors declared an initial quarterly cash dividend of $0.45 per share of common stock, payable on September 2, 2026 , to stockholders of record as of August 19, 2026 . Full Year 2026 Outlook For the full year 2026, the Company expects to achieve adjusted net income of $270 million to $280 million . This includes an estimate of $8 million to $12 million of catastrophe losses for the year. Conference Call As previously announced, Palomar will host a conference call on Wednesday, August 5, 2026 , to discuss its second quarter 2026 results at 12:00 p.m. (Eastern Time) . The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Second Quarter 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on August 5, 2026 , and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13761138. The replay will be available until 11:59 p.m. (Eastern Time) on August 19, 2026 . Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/ . The online replay will remain available for a limited time beginning immediately following the call. About Palomar Holdings, Inc. Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc. , Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), Palomar Crop Insurance Services, Inc. (“PCIS”), and Palomar Casualty and Surety Company (“PCSC”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Property, Casualty, Surety & Credit, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of “A” (Excellent) from A.M. Best and PCSC has a financial strength rating of “A-” (Excellent) from A.M. Best . To learn more, visit PLMR.com. Non-GAAP and Key Performance Indicators Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance. Management uses these non-GAAP measures internally to evaluate the Company’s underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company’s operating performance. Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue. Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income. Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income. Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity. Loss ratio , expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums. Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums. Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss. Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio. Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share. Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio. Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses. Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income. Tangible stockholders ’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity. Safe Harbor Statement Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Contact Media Inquiries Lindsay Conner 1-551-206-6217 [email protected] Investor Relations Jamie Lillis 1-203-428-3223 [email protected] Source: Palomar Holdings, Inc. Summary of Operating Results : The following tables summarize the Company’s results for the three and six months ended June 30, 2026 and 2025:   Three Months Ended       June 30 ,       2026   2025   Change   % Change   (in thousands, except per share data) Gross written premiums $ 630,456     $ 496,288     $ 134,168     27.0 % Ceded written premiums   (305,279 )     (266,506 )     (38,773 )   14.5 % Net written premiums   325,177       229,782       95,395     41.5 % Net earned premiums   286,951       179,958       106,993     59.5 % Commission and other income   769       1,677       (908 )   (54.1 )% Total underwriting revenue (1)   287,720       181,635       106,085     58.4 % Losses and loss adjustment expenses   98,988       46,183       52,805     114.3 % Acquisition expenses, net of ceding commissions and fronting fees   71,256       51,637       19,619     38.0 % Other underwriting expenses   69,429       45,525       23,904     52.5 % Underwriting income (1)   48,047       38,290       9,757     25.5 % Interest expense   (4,947 )     (86 )     (4,861 )   NM   Net investment income   19,950       13,370       6,580     49.2 % Net realized and unrealized gains on investments   6,753       8,306       (1,553 )   (18.7 )% Income before income taxes   69,803       59,880       9,923     16.6 % Income tax expense   17,211       13,352       3,859     28.9 % Net income $ 52,592     $ 46,528     $ 6,064     13.0 % Adjustments: Net realized and unrealized gains on investments   (6,753 )     (8,306 )     1,553     (18.7 )% Expenses associated with transactions   6       754       (748 )   (99.2 )% Stock-based compensation expense   7,438       5,347       2,091     39.1 % Amortization of intangibles   9,180       1,346       7,834     NM   Expenses associated with catastrophe bond   2,330       2,661       (331 )   (12.4 )% Tax impact   (1,025 )     202       (1,227 )   NM   Adjusted net income (1) $ 63,768     $ 48,532     $ 15,236     31.4 % Key Financial and Operating Metrics Annualized return on equity   21.7 %     22.7 %             Annualized adjusted return on equity (1)   26.3 %     23.7 %             Loss ratio   34.5 %     25.7 %             Expense ratio   48.8 %     53.1 %             Combined ratio   83.3 %     78.8 %             Adjusted combined ratio (1)   76.7 %     73.1 %             Diluted earnings per share $ 1.94     $ 1.68               Diluted adjusted earnings per share (1) $ 2.36     $ 1.76               Catastrophe losses $ (418 )   $ (22 )             Catastrophe loss ratio (1)   -0.1 %     0.0 %             Adjusted combined ratio excluding catastrophe losses (1)   76.8 %     73.1 %             Adjusted underwriting income (1) $ 67,001     $ 48,398     $ 18,603     38.4 % NM - not meaningful ____________________ (1)   Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.     Six Months Ended       June 30 ,       2026   2025   Change   % Change   (in thousands, except per share data) Gross written premiums $ 1,260,284     $ 938,452     $ 321,832     34.3 % Ceded written premiums   (597,192 )     (497,251 )     (99,941 )   20.1 % Net written premiums   663,092       441,201       221,891     50.3 % Net earned premiums   548,389       344,029       204,360     59.4 % Commission and other income   2,178       2,507       (329 )   (13.1 )% Total underwriting revenue (1)   550,567       346,536       204,031     58.9 % Losses and loss adjustment expenses   186,085       84,927       101,158     119.1 % Acquisition expenses, net of ceding commissions and fronting fees   141,571       97,996       43,575     44.5 % Other underwriting expenses   134,336       81,258       53,078     65.3 % Underwriting income (1)   88,575       82,355       6,220     7.6 % Interest expense   (8,105 )     (171 )     (7,934 )   NM   Net investment income   37,934       25,441       12,493     49.1 % Net realized and unrealized gains on investments   4,860       5,968       (1,108 )   (18.6 )% Income before income taxes   123,264       113,593       9,671     8.5 % Income tax expense   27,725       24,143       3,582     14.8 % Net income $ 95,539     $ 89,450     $ 6,089     6.8 % Adjustments: Net realized and unrealized gains on investments   (4,860 )     (5,968 )     1,108     (18.6 )% Expenses associated with transactions   7,412       2,841       4,571     160.9 % Stock-based compensation expense   16,224       10,092       6,132     60.8 % Amortization of intangibles   15,235       2,054       13,181     NM   Expenses associated with catastrophe bond   2,330       2,661       (331 )   (12.4 )% Tax impact   (4,976 )     (1,293 )     (3,683 )   284.8 % Adjusted net income (1) $ 126,904     $ 99,837     $ 27,067     27.1 % Key Financial and Operating Metrics Annualized return on equity   19.9 %     22.7 %     Annualized adjusted return on equity (1)   26.4 %     25.3 %     Loss ratio   33.9 %     24.7 %     Expense ratio   49.9 %     51.4 %     Combined ratio   83.8 %     76.1 %     Adjusted combined ratio (1)   76.3 %     70.9 %     Diluted earnings per share $ 3.51     $ 3.24       Diluted adjusted earnings per share (1) $ 4.66     $ 3.62       Catastrophe losses $ (149 )   $ (565 )     Catastrophe loss ratio (1)   0.0 %     -0.2 %     Adjusted combined ratio excluding catastrophe losses (1)   76.4 %     71.1 %     Adjusted underwriting income (1) $ 129,776     $ 100,003     $ 29,773     29.8 % NM - not meaningful ____________________ (1) Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.   Condensed Consolidated Balance sheets Palomar Holdings , Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands, except shares and par value data)     June 30 ,   December 31 ,   2026   2025   (Unaudited)     Assets Investments: Fixed maturity securities available for sale, at fair value (amortized cost: $1,523,005 in 2026; $1,227,605 in 2025) $ 1,502,860     $ 1,224,187   Equity securities, at fair value (cost: $109,595 in 2026; $81,772 in 2025)   129,515       99,333   Other investments   45,877       28,503   Total investments   1,678,252       1,352,023   Cash and cash equivalents   62,689       106,875   Restricted cash   15       17   Accrued investment income   14,742       11,545   Premiums receivable   655,876       452,908   Deferred policy acquisition costs, net of ceding commissions and fronting fees   153,824       127,718   Reinsurance recoverable on paid losses and loss adjustment expenses   62,237       56,428   Reinsurance recoverable on unpaid losses and loss adjustment expenses   523,790       412,273   Ceded unearned premiums   445,449       355,918   Prepaid expenses and other assets   127,870       110,896   Deferred tax assets, net   —       761   Property and equipment, net   2,665       2,551   Goodwill and intangible assets, net   236,756       61,054   Total assets $ 3,964,165     $ 3,050,967   Liabilities and stockholders’ equity Liabilities: Accounts payable and other accrued liabilities $ 159,331     $ 115,663   Reserve for losses and loss adjustment expenses   944,737       688,231   Unearned premiums   1,226,105       988,143   Ceded premium payable   295,430       271,413   Funds held under reinsurance treaty   50,910       44,850   Term loan   295,773       —   Deferred tax liabilities, net   10,937       —   Total liabilities   2,983,223       2,108,300   Stockholders’ equity: Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025   —       —   Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,186,979 and 26,520,417 shares issued and outstanding as of June 30, 2026 and December 31, 2025 , respectively   3       3   Additional paid-in capital   542,662       523,168   Accumulated other comprehensive loss   (15,159 )     (2,506 ) Retained earnings   453,436       422,002   Total stockholders’ equity   980,942       942,667   Total liabilities and stockholders’ equity $ 3,964,165     $ 3,050,967     Condensed Consolidated Income Statement    Palomar Holdings , Inc. and Subsidiaries Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (in thousands, except shares and per share data)     Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025 Revenues: Gross written premiums $ 630,456     $ 496,288     $ 1,260,284     $ 938,452   Ceded written premiums   (305,279 )     (266,506 )     (597,192 )     (497,251 ) Net written premiums   325,177       229,782       663,092       441,201   Change in unearned premiums   (38,226 )     (49,824 )     (114,703 )     (97,172 ) Net earned premiums   286,951       179,958       548,389       344,029   Net investment income   19,950       13,370       37,934       25,441   Net realized and unrealized gains on investments   6,753       8,306       4,860       5,968   Commission and other income   769       1,677       2,178       2,507   Total revenues   314,423       203,311       593,361       377,945   Expenses: Losses and loss adjustment expenses   98,988       46,183       186,085       84,927   Acquisition expenses, net of ceding commissions and fronting fees   71,256       51,637       141,571       97,996   Other underwriting expenses   69,429       45,525       134,336       81,258   Interest expense   4,947       86       8,105       171   Total expenses   244,620       143,431       470,097       264,352   Income before income taxes   69,803       59,880       123,264       113,593   Income tax expense   17,211       13,352       27,725       24,143   Net income $ 52,592     $ 46,528     $ 95,539     $ 89,450   Other comprehensive income, net: Net unrealized gains (losses) on securities available for sale   1,294       3,009       (12,653 )     13,213   Net comprehensive income $ 53,886     $ 49,537     $ 82,886     $ 102,663   Per Share Data: Basic earnings per share $ 2.00     $ 1.74     $ 3.61     $ 3.35   Diluted earnings per share $ 1.94     $ 1.68     $ 3.51     $ 3.24     Weighted-average common shares outstanding: Basic   26,346,887       26,756,095       26,458,904       26,707,371   Diluted   27,056,554       27,628,733       27,208,113       27,568,913     Underwriting Segment Data The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (“GWP”) by product, location and company are presented below:   Three Months Ended June 30,       2026   2025       ($ in thousands)           % of       % of       %   Amount   GWP   Amount   GWP   Change   Change Product(1) Casualty $ 197,494   31.3 %   $ 144,388   29.1 %   $ 53,106     36.8 % Inland Marine and Property   169,728   26.9 %     153,040   30.8 %     16,688     10.9 % Earthquake   146,648   23.3 %     147,709   29.8 %     (1,061 )   (0.7 )% Crop   77,368   12.3 %     39,464   8.0 %     37,904     96.0 % Surety & Credit   39,218   6.2 %     11,687   2.3 %     27,531     235.6 % Total gross written premiums $ 630,456   100.0 %   $ 496,288   100.0 %   $ 134,168     27.0 % ____________________ (1) Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.     Six Months Ended June 30 ,       2026   2025       ($ in thousands)           % of       % of       %   Amount   GWP   Amount   GWP   Change   Change Product(1) Casualty $ 403,793   32.0 %   $ 277,490     29.6 %   $ 126,303   45.5 % Inland Marine and Property   336,291   26.7 %     266,366     28.4 %     69,925   26.3 % Earthquake   283,964   22.5 %     281,405     30.0 %     2,559   0.9 % Crop   165,142   13.1 %     87,683     9.3 %     77,459   88.3 % Surety & Credit   71,094   5.7 %     25,508     2.7 %     45,586   178.7 % Total gross written premiums $ 1,260,284   100.0 %   $ 938,452     100.0 %   $ 321,832   34.3 % ____________________ (1) Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.     Three Months Ended June 30,   Six Months Ended June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands)       % of       % of       % of       % of   Amount   GWP   Amount   GWP   Amount   GWP   Amount   GWP State California $ 165,306   26.2 %   $ 163,814   33.0 %   $ 322,925   25.6 %   $ 303,536   32.3 % Texas   61,497   9.7 %     35,708   7.2 %     125,081   9.9 %     80,699   8.6 % Florida   34,462   5.5 %     23,979   4.8 %     64,350   5.1 %     42,621   4.5 % Hawaii   27,259   4.3 %     24,544   4.9 %     50,104   4.0 %     44,901   4.8 % New York   26,971   4.3 %     17,462   3.5 %     51,454   4.1 %     32,857   3.5 % Washington   18,207   2.9 %     17,188   3.5 %     37,406   3.0 %     32,059   3.4 % Illinois   18,179   2.9 %     13,048   2.7 %     25,271   2.0 %     18,637   2.0 % Minnesota   15,644   2.5 %     12,004   2.4 %     17,656   1.4 %     13,042   1.4 % Other   262,931   41.7 %     188,541   38.0 %     566,037   44.9 %     370,100   39.5 % Total gross written premiums $ 630,456   100.0 %   $ 496,288   100.0 %   $ 1,260,284   100.0 %   $ 938,452   100.0 %     Three Months Ended June 30,   Six Months Ended June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands)       % of       % of       % of       % of   Amount   GWP   Amount   GWP   Amount   GWP   Amount   GWP Subsidiary PESIC $ 304,276   48.3 %   $ 237,943   47.9 %   $ 574,346   45.6 %   $ 428,730   45.7 % PSIC   278,176   44.1 %     232,983   46.9 %     601,929   47.8 %     463,900   49.4 % Laulima   23,407   3.7 %     20,134   4.1 %     42,078   3.3 %     36,171   3.9 % PCSC   21,558   3.4 %     —   — %     33,979   2.7 %     —   — % FIA   3,039   0.5 %     5,228   1.1 %     7,952   0.6 %     9,651   1.0 % Total gross written premiums $ 630,456   100.0 %   $ 496,288   100.0 %   $ 1,260,284   100.0 %   $ 938,452   100.0 %   Gross and net earned premiums The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:   Three Months Ended       Six Months Ended       June 30 ,       %   June 30 ,       %   2026   2025   Change   Change   2026   2025   Change   Change   ($ in thousands)   ($ in thousands) Gross earned premiums $ 552,859     $ 408,764     $ 144,095       35.3 %   $ 1,056,731     $ 784,540     $ 272,191       34.7 % Ceded earned premiums   (265,908 )     (228,806 )     (37,102 )     16.2 %     (508,342 )     (440,511 )     (67,831 )     15.4 % Net earned premiums $ 286,951     $ 179,958     $ 106,993       59.5 %   $ 548,389     $ 344,029     $ 204,360       59.4 %   Net earned premium ratio 51.9 %   44.0 %       51.9 %   43.9 %       Loss detail   Three Months Ended       Six Months Ended       June 30 ,       June 30 ,       2026   2025   Change   % Change   2026   2025   Change   % Change   ($ in thousands)   ($ in thousands) Catastrophe losses $ (418 )   $ (22 )   $ (396 )   NM     $ (149 )   $ (565 )   $ 416   (73.6 )% Non-catastrophe losses   99,406       46,205       53,201     115.1 %     186,234       85,492       100,742   117.8 % Total losses and loss adjustment expenses $ 98,988     $ 46,183     $ 52,805     114.3 %   $ 186,085     $ 84,927     $ 101,158   119.1 %   Catastrophe loss ratio -0.1 %   0.0 %       0.0 %   (0.2 )%     Non-catastrophe loss ratio 34.6 %   25.7 %       33.9 %   24.9 %   Total loss ratio 34.5 %   25.7 %       33.9 %   24.7 %     The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:   Three Months Ended June 30,   Six Months Ended June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period $ 341,016     $ 182,661     $ 275,959     $ 155,299   Add: Balances acquired (1)   —       —       22,178       6,788   Add: Incurred losses and LAE, net of reinsurance, related to: (2) Current year   113,312       52,698       210,741       95,757   Prior years   (14,324 )     (6,515 )     (24,656 )     (10,830 ) Total incurred   98,988       46,183       186,085       84,927   Deduct: Loss and LAE payments, net of reinsurance, related to: Current year   7,262       17,659       27,980       22,657   Prior years   11,795       12,000       35,295       25,172   Total payments   19,057       29,659       63,275       47,829   Reserve for losses and LAE net of reinsurance recoverables at end of period   420,947       199,185       420,947       199,185   Add: Reinsurance recoverables on unpaid losses and LAE at end of period   523,790       399,471       523,790       399,471   Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period $ 944,737     $ 598,656     $ 944,737     $ 598,656   ____________________ (1) Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of The Gray Casualty and Surety Company (“Gray Surety”) and FIA on 1/31/2026 and 1/1/2025, respectively, in accordance with ASC 805, Business Combinations. See Note 23 of the Notes to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K and Note 14 of our June 30, 2026 Quarterly Report on Form 10-Q for additional information regarding the acquisitions. (2) Losses for the three months ended June 30, 2026 and 2025 include $6.2 million and an insignificant amount, respectively, of losses on derivative instruments. Losses for the six months ended June 30, 2026 and 2025 include $18.5 million and an insignificant amount, respectively, of losses on derivative instruments.   Reconciliation of Non-GAAP Financial Measures For the three and six months ended June 30, 2026 and 2025, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows: Underwriting revenue   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Total revenue $ 314,423     $ 203,311     $ 593,361     $ 377,945   Net investment income   (19,950 )     (13,370 )     (37,934 )     (25,441 ) Net realized and unrealized gains on investments   (6,753 )     (8,306 )     (4,860 )     (5,968 ) Underwriting revenue $ 287,720     $ 181,635     $ 550,567     $ 346,536     Underwriting income and adjusted underwriting income   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Income before income taxes $ 69,803     $ 59,880     $ 123,264     $ 113,593   Net investment income   (19,950 )     (13,370 )     (37,934 )     (25,441 ) Net realized and unrealized gains on investments   (6,753 )     (8,306 )     (4,860 )     (5,968 ) Interest expense   4,947       86       8,105       171   Underwriting income $ 48,047     $ 38,290     $ 88,575     $ 82,355   Expenses associated with transactions   6       754       7,412       2,841   Stock-based compensation expense   7,438       5,347       16,224       10,092   Amortization of intangibles   9,180       1,346       15,235       2,054   Expenses associated with catastrophe bond   2,330       2,661       2,330       2,661   Adjusted underwriting income $ 67,001     $ 48,398     $ 129,776     $ 100,003     Adjusted net income   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Net income $ 52,592     $ 46,528     $ 95,539     $ 89,450   Adjustments: Net realized and unrealized gains on investments   (6,753 )     (8,306 )     (4,860 )     (5,968 ) Expenses associated with transactions   6       754       7,412       2,841   Stock-based compensation expense   7,438       5,347       16,224       10,092   Amortization of intangibles   9,180       1,346       15,235       2,054   Expenses associated with catastrophe bond   2,330       2,661       2,330       2,661   Tax impact   (1,025 )     202       (4,976 )     (1,293 ) Adjusted net income $ 63,768     $ 48,532     $ 126,904     $ 99,837        Annualized adjusted return on equity   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Annualized adjusted net income $ 255,072     $ 194,128     $ 253,808     $ 199,674   Average stockholders’ equity $ 969,991     $ 818,823     $ 961,805     $ 788,114   Annualized adjusted return on equity   26.3 %     23.7 %     26.4 %     25.3 %   Adjusted combined ratio   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 238,904     $ 141,668     $ 459,814     $ 261,674   Denominator: Net earned premiums $ 286,951     $ 179,958     $ 548,389     $ 344,029   Combined ratio   83.3 %     78.8 %     83.8 %     76.1 % Adjustments to numerator: Expenses associated with transactions $ (6 )   $ (754 )   $ (7,412 )   $ (2,841 ) Stock-based compensation expense   (7,438 )     (5,347 )     (16,224 )     (10,092 ) Amortization of intangibles   (9,180 )     (1,346 )     (15,235 )     (2,054 ) Expenses associated with catastrophe bond   (2,330 )     (2,661 )     (2,330 )     (2,661 ) Adjusted combined ratio   76.7 %     73.1 %     76.3 %     70.9 %   Diluted adjusted earnings per share   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   (in thousands, except per share data)     (in thousands, except per share data) Adjusted net income $ 63,768     $ 48,532     $ 126,904     $ 99,837   Weighted-average common shares outstanding, diluted   27,056,554       27,628,733       27,208,113       27,568,913   Diluted adjusted earnings per share $ 2.36     $ 1.76     $ 4.66     $ 3.62     Catastrophe loss ratio   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Numerator: Losses and loss adjustment expenses $ 98,988     $ 46,183     $ 186,085     $ 84,927   Denominator: Net earned premiums $ 286,951     $ 179,958     $ 548,389     $ 344,029   Loss ratio   34.5 %     25.7 %     33.9 %     24.7 %   Numerator: Catastrophe losses $ (418 )   $ (22 )   $ (149 )   $ (565 ) Denominator: Net earned premiums $ 286,951     $ 179,958     $ 548,389     $ 344,029   Catastrophe loss ratio   -0.1 %     0.0 %     0.0 %     -0.2 %   Adjusted combined ratio excluding catastrophe losses   Three Months Ended   Six Months Ended   June 30 ,   June 30 ,   2026   2025   2026   2025   ($ in thousands)   ($ in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 238,904     $ 141,668     $ 459,814     $ 261,674   Denominator: Net earned premiums $ 286,951     $ 179,958     $ 548,389     $ 344,029   Combined ratio   83.3 %     78.8 %     83.8 %     76.1 % Adjustments to numerator: Expenses associated with transactions $ (6 )   $ (754 )   $ (7,412 )   $ (2,841 ) Stock-based compensation expense   (7,438 )     (5,347 )     (16,224 )     (10,092 ) Amortization of intangibles   (9,180 )     (1,346 )     (15,235 )     (2,054 ) Expenses associated with catastrophe bond   (2,330 )     (2,661 )     (2,330 )     (2,661 ) Catastrophe losses   418       22       149       565   Adjusted combined ratio excluding catastrophe losses   76.8 %     73.1 %     76.4 %     71.1 %   Tangible Stockholders ’ equity   June 30 ,   December 31 ,   2026   2025   ($ in thousands) Stockholders’ equity $ 980,942     $ 942,667   Goodwill and intangible assets   (236,756 )     (61,054 ) Tangible stockholders’ equity $ 744,186     $ 881,613   Source: Palomar Holdings, Inc 2026 GlobeNewswire, Inc., source Press Releases

View stock analysis, news, and events for Palomar Holdings, Inc.