Core Viewpoint - Palomar Holdings, Inc. (PLMR) has demonstrated significant stock performance, rallying 102.1% year to date, outperforming the industry and broader market indices [1][2]. Company Performance - PLMR shares closed at $112.17, close to its 52-week high of $112.47, indicating strong investor confidence and potential for further price appreciation [3]. - The company has consistently beaten earnings estimates over the last four quarters, with an average surprise of 14.90% [3]. - The Zacks Consensus Estimate for PLMR's 2024 earnings per share indicates a year-over-year increase of 30.3%, with revenues projected to grow by 44.2% to $537.83 million [6]. Growth Drivers - Key factors driving PLMR's stock performance include new business generation, strong premium retention rates, effective pricing strategies, and capital deployment [4]. - The company has a strong growth score of A, reflecting its favorable growth prospects [7]. - PLMR's return on equity (ROE) was 20.8% in the first nine months of 2024, significantly higher than the industry average of 7.6% [8]. Financial Health - PLMR maintains a debt-free balance sheet and expects to generate adjusted net income between $124 million and $128 million in 2024, despite anticipated catastrophe losses [12]. - The company has a combined ratio under 95% since 2017, indicating prudent underwriting practices [11]. Market Position - PLMR is trading above its 50-day and 200-day moving averages, suggesting solid upward momentum [5]. - The company is expected to benefit from increased policy volumes and strategic expansion in its product offerings [9]. Investment Outlook - High-quality fixed-income securities and a higher average balance of investments are expected to improve net investment income, which has seen a five-year CAGR of 49% [10].

Core Insights - The article emphasizes the importance of utilizing Zacks Premium services to enhance stock market investment strategies and confidence for both new and experienced investors [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies stocks with favorable price trends, utilizing short-term price changes and earnings estimate revisions [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [11] Company Spotlight: Palomar Holdings, Inc. - Palomar Holdings, Inc., founded in 2014 and headquartered in La Jolla, CA, operates as an insurance holding company [14] - Currently rated 3 (Hold) on the Zacks Rank, Palomar has a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 30.4% for the current fiscal year [15] - Recent analyst revisions have positively impacted earnings estimates, with the Zacks Consensus Estimate rising to $4.81 per share, alongside an average earnings surprise of 14.9% [15][16]

It has been about a month since the last earnings report for Palomar (PLMR) . Shares have added about 19.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Palomar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Palomar Q3 Earnings, Revenues Top Estimates on Highe ...

Palomar Holdings, Inc. (PLMR) shares have rallied 86.8% year to date (YTD) compared with the industry's growth of 31.5%. The Finance sector and the Zacks S&P 500 composite have returned 21.3% and 23.4%, respectively, YTD. With a market capitalization of $2.74 billion, the average volume of shares traded in the last three months was 0.15 million.PLMR Outperforms Industry, Sector, S&P YTDImage Source: Zacks Investment ResearchShares of PLMR closed at $103.69 on Friday, near its 52-week high of $107.00. This p ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 per share PLMR The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tran ...

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2024 was $32.4 million, or $1.23 per share, representing a 39% increase from $23.3 million, or $0.92 per share, in Q3 2023 [45] - Adjusted underwriting income increased to $31 million from $25 million year-over-year [46] - Adjusted combined ratio was 77.1% for Q3 2024, up from 70.9% in Q3 2023, while the adjusted return on equity was 21%, down from 22.3% [46][47] Business Line Data and Key Metrics Changes - Earthquake business gross written premium grew by 19%, with residential earthquake business showing strong new business growth and high policy retention [15] - Casualty premiums increased by 91% year-over-year, with standout classes like real estate errors and omissions growing by 40% [26] - Crop premiums reached $60 million in Q3, with year-to-date premiums exceeding $100 million compared to $12.1 million last year [33][35] Market Data and Key Metrics Changes - The company experienced a 32% increase in gross written premiums, totaling $415 million in Q3 2024 [48] - Hawaii Hurricane premiums grew by 74% in Q3, driven by a 23% rate increase approved in the previous quarter [23] - The attritional loss ratio for Q3 was 20.2%, reflecting strong performance in property lines despite elevated catastrophe losses [54][105] Company Strategy and Development Direction - The company aims to achieve strong premium growth across its portfolio, focusing on segments with the best risk-adjusted returns [9] - A strategic imperative includes navigating market dislocation and diversifying the business, supported by a $160 million equity issuance [10] - The company is committed to delivering consistent earnings and scaling the organization, with significant investments in talent acquisition [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining high teen growth rates for the earthquake business, despite competitive pressures [64] - The company anticipates a favorable trend in net earned premium ratios moving forward, expecting Q3 to be the low point [68] - Management highlighted the importance of diversifying into crop insurance as a stabilizing factor against property market volatility [78] Other Important Information - The company raised $160 million through equity issuance to strengthen its balance sheet and support growth initiatives [10] - The acquisition of FIA, a surety insurer, is expected to close in early 2025, with no financial contribution anticipated in Q4 2024 [41] - The company’s stockholder's equity reached $703.3 million, reflecting consistent profitable growth [59] Q&A Session Summary Question: Growth prospects for the earthquake business next year - Management feels positive about growth prospects, expecting 18% to 20% growth for 2024, with a balanced approach between residential and commercial segments [64] Question: Impact of mix of business versus pricing on earned premium ratio - The increase in the earned premium ratio is attributed to a combination of rate, mix, and strong performance in excess of loss placements [66][68] Question: Profitability of property businesses over time - The property portfolio has generally been profitable, with some underperformers being monitored and exposure reduced [77] Question: Crop business as a diversifier - The crop business is viewed as a strong diversifier, uncorrelated with property market cycles, and expected to contribute steadily to earnings [78][79] Question: Catastrophe losses and expected levels - Management expects catastrophe losses to stabilize around 3 to 4 points on the combined ratio, with adjustments made to reduce exposure [84] Question: Underwriting expense ratio expectations - The underwriting expense ratio is expected to stabilize in the mid-6% to 7% range as the business scales, with ongoing investments in talent [86][87]

Core Insights - Palomar Holdings, Inc. (PLMR) reported a third-quarter 2024 operating income of $1.23 per share, exceeding the Zacks Consensus Estimate by 13.9% and reflecting a year-over-year increase of 33.7% [1][2] Financial Performance - Total revenues rose 60.3% year over year to $145.8 million, driven by higher premiums, commissions, and net investment income, surpassing the Zacks Consensus Estimate by 8.2% [3] - Gross written premiums increased 32.2% year over year to $415 million, supported by strong performance in earthquake and casualty products, as well as growth in the crop business [4] - Net earned premiums grew 58.1% year over year to $135.6 million, exceeding estimates [4] - Net investment income increased 56% year over year to $9.4 million, attributed to higher yields on invested assets and a larger average balance of investments [5] - Adjusted underwriting income was $31 million, up 24% from the previous year, while underwriting income rose 27.5% year over year to $26.4 million [6] Expense and Loss Metrics - Total expenses increased 65.6% year over year to $110 million, primarily due to higher losses and underwriting expenses [6] - The loss ratio deteriorated by 1090 basis points year over year to 29.7, while the adjusted combined ratio, excluding catastrophe losses, worsened by 620 basis points to 77.1 [7] Financial Position - Cash and cash equivalents increased 67% from the end of 2023 to $86.5 million, and shareholder equity rose 49% to $703.3 million [8] - The annualized adjusted return on equity for the third quarter of 2024 was 21%, a decrease of 130 basis points year over year [8] Future Outlook - Palomar anticipates adjusted net income in the range of $124-$128 million for 2024, which includes expected catastrophe losses of nearly $8 million related to Hurricane Milton [9]

For the quarter ended September 2024, Palomar (PLMR) reported revenue of $145.77 million, up 57.9% over the same period last year. EPS came in at $1.23, compared to $0.92 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $134.72 million, representing a surprise of +8.20%. The company delivered an EPS surprise of +13.89%, with the consensus EPS estimate being $1.08.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Palomar (PLMR) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.89%. A quarter ago, it was expected that this insurance holding company would post earnings of $1.12 per share when it actually produced earnings of $1.25, delivering a surprise of 11.61%.Over the last four quarters, th ...

LA JOLLA, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $30.5 million, or $1.15 per diluted share, for the third quarter of 2024 compared to net income of $18.4 million, or $0.73 per diluted share, for the third quarter of 2023. Adjusted net income(1) was $32.4 million, or $1.23 per diluted share, for the third quarter of 2024 as compared to $23.3 million, or $0.92 per diluted share, for the third quarter of 2023. Third Quarter ...