Palomar Holdings, Inc. (NASDAQ:PLMR) Q1 2024 Earnings Conference Call May 3, 2024 11:00 AM ET Company Participants Chris Uchida - Chief Financial Officer Mac Armstrong - Chairman and Chief Executive Officer Jon Christianson - President Conference Call Participants Paul Newsome - Piper Sandler Mark Hughes - Truist Securities Peter Knudsen - Evercore ISI Matt Carletti - Citizens JMP Andrew Andersen - Jefferies Meyer Shields - KBW Pablo Singzon - JPMorgan Operator Good morning and welcome to the Palomar Holdin ...

Table of Contents 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 March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38873 Palomar Holdings, Inc. (Exact name of registrant as specified in its charter) D ...

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) Palomar Holdings reported strong Q1 2024 results, with net income up 52.4% to $26.4 million and gross written premiums growing 47.2% Financial Highlights | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $26.4 million | $17.3 million | +52.6% | | Diluted EPS | $1.04 | $0.68 | +52.9% | | Adjusted Net Income | $27.8 million | $20.4 million | +36.0% | | Adjusted Diluted EPS | $1.09 | $0.80 | +36.3% | | Gross Written Premiums | $368.1 million | $250.1 million | +47.2% | | Annualized Adjusted ROE | 22.9% | 20.7% | +2.2 pts | - The CEO attributed strong results to a focus on profitable growth and predictable earnings, with key contributions from newer product lines and the core franchise[4](index=4&type=chunk) - **Strong Growth Drivers**: Crop and Casualty products significantly contributed to the **47.2% growth** in gross written premiums[4](index=4&type=chunk) - **Core Franchise Performance**: The market-leading Earthquake franchise demonstrated solid growth of **18%** on a same-store basis[4](index=4&type=chunk) - **Strategic Confidence**: The positive start supports the company's 'Palomar 2X' strategic plan and led to an increased full-year financial outlook[4](index=4&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) Q1 2024 financial performance showed robust premium growth, stable underwriting profitability with a 76.9% combined ratio, 39.4% investment income growth, and increased stockholders' equity to $501.7 million [Underwriting Results](index=1&type=section&id=Underwriting%20Results) Q1 2024 underwriting performance remained strong with gross written premiums up 47.2% to $368.1 million and an improved combined ratio of 76.9% Underwriting Performance Metrics | Underwriting Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gross Written Premiums | $368.1 M | $250.1 M | | Net Earned Premiums | $107.9 M | $83.2 M | | Underwriting Income | $25.0 M | $18.4 M | | Adjusted Underwriting Income | $29.2 M | $22.2 M | | Loss Ratio | 24.9% | 24.8% | | Combined Ratio | 76.9% | 77.9% | | Adjusted Combined Ratio | 73.0% | 73.3% | - Losses for the quarter totaled **$26.8 million**, including **$3.4 million** in catastrophe losses from flood activity and **$23.5 million** in non-catastrophe attritional losses[6](index=6&type=chunk) [Investment Results](index=1&type=section&id=Investment%20Results) Q1 2024 net investment income increased 39.4% to $7.1 million, driven by higher yields and a larger average investment balance, with $3.0 million in net realized/unrealized gains - The increase in net investment income was attributed to higher yields and a larger average balance of investments[8](index=8&type=chunk) - Cash and invested assets totaled **$766.4 million** at the end of the quarter[8](index=8&type=chunk) - The weighted average duration of the fixed-maturity investment portfolio was **3.62 years** as of March 31, 2024[8](index=8&type=chunk) [Stockholders' Equity and Returns](index=3&type=section&id=Stockholders'%20Equity%20and%20Returns) Stockholders' equity grew to $501.7 million by March 31, 2024, supporting improved annualized return on equity of 21.7% and adjusted return on equity of 22.9% Stockholders' Equity and Return Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Stockholders' Equity | $501.7 M | $404.6 M | | Annualized Return on Equity | 21.7% | 17.5% | | Annualized Adjusted ROE | 22.9% | 20.7% | [Full Year 2024 Outlook](index=3&type=section&id=Full%20Year%202024%20Outlook) Palomar Holdings raised its full-year 2024 adjusted net income guidance to $113 million to $118 million, incorporating Q1 catastrophe losses - The company increased its full-year 2024 guidance for adjusted net income to a range of **$113 million to $118 million**[11](index=11&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) Detailed financial statements reveal significant year-over-year growth in premiums, underwriting income, and net income, with total assets reaching $1.88 billion [Summary of Operating Results](index=6&type=section&id=Summary%20of%20Operating%20Results) Q1 2024 operating results show a 47.2% increase in gross written premiums and a 52.4% rise in net income, with net earned premiums up 29.6% Summary of Operating Results (Thousands) | ($ in thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross written premiums | $368,078 | $250,112 | 47.2% | | Net earned premiums | $107,866 | $83,241 | 29.6% | | Underwriting income (Non-GAAP) | $24,955 | $18,383 | 35.8% | | Net investment income | $7,139 | $5,120 | 39.4% | | Income before income taxes | $34,356 | $22,629 | 51.8% | | Net income | $26,382 | $17,313 | 52.4% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached $1.88 billion, with total liabilities at $1.38 billion and stockholders' equity at $501.7 million Condensed Consolidated Balance Sheets (Thousands) | ($ in thousands) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total investments | $704,631 | $689,576 | | Cash and cash equivalents | $61,387 | $51,546 | | Total assets | $1,884,684 | $1,708,022 | | Reserve for losses and LAE | $402,187 | $342,275 | | Total liabilities | $1,383,026 | $1,236,770 | | Total stockholders' equity | $501,658 | $471,252 | [Condensed Consolidated Income Statement](index=8&type=section&id=Condensed%20Consolidated%20Income%20Statement) Q1 2024 income statement shows total revenues grew to $118.5 million, with net income reaching $26.4 million and diluted EPS at $1.04 Condensed Consolidated Income Statement (Thousands) | ($ in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $118,535 | $89,202 | | Total expenses | $84,179 | $66,573 | | Income before income taxes | $34,356 | $22,629 | | Net income | $26,382 | $17,313 | | Diluted EPS | $1.04 | $0.68 | [Underwriting Segment Data](index=9&type=section&id=Underwriting%20Segment%20Data) GWP breakdown shows diversified growth, with Casualty up 327.2% and Crop adding $38.7 million, while California's GWP share decreased to 42.7%, indicating geographic diversification [Gross Written Premiums by Product](index=9&type=section&id=Gross%20Written%20Premiums%20by%20Product) Q1 2024 GWP growth was driven by Casualty (up 327.2% to $51.9 million) and the new Crop line ($38.7 million), with Earthquake growing 13.1% to $105.7 million Gross Written Premiums by Product (Millions) | Product Line | Q1 2024 GWP ($M) | Q1 2023 GWP ($M) | % Change | | :--- | :--- | :--- | :--- | | Earthquake | $105.7 | $93.5 | 13.1% | | Fronting | $94.8 | $91.8 | 3.4% | | Inland Marine & Other | $76.9 | $52.7 | 45.9% | | Casualty | $51.9 | $12.2 | 327.2% | | Crop | $38.7 | $0.0 | N/A | | **Total** | **$368.1** | **$250.1** | **47.2%** | [Gross Written Premiums by State](index=9&type=section&id=Gross%20Written%20Premiums%20by%20State) California remains the largest GWP market at 42.7%, but its concentration decreased, while Texas, Colorado, and New Mexico showed significant growth, indicating geographic diversification - Top 5 states by GWP in Q1 2024 were[41](index=41&type=chunk) - California: **$157.2 million** (**42.7%** of total)[41](index=41&type=chunk) - Texas: **$40.8 million** (**11.1%** of total)[41](index=41&type=chunk) - Florida: **$13.9 million** (**3.8%** of total)[41](index=41&type=chunk) - Hawaii: **$12.5 million** (**3.4%** of total)[41](index=41&type=chunk) - Washington: **$12.0 million** (**3.3%** of total)[41](index=41&type=chunk) [Detailed Underwriting and Loss Analysis](index=10&type=section&id=Detailed%20Underwriting%20and%20Loss%20Analysis) Underwriting analysis reveals a 29.6% increase in net earned premiums to $107.9 million, with total losses and LAE up 29.9% to $26.8 million, and reserves increasing to $110.2 million [Gross and Net Earned Premiums](index=10&type=section&id=Gross%20and%20Net%20Earned%20Premiums) Q1 2024 gross earned premiums increased 34.5% to $302.9 million, with net earned premiums growing 29.6% to $107.9 million, while the net earned premium ratio slightly decreased to 35.6% Gross and Net Earned Premiums (Thousands) | ($ in thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross earned premiums | $302,872 | $225,243 | 34.5% | | Ceded earned premiums | $(195,006) | $(142,002) | 37.3% | | Net earned premiums | $107,866 | $83,241 | 29.6% | [Loss Detail and Reserve Reconciliation](index=10&type=section&id=Loss%20Detail%20and%20Reserve%20Reconciliation) Total losses and LAE increased to $26.8 million in Q1 2024, with catastrophe losses at $3.4 million and non-catastrophe losses at $23.5 million, and gross loss reserves at $402.2 million Loss Detail (Thousands) | ($ in thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Catastrophe losses | $3,359 | $1,806 | 86.0% | | Non-catastrophe losses | $23,478 | $18,846 | 24.6% | | **Total losses and LAE** | **$26,837** | **$20,652** | **29.9%** | - The reserve for losses and LAE, gross of reinsurance, ended the period at **$402.2 million**, compared to **$265.0 million** at the end of Q1 2023[43](index=43&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, adjusting Q1 2024 GAAP net income of $26.4 million to an adjusted net income of $27.8 million Reconciliation to Adjusted Net Income (Thousands) | Reconciliation to Adjusted Net Income ($ in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$26,382** | **$17,313** | | Net realized/unrealized gains on investments | $(3,002) | $(146) | | Stock-based compensation expense | $3,820 | $3,450 | | Amortization of intangibles | $390 | $313 | | Expenses associated with catastrophe bond | $— | $50 | | Tax impact | $204 | $(540) | | **Adjusted net income (Non-GAAP)** | **$27,794** | **$20,440** | Reconciliation to Adjusted Combined Ratio | Reconciliation to Adjusted Combined Ratio | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Combined ratio (GAAP)** | **76.9%** | **77.9%** | | Stock-based compensation expense | (3.5)% | (4.1)% | | Amortization of intangibles | (0.4)% | (0.4)% | | Expenses associated with catastrophe bond | 0.0% | (0.1)% | | **Adjusted combined ratio (Non-GAAP)** | **73.0%** | **73.3%** |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38873 Palomar Holdings, Inc. (Exact name of registrant as specified in its charter) (State ...

Palomar Holdings, Inc. (NASDAQ:PLMR) Q4 2023 Earnings Conference Call February 15, 2024 12:00 PM ET Company Participants Mac Armstrong - Chairman and CEO Chris Uchida - CFO Jon Christianson - President Conference Call Participants Paul Newsome - Piper Sandler Mark Hughes - Truist Securities Andrew Andersen - Jefferies Meyer Shields - KBW Pablo Singzon - JPMorgan Operator Good morning, and welcome to Palomar Holdings, Inc. Fourth Quarter and Full Year 2023 Earnings Conference Call. During today’s presentatio ...

Palomar Holdings, Inc. (NASDAQ:PLMR) Q3 2023 Earnings Conference Call November 2, 2023 12:00 PM ET Company Participants Chris Uchida - CFO McDonald Armstrong - Founder, CEO & Chairman Jon Christianson - President Conference Call Participants Mark Hughes - Truist Securities Andrew Lambert - Piper Sandler David Motemaden - Evercore ISI Meyer Shields - KBW Andrew Andersen - Jefferies Pablo Singzon - JPMorgan Chase & Co. Operator Good morning, and welcome to the Palomar Holdings Third Quarter 2023 Earnings Conf ...

Table of Contents 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, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38873 Palomar Holdings, Inc. (Exact name of registrant as specified in its charte ...

Palomar Holdings, Inc. (NASDAQ:PLMR) Q2 2023 Earnings Conference Call August 3, 2023 12:00 PM ET Company Participants Chris Uchida - Chief Financial Officer Mac Armstrong - Chairman and CEO Jon Christianson - President Conference Call Participants Tracy Benguigui - Barclays Mark Hughes - Truist Securities David Motemaden - Evercore ISI Andrew Andersen - Jefferies Pablo Singzon - JPMorgan Operator Good morning. And welcome to the Palomar Holdings, Inc. Second Quarter 2023 Earnings Conference Call. During tod ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Palomar Holdings, Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2023, including balance sheets, income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Balance Sheet Highlights | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | Total Investments | $601.5 million | $553.6 million | | Total Assets | $1,546.3 million | $1,306.5 million | | Total Liabilities | $1,132.6 million | $921.7 million | | Total Stockholders' Equity | $413.7 million | $384.8 million | [Condensed Consolidated Statements of Income and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20(Loss)) | Income Statement Highlights | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Gross Written Premiums | $274.3 million | $218.7 million | | Net Earned Premiums | $83.1 million | $80.3 million | | Net Income | $17.6 million | $14.6 million | | Diluted Earnings Per Share | $0.69 | $0.57 | | Income Statement Highlights | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Gross Written Premiums | $524.4 million | $389.6 million | | Net Earned Premiums | $166.3 million | $156.3 million | | Net Income | $34.9 million | $29.1 million | | Diluted Earnings Per Share | $1.37 | $1.13 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) - Total stockholders' equity increased to **$413.7 million** at June 30, 2023, from **$384.8 million** at December 31, 2022. The increase was primarily driven by net income of **$34.9 million**, partially offset by **$15.6 million** in common stock repurchases during the six-month period[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Summary (Six Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23.2 million | $82.8 million | | Net cash used in investing activities | ($52.9 million) | ($101.5 million) | | Net cash provided by financing activities | $20.1 million | $4.8 million | | Net (decrease) in cash, cash equivalents and restricted cash | ($9.6 million) | ($13.9 million) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - As of June 30, 2023, the company's catastrophe event retention is **$17.5 million** for all perils. Its excess of loss (XOL) reinsurance provides protection up to **$2.66 billion** for earthquake events, **$900 million** for Hawaii hurricane events, and **$100 million** for continental U.S. hurricane events[70](index=70&type=chunk) - The company utilizes catastrophe bonds to supplement its reinsurance program. In Q2 2023, it closed a **$200 million** 144A catastrophe bond effective June 1, 2023, which provides indemnity-based reinsurance for earthquake events through June 1, 2026[71](index=71&type=chunk) | Gross Written Premiums by Product (Q2 2023) | Amount | % of GWP | | :--- | :--- | :--- | | Fronting Premiums | $80.2M | 29.2% | | Residential Earthquake | $65.1M | 23.7% | | Commercial Earthquake | $42.8M | 15.6% | | Inland Marine | $35.5M | 13.0% | | California (by State) | $157.1M | 57.3% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q2 and H1 2023 financial performance, covering GWP growth, operational drivers, liquidity, and capital resources [Results of Operations - Three Months Ended June 30, 2023 vs 2022](index=26&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202023%20vs%202022) Q2 2023 GWP grew 25.4% to **$274.3 million** driven by Fronting premiums, net income rose 20.4% to **$17.6 million**, and the combined ratio increased to **79.0%** due to higher loss ratio | Key Metrics (Q2 2023 vs Q2 2022) | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Gross Written Premiums | $274.3M | $218.7M | | Net Income | $17.6M | $14.6M | | Adjusted Net Income (Non-GAAP) | $21.8M | $22.4M | | Loss Ratio | 21.5% | 17.9% | | Combined Ratio | 79.0% | 75.1% | | Adjusted Combined Ratio (Non-GAAP) | 72.2% | 69.1% | - The **25.4%** growth in GWP was led by a **$38.1 million** (**90.3%**) increase in Fronting Premiums. Significant growth was also seen in Residential Earthquake (**+$11.0M**), Commercial Earthquake (**+$9.7M**), and Inland Marine (**+$12.4M**)[120](index=120&type=chunk) - The increase in the loss ratio was driven by **$2.2 million** in catastrophe losses, primarily from severe convective storms, compared to **$0.5 million** in the prior year period. The non-catastrophe loss ratio also increased to **18.9%** from **17.2%**[129](index=129&type=chunk)[130](index=130&type=chunk) [Results of Operations - Six Months Ended June 30, 2023 vs 2022](index=31&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202023%20vs%202022) H1 2023 GWP increased 34.6% to **$524.4 million** driven by Fronting premiums, net income grew 19.7% to **$34.9 million**, and the combined ratio rose to **78.5%** due to higher loss ratio | Key Metrics (Six Months 2023 vs 2022) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Gross Written Premiums | $524.4M | $389.6M | | Net Income | $34.9M | $29.1M | | Adjusted Net Income (Non-GAAP) | $42.2M | $41.0M | | Loss Ratio | 23.2% | 18.8% | | Combined Ratio | 78.5% | 75.8% | | Adjusted Combined Ratio (Non-GAAP) | 72.8% | 70.5% | - Ceded written premiums increased by **60.0%** to **$339.5 million**, driven by growth in fronting and quota share agreements. This raised the ceded premium ratio to **64.7%** from **54.5%** in the prior year period[144](index=144&type=chunk)[145](index=145&type=chunk) - Catastrophe losses for the six-month period were **$4.0 million** (**2.4%** loss ratio), related to floods and severe convective storms, compared to **$1.0 million** (**0.7%** loss ratio) in the prior year[151](index=151&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$660.2 million** in cash and investments and **$413.7 million** in stockholders' equity as of June 30, 2023 - Cash flow from operations was **$23.2 million** for the first six months of 2023, a decrease from **$82.8 million** in the same period of 2022, with the variation attributed to the timing of premium receipts, claim payments, and reinsurance activities[195](index=195&type=chunk)[196](index=196&type=chunk) - The company repurchased **301,162 shares** for **$15.6 million** in the first six months of 2023, with **$50.0 million** remaining available under its share repurchase program[200](index=200&type=chunk) - Total stockholders' equity increased to **$413.7 million**, and tangible stockholders' equity (a non-GAAP measure) increased to **$400.6 million** as of June 30, 2023[206](index=206&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and credit risk, managed conservatively with high-quality fixed maturity securities - The company manages credit risk by investing primarily in high-quality securities. As of June 30, 2023, approximately **78.9%** of the fixed maturity portfolio was rated 'A-' or better, and **1.6%** was rated below investment grade or unrated[220](index=220&type=chunk) - The fixed income investment portfolio had a book yield of **3.60%** as of June 30, 2023, an increase from **3.30%** as of December 31, 2022[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2023, disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[223](index=223&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[224](index=224&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expected to materially adversely affect its financial position - The company states that ongoing legal proceedings are not expected to have a material adverse effect on its consolidated financial position[227](index=227&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks including catastrophe events, reinsurance reliance, loss reserve adequacy, geographic concentration, competition, and regulatory changes - A primary risk is exposure to unpredictable and severe catastrophe events. The company's reinsurance coverage exhausts at **$2.66 billion** for earthquake events and **$900 million** for Hawaii hurricane events, with a catastrophe event retention of **$17.5 million** for all perils[231](index=231&type=chunk)[238](index=238&type=chunk) - The business is geographically concentrated, with California and Texas representing **57%** and **9%** of gross written premiums, respectively, for the six months ended June 30, 2023, exposing the company to regional loss activity and regulatory environments[269](index=269&type=chunk) - The company relies on a select group of brokers and program administrators. For the six months ended June 30, 2023, the two largest program administrators distributed **31.3%** and **14.7%** of gross written premiums, respectively[276](index=276&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's share repurchase activity during Q2 2023, totaling **166,482 shares** under its publicly announced plan | Share Repurchases (Q2 2023) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2023 | 84,547 | $54.02 | | May 2023 | 68,061 | $49.52 | | June 2023 | 13,874 | $54.96 | | **Total** | **166,482** | | - As of June 30, 2023, approximately **$50.0 million** remained available for future repurchases under the company's **$100 million** share repurchase program, which extends through March 31, 2024[375](index=375&type=chunk)[376](index=376&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) A new executive employment agreement was approved, specifying severance benefits for executive officers upon termination or change in control - A new form of executive employment agreement was approved, providing for severance payments equal to **12 months' base salary** plus a pro-rata target bonus upon termination without cause or for good reason[380](index=380&type=chunk)[381](index=381&type=chunk) - If termination without cause or resignation for good reason occurs within **12 months** of a change in control, the executive is entitled to severance pay and acceleration of unvested equity awards[382](index=382&type=chunk)

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 March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38873 Palomar Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jur ...