Financial Data and Key Metrics Changes - The company reported an 85% growth in adjusted net income, reaching $51.3 million or $1.87 per share compared to $27.8 million or $1.09 per share in Q1 2024 [30] - The adjusted combined ratio improved to 68.5% from 73% in the same quarter last year, indicating better underwriting performance [31] - Gross written premiums increased by 20% year over year to $442.2 million, with a 37% growth rate when excluding runoff business [32] Business Line Data and Key Metrics Changes - The casualty gross written premium grew by 113% year over year, driven by strong performance across various segments [20] - The earthquake franchise saw a 23% year-over-year growth in gross written premium, with record new business in the residential segment [14] - The crop franchise generated $48 million in written premium, a 25% increase year over year, despite seasonal limitations [23] Market Data and Key Metrics Changes - The company noted pressure in the commercial accounts market, with rate decreases of approximately 5% in small commercial accounts and 7.5% in large commercial accounts [16] - The Hawaii hurricane segment experienced an 82% growth, with new business written at rates 26% higher than the previous year [18] - The company is facing increased competition in the commercial all-risk segment, leading to significant pricing pressure [19] Company Strategy and Development Direction - The company is focused on executing its strategic imperatives, including integrating and operating new acquisitions, building new market leaders, and maintaining a conservative risk appetite [7][10] - The acquisition of Advanced Ag Protection is expected to enhance the crop business and contribute to long-term growth [24] - The company aims to build a leading specialty insurance franchise with a diversified portfolio, targeting $500 million in premium for the crop business in the intermediate future [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, noting that the insurance sector is less impacted by tariffs compared to other industries [11] - The company raised its full-year 2025 adjusted net income guidance to a range of $186 million to $200 million, reflecting strong performance and growth potential [29] - Management acknowledged that a recession could have a more significant impact on the portfolio than tariffs, but emphasized the diversity of the portfolio as a strength [13] Other Important Information - The company secured $525 million of earthquake limit through a catastrophe bond issuance, exceeding its target [26] - The net investment income for Q1 was $12.1 million, a 69.1% increase year over year, attributed to higher yields on invested assets [36] - The company is committed to investing in talent across various departments to support growth and operational efficiency [28] Q&A Session Summary Question: Can you help us think through the flat to down five that you're assuming in your outlook? - Management indicated that all placements to date have come in better than the forecast of flat to down 5%, with a conservative approach to future placements [44] Question: Could you talk about the thought process around splitting out Laulima separately? - The decision to separate Laulima stems from the desire to establish it as an independent entity, allowing for better management and fee generation [47] Question: What sort of growth did you see in the residential and commercial sides? - Management noted strong growth in both residential and commercial segments, with residential benefiting from heightened awareness and new partnerships [52][55] Question: How much of the acceleration in the casualty book was due to market growth versus internal ramp-up? - Management stated that the acceleration was a combination of both new hires and favorable market conditions, allowing for broader distribution and service capabilities [61] Question: Are you keeping the commercial all-risk program in the portfolio? - Management confirmed that they will maintain a minimal presence in the commercial all-risk market, ready to re-enter when conditions improve [73]

Core Insights - Palomar Holdings Inc. (PLMR) reported a first-quarter 2025 operating income of $1.87 per share, exceeding the Zacks Consensus Estimate by 17.6% and reflecting a year-over-year increase of 71.5% [1] - Total revenues rose 52.6% year over year to $177 million, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 2.9% [1] Revenue and Premiums - Gross written premiums increased 20.1% year over year to $442.1 million, while net earned premiums rose 52.1% year over year to $164 million, exceeding estimates [2] - Net investment income surged 69.1% year over year to $12.1 million, driven by higher yields and a larger average balance of investments [3] Underwriting Performance - Underwriting income reached $44 million, up 76.5% year over year, with adjusted underwriting income nearly at $51.6 million, reflecting a 77% increase [4] - Total expenses increased 43.6% year over year to $120.9 million, influenced by higher loss and acquisition expenses [4] Loss Ratios and Combined Ratios - The loss ratio improved by 130 basis points year over year to 23.6, better than estimates, while the adjusted combined ratio improved 90 basis points to 68.9 [5] Financial Position - Cash and cash equivalents increased 48.3% from the end of 2024 to $119.3 million, and shareholder equity rose 8.4% to $790.4 million [6] - The annualized adjusted return on equity for the first quarter of 2025 was 27%, up 410 basis points year over year [6] Future Outlook - Palomar Holdings revised its adjusted net income outlook for 2025 to a range of $186 million to $200 million, up from the previous estimate of $180 million to $192 million [7] Zacks Rank - PLMR currently holds a Zacks Rank 2 (Buy), indicating a favorable investment outlook [8]

Core Insights - Palomar (PLMR) reported revenue of $176.97 million for Q1 2025, marking a year-over-year increase of 53.2% and exceeding the Zacks Consensus Estimate by 3.03% [1] - The company's EPS for the same quarter was $1.87, up from $1.09 a year ago, representing a surprise of 17.61% over the consensus estimate of $1.59 [1] Financial Performance Metrics - Loss Ratio was reported at 23.6%, better than the estimated 26.9% [4] - Combined Ratio stood at 73.1%, compared to the average estimate of 75.4% [4] - Expense Ratio was 49.5%, slightly above the average estimate of 49.2% [4] - Adjusted Combined Ratio was 68.5%, significantly better than the average estimate of 72.7% [4] - Net Investment Income was $12.07 million, exceeding the average estimate of $11.28 million, with a year-over-year increase of 69.1% [4] - Commission and Other Income reached $0.83 million, surpassing the average estimate of $0.67 million, reflecting a year-over-year increase of 57.2% [4] - Net Earned Premiums were reported at $164.07 million, above the average estimate of $159.91 million, with a year-over-year increase of 52.1% [4] Stock Performance - Palomar's shares have returned +13.9% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Palomar (PLMR) reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and showing a significant increase from $1.09 per share a year ago, representing an earnings surprise of 17.61% [1] - The company achieved revenues of $176.97 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.03%, and up from $115.53 million year-over-year [2] - Palomar has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Palomar's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $181.43 million, and for the current fiscal year, it is $6.75 on revenues of $751.42 million [7] Industry Context - The Insurance - Property and Casualty industry, to which Palomar belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Insights - Palomar Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with net income increasing to $42.9 million, or $1.57 per diluted share, compared to $26.4 million, or $1.04 per diluted share, in the same period of 2024 [1][7][32] - Adjusted net income rose significantly by 84.6% to $51.3 million, or $1.87 per diluted share, from $27.8 million, or $1.09 per diluted share, year-over-year [1][7][32] - The company achieved a gross written premium growth of 20.1%, totaling $442.2 million, driven by new products and a balanced mix of residential and commercial property products [4][40] Financial Performance - The adjusted combined ratio improved to 68.5% from 73.0% in the prior year, indicating better underwriting efficiency [6][32] - The total loss ratio decreased to 23.6% from 24.9% year-over-year, with a catastrophe loss ratio of -0.3% compared to 3.1% in the previous year [5][32] - Net earned premiums increased by 52.1% to $164.1 million from $107.9 million in the first quarter of 2024 [4][32] Underwriting and Investment Results - Underwriting income for the quarter was $44.1 million, up from $25.0 million in the same period last year, resulting in a combined ratio of 73.1% compared to 76.9% [6][32] - Net investment income surged by 69.1% to $12.1 million, attributed to higher yields on invested assets and increased average investment balances [7][32] Strategic Initiatives - The company is focused on executing its 2025 strategic imperatives, including the successful acquisition of Advanced AgProtection, which is expected to enhance its Crop franchise [3][11] - Palomar's same-store premium growth rate was reported at 37%, reflecting strong underlying momentum across its specialty products portfolio [3][11] Outlook - For the full year 2025, Palomar expects adjusted net income to range between $186 million and $200 million, an increase from the initial outlook of $180 million to $192 million [11]

Financial Performance - Net income for Q1 2025 was $42.9 million, or $1.57 per diluted share, compared to $26.4 million, or $1.04 per diluted share in Q1 2024[2] - Adjusted net income increased by 84.6% to $51.3 million, or $1.87 per diluted share, from $27.8 million, or $1.09 per diluted share in Q1 2024[4] - Net income for the quarter was $42,922, up 62.7% from $26,382 in the same period last year[35] - Adjusted net income surged to $51,306, an 84.6% increase compared to $27,794 in the previous year[35] - The annualized adjusted return on equity improved to 27.0% in Q1 2025 from 22.9% in Q1 2024[47] Premium Growth - Gross written premiums rose by 20.1% to $442.2 million compared to $368.1 million in Q1 2024[5] - Same-store premium growth rate was 37%, indicating strong underlying momentum across the specialty products portfolio[4] - Gross written premiums increased to $442,163, up 20.1% from $368,078 in the prior year[35] - Net written premiums rose to $211,418, reflecting a significant increase of 51.1% compared to $139,907 in the same period last year[35] - Net earned premiums reached $164,070, a 52.1% increase from $107,866 in the previous year[35] - The company reported a gross earned premium of $375,776,000 in Q1 2025, a 24.1% increase from $302,872,000 in Q1 2024[42] Underwriting Efficiency - The adjusted combined ratio improved to 68.5% from 73.0% in Q1 2024, while the total loss ratio decreased to 23.6% from 24.9%[9] - Underwriting income improved to $44,065, representing a 76.6% increase from $24,955 in the prior year[35] - The combined ratio decreased to 73.1% in Q1 2025 from 76.9% in Q1 2024, showing improved underwriting efficiency[47] - Catastrophe loss ratio improved to (0.3)% in Q1 2025 from 3.1% in Q1 2024, indicating better risk management[49] Investment Income - Net investment income increased by 69.1% to $12.1 million compared to $7.1 million in Q1 2024[8] Assets and Liabilities - Cash and invested assets totaled $1.2 billion at March 31, 2025[8] - Total assets grew to $2,426,510, an increase from $2,262,220 as of December 31, 2024[37] - Total liabilities rose to $1,636,061, compared to $1,533,190 at the end of 2024[37] - Total stockholders' equity increased to $790,449, up from $729,030 as of December 31, 2024[37] - The company’s tangible stockholders' equity increased to $765,524,000 as of March 31, 2025, compared to $715,788,000 as of December 31, 2024[51] Future Outlook - The company expects adjusted net income for the full year 2025 to be between $186 million and $200 million, an increase from the previous outlook of $180 million to $192 million[13] - The acquisition of Advanced AgProtection is expected to enhance the Crop franchise's operational scale and talent[4]

Core Viewpoint - Palomar Holdings (PLMR) is anticipated to show significant growth in both revenue and earnings for the first quarter of 2025, with a revenue estimate of $171.2 million, reflecting a 48.7% year-over-year increase, and an earnings estimate of $1.59 per share, indicating a 45.9% increase from the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for PLMR's first-quarter revenues is $171.2 million, which is a 48.7% increase from the same quarter last year [1]. - The consensus estimate for earnings per share is $1.59, suggesting a year-over-year increase of 45.9% [2]. Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for PLMR, supported by a positive Earnings ESP of +6.29% and a Zacks Rank of 2 (Buy) [2][3]. Factors Influencing Q1 Results - PLMR's earnings are expected to benefit from a fee-based revenue stream, increased policy volume, strong retention rates, and strategic product expansion [4]. - The company's focus on the crop business and the Residential Earthquake business is likely to have positively impacted performance [5]. Premium and Investment Income - The Zacks Consensus Estimate for premiums earned is $160 million, with an internal estimate of $161.7 million [5]. - Investment income is projected to rise due to high-quality fixed income securities and increased fixed-income yields, with a consensus estimate of $11.3 million [6]. Combined Ratio and Expenses - The combined ratio is estimated at 75, with an internal estimate of 76.9, indicating improved performance due to a reinsurance policy limiting catastrophe losses [7]. - Total expenses are expected to rise to $124.9 million, driven by higher losses and other underwriting expenses [8].

Group 1 - Palomar Holdings, Inc. will release its first quarter 2025 results after market close on May 5, 2025, and will host a conference call on May 6, 2025, at 12:00 p.m. Eastern Time [1] - The conference call can be accessed by dialing specific numbers for both domestic and international callers, with a replay available starting at 4:00 p.m. Eastern Time on May 6, 2025 [2] - Interested parties can also listen to a simultaneous webcast of the conference call on the Company's investor relations website, with an online replay available for a limited time [3] Group 2 - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd., and serves clients in various insurance product categories [4] - The financial strength rating of Palomar's insurance subsidiaries is "A" (Excellent) from A.M. Best, indicating a strong financial position [4]

Core Viewpoint - Palomar (PLMR) shows potential as a stock pick due to its recent technical performance and positive earnings estimate revisions [1][4]. Technical Analysis - PLMR has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day simple moving average is a key trading tool that helps smooth out price fluctuations and signals trend reversals [1][2]. - The stock's price is currently above the 20-day moving average, which is considered a positive trend [2]. Performance Metrics - Over the past four weeks, PLMR has gained 9.7% [4]. - The company holds a Zacks Rank 1 (Strong Buy), suggesting further upward movement potential [4]. Earnings Estimates - There have been 6 upward revisions for PLMR's earnings estimates for the current fiscal year, with no downward revisions [4]. - The consensus earnings estimate has also increased, reinforcing the bullish outlook for the stock [4][5].

Palomar (PLMR) shares ended the last trading session 9.2% higher at $143.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.1% loss over the past four weeks.PLMR's shares surged in response to the broader market rally after President Trump announced a 90-day pause of reciprocal tariffs for most countries.This insurance holding company is expected to post quarterly earnings of $1.61 per share in its upcoming repo ...