Core Insights - Palomar reported better-than-expected Q2 2025 results, with non-GAAP earnings per share at $1.76, surpassing the $1.67 estimate, and GAAP revenue of $203.3 million, reflecting a 55.1% year-over-year increase [1][2] - The company raised its full-year adjusted net income guidance to $198–208 million for 2025, up from a previous estimate of $186–200 million [13] Financial Performance - Non-GAAP EPS increased by 40.8% year-over-year from $1.25 in Q2 2024 [2] - Net earned premiums rose to $180.0 million, a 47.2% increase from $122.3 million in Q2 2024 [2][5] - The adjusted combined ratio remained stable at 73.1%, while the annualized adjusted return on equity was reported at 23.7% [2][9] Business Segments and Growth - The casualty segment saw significant growth, with gross written premiums increasing by 113% year-over-year, now comprising over a quarter of total gross written premiums [3][5] - Crop insurance gross written premiums surged from $2.2 million to $39.5 million year-over-year, indicating strong expansion [5] - Earthquake insurance, while slower in growth, is expected to see mid- to high-teens growth for FY2025 [8] Diversification Strategy - Palomar is diversifying its offerings beyond earthquake coverage, focusing on product expansion and geographic reach [4][10] - The earthquake segment's contribution to gross written premiums decreased to 29.8% from 35.1% in Q2 2024, reflecting a broader portfolio [6] Strategic Initiatives - The acquisition of Advanced AgProtection has expanded the crop business's geographic reach [10] - The company successfully renewed its reinsurance program with an adjusted rate decrease of approximately 10% year-over-year, reducing exposure to large events [11] Technology and Operational Efficiency - Investments in technology and analytics are enhancing underwriting and operational scale, although they incur additional costs [12]

Core Viewpoint - Palomar (PLMR) reported quarterly earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.68 per share, and showing a year-over-year increase from $1.25 per share [1] Group 1: Earnings Performance - The earnings surprise for the recent quarter was +4.76%, following a previous quarter surprise of +17.61% when actual earnings were $1.87 per share against an expectation of $1.59 [1][2] - Over the last four quarters, Palomar has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - Palomar's revenues for the quarter ended June 2025 were $195.01 million, surpassing the Zacks Consensus Estimate by 4.72% and increasing from $131.04 million year-over-year [2] - The company has also topped consensus revenue estimates in each of the last four quarters [2] Group 3: Stock Performance and Outlook - Palomar shares have appreciated approximately 22.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.1% [3] - The future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Group 4: Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.62, with projected revenues of $215.94 million, and for the current fiscal year, the estimate is $7.15 on revenues of $788.63 million [7] - The estimate revisions trend for Palomar was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 5: Industry Context - The Insurance - Property and Casualty industry, to which Palomar belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Viewpoint - Palomar Holdings, Inc. reported significant growth in net income and adjusted net income for the second quarter of 2025, highlighting the effectiveness of its strategic initiatives and strong performance across its insurance portfolio [1][3][4]. Financial Performance - Net income for Q2 2025 was $46.5 million, or $1.68 per diluted share, compared to $25.7 million, or $1.00 per diluted share, in Q2 2024, representing an increase of 80.8% [1][33]. - Adjusted net income increased by 51.8% to $48.5 million, or $1.76 per diluted share, from $32.0 million, or $1.25 per diluted share, in the same quarter last year [1][33]. - Gross written premiums rose by 28.8% to $496.3 million from $385.2 million in Q2 2024, while net earned premiums increased by 47.2% [4][7]. Underwriting Results - The underwriting income for Q2 2025 was $38.3 million, with a combined ratio of 78.8%, compared to $25.6 million and a combined ratio of 79.1% in Q2 2024 [6][33]. - The total loss ratio for the quarter was 25.7%, slightly higher than 24.9% in the same period last year, with a catastrophe loss ratio of 0.0% compared to 2.8% [5][7]. Investment Results - Net investment income increased by 68.0% to $13.4 million from $8.0 million in Q2 2024, driven by higher yields on invested assets [7][33]. - The company recorded $8.3 million in net realized and unrealized gains related to its investment portfolio, a significant increase from an immaterial amount in the same period last year [8][33]. Strategic Initiatives - The company is focused on achieving its 2025 strategic imperatives, including a successful reinsurance program executed at an adjusted rate decrease of approximately 10% year-over-year [3][4]. - Investments are being made to enhance talent and operational scale, which are expected to strengthen both near-term and long-term prospects [3][4]. Shareholder Returns - The Board of Directors approved a share repurchase program authorizing the repurchase of up to $150 million of outstanding shares, effective July 31, 2025 [11][12]. - Stockholders' equity increased to $847.2 million at June 30, 2025, compared to $532.6 million at the same time last year [10][33]. Full Year Outlook - For the full year 2025, the company expects adjusted net income to be in the range of $198 million to $208 million, an increase from the previously announced range of $195 million to $205 million [13][33].

[Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Palomar Holdings reported strong Q2 2025 growth with significant increases in net income and gross written premiums, maintaining a stable adjusted combined ratio Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | $496.3M | $385.2M | +28.8% | | Net Income | $46.5M | $25.7M | +80.8% | | Adjusted Net Income | $48.5M | $32.0M | +51.8% | | Diluted EPS | $1.68 | $1.00 | +68.0% | | Adjusted Diluted EPS | $1.76 | $1.25 | +40.8% | | Adjusted Combined Ratio | 73.1% | 73.1% | 0.0% | | Annualized Adj. ROE | 23.7% | 24.7% | -1.0 ppt | - The catastrophe loss ratio was **0.0%** for the quarter, a significant improvement from **2.8%** in the same period last year, contributing to stable underwriting results[6](index=6&type=chunk)[9](index=9&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong financial performance to the 'Palomar 2X' strategy and a favorable reinsurance program renewal - The company's performance is driven by the 'Palomar 2X' strategic imperative, focusing on a balanced book of property and casualty products[4](index=4&type=chunk) - A key strategic success was the June 1 reinsurance program renewal, which achieved an approximate **10%** year-over-year adjusted rate decrease, enhancing future earnings predictability[4](index=4&type=chunk) - Palomar continues to invest in talent and operational scale to strengthen both near-term and long-term business prospects[4](index=4&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) Detailed financial results reveal robust growth in underwriting income, net investment income, and stockholders' equity [Underwriting Results](index=1&type=section&id=Underwriting%20Results) Strong underwriting performance shows significant premium growth, a low loss ratio, and consistent adjusted combined ratio Q2 2025 Underwriting Metrics | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :--- | :--- | :--- | | Gross Written Premiums | $496.3 | $385.2 | | Net Earned Premiums | $179.9 | $122.3 | | Underwriting Income | $38.3 | $25.6 | | Adjusted Underwriting Income | $48.4 | $32.9 | | Loss Ratio | 25.7% | 24.9% | | Combined Ratio | 78.8% | 79.1% | | Adjusted Combined Ratio | 73.1% | 73.1% | - The quarter included **$6.5 million** of favorable prior year development, primarily from the short tail Inland Marine and Other Property business[6](index=6&type=chunk) [Investment Results](index=1&type=section&id=Investment%20Results) Net investment income surged due to higher yields and increased asset balances, with total assets at **$1.3 billion** - Net investment income grew **68.0%** YoY to **$13.4 million**, driven by higher yields and a larger investment portfolio[8](index=8&type=chunk) - The company recorded **$8.3 million** in net realized and unrealized gains on its investment portfolio during the quarter[10](index=10&type=chunk) - Total cash and invested assets stood at **$1.3 billion** as of June 30, 2025[10](index=10&type=chunk) [Stockholders' Equity and Returns](index=3&type=section&id=Stockholders%27%20Equity%20and%20Returns) Stockholders' equity significantly increased, contributing to strong annualized returns on equity for the quarter Equity and Returns (Q2 2025 vs Q2 2024) | Metric | June 30, 2025 (Millions USD) | June 30, 2024 (Millions USD) | | :--- | :--- | :--- | | Stockholders' Equity | $847.2 | $532.6 | | Annualized Return on Equity | 22.7% | 19.9% | | Annualized Adjusted ROE | 23.7% | 24.7% | [Corporate Developments and Outlook](index=3&type=section&id=Corporate%20Developments%20and%20Outlook) The company announced a new share repurchase program and raised its full-year 2025 adjusted net income guidance - The Board of Directors approved a new share repurchase program, effective July 31, 2025, authorizing the buyback of up to **$150 million** of common stock over a two-year period[13](index=13&type=chunk) - The company increased its full-year 2025 adjusted net income guidance to a range of **$198 million** to **$208 million**[15](index=15&type=chunk) [Financial Statements and Data](index=8&type=section&id=Financial%20Statements%20and%20Data) This section presents detailed unaudited financial statements, including operating results, balance sheets, and underwriting data [Summary of Operating Results](index=8&type=section&id=Summary%20of%20Operating%20Results) Operating results for H1 2025 demonstrate significant year-over-year growth in key financial metrics Six Months Ended June 30, 2025 vs 2024 | Metric | H1 2025 (Millions USD) | H1 2024 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | $938.5 | $753.3 | +24.6% | | Net Earned Premiums | $344.0 | $230.2 | +49.5% | | Net Income | $89.5 | $52.1 | +71.7% | | Adjusted Net Income | $99.8 | $59.8 | +67.0% | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20sheets) The balance sheet reflects a strengthened financial position with significant growth in total assets and equity Balance Sheet Highlights | Account | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | | :--- | :--- | :--- | | Total Investments | $1,175.0 | $987.7 | | Total Assets | $2,832.5 | $2,262.2 | | Total Liabilities | $1,985.3 | $1,533.2 | | Total Stockholders' Equity | $847.2 | $729.0 | [Underwriting Segment Data](index=12&type=section&id=Underwriting%20Segment%20Data) Underwriting data highlights significant growth in the Casualty line and reduced California geographic concentration GWP by Product - Q2 2025 vs Q2 2024 | Product | GWP (Q2 2025, Millions USD) | % of Total | % Change YoY | | :--- | :--- | :--- | :--- | | Earthquake | $147.7 | 29.8% | +9.4% | | Casualty | $128.2 | 25.8% | +118.8% | | Inland Marine & Other | $120.0 | 24.2% | +28.4% | | Fronting | $60.9 | 12.2% | -36.5% | | Crop | $39.5 | 8.0% | NM | - The company's geographic concentration in California has decreased, with GWP from the state representing **33.0%** of the total in Q2 2025, down from **47.6%** in Q2 2024, while premiums from 'Other' states grew to **38.0%** of the total[44](index=44&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles key non-GAAP financial measures for assessing operational performance [Definitions of Non-GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Key non-GAAP measures are defined to provide additional insight into operational performance - Key non-GAAP measures are defined to provide clarity on the company's performance, including: - **Adjusted net income**: Excludes items like realized/unrealized investment gains, transaction expenses, and stock-based compensation[22](index=22&type=chunk) - **Underwriting income**: Excludes net investment income, investment gains/losses, and interest expense from pre-tax income[23](index=23&type=chunk) - **Adjusted combined ratio**: Excludes the impact of certain items from the standard combined ratio calculation[27](index=27&type=chunk) [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed reconciliations illustrate adjustments from GAAP Net Income to Adjusted Net Income for Q2 2025 Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | Description | Amount (in thousands USD) | | :--- | :--- | | **Net Income (GAAP)** | **$46,528** | | Net realized and unrealized gains on investments | ($8,306) | | Expenses associated with transactions | $754 | | Stock-based compensation expense | $5,347 | | Amortization of intangibles | $1,346 | | Expenses associated with catastrophe bond | $2,661 | | Tax impact | $202 | | **Adjusted Net Income (Non-GAAP)** | **$48,532** |

Core Viewpoint - Palomar Holdings, Inc. (PLMR) is anticipated to show improvements in both revenue and earnings for the second quarter of 2025, with a revenue estimate of $186.21 million, reflecting a 42.1% year-over-year increase [1] Revenue and Earnings Estimates - The consensus estimate for PLMR's earnings per share is $1.68, indicating a year-over-year increase of 34.4% [2] - The earnings estimate has decreased by 1.2% over the past 60 days [2] Earnings Prediction Model - The earnings prediction model suggests a likely earnings beat for PLMR, supported by a positive Earnings ESP of +0.25% and a Zacks Rank of 3 (Hold) [3][4] Factors Influencing Q2 Results - PLMR's second-quarter earnings are expected to benefit from a fee-based revenue stream and increased policy volumes across various business lines, driven by new business with existing partners and strong premium retention [5] - The focus on the crop business is likely to have positively impacted performance, with premiums earned estimated at $172.4 million [6] Revenue Drivers - Total revenues are expected to be driven by premium increases, higher net investment income, and commission income [7] - The Zacks Consensus Estimate for premiums earned is $174 million, while investment income is estimated at $12.06 million [6] Expense and Loss Ratios - Total expenses are projected to rise due to higher losses, interest, and acquisition expenses, with an estimated total expense of $136.9 million [8] - The combined ratio is expected to be 78.9, aided by a reinsurance policy that limits catastrophe losses [7][9] - The expense ratio is estimated to be slightly higher at 43.4 [10]

United Fire Group (UFCS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Augus ...

Company Announcement - Palomar Holdings, Inc. will release its second quarter 2025 results after market close on August 4, 2025, and will host a conference call on August 5, 2025, at 12:00 p.m. Eastern Time [1] - The conference call can be accessed live by dialing 1-877-423-9813 for domestic callers and 1-201-689-8573 for international callers [2] - A replay of the conference call will be available starting at 4:00 p.m. Eastern Time on August 5, 2025, and can be accessed until 11:59 p.m. on August 12, 2025 [2] Company Overview - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and others [4] - The company operates in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [4] - Palomar's insurance subsidiaries have received strong financial strength ratings, with PSIC, PSRE, and PESIC rated "A" (Excellent) and FIA rated "A-" (Stable) by A.M. Best [4]

Company Overview - Palomar Holdings, Inc. (PLMR) is currently experiencing significant activity in the options market, particularly with the Jan 16, 2025 $85.00 Call option showing high implied volatility, indicating potential for a major price movement [1] - The company holds a Zacks Rank 2 (Buy) in the Insurance - Property and Casualty Industry, which is positioned in the top 35% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, three analysts have raised their earnings estimates for the current quarter, while three have lowered theirs, resulting in a net increase in the Zacks Consensus Estimate from $1.65 to $1.68 per share [3] - The high implied volatility suggests that options traders are anticipating a significant price movement for Palomar Holdings, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] Trading Strategy - Options traders often seek out options with high implied volatility to sell premium, a strategy that can capture decay and potentially reduce risk if the underlying stock does not move as much as expected [4]

Wall Street expects a year-over-year increase in earnings on higher revenues when Palomar (PLMR) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may mo ...

Palomar (PLMR) has been beaten down lately with too much selling pressure. While the stock has lost 14.3% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price m ...