Palomar(PLMR)2025-05-05 20:09Financial 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]