Palomar(US:PLMR)2026-02-11 21:15Financial Performance - Net income for Q4 2025 was $56.2 million, or $2.06 per diluted share, up 60.6% from $35.0 million, or $1.29 per diluted share, in Q4 2024[2] - Adjusted net income for Q4 2025 increased 48.0% to $61.1 million, or $2.24 per diluted share, compared to $41.3 million, or $1.52 per diluted share, in Q4 2024[2] - For the full year 2025, net income increased 67.6% to $197.1 million, and adjusted net income rose 61.9% to $216.1 million[8] - Net income for Q4 2025 reached $56,165,000, up 60.6% from $34,965,000 in Q4 2024[36] - Adjusted net income for Q4 2025 was $61,116,000, reflecting a 48.0% increase from $41,292,000 in Q4 2024[36] - Basic earnings per share for the year ended December 31, 2025, were $7.40, up from $4.61 in 2024, indicating a 60.5% rise[42] - Diluted adjusted earnings per share for the year ended December 31, 2025, is $7.86, compared to $5.09 for the year ended December 31, 2024, reflecting a 54% growth[49] Premiums and Revenue - Gross written premiums rose 31.8% to $492.6 million in Q4 2025, compared to $373.7 million in Q4 2024[6] - Gross written premiums for the full year 2025 increased by 31.5% to $2,028,252,000 compared to $1,541,962,000 in 2024[37] - Net written premiums rose by 46.3% to $247,570,000 in Q4 2025 compared to $169,231,000 in Q4 2024[36] - Net earned premiums grew by 61.1% to $233,460,000 in Q4 2025 from $144,890,000 in Q4 2024[36] - Total underwriting revenue for Q4 2025 was $235,001,000, a 61.4% increase from $145,640,000 in Q4 2024[36] - Net earned premiums for the year ended December 31, 2025, were $802.635 million, up from $510.687 million in 2024, representing a 57.1% growth[42] Investment Performance - Net investment income for Q4 2025 increased 41.3% to $16.0 million, driven by higher yields on invested assets[11] - Net investment income for the full year 2025 was $56,005,000, a 56.3% increase from $35,824,000 in 2024[37] - The net investment income for the year ended December 31, 2025, was $(56,005) thousand, compared to $(35,824) thousand in 2024, reflecting a decline in investment performance[47] Ratios and Returns - The total loss ratio for Q4 2025 was 30.4%, up from 25.7% in Q4 2024, while the catastrophe loss ratio improved to -0.9% from 5.6%[8] - The combined ratio for Q4 2025 was 76.8%, slightly higher than 75.9% in Q4 2024, with an adjusted combined ratio of 73.4% compared to 71.7%[8] - Annualized return on equity for Q4 2025 was 24.7%, up from 19.5% in Q4 2024, while adjusted return on equity was 26.9%, compared to 23.1%[13] - Annualized adjusted return on equity for Q4 2025 was 26.9%, compared to 23.1% in Q4 2024, showing improved profitability[48] - Adjusted combined ratio for Q4 2025 is 76.8%, compared to 75.9% in Q4 2024[49] - Adjusted combined ratio excluding catastrophe losses for Q4 2025 is 74.2%, compared to 66.1% in Q4 2024[50] Growth and Acquisitions - The company successfully acquired Advanced Ag Protection and The Gray Casualty and Surety Company, contributing to its long-term growth strategy[5] - Total assets as of December 31, 2025, were $3,050,967,000, up from $2,262,220,000 as of December 31, 2024[39] - The company reported a total of $179,076,000 in losses and expenses for Q4 2025, up from $109,958,000 in Q4 2024[50] Catastrophe Management - Catastrophe losses for Q4 2025 were $2,063 thousand, a significant decrease from $8,122 thousand in Q4 2024, indicating better management of catastrophic events[45] - The total catastrophe losses for the year ended December 31, 2025, were $728,000, a significant reduction from $27,846,000 in 2024[49]