Palomar Q4 Earnings, Revenues Top Estimates, Premiums Rise Y/Y

Core Insights - Palomar Holdings, Inc. (PLMR) reported a fourth-quarter 2024 operating income of $1.52 per share, exceeding the Zacks Consensus Estimate by 22.6% and reflecting a year-over-year increase of 36.9% [1][2] Financial Performance - Total revenues rose 53.9% year over year to$ 157 million, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 6.6% [3] - Gross written premiums increased 23.3% year over year to $373.7 million, while net earned premiums surged 54.6% year over year to$ 135.6 million, both figures slightly below estimates [3] - Net investment income grew 61.3% year over year to $11.3 million, exceeding both the Zacks Consensus Estimate and internal estimates [4] - Adjusted underwriting income was$ 41 million, up 39.9% year over year, with total expenses rising 54% to $110.8 million due to increased losses and underwriting expenses [5] Loss Ratios and Ratios - The loss ratio was reported at 25.7%, deteriorating by 660 basis points year over year, while the adjusted combined ratio, excluding catastrophe losses, deteriorated by 290 basis points to 71.7 [6] Balance Sheet and Equity - Cash and cash equivalents increased 55.4% from the end of 2023 to$ 80.5 million, and shareholder equity rose 54.7% to $729 million [7] - The annualized adjusted return on equity for 2024 was 22.2%, reflecting a year-over-year increase of 30 basis points [7] Future Outlook - For 2025, Palomar anticipates adjusted net income in the range of$ 180-192 million, factoring in catastrophe losses between $8 million and$ 12 million [8]