Palomar Holdings, Inc. Reports Second Quarter 2025 Results

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].