Palomar Holdings, Inc. Announces Successful Completion of June 1 Reinsurance Renewal

Core Insights - Palomar Holdings, Inc. has increased its full year 2024 adjusted net income guidance to a range of $122 million to $128 million, up from the previous range of $113 million to $118 million due to successful reinsurance placements and improved terms [5]. Reinsurance Program Highlights - The company secured approximately $400 million of incremental limit to support its Earthquake franchise, bringing total reinsurance coverage to $3.06 billion for earthquake events, $735 million for Hawaii hurricane events, and $117.5 million for all continental U.S. hurricane events [2]. - Palomar's per occurrence event retention has been reduced to $15.5 million for hurricane events from $17.5 million the previous year, and $20 million for earthquake events, remaining within management's guidelines [3]. - A new catastrophe bond, Torrey Pines Re Series 2024-1, contributed $420 million to the $3.06 billion earthquake limit, marking the fifth Insurance Linked Securities (ILS) transaction sponsored by Palomar [4]. Management Commentary - The Chairman and CEO of Palomar expressed satisfaction with the reinsurance placement, noting that the terms and pricing were better than expected, which allowed for a reduction in hurricane event retention [5]. - The Chief Risk Officer highlighted the broad-based support from the reinsurance market, emphasizing the stability and predictability of the company's business mix and risk profile [6]. Company Overview - Palomar Holdings, Inc. operates through several subsidiaries, including Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd., and offers innovative specialty insurance across five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [6].