Core Insights - Palomar Holdings, Inc. (PLMR) reported a third-quarter 2025 operating income of $2.01 per share, exceeding the Zacks Consensus Estimate by 25.6% and reflecting a year-over-year increase of 63.4% [1][9] - Total revenues rose 65% year over year to $241 million, driven by higher premiums and investment income, surpassing the Zacks Consensus Estimate by 6.6% [2][9] - The company raised its 2025 adjusted net income forecast to a range of $210 million to $215 million, up from the previous estimate of $198 million to $208 million [7][9] Revenue and Premiums - Gross written premiums increased by 43.9% year over year to $597.2 million, although this was below the estimate of $676.8 million [2] - Net earned premiums saw a significant rise of 66% year over year, reaching $225.1 million, exceeding the estimate of $194.2 million [2] Investment Income - Net investment income grew by 54.9% year over year to $14.6 million, driven by higher yields and a larger average balance of investments [3] Underwriting Performance - Adjusted underwriting income was reported at $56.6 million, an increase of 82.5% from the previous year, while total underwriting income rose 86% year over year to $49.2 million [4] - The loss ratio was recorded at 32.3, deteriorating by 260 basis points year over year, while the adjusted combined ratio improved by 230 basis points to 74.8 [5] Financial Position - Cash and cash equivalents increased by 38.9% from the end of 2024 to $111.7 million at the end of Q3 2025 [6] - Shareholder equity rose by 20.4% from the end of 2024 to $878.1 million [6] - The annualized adjusted return on equity for Q3 2025 was 25.6%, expanding by 460 basis points year over year [6]

Core Viewpoint - Oxbridge is conducting its Third Quarter 2025 Earnings Call, indicating a focus on financial performance and strategic direction for the upcoming period [1]. Group 1 - The call is hosted by key executives including the Chairman, President, and CEO, Jay Madhu, and the CFO, Wrendon Timothy, highlighting the importance of leadership in communicating financial results [1]. - The earnings call will be available for replay until November 20, 2025, suggesting a commitment to transparency and accessibility for stakeholders [2]. - Wrendon Timothy will address forward-looking statements, indicating that the company is preparing to discuss future expectations and potential risks associated with its financial outlook [2].

Financial Data and Key Metrics Changes - F&G reported adjusted net earnings of $165 million, or $1.22 per share, in the third quarter, with alternative investment income at $67 million, or $0.48 per share, below management's long-term expected return [14][15] - Adjusted return on assets (ROA) on a last 12-month basis was 92 basis points, stable compared to the previous year and sequential quarters [16] - Adjusted return on equity (ROE), excluding AOCI, was 8.8%, consistent with the sequential quarter [17] Business Line Data and Key Metrics Changes - F&G achieved record assets under management (AUM) of $71.4 billion before Flow Reinsurance, a 14% increase year-over-year [5] - Gross sales for the third quarter reached $4.2 billion, with core sales at $2.2 billion, slightly above previous quarters [6] - Indexed annuities contributed $1.7 billion in sales for the quarter, while Pension Risk Transfer (PRT) sales exceeded $500 million [7][8] Market Data and Key Metrics Changes - The company reported strong demand for retirement savings products, particularly fixed annuities, driven by demographic trends and macroeconomic volatility [10] - The investment portfolio remains diversified and high quality, with 96% of fixed maturities being investment grade [11] Company Strategy and Development Direction - F&G is transitioning to a more fee-based, higher margin, and capital-light business model, leveraging its position as a leading distributor of annuities and life insurance [20] - The company aims to grow AUM by 50% and expand adjusted ROA to 133 to 155 basis points by 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong returns and achieve long-term shareholder value [13][62] - The competitive landscape remains active, particularly in the PRT market, with expectations for continued momentum [48] Other Important Information - F&F, the majority owner, plans to distribute approximately 12% of F&G's outstanding shares to its shareholders, increasing F&G's public float from 18% to 30% [24] Q&A Session Summary Question: Capital allocation priorities amidst stock pressure - Management emphasized the focus on growing the fixed index annuity business and owned distribution, with share buybacks being a low priority due to the upcoming share distribution [26][28] Question: Variable investment income expectations - Management indicated that variable investment income is expected to fluctuate, with a near-term run rate in the high single digits [30] Question: Exposure to private letter-rated assets - Management reassured that their portfolio is well-positioned and comfortable, with minimal exposure to private credit concerns [32] Question: Alternatives performance breakdown - Management noted that alternative investments had mixed performance, with LPs performing better than direct lending [35] Question: Operating leverage and expense management - Management expects continued improvement in the operating expense ratio, aiming to reduce it from 60 to 50 basis points by year-end 2025 [56] Question: Comments on F&F's share distribution - Management viewed the increase in free float as a positive development, enhancing institutional ownership and confidence in F&G's future [59]

Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [3][10] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [3][10] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [3][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year over year and 1.4% sequentially, indicating stability in the agent and customer base [5] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than the legacy product [7] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year over year, driven by higher claim severity [5][7] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [4] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [4] - Catastrophe losses contributed 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter, indicating a favorable trend [7] Company Strategy and Development Direction - The company is progressing with its state expansion initiative and plans to present a multi-year roadmap in the first half of next year [8] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while maintaining direct written premium growth expectations between 12% and 17% [8][9] - The company aims to capitalize on opportunities in the homeowners' market, particularly in catastrophe-exposed areas, where demand exceeds supply [29] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York remain stable, with strong overall volume despite competitors broadening their underwriting appetite [4] - The company anticipates retention rates, which represent over 80% of the premium base, to continue trending higher as rate changes moderate [4] - Management expressed confidence in the company's competitive position, citing a high conversion rate and healthy growth despite increased competition [23] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year over year [13] - The year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [14] Q&A Session Summary Question: Will all accounts eventually move to the select product? - Management confirmed that the legacy book will be maintained as it is profitable, with plans to convert it to select only when it becomes small enough [17] Question: Is all new business written on the select platform? - Yes, all new business has been written in Select since the beginning of 2022 [18] Question: How is the new E&S product being developed? - The company is currently developing the new product with an outside actuarial consulting firm, leveraging experience from the select product [19] Question: How has the AmGuard book performed since its inception? - The AmGuard book is performing within expectations, with a current writing rate of about $1 million a month [22] Question: How is competition evolving in downstate New York? - Management noted that competitors are expanding their target areas, but the company's growth remains healthy with a high conversion rate [23]

Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [2][9] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [2][9] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [2][9][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year-over-year and 1.4% sequentially, indicating stability in the agent and customer base [4] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than the legacy product [6] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year-over-year, driven by higher claim severity [4][6] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [3] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [3] - Catastrophe losses contributed only 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter, indicating a favorable trend [6] Company Strategy and Development Direction - The company is progressing with its state expansion initiative and plans to present a multi-year roadmap in the first half of next year [7] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while reaffirming direct written premium growth to range between 12% and 17% [7][8] - The company aims to maintain a disciplined posture on pricing and exposure management while seeking opportunities to enhance portfolio yield [8][10] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York have not changed materially, with strong overall volume [3] - The homeowners' market is in a crisis due to companies not making money, presenting an opportunity for the company to expand geographically [28] - Management expressed confidence in the company's competitive position despite increased competition in the market [22] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year-over-year [12] - Year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [13] Q&A Session Summary Question: Will all accounts eventually move to the Select product? - Management confirmed that the legacy book will be maintained as it is profitable, and any conversion will occur only when it becomes small enough [16] Question: Is all new business written on the Select platform? - Yes, all new business has been written in Select since the beginning of 2022 [17] Question: How is the new E&S product being developed? - The company is deep into the development of the new product, benefiting from the experience gained with the Select product [18] Question: How has the AmGUARD book performed since writing began? - The performance is on track with expectations, writing about $1 million a month so far [21] Question: How are competitors expanding in downstate New York? - Competitors are opening up to writing more classes of business, but the company's growth remains healthy with a high conversion rate [22]

Financial Data and Key Metrics Changes - The company reported net income of $10.9 million and diluted earnings per share of $0.74, marking the second most profitable quarter in its history and the eighth consecutive quarter of profitability [3][10] - The GAAP combined ratio was 72.7%, with an annualized return on equity of 43% [3][10] - Direct written premium grew by 14%, and net investment income increased by 52% to $2.5 million [3][10] Business Line Data and Key Metrics Changes - Policies in force increased by 4.2% year over year and 1.4% sequentially, indicating stability in the agent and customer base [5] - The Select homeowners program now represents 54% of policies in force, with a claim frequency 31% lower than legacy products [6] - The underlying loss ratio was 44.1%, an increase of 4.9 percentage points year over year, driven by higher claim severity [5][6] Market Data and Key Metrics Changes - The company experienced a month-over-month increase in new business since June, continuing into the fourth quarter [4] - The growth of 14% for the quarter was primarily driven by an average premium increase of 13% and improved retention [4] - Catastrophe losses contributed only 0.2 percentage points to the loss ratio compared to 1.7 percentage points in the prior year quarter [6] Company Strategy and Development Direction - The company plans to present a multi-year roadmap for state expansion in the first half of next year [8] - Guidance for 2025 has been raised for net combined ratio, EPS, and ROE, while maintaining direct written premium growth expectations between 12% and 17% [8][9] - The company aims to capitalize on opportunities in the homeowners' market, particularly in catastrophe-exposed areas, to expand geographically [33] Management's Comments on Operating Environment and Future Outlook - Management noted that hard market conditions in downstate New York have not changed materially, with strong overall volume [4] - The company expects retention, which represents over 80% of its premium base, to continue trending higher as rate changes transition to high single digits [4] - Management remains optimistic about the competitive landscape, indicating a healthy growth trajectory despite increased competition [23] Other Important Information - The company has no debt at its holding company, and shareholders' equity exceeded $107 million, an increase of 80% year over year [12] - The year-to-date return on equity is 39.8%, an increase of 3 percentage points from the same period last year [12] Q&A Session Summary Question: Will all accounts eventually move to the select product? - The company will maintain its legacy book as it is profitable, with plans to convert to select only when it becomes small enough [17] Question: Is all new business put on the select platform? - Yes, all new business has been written in Select since the beginning of 2022 [18] Question: How is the new E&S product being developed? - The company is working with an outside actuarial consulting firm to develop the new product, benefiting from the experience gained with the select product [19] Question: How has the AmGuard book performed? - The AmGuard book is performing as expected, with a mix similar to the select product and geographic diversification [22] Question: How is competition in downstate New York evolving? - Competitors are expanding their target areas, but the company has maintained a healthy growth rate and high conversion rates [23]

Core Insights - Ambetter of Illinois, a Centene Corporation product, will provide affordable health insurance options in 25 counties during the open enrollment period starting November 1, 2025, for the 2026 plan year [1][2] Group 1: Transition to State-Based Marketplace - Illinois is transitioning from the federal exchange (HealthCare.gov) to a state-based marketplace called Get Covered Illinois, with open enrollment running from November 1, 2025, to January 15, 2026 [2] - Residents must enroll by December 15, 2025, to receive coverage starting January 1, 2026 [2] Group 2: Ambetter of Illinois Offerings - Ambetter of Illinois plans for 2026 focus on convenience, a comprehensive network, and meaningful benefits, including 24/7 virtual care and essential health services [3] - The plans cover all essential health benefits, including preventive services, maternity care, pediatric services, mental health services, hospitalizations, and prescription drug coverage, with some plans offering dental and vision coverage [6] Group 3: Member Programs and Services - The Ambetter Perks program provides members with discounts on wellness activities, financial tools, and health-related items, promoting healthy lifestyles [6] - Members can earn up to $500 in rewards through the My Health Pays program by engaging in healthy activities, which can be used for health-related expenses [6][8] - Virtual 24/7 Care allows members to access telehealth services for various illnesses from home [6][9]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also hit a record of $123.10 at the end of Q3 2025 [5] - Year-to-date adjusted operating income was $6.77 per share, reflecting a 17% increase compared to the same period last year [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024 [14] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was $91 million of PVP, a 44% increase from Q3 2024 and a 42% increase from Q2 2025 [5] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, up from $5.4 billion in Q3 2024 [8] - Secondary market U.S. public finance generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by over $50 billion in the first nine months of 2025 compared to the record issuance in the same period of 2024 [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking to expand its insurance businesses into new sectors and markets while diversifying revenue sources for sustainable growth [7] - There is a focus on shorter duration structured finance transactions that allow for quicker capital recycling and better return on equity [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic public finance market returning to normal activity levels after a skewed mix in earlier quarters [35] - The company sees significant growth opportunities in both U.S. public finance and global structured finance, particularly in infrastructure and regulatory capital needs [34][36] Other Important Information - The Board of Directors authorized an additional $100 million in share repurchases, bringing the total authorization to over $330 million [7] - The investment portfolio's performance has been enhanced by alternative investments, achieving an annualized internal rate of return of approximately 13% [7][17] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management is focused on optimizing yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management indicated that Brightline is experiencing typical startup growing pains but remains comfortable with their exposure [24] Question: Opportunities in the current data center CapEx cycle - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas [27] Question: Pipeline for growing written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [33][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management emphasized the importance of a deal for recognizing the value of reserves and claims related to PREPA [38]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also reached a record high of $123.10 at the end of Q3 2025 [5] - Adjusted operating income for the year-to-date was $6.77 per share, an increase of approximately 17% compared to the same period last year [5] - Adjusted operating income in Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024 [14] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was strong, with $91 million of PVP, which is 44% more than Q3 2024 and 42% more than Q2 2025 [5] - U.S. public finance business produced $152 million of PVP year-to-date, benefiting from record U.S. municipal bond issuance [6] - Secondary market U.S. public finance strategy generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by more than $50 billion year-to-date compared to the record issuance during the first nine months of 2024 [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking for strategic opportunities to expand its insurance businesses into new sectors and markets, aiming to diversify revenue sources for sustainable growth [7] - The focus on shorter duration structured finance transactions is expected to provide better returns on equity and quicker capital recycling [13][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to produce and the expected production levels going forward, citing a return to normal business mix in Q3 2025 [36] - The company sees great opportunities in U.S. public finance and global structured finance, particularly in infrastructure and regulatory capital needs [35][36] Other Important Information - The investment portfolio's performance has been enhanced by greater use of alternative investments, achieving an annualized internal rate of return of approximately 13% [7][17] - The Board of Directors authorized an additional $100 million for share repurchases, bringing the total authorization to over $330 million [7][20] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management indicated that they aim to optimize yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management acknowledged typical growing pains for Brightline but expressed confidence in their exposure due to being in the senior most section of the capital stack [24] Question: Pipeline for growing written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [34][36]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also reached a record high of $123.10 at the end of Q3 2025 [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024, reflecting a modest decline [15][18] - Year-to-date adjusted operating income was $6.77 per share, an increase of approximately 17% compared to the same period last year [5] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was strong, with $91 million of PVP, which is 44% more than Q3 2024 and 42% more than Q2 2025 [5][8] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, compared to $5.4 billion in Q3 2024, indicating a significant increase in issuance [8][9] - Secondary market U.S. public finance strategy generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by more than $50 billion in the first nine months of 2025 compared to the same period in 2024, with total primary market insured par volume rising 18% [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking for strategic opportunities to expand its insurance businesses into new sectors and markets, aiming to diversify revenue sources for sustainable growth [7] - There is a focus on building the subscription finance business, characterized by shorter duration and renewable transactions, which allows for quicker capital recycling [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for growth in written premiums into 2026, particularly in U.S. public finance and global structured finance [32][34] - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas, indicating a proactive approach to market trends [26][34] Other Important Information - The Board of Directors authorized an additional $100 million share repurchase, bringing the total authorization to over $330 million [7][20] - The investment portfolio's performance has been enhanced by alternative investments, which have generated an annualized internal rate of return of approximately 13% [7][18] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management indicated that they work with outside investment managers to optimize yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management acknowledged Brightline's growing pains as a startup but expressed confidence in their exposure due to being in the senior most section of the capital stack [24] Question: Opportunities in the current data center CapEx cycle - Management confirmed they are actively evaluating data center opportunities and have executed in new areas like liquid natural gas [26] Question: Pipeline for growth in written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [32][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management stated that recognition of value in reserves would require a deal, emphasizing their strong position as a creditor [38]