Core Insights - Palomar Holdings, Inc. will host a fireside chat at the 47th Annual Raymond James Institutional Investors Conference on March 2, 2026, at 2:15 pm ET, featuring CEO Mac Armstrong and CFO Chris Uchida [1] - Management will also be available for one-on-one and small group meetings with investors during the conference [1] Company Overview - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and others, providing a range of insurance services [3] - The company specializes in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [3] - Palomar's insurance subsidiaries have received strong financial strength ratings, with PSIC, PSRE, PESIC, and FIA rated "A" (Excellent) and PCSC rated "A-" (Excellent) by A.M. Best [3]

Core Insights - Palomar Holdings, Inc. reported a significant increase in net income for Q4 2025, reaching $56.2 million, or $2.06 per diluted share, compared to $35.0 million, or $1.29 per diluted share, in Q4 2024, marking a 60.6% increase in net income year-over-year [1][7] - The company achieved an adjusted net income of $61.1 million, or $2.24 per diluted share, for Q4 2025, up from $41.3 million, or $1.52 per diluted share, in Q4 2024, reflecting a 48.0% increase [1][7] - Gross written premiums grew by 31.8% to $492.6 million in Q4 2025, compared to $373.7 million in Q4 2024, while net earned premiums increased by 61.1% [5][7] Fourth Quarter 2025 Highlights - The company reported a record adjusted net income and strong growth in both top and bottom lines, with gross written premiums increasing by 32% and adjusted net income rising by 48% [4] - The adjusted combined ratio for Q4 2025 was 73.4%, compared to 71.7% in Q4 2024, indicating effective underwriting performance [8][7] - The annualized return on equity for Q4 2025 was 24.7%, up from 19.5% in the same period last year [11][7] Full Year 2025 Highlights - For the full year 2025, gross written premiums reached $2.0 billion, a 31.5% increase from $1.5 billion in 2024 [7][34] - Net income for the full year was $197.1 million, a 67.6% increase from $117.6 million in 2024, while adjusted net income rose by 61.9% to $216.1 million [7][34] - The total loss ratio for 2025 was 28.5%, compared to 26.4% in 2024, indicating a slight increase in losses relative to earned premiums [7][34] Underwriting Results - Underwriting income for Q4 2025 was $54.4 million, resulting in a combined ratio of 76.8%, compared to a combined ratio of 75.9% in Q4 2024 [8][7] - The company experienced a loss ratio of 30.4% in Q4 2025, up from 25.7% in Q4 2024, with a catastrophe loss ratio of -0.9% compared to 5.6% in the previous year [6][7] Investment Results - Net investment income increased by 41.3% to $16.0 million in Q4 2025, driven by higher yields on invested assets [9][7] - The company recorded net realized and unrealized gains of $2.4 million in Q4 2025, contrasting with losses of $1.2 million in the same period last year [9][7] Stockholders' Equity and Returns - Stockholders' equity rose to $942.7 million at the end of 2025, compared to $729.0 million at the end of 2024 [11][7] - The company did not repurchase any shares during the quarter, with approximately $112.7 million remaining available for future repurchases under the existing authorization [11][7] Full Year 2026 Outlook - For the full year 2026, the company anticipates achieving adjusted net income between $260 million and $275 million, including an estimate of $8 million to $12 million in catastrophe losses [12][7]

Financial Data and Key Metrics Changes - AFG's Core Net Operating Earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, Core Net Operating Earnings per share were $3.65, resulting in an annualized core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] Business Line Data and Key Metrics Changes - Underwriting profits in specialty property and casualty businesses grew 41% in Q4 2025, with a combined ratio of 84.1%, an improvement of nearly 5 points from the prior year [14] - Gross written premiums for Q4 2025 were up 2%, while net written premiums were down 1% compared to the same period in 2024 [14] - The Property and Transportation Group achieved a 70.6% combined ratio in Q4 2025, an improvement of nearly 19 points from the prior year [16] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - AFG's investment portfolio totaled $17.2 billion, with approximately 65% invested in fixed maturities yielding about 5.25% [7][10] Company Strategy and Development Direction - AFG aims for premium growth of 3%-5% in 2026, with a combined ratio target of approximately 92.5% [23] - The company is optimistic about several startup businesses and expects to see growth opportunities in specialty casualty and other lines [24][68] - AFG's strategy includes maintaining a disciplined focus on underwriting profitability while pursuing growth opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to navigate competitive conditions while pursuing profitable growth [24] - The company anticipates a stable crop year in 2026, which is expected to positively impact the crop insurance business [47] - Management acknowledged pockets of softening rates but remains focused on disciplined growth strategies [24] Other Important Information - AFG declared a special dividend of $1.50 per share, payable on February 25, 2026, with an aggregate amount of approximately $125 million [9] - The company has declared $55.50 per share in special dividends since 2021, totaling $4.7 billion [10] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates relative to the 5% P&C renewal pricing? - Management indicated that they do not specifically identify amounts for prior development in the combined ratio but expect favorable development based on historical trends [27] Question: Was there any change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][32] Question: What drove the inflection in pricing for the lender-placed business? - Management expressed confidence in the profitability of the lender-placed business and noted that pricing can vary based on client property characteristics [53][55] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there are opportunities for mid-single-digit growth in these businesses [60] Question: What is the outlook for the alternative investment portfolio? - Management expects a return to historical levels of 10% or better, contingent on improvements in the multifamily property market [62][63]

Financial Data and Key Metrics Changes - AFG's core net operating earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, core net operating earnings per share were $3.65, resulting in an annualized fourth quarter core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] Business Line Data and Key Metrics Changes - Underwriting profit in specialty property and casualty insurance grew 41% in Q4 2025, with a combined ratio of 84.1%, an improvement of nearly 5 points from the prior year [12][13] - Gross written premiums for Q4 2025 increased by 2%, while net written premiums decreased by 1% compared to the same period in 2024 [13] - The property and transportation group achieved a combined ratio of 70.6% in Q4 2025, an improvement of nearly 19 points from the prior year [16] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - The company expects a growth in net written premiums of 3%-5% for 2026, with a combined ratio target of approximately 92.5% [22] Company Strategy and Development Direction - AFG aims to maintain a disciplined focus on underwriting profitability while pursuing growth opportunities in 2026 [24] - The company is optimistic about several startup businesses and expects to see progress in areas like Specialty Construction and Embedded Solutions [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to navigate changing economic conditions [12] - The company is mindful of softening rates and competitive conditions but believes its reserve strength and healthy rate environment will support growth [24] Other Important Information - AFG's leverage ratio is less than 28%, with no debt maturities until 2030, and insurance company financial strength ratings at A+ [10] - The company declared a special dividend of $1.50 per share, payable on February 25, 2026 [9] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates relative to the 5% P&C renewal pricing? - Management indicated that they are not specifically identifying amounts for prior development but expect favorable development based on their reserving strategy [27] Question: Was there any change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][31] Question: What drove the inflection in pricing in the lender-placed business? - Management stated that pricing can vary based on client property types and that the business remains extremely profitable despite some lumpiness in pricing [56] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there is potential for mid-single-digit growth in these businesses moving forward [62] Question: What is the outlook for the alternative investment portfolio? - Management expects a return to historical levels of returns on alternatives will require a better rate environment for multifamily properties [66]

Core Viewpoint - Palomar Holdings, Inc. is set to release its fourth quarter and full year 2025 financial results on February 11, 2026, followed by a conference call on February 12, 2026, at 12:00 p.m. Eastern Time [1]. Group 1: Conference Call Details - The conference call can be accessed live by dialing 1-877-423-9813 for domestic callers and 1-201-689-8573 for international callers [2]. - A replay of the conference call will be available starting at 4:00 p.m. Eastern Time on February 12, 2026, and can be accessed by dialing 1-844-512-2921 for domestic callers and 1-412-317-6671 for international callers, with a passcode of 13758018 [2]. - The replay will be available until 11:59 p.m. Eastern Time on February 19, 2026 [2]. Group 2: Company Overview - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and others, providing a range of insurance services [4]. - The company operates in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [4]. - Palomar's insurance subsidiaries have received an "A" (Excellent) financial strength rating from A.M. Best [4].

Core Insights - Palomar Holdings, Inc. (PLMR) has seen a stock price increase of 29.3% over the past year, outperforming its industry and major indices [1] - The company has a market capitalization of $3.64 billion and has consistently beaten earnings estimates with an average surprise of 17.65% over the last four quarters [2] Stock Performance - PLMR is currently trading above its 50-day and 200-day simple moving averages of $122.22 and $134.23, indicating strong upward momentum [3] Growth Projections - The Zacks Consensus Estimate predicts a 51.2% year-over-year increase in earnings per share for 2025, with revenues expected to reach $835.13 million, reflecting a 52% increase [7] - Analysts have raised their earnings estimates for 2025 and 2026 by 5.6% and 2.5%, respectively, over the past 60 days [8] Analyst Sentiment - The average price target for PLMR is $156.17 per share, suggesting a potential upside of 13.7% from the last closing price [9] Financial Metrics - Palomar's return on equity stands at 24.2%, significantly higher than the industry average of 8%, and its return on invested capital is 21%, compared to the industry average of 6.1% [10] Growth Drivers - The introduction of the fee-based platform PLMR-FRONT is expected to enhance earnings stability and drive medium-term growth [6] - Factors such as increased policy volumes, strong retention rates, and new partnerships are anticipated to contribute to premium growth [11] Investment Strategy - The company is focusing on Surety as a long-term growth opportunity, which offers diversification and stability [12] - Net investment income is projected to rise due to a high-quality fixed-income portfolio and improved yields [14] Capital Position - Palomar maintains a strong capital position with a debt-free balance sheet and is actively executing share buybacks as part of its shareholder return initiatives [15] Market Positioning - The company is positioning itself as a key player in the crop insurance sector, with ongoing geographic expansion and strategic partnerships expected to fuel future growth [16] - Palomar's risk transfer strategy through reinsurance helps mitigate exposure to catastrophic events, contributing to a stable business model [17]

Core Insights - Palomar Holdings, Inc. reported a significant increase in net income for Q3 2025, reaching $51.5 million or $1.87 per diluted share, compared to $30.5 million or $1.15 per diluted share in Q3 2024, marking a 68.7% increase [1][8] - Adjusted net income also saw a substantial rise of 70% to $55.2 million or $2.01 per diluted share, up from $32.4 million or $1.23 per diluted share in the same quarter last year [1][8] - The company achieved record gross written premiums of $597.2 million, a 43.9% increase from $415.0 million in Q3 2024, indicating strong growth in its insurance portfolio [4][8] Financial Performance - Gross written premiums increased by 43.9% to $597.2 million compared to $415.0 million in Q3 2024 [4][8] - Net earned premiums rose by 66.0% to $225.1 million from $135.6 million in the prior year [4][8] - The total loss ratio for the quarter was 32.3%, up from 29.7% in Q3 2024, while the catastrophe loss ratio significantly decreased to 0.8% from 9.5% [5][8] - The combined ratio improved to 78.1% from 80.5% year-over-year, indicating better underwriting performance [6][8] Underwriting and Investment Results - Underwriting income for Q3 was $49.2 million, with an adjusted underwriting income of $56.7 million, reflecting an adjusted combined ratio of 74.8% compared to 77.1% in the previous year [6][8] - Net investment income increased by 54.9% to $14.6 million, driven by higher yields on invested assets [7][8] - The company recorded $3.5 million in net realized and unrealized gains on investments, compared to $2.7 million in the same period last year [9][8] Strategic Initiatives - The company is focused on its "Palomar 2X" strategic imperatives, with notable growth in its crop insurance segment and the recent acquisition of The Gray Casualty and Surety Company [3][8] - Investments in Crop and Surety are expected to drive long-term profitable growth and enhance portfolio differentiation [3][8] Stockholder Equity and Returns - Stockholders' equity increased to $878.1 million as of September 30, 2025, compared to $703.3 million a year earlier [11][8] - The annualized return on equity was reported at 23.9%, up from 19.7% in Q3 2024, while the annualized adjusted return on equity reached 25.6%, compared to 21.0% in the prior year [11][8] Full Year Outlook - For the full year 2025, the company expects adjusted net income to be in the range of $210 million to $215 million, an increase from the previously announced range of $198 million to $208 million [12][8]

Core Viewpoint - Palomar Holdings, Inc. is set to release its third quarter 2025 results on November 6, 2025, followed by a conference call on November 7, 2025, to discuss the results [1] Group 1: Earnings Release and Conference Call - The third quarter 2025 results will be announced after market close on November 6, 2025 [1] - A conference call will take place at 12:00 p.m. (Eastern Time) on November 7, 2025, to discuss the earnings [1] - The conference call can be accessed by dialing 1-877-423-9813 for domestic callers and 1-201-689-8573 for international callers [2] Group 2: Replay and Webcast Information - A replay of the conference call will be available starting at 4:00 p.m. (Eastern Time) on November 7, 2025, accessible via specific dialing numbers [2] - The online replay will be available immediately after the call on the investor relations section of the Company's website [3] Group 3: Company Overview - Palomar Holdings, Inc. operates several subsidiaries, including Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd. [4] - The company provides innovative specialty insurance across five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [4] - Palomar's insurance subsidiaries have received strong financial strength ratings from A.M. Best, with PSIC, PSRE, and PESIC rated "A" (Excellent) and FIA rated "A-" (Stable) [4]

Summary of Palomar (PLMR) 2025 Conference Call Company Overview - **Company**: Palomar Holdings, Inc. (PLMR) - **Industry**: Insurance, specifically focusing on property and casualty insurance, including specialty lines such as crop, surety, and casualty insurance. Key Points and Arguments Business Performance - Year-to-date performance shows a **25% increase in top-line revenue** and a **50% increase in bottom-line income** [4][5] - The company has raised its guidance three times in the current year, indicating strong operational execution and confidence in future growth [5] Strategic Goals - Palomar aims to **double underwriting income** within an intermediate timeframe while maintaining a **return on equity (ROE) above 20%** [5] - The strategic initiative, referred to as **Palomar 2X**, has been successful, achieving significant growth in net income over the past few years [25] Product Diversification - The company is expanding its portfolio beyond its traditional earthquake insurance to include: - **Casualty Insurance**: Focused on niche markets such as real estate errors and omissions and environmental liability, with a conservative approach to risk [7][8] - **Crop Insurance**: Targeting **$200 million in crop premiums** for the year, with long-term goals of reaching **$500 million** and eventually **$1 billion** [9][10] - **Surety Insurance**: Following an acquisition, the company is focusing on deepening its presence in existing markets rather than broad geographic expansion [11][72] Market Dynamics - The company is mindful of **social inflation** and has strategically avoided high-severity exposures, such as commercial auto, to mitigate risks associated with nuclear verdicts [13][16] - The **earthquake insurance market** is experiencing increased competition, particularly in large commercial segments, leading to a recalibration of growth expectations [31][32] Reinsurance Strategy - Palomar has over **140 reinsurers** in its property program, focusing on deepening relationships with existing partners rather than seeking new ones [17][20] - The company aims to balance earnings consistency with growth, opting to maintain retentions in certain lines to ensure stability [61][63] Talent Acquisition and Retention - The company has significantly increased its headcount through both acquisitions and talent attraction, implementing competitive compensation and long-term incentive plans to retain key personnel [93][94] Future Outlook - The company anticipates continued growth in its crop and casualty lines, with a focus on leveraging existing distribution relationships for expansion [70][76] - Palomar is exploring M&A opportunities that align with its specialty focus, emphasizing diversification and complementary expertise [76][78] Investment Strategy - The company plans to increase investment leverage as its balance sheet grows, aiming for investment income to grow at a rate comparable to net income [82][85] Flood Insurance - Palomar is expanding its flood insurance offerings through a partnership with Neptune, focusing on both inland and coastal flood risks [89][90] Additional Important Insights - The company is navigating a dynamic market environment, requiring agility and a diversified portfolio to manage risks effectively [35][36] - The integration of new acquisitions is focused on enhancing existing capabilities rather than broadening geographic reach too quickly [71][72] This summary encapsulates the key discussions and insights from the Palomar conference call, highlighting the company's strategic direction, market positioning, and future growth prospects.

Company Overview - Palomar Holdings, Inc. is a holding company with subsidiaries including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and others, providing innovative specialty insurance in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [3] - The insurance subsidiaries of Palomar, including PSIC, PSRE, and PESIC, have received an "A" (Excellent) financial strength rating from A.M. Best, while FIA holds an "A-" (Stable) rating [3] Upcoming Events - Mac Armstrong, Chairman and CEO, along with Chris Uchida, CFO, will participate in a fireside chat at the KBW Insurance Conference on September 4, 2025, at 10:35 am ET [1] - Investors can access a live webcast of the presentation through the Investor Relations section of Palomar's website, with an online replay available afterward [2]