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].

Company Announcement - Palomar Holdings, Inc. will release its second quarter 2025 results after market close on August 4, 2025, and will host a conference call on August 5, 2025, at 12:00 p.m. Eastern Time [1] - 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 August 5, 2025, and can be accessed until 11:59 p.m. on August 12, 2025 [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 [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 strong financial strength ratings, with PSIC, PSRE, and PESIC rated "A" (Excellent) and FIA rated "A-" (Stable) by A.M. Best [4]

Financial Performance & Growth - Palomar's Gross Written Premium (GWP) has shown substantial growth, increasing from $252 million in 2019 to $1.616 billion LTM (Last Twelve Months)[10] - The company's Adjusted Net Income has also increased significantly, from $8 million in 2019 to $157 million LTM[10] - Palomar's Q1 2025 GWP reached $442.2 million, a 20% year-over-year increase, or 37% on a same-store basis[58] - Adjusted net income for Q1 2025 was $51.3 million, representing an 85% year-over-year increase[58] - The company's adjusted return on equity for Q1 2025 was 27%[58] Strategic Initiatives - Palomar is pursuing a "2X Strategy" to double adjusted net income and achieve an adjusted ROE above 20%[13] - The company has made strategic acquisitions, including First Indemnity of America (FIA) and Advanced AgProtection (AAP), to expand its addressable market and add scale and diversification[22] - Palomar employs a diverse suite of risk transfer products, including excess of loss (XOL), quota share, and insurance-linked securities (ILS), to manage risk and reduce earnings volatility[29] Reinsurance & Risk Management - Palomar has a comprehensive property catastrophe reinsurance program effective June 1, 2025, with total ground-up earthquake coverage increased to approximately $3.5 billion[35, 38] - The company's earthquake reinsurance program includes $1.15 billion of earthquake limit via the Torrey Pines Re catastrophe bond program[38] - Continental US Hurricane coverage to $100 million and all perils excluding earthquake coverage to $85 million[37, 38] Guidance - Palomar raised its 2025 adjusted net income guidance to $195 million - $205 million[58] - The company anticipates adjusted net income growth of 50% based upon the midpoint of guidance and an adjusted ROE above 20%[42]

Company Participation - Palomar Holdings, Inc. will participate in the William Blair Growth Stock Conference on June 4, 2025, with CEO Mac Armstrong and CFO Chris Uchida presenting at 1:20 pm Central Time [1] - The management will also engage in one-on-one investor meetings during the conference [1] Webcast Information - Interested parties can access a live webcast of the presentation through the Investor Relations section of Palomar's website, with an online replay available afterward [2] Company Overview - Palomar Holdings, Inc. operates several subsidiaries, including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and Palomar Insurance Agency, among others [3] - The company specializes in innovative insurance solutions across five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [3] - Palomar's insurance subsidiaries hold strong financial ratings, with PSIC, PSRE, and PESIC rated "A" (Excellent) and FIA rated "A-" (Stable) by A.M. Best [3]

Core Insights - Palomar Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with net income increasing to $42.9 million, or $1.57 per diluted share, compared to $26.4 million, or $1.04 per diluted share, in the same period of 2024 [1][7][32] - Adjusted net income rose significantly by 84.6% to $51.3 million, or $1.87 per diluted share, from $27.8 million, or $1.09 per diluted share, year-over-year [1][7][32] - The company achieved a gross written premium growth of 20.1%, totaling $442.2 million, driven by new products and a balanced mix of residential and commercial property products [4][40] Financial Performance - The adjusted combined ratio improved to 68.5% from 73.0% in the prior year, indicating better underwriting efficiency [6][32] - The total loss ratio decreased to 23.6% from 24.9% year-over-year, with a catastrophe loss ratio of -0.3% compared to 3.1% in the previous year [5][32] - Net earned premiums increased by 52.1% to $164.1 million from $107.9 million in the first quarter of 2024 [4][32] Underwriting and Investment Results - Underwriting income for the quarter was $44.1 million, up from $25.0 million in the same period last year, resulting in a combined ratio of 73.1% compared to 76.9% [6][32] - Net investment income surged by 69.1% to $12.1 million, attributed to higher yields on invested assets and increased average investment balances [7][32] Strategic Initiatives - The company is focused on executing its 2025 strategic imperatives, including the successful acquisition of Advanced AgProtection, which is expected to enhance its Crop franchise [3][11] - Palomar's same-store premium growth rate was reported at 37%, reflecting strong underlying momentum across its specialty products portfolio [3][11] Outlook - For the full year 2025, Palomar expects adjusted net income to range between $186 million and $200 million, an increase from the initial outlook of $180 million to $192 million [11]