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]
Palomar (PLMR) FY Earnings Call Presentation