Palomar Reports Significant Premium Growth In Q2 Results

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Palomar Reports Significant Premium Growth In Q2 Results

The Palomar Holdings, a speciality property insurer, announced a gross written premium (GWP) of $218.7 million for the second quarter of 2022, a significant rise of 69 per cent over the period the previous year’s gross written premium of $129.4 million.

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The company also reported an adjusted net income of $18.7 million for the quarter, up from $13.2 million in the second quarter of 2021, and a net income of $14.6 million, up from $12.3 million in the same period last year.

Compared to an underwriting income of $13 million and a combined ratio of 76.0 per cent during the same period the previous year, the Q2 22 underwriting income of $20 million produced a combined ratio of 75.1 per cent.

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Palomar Reports Significant Premium Growth In Q2 Results

The company’s adjusted combined ratio decreased from 73.8 percent in the second quarter of last year to 69.1 percent in the second quarter after excluding costs for stock-based compensation, intangible amortization, and catastrophe bonds.

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At the same time, Palomar Holdings’ net investment income rose by 43.1 per cent to $3.1 million in the second quarter of 2022 from $2.2 million in the same period last year.

Mac Armstrong, Chairman and Chief Executive Officer, commented: “Simply put, Palomar had a very strong second quarter. Our results clearly demonstrate further execution of our 2022 strategic objectives and “Palomar 2X”, our intermediate term strategic plan of doubling our adjusted underwriting income and delivering an adjusted return on equity of 20%.

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Palomar Reports Significant Premium Growth In Q2 Results

“Highlights of the quarter included 69% year-over-year gross written premium growth, the successful placement of our excess of loss reinsurance program, the conversion of our Texas Specialty Homeowner’s product to a fronting program and incremental traction in our new products including professional liability and PLMR-FRONT.

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“Predictable, profitable growth is a key tenant of Palomar 2X and the second quarter results embodied this tenant. During the quarter, we achieved an adjusted combined ratio of approximately 69.1%, an annualized adjusted ROE of 19.7%, and year-over-year adjusted net income growth of 41.3%, even with $4.6 million of unrealized losses in our equity portfolio.”

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