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Mar 31, 2025
Palomar Holdings Q1 2025 Earnings Report
Palomar Holdings reported strong first quarter 2025 results with significant increases in net income and adjusted net income, driven by sustained gross written premium growth and effective underwriting.
Key Takeaways
Palomar Holdings, Inc. reported a strong start to 2025, with net income increasing by 62.7% to $42.9 million and adjusted net income surging by 84.6% to $51.3 million. Gross written premiums grew by 20.1% to $442.2 million, and the company achieved a combined ratio of 73.1% and an adjusted combined ratio of 68.5%.
Gross written premiums increased by 20.1% to $442.2 million compared to $368.1 million in the first quarter of 2024.
Net income increased by 62.7% to $42.9 million, and adjusted net income increased by 84.6% to $51.3 million.
The combined ratio improved to 73.1% from 76.9%, and the adjusted combined ratio improved to 68.5% from 73.0%.
Annualized adjusted return on equity was 27.0% compared to 22.9% in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2025, Palomar expects to achieve adjusted net income of $186 million to $200 million, an increase from its initial outlook of $180 million to $192 million. This range includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.
Positive Outlook
- Increased full-year 2025 adjusted net income outlook to $186 million - $200 million.
- Strong underlying momentum across the portfolio of specialty products.
- Continued execution of the Palomar 2X strategic imperative.
- Successful acquisition of Advanced AgProtection, enhancing Crop franchise talent and scale.
- Strengthening near-term and long-term prospects due to strategic investments.
Challenges Ahead
- Outlook includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.
- Potential for unexpected expenditures and costs.
- Risk of unexpected results or delays in development and regulatory review.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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