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Jun 30, 2023
Palomar Holdings Q2 2023 Earnings Report
Reported a strong second quarter with profitable growth and strategic capital allocation.
Key Takeaways
Palomar Holdings reported a net income of $17.6 million for Q2 2023, with a gross written premium increase of 25.4%. The company strategically focused on targeted segments and successfully placed its June 1 reinsurance program, leading to an adjusted return on equity of 21.3%.
Gross written premiums increased by 25.4% to $274.3 million.
Net income reached $17.6 million, compared to $14.6 million in the second quarter of 2022.
The combined ratio was 79.0%, while the adjusted combined ratio was 72.2%.
Adjusted net income is $21.8 million.
Palomar Holdings
Palomar Holdings
Palomar Holdings Revenue by Segment
Palomar Holdings Revenue by Geographic Location
Revenue by Segment
Earthquake Revenue
CapyFin.comCasualty Revenue
CapyFin.comFronting Revenue
CapyFin.comRevenue by Geographic Location
California Revenue
CapyFin.comTexas Revenue
CapyFin.comHawaii Revenue
CapyFin.comFlorida Revenue
CapyFin.comWashington Revenue
CapyFin.comIllinois Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company expects to achieve an adjusted net income of $89 million to $93 million for the full year 2023. This includes catastrophe losses incurred in the first and second quarters of approximately $4.0 million and does not include any additional catastrophe losses for the remainder of the year.
Positive Outlook
- Adjusted net income guidance raised to $89 million - $93 million for 2023.
- Successfully placed June 1 reinsurance program.
- Hired professional liability underwriters to expand casualty franchise.
- Received a “positive outlook” from A.M Best.
- Focus on earthquake, inland marine, and casualty segments to maximize risk-adjusted returns.
Challenges Ahead
- Includes catastrophe losses incurred in the first and second quarters of approximately $4.0 million.
- Expected results do not include any additional catastrophe losses for the remainder of the year.
- Elevated catastrophe activity.
- Historically hard reinsurance market.
- Reduced exposure to segments that add volatility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income