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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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