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Jun 30, 2024
Palomar Holdings Q2 2024 Earnings Report
Palomar Holdings reported record gross written premium and adjusted net income, driven by robust growth and strategic initiatives.
Key Takeaways
Palomar Holdings reported a strong second quarter with a 40% increase in gross written premiums and a 47% increase in adjusted net income year-over-year. The company successfully placed its core excess of loss reinsurance program and received an upgraded financial strength rating from AM Best. Palomar is raising its adjusted net income guidance for the year.
Gross written premiums increased by 40.4% to $385.2 million.
Net income reached $25.7 million, compared to $17.6 million in the second quarter of 2023.
Adjusted net income was $32.0 million, up from $21.8 million in the prior year.
The company's adjusted combined ratio was 73.1%, compared to 72.2% in the second quarter of 2023.
Palomar Holdings
Palomar Holdings
Palomar Holdings Revenue by Segment
Palomar Holdings Revenue by Geographic Location
Revenue by Segment
Earthquake Revenue
CapyFin.comCasualty Revenue
CapyFin.comInland Marine and Other Property Revenue
CapyFin.comFronting Revenue
CapyFin.comCrop Revenue
CapyFin.comRevenue by Geographic Location
California Revenue
CapyFin.comTexas Revenue
CapyFin.comHawaii Revenue
CapyFin.comFlorida Revenue
CapyFin.comNew York Revenue
CapyFin.comWashington Revenue
CapyFin.comIllinois Revenue
CapyFin.comMinnesota Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Palomar Holdings is increasing its guidance range for the full year 2024 and now expects to achieve adjusted net income of $124 million to $130 million. This range includes $6.8 million of catastrophe losses incurred during the six months ended June 30, 2024 and additional catastrophe losses incurred during the third quarter of 2024 of approximately $5 million to $7 million related to Hurricanes Beryl and Debby.
Positive Outlook
- Achieve adjusted net income of $124 million to $130 million for the full year 2024.
- Successfully placing our core excess of loss reinsurance program at June 1st on terms that were better than anticipated
- Bringing on several new leaders who will help scale the Company and execute our Palomar 2X strategy
- AM Best upgrading our Financial Strength Rating to an A.
- Doubling our underwriting income over a three-to-five-year time frame while generating an adjusted ROE in excess of 20%
Challenges Ahead
- Includes $6.8 million of catastrophe losses incurred during the six months ended June 30, 2024
- Additional catastrophe losses incurred during the third quarter of 2024 of approximately $5 million to $7 million related to Hurricanes Beryl and Debby.
- Unexpected expenditures and costs
- Unexpected results or delays in development and regulatory review
- Regulatory approval requirements
Revenue & Expenses
Visualization of income flow from segment revenue to net income