Palomar Boosts Earthquake Coverage by $421M, Raises 2026 Net Income Guidance
PLMR•Palomar secured $421 million of incremental reinsurance limit, raising its earthquake coverage to $3.92 billion and U.S. hurricane coverage to $135 million. The company increased its 2026 adjusted net income guidance to $266–$280 million from $262–$278 million following the successful June 1 placement.
1. Reinsurance Program Expansion
Palomar procured $421 million of incremental reinsurance limit ahead of its June 1 renewal, extending earthquake event coverage to $3.92 billion and continental U.S. hurricane coverage to $135 million while maintaining per-event retentions of $20 million for earthquakes and $11 million for hurricanes.
2. Catastrophe Bond Issuance
The company issued its seventh Torrey Pines Re catastrophe bond securing $410 million of protection—allocating $360 million to earthquake coverage and $50 million to a standalone Hawaii hurricane tranche—expanding its multi-year ILS capacity to $1.28 billion.
3. Increased Earnings Guidance
Following the successful placement at attractive economics, Palomar raised its full-year 2026 adjusted net income guidance to $266–$280 million from $262–$278 million, highlighting enhanced capital efficiency and a strengthened growth outlook.
