Palomar Holdings Q1 Adjusted Net Income Up 23% to $63.1M
Palomar Holdings reported first-quarter 2026 net income of $42.9 million ($1.57 per share) matching the prior year, while adjusted net income climbed 23.1% to $63.1 million ($2.31 per share). Gross written premiums surged 42.4% to $629.8 million, and adjusted combined ratio widened to 76.0% from 68.5%.
1. First-Quarter Financial Results
Palomar Holdings reported net income of $42.9 million, or $1.57 per diluted share, matching first-quarter 2025, while adjusted net income rose 23.1% to $63.1 million, or $2.31 per share. Annualized return on equity was 18.1%, compared to 22.6% a year earlier.
2. Underwriting Performance
Gross written premiums increased 42.4% to $629.8 million, with net earned premiums up 59.3%. The total loss ratio was 33.3% as catastrophe losses normalized at 0.1%, driving a combined ratio of 84.5% and an adjusted combined ratio of 76.0%.
3. Investment and Capital Management
Net investment income grew 49% to $18.0 million due to higher yields and a larger investment base, while realized and unrealized losses were $1.9 million. Shareholders’ equity reached $959.0 million, and the company repurchased 190,255 shares for $23.1 million during the quarter.
4. Acquisition and Share Repurchase Program
On January 31, Palomar completed the Gray Casualty & Surety acquisition, contributing two months of results. On April 30, the board authorized a new $200 million share repurchase program effective May 6, replacing the prior plan.