Palomar delivered fourth-quarter gross written premiums of $X (up 32%) and adjusted net income growth of 48%, while full-year gross written premiums rose 32% and adjusted net income increased 62% to $216 million. The company achieved a 26% adjusted return on equity, surpassing initial annual guidance.

The fourth-quarter loss ratio increased to 30.4% from 25.7%, driven by higher attritional losses in Casualty and Crop lines as fronting premiums declined. Commercial Earthquake rates were down 15%, contributing to a 2% year-over-year decline in the Earthquake book, though residential Earthquake business is forecast to grow high single to double digits.

Palomar successfully integrated two specialty insurance franchises and closed a third acquisition to bolster its market position. Management plans to increase Crop retention—adding about $8 million of pretax income per $100 million retained—reduce reinsurance costs by 10% on a risk-adjusted basis, and pursue opportunistic share repurchases alongside organic growth.