Palomar (PLMR) investor relations material

Strategic execution and portfolio diversification

• Achieved strong year-to-date execution, building a distinct specialty portfolio balanced across property, casualty, admitted, E&S, residential, and commercial lines.

• Top line growth up 25% and bottom line up over 50% year-to-date, leading to three guidance raises this year.

• Focused on building a business resilient to insurance market cycles by expanding into crop and surety, enhancing diversification.

• Palomar 2X strategy aims to double underwriting income in an intermediate timeframe while maintaining ROE above 20%.

Line of business performance and growth outlook

• Casualty business is growing rapidly but conservatively, with small net limits and heavy use of quota share to manage risk.

• Crop premium expected to nearly double to $200M this year, with a long-term goal of building a $1B franchise.

• Surety, acquired via a buy-versus-build approach, is performing at or above plan, with deeper penetration in existing geographies and plans for further investment.

• Earthquake premium growth recalibrated to high single digits due to increased competition in large commercial segments.

Risk management, reinsurance, and market dynamics

• Social inflation exposure in casualty is managed by avoiding high-severity lines and maintaining small net line sizes.

• Reinsurance strategy focuses on deepening relationships with existing partners, with over 140 reinsurers on the property program.

• Retentions are reviewed annually; recent decisions prioritized earnings consistency over growth, with plans to gradually increase retentions as the balance sheet grows.

• Diversification and nimbleness are key to thriving in increasingly dynamic and cyclical markets.