Palomar (PLMR) investor relations material

Executive summary

• Record Q3 gross written premiums of $767.0M, up 28.4% YoY; adjusted net income rose 47.4% to $81.3M, the 16th consecutive earnings beat.

• Net income increased 27.0% to $65.3M; diluted EPS was $2.42, adjusted diluted EPS was $3.01, and annualized adjusted ROE was 33.1%.

Financial highlights

• Net earned premiums rose 62.3% to $365.4M; net written premiums increased 41.2% to $388.6M, and total revenue was $386.6M.

• Adjusted underwriting income increased 52.6% to $86.5M; underwriting income was $70.2M versus $49.2M.

• Net investment income rose 53.8% to $22.4M, driven by higher invested balances and yields; net realized and unrealized investment losses were $2.7M.

• 9M GWP grew 32.0% to $2.03B; net earned premiums increased 60.5% to $913.8M, and adjusted net income rose to $208.2M from $155.0M.

Outlook and guidance

• FY26 adjusted net income guidance raised to $280M–$285M, including $8M–$12M of estimated catastrophe losses; midpoint implies ~31% YoY growth.

• FY26 expected net earned premium ratio is ~50%, acquisition expense ratio ~12.1%, adjusted other underwriting expense ratio ~8%, loss ratio mid-to-upper 30s, and adjusted combined ratio mid-70s.

• FY26 crop premium outlook increased to ~$425M from an initial $320M; crop claims will continue to develop into Q4 and early 2027.

• Residential earthquake growth, crop and surety are expected to support expansion; commercial property remains the most challenged growth area.