Palomar (PLMR) Q1 2025 earnings summary

Executive summary

• Adjusted net income reached $51.3 million, up 84.6%–85% year-over-year, with a 69% adjusted combined ratio and 27% adjusted ROE in Q1 2025.

• Gross written premiums rose 20.1% to $442.2 million, driven by new products, strong same-store premium growth of 37%, and expansion in core lines.

• Net income increased 62.7% to $42.9 million ($1.57 per diluted share); adjusted EPS was $1.87, up from $1.09.

• Strategic focus on integrating acquisitions, disciplined risk appetite, and consistent earnings generation, with recent acquisitions of FIA and Advanced AgProtection.

• Portfolio diversification across residential, commercial, crop, and casualty lines supports resilience and growth.

Financial highlights

• Net earned premiums rose 52.1% to $164.1 million; net written premiums increased 51.1% to $211.4 million.

• Underwriting income grew 76.6% to $44.1 million; adjusted underwriting income was $51.6 million, up 76.9%.

• Net investment income increased 69.1% to $12.1 million, with a 4.6% yield.

• Stockholders’ equity reached $790.4 million; tangible stockholders' equity at $765.5 million.

• Diluted EPS was $1.57, up from $1.04 year-over-year.

Outlook and guidance

• Full-year 2025 adjusted net income guidance raised to $186–$200 million, including $8–$12 million estimated catastrophe losses.

• Midpoint of guidance implies adjusted ROE above 20% and doubling of 2022 adjusted net income in three years.

• Management expects continued premium growth from new products and partnerships, with a focus on profitable underwriting.

• Catastrophe bond issuance in progress, scheduled to close in Q2 2025, to further strengthen reinsurance protection.

• Expect net earned premium ratio around 40% for the year; loss ratio in the low 30s.