Palomar (PLMR) Q1 2026 earnings summary

Executive summary

• Gross written premiums rose 42.4% year-over-year to $629.8 million, driven by growth in Casualty, Inland Marine, and Property lines, new partnerships, and strong retention rates.

• Net income for Q1 2026 was $42.9 million ($1.57 per diluted share), flat year-over-year, while adjusted net income rose 23.1% to $63.1 million ($2.31 per diluted share).

• The acquisition of Gray Surety (now PCSC) was completed for $314.8 million, expanding the surety platform and contributing two months of results.

• Repurchased 190,255 shares for $23.1 million in Q1 and authorized a new $200 million share repurchase program effective May 2026.

• Specialty product mix remains intentionally balanced, with 57% admitted/E&S, 60/40 property/casualty, and 90% of premium from lines not impacted by the traditional P&C cycle.

Financial highlights

• Net earned premiums increased 59.3% to $261.4 million year-over-year.

• Adjusted net income rose 23% to $63.1 million ($2.31 per share); adjusted underwriting income up 22% to $62.8 million.

• Adjusted combined ratio was 76% (vs. 68.5% prior year); annualized adjusted ROE at 26.6%.

• Loss ratio increased to 33.3% (from 23.6% prior year), driven by higher attritional losses in casualty and crop.

• Net investment income increased 49% to $18 million, with a 4.9% yield on invested assets.

Outlook and guidance

• Raised 2026 adjusted net income guidance to $262 million–$278 million, reflecting 25% year-over-year growth at the midpoint and including $8–$12 million in estimated catastrophe losses.

• Expect adjusted combined ratio in the mid-70s and loss ratio (including catastrophes) in the mid- to upper 30s for 2026.

• Guidance assumes no change to reinsurance attachment points.

• Management expects continued premium growth from product and distribution expansion, but notes that interim results may not be indicative of full-year performance due to seasonality, especially in Crop.

• Liquidity is considered sufficient for foreseeable needs, with $1.6 billion in cash and investments as of March 31, 2026.