On May 2, 2024, Palomar Holdings Inc (PLMR, Financial) released its 8-K filing, revealing a notable increase in net income and earnings per share (EPS) for the first quarter of 2024, surpassing analyst estimates. The company reported a net income of $26.4 million, or $1.04 per diluted share, significantly higher than the estimated $0.94 EPS and $23.45 million net income. This performance marks a substantial improvement from the $17.3 million net income, or $0.68 per diluted share, recorded in the same quarter the previous year.
Palomar Holdings Inc, a leading specialty property insurer in the United States, focuses on underwriting earthquake, wind, and flood insurance products. The company caters to both residential and commercial markets, particularly in regions prone to earthquakes like California, Oregon, and Washington. Palomar's diverse product offerings include Residential Earthquake, Commercial Earthquake, Specialty Homeowners, and more, positioning it well within the specialty insurance sector.
Financial Highlights and Strategic Growth
The first quarter of 2024 saw Palomar achieve a gross written premium growth of 47.2%, reaching $368.1 million, driven by strong performances in Crop and Casualty products. The company’s strategic focus on these areas contributed significantly to its overall growth, with net earned premiums also rising by 29.6% compared to the previous year. This growth reflects the company's effective execution of its Palomar 2X strategic plan, aimed at expanding its market reach and enhancing profitability.
Chairman and CEO Mac Armstrong highlighted the success of the quarter, stating,
The strong results of our first quarter are a testament to Palomar's focus on profitable growth. We further demonstrated our ability to ‘grow where we want to’ and deliver predictable earnings.This strategic approach has not only bolstered Palomar’s market position but also led to a raised outlook for the full year of 2024.
Operational Excellence and Future Outlook
Palomar’s underwriting income for the quarter stood at $25.0 million, resulting in a combined ratio of 76.9%, an improvement from 77.9% in the prior year. The adjusted combined ratio was slightly better at 73.0%. The company also reported a 39.4% increase in net investment income, amounting to $7.1 million, thanks to higher yields and a larger balance of investments.
Looking ahead, Palomar has raised its full-year 2024 guidance, now expecting adjusted net income between $113 million and $118 million. This optimistic outlook is supported by the company’s robust first-quarter performance and ongoing strategic initiatives.
With a strong foundation in specialty insurance and a clear strategic direction, Palomar Holdings Inc continues to demonstrate its capacity for sustained growth and profitability. The company’s focus on expanding its product lines and enhancing operational efficiencies positions it well for continued success in the competitive insurance landscape.
For more detailed information on Palomar Holdings Inc's first quarter 2024 results, investors and interested parties can access the full earnings call and additional documents through the investor relations section of the company’s website.
Explore the complete 8-K earnings release (here) from Palomar Holdings Inc for further details.
