Palomar Holdings Inc (FRA:PH8)

Q2 2026 Palomar Holdings Inc Earnings Call Transcript

Aug 5, 2026 / 04:00 PM GMT

Release Date Price: €116.75 (-1.44%)

Transcript 10-Q8-K

Key Points

Positve

Palomar Holdings Inc (PLMR) delivered record adjusted net income, marking its 15th consecutive earnings beat and a third increase to full-year adjusted net income guidance.
Gross written premium grew 27% year-over-year, driven by strong performance across diversified product groups including casualty (up 37%), crop (up 96%), and surety (up 236%).
The company maintained a strong adjusted combined ratio of 77% and an adjusted return on equity of 26%, demonstrating robust underwriting discipline and capital efficiency.
Palomar Holdings Inc (PLMR) successfully completed its June 1 reinsurance placement, adding $421 million of incremental limit while keeping earthquake and hurricane event retentions stable at $20 million and $11 million, respectively.
The company initiated a quarterly dividend of $0.45 per share and repurchased 368,719 shares, reflecting confidence in its long-term value and a balanced capital return strategy.
The crop business exceeded expectations, with full-year premium outlook raised to over $400 million, and the launch of PLMR.farm, an innovative AI-driven policy administration platform, positions it for scalable growth.
Favorable prior-year development of $14.3 million, primarily from inland marine, property, and crop, underscores the conservatism of the company's reserving philosophy.

Negative

Commercial earthquake market conditions remain highly competitive, with average rate decreases exceeding 20% and new business pricing falling below technical levels in some instances.
Large commercial layered and shared property business continues to experience intense competition, with rates down 16% in the quarter, pressuring underwriting margins.
The adjusted combined ratio increased to 76.7% from 73.1% in the prior year quarter, driven by a higher underlying loss ratio due to business mix shifts toward crop and casualty.
The loss ratio is expected to remain elevated in the mid-to-upper 30s for 2026, with the third quarter anticipated to be the high point due to crop seasonality and higher attritional losses.
The company reduced exposure to transaction liability and cyber lines as pricing no longer met return hurdles, indicating some areas of the portfolio are facing margin compression.
Crop losses are recognized earlier than premiums, leading to higher loss ratios in the first half of the year, which could create quarterly earnings volatility.
The initiation of a dividend and continued share buybacks may signal limited high-return organic growth opportunities in the current competitive market environment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PLMR.OQ - Palomar Holdings, Inc.
Q2 2026 Palomar Holdings Inc Earnings Call
Aug 05, 2026 / 04:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings and welcome to the Palomar Holdings Incorporated Second Quarter 2026 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference line will be open for questions and answers. Instructions will be given at that time.

As a reminder, this conference call is being recorded.

I would now like to turn the call over to Mr. Chris Uchida, Chief Financial Officer. Please go ahead, sir.

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Unidentified_2 [2]
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Thank you, operator, and good morning,

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