Q4 2025 Palomar Holdings Inc Earnings Call Transcript
Key Points
- Palomar Holdings Inc (PLMR) delivered record levels of gross written premium and adjusted net income in 2025, with a 32% increase in gross written premium and a 62% increase in adjusted net income.
- The company achieved an adjusted return on equity of 26% and exceeded its initial full-year adjusted net income guidance, finishing at $216 million.
- Palomar Holdings Inc (PLMR) successfully integrated two specialty franchises and announced the closing of a third acquisition, enhancing its market position.
- The company's diversified portfolio demonstrated strong performance, with a 32% increase in gross written premium and a 48% increase in adjusted net income in the fourth quarter.
- Palomar Holdings Inc (PLMR) is strategically deploying AI to enhance underwriting workflow, portfolio optimization, process automation, and operational efficiency, supporting future growth.
- The Earthquake franchise declined 2% year-over-year, impacted by a one-time headwind from a large under premium transfer in the fourth quarter of 2024.
- The Commercial Earthquake book faced pressure with rates off 15%, and competition remained elevated, which could persist through much of 2026.
- The acquisition expense as a percentage of gross earned premiums for the fourth quarter was higher than expected, driven by a mix of business resulting in higher commission and lower ceding commission.
- The loss ratio for the fourth quarter increased to 30.4% compared to 25.7% in the prior year quarter, driven by higher attritional losses associated with growth in the Casualty and Crop business.
- Fronting is no longer a strategic focus for Palomar Holdings Inc (PLMR), and the premium from this segment has declined, reflecting a shift in strategic priorities.
Good morning, and welcome to Palomar Holdings, Inc. Fourth Quarter and full-year 2025 earnings conference call. (Operator Instructions)
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.
Thank you, operator, and good morning, everyone. We appreciate your participation in our earnings call. With me here today is Mac Armstrong, our Chairman and Chief Executive Officer. Additionally, Jon Christianson, our President, is here to answer questions during the Q&A portion of the call. As a reminder, a telephonic replay of this call will be available on the Investor Relations section of our website through 11:59 PM Eastern Time on February 19, 2026.
Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks
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