Palomar Holdings, Inc. Reports Third Quarter 2026 Results
Palomar Holdings, Inc. (PLMR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Palomar Holdings, Inc. Reports Third Quarter 2026 Results LA JOLLA, Calif. (November 4, 2026) — Palomar Holdings, Inc. (Nasdaq:PLMR) (“Palomar” or “Company”) reported net income of $65.3 million , or $2.42 per diluted share, for the third quarter of 2026 compared to
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying interest, especially from investors focused on specialty insurance.
Market read
First‑report earnings with raised guidance for a listed insurer, providing a clear trade catalyst.
What to watch
Potential exposure to catastrophe losses could temper upside if future events materialize.
Palomar Holdings, Inc. Reports Third Quarter 2026 Results
Third-quarter gross written premiums increased 28.4%, net earned premiums increased 62.3%, and adjusted net income increased 47.4%. The company also raised full-year adjusted net income guidance to $280 million to $285 million, although loss and combined ratios increased from the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 gross written premiums (in thousands)GAAP | $767.0M | – | 28.4 % |
| Three months ended September 30, 2026 ceded written premiums (in thousands)GAAP | −378.5M | – | 17.6 % |
| Three months ended September 30, 2026 net written premiums (in thousands)GAAP | 388.6M | – | 41.2 % |
| Three months ended September 30, 2026 net earned premiums (in thousands)GAAP | 365.4M | – | 62.3 % |
| Three months ended September 30, 2026 commission and other income (in thousands)GAAP | 1.49M | – | 2.6 % |
| Three months ended September 30, 2026 total underwriting revenue (in thousands)non-GAAP | 366.9M | – | 61.9 % |
| Three months ended September 30, 2026 total revenues (in thousands)GAAP | 386.6M | – | – |
| Three months ended September 30, 2026 losses and loss adjustment expenses (in thousands)GAAP | 151.6M | – | 108.3 % |
| Three months ended September 30, 2026 acquisition expenses, net of ceding commissions and fronting fees (in thousands)GAAP | 72.35M | – | 28.6 % |
| Three months ended September 30, 2026 other underwriting expenses (in thousands)GAAP | 72.72M | – | 50.5 % |
| Three months ended September 30, 2026 underwriting income (in thousands)non-GAAP | 70.16M | – | 42.6 % |
| Three months ended September 30, 2026 interest expense (in thousands)GAAP | −5.14M | – | NM |
| Three months ended September 30, 2026 net investment income (in thousands)GAAP | 22.41M | – | 53.8 % |
| Three months ended September 30, 2026 net realized and unrealized losses on investments (in thousands)GAAP | −2.69M | – | (177.1 )% |
| Three months ended September 30, 2026 income before income taxes (in thousands)GAAP | 84.73M | – | 26.2 % |
| Three months ended September 30, 2026 income tax expense (in thousands)GAAP | 19.40M | – | 23.7 % |
| Three months ended September 30, 2026 net income (in thousands)GAAP | $65.33M | – | 27.0 % |
| Three months ended September 30, 2026 adjusted net income (in thousands)non-GAAP | $81.31M | – | 47.4 % |
| Three months ended September 30, 2026 diluted earnings per shareGAAP | $ 2.42 | – | 29.4% |
| Three months ended September 30, 2026 diluted adjusted earnings per sharenon-GAAP | $ 3.01 | – | 49.8% |
| Three months ended September 30, 2026 loss ratioother | 41.5 % | – | – |
| Three months ended September 30, 2026 expense ratioother | 39.3 % | – | – |
| Three months ended September 30, 2026 combined ratioother | 80.8 % | – | – |
| Three months ended September 30, 2026 adjusted combined rationon-GAAP | 76.3 % | – | – |
| Three months ended September 30, 2026 catastrophe losses (in thousands)other | $4.45M | – | 134.3 % |
| Three months ended September 30, 2026 catastrophe loss rationon-GAAP | 1.2 % | – | – |
| Three months ended September 30, 2026 adjusted combined ratio excluding catastrophe lossesnon-GAAP | 75.1 % | – | – |
| Three months ended September 30, 2026 adjusted underwriting income (in thousands)non-GAAP | $86.47M | – | 52.6 % |
| Three months ended September 30, 2026 annualized return on equityGAAP | 26.6 % | – | – |
| Three months ended September 30, 2026 annualized adjusted return on equitynon-GAAP | 33.1 % | – | – |
| Nine months ended September 30, 2026 gross written premiums (in thousands)GAAP | $2.03B | – | 32.0 % |
| Nine months ended September 30, 2026 net earned premiums (in thousands)GAAP | 913.8M | – | 60.5 % |
| Nine months ended September 30, 2026 total revenues (in thousands)GAAP | 980.0M | – | – |
| Nine months ended September 30, 2026 underwriting income (in thousands)non-GAAP | 158.7M | – | 20.7 % |
| Nine months ended September 30, 2026 net investment income (in thousands)GAAP | 60.34M | – | 50.8 % |
| Nine months ended September 30, 2026 net income (in thousands)GAAP | $160.9M | – | 14.2 % |
| Nine months ended September 30, 2026 adjusted net income (in thousands)non-GAAP | $208.2M | – | 34.3 % |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 5.93 | – | – |
| Nine months ended September 30, 2026 diluted adjusted earnings per sharenon-GAAP | $ 7.67 | – | – |
| Nine months ended September 30, 2026 combined ratioother | 82.7 % | – | – |
| Nine months ended September 30, 2026 adjusted combined rationon-GAAP | 76.3 % | – | – |
| Nine months ended September 30, 2026 adjusted underwriting income (in thousands)non-GAAP | $216.3M | – | 38.0 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Crop gross written premiums (in thousands)Gross written premiums | $226.7M | – | 89.3 % |
| Q3 2026 Casualty gross written premiums (in thousands)Gross written premiums | 176.8M | – | 3.4 % |
| Q3 2026 Inland Marine and Property gross written premiums (in thousands)Gross written premiums | 160.7M | – | 13.4 % |
| Q3 2026 Earthquake gross written premiums (in thousands)Gross written premiums | 154.5M | – | 3.0 % |
| Q3 2026 Surety & Credit gross written premiums (in thousands)Gross written premiums | 48.41M | – | 228.4 % |
| Nine months ended September 30, 2026 Casualty gross written premiums (in thousands)Gross written premiums | $580.6M | – | 29.5 % |
| Nine months ended September 30, 2026 Inland Marine and Property gross written premiums (in thousands)Gross written premiums | 497.0M | – | 21.8 % |
| Nine months ended September 30, 2026 Earthquake gross written premiums (in thousands)Gross written premiums | 438.4M | – | 1.6 % |
| Nine months ended September 30, 2026 Crop gross written premiums (in thousands)Gross written premiums | 391.8M | – | 88.9 % |
| Nine months ended September 30, 2026 Surety & Credit gross written premiums (in thousands)Gross written premiums | 119.5M | – | 196.9 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- NoteAdjusted net income of $280 million to $285 million
- NoteEstimate of $8 million to $12 million of catastrophe losses for the year
Capital returns
- During the current quarter, the Company repurchased 70,000 shares of its common stock for $8.9 million.
- On October 29, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share of common stock, payable on December 2, 2026, to stockholders of record as of November 17, 2026.
What drove it
- Net earned premiums increased 62.3% compared to the prior year’s third quarter.
- Net investment income increased by 53.8% to $22.4 million, primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended September 30, 2026 due to cash generated from operations.
- Written premium growth occurred across all five product categories: Earthquake, Inland Marine and Property, Casualty, Crop and Surety & Credit.
- The third-quarter loss ratio included $4.0 million of attritional unfavorable prior year development primarily related to Crop losses reallocated between calendar years.
Concerns
- The total loss ratio was 41.5% compared to 32.3% in the third quarter of 2025.
- The combined ratio was 80.8% compared to 78.1% in the third quarter of 2025, while adjusted combined ratio was 76.3% compared to 74.8%.
- Net realized and unrealized losses on investments were $(2.7) million during the third quarter compared to net realized and unrealized gains of $3.5 million during the same period last year.
- Interest expense was $ 5,138 (in thousands) compared to $ 133 (in thousands) in the prior-year quarter.
- The nine-month adjusted combined ratio was 76.3% compared to 72.5% in the prior-year period.
What to watch
- Full-year 2026 adjusted net income outlook of $280 million to $285 million.
- The estimate of $8 million to $12 million of catastrophe losses for the year.
- Loss ratio and adjusted combined ratio, including catastrophe losses and Crop-related prior-year development.
- Growth in Crop and Surety & Credit gross written premiums.
- Integration of PCSC and realization of anticipated benefits of acquisitions.
Balance sheet and cash flow
- Cash and cash equivalents were $ 55,627 (in thousands) at September 30, 2026, compared to $ 106,875 (in thousands) at December 31, 2025.
- Total investments were $ 1,758,031 (in thousands) at September 30, 2026, compared to $ 1,352,023 (in thousands) at December 31, 2025.
- Cash and invested assets totaled $1.8 billion at September 30, 2026.
- Stockholders’ equity was $ 984,972 (in thousands) at September 30, 2026, compared to $ 942,667 (in thousands) at December 31, 2025.
- Tangible stockholders’ equity was $ 756,546 (in thousands) at September 30, 2026, compared to $ 881,613 (in thousands) at December 31, 2025.
- Borrowings from credit agreements were $ 21,000 (in thousands) and term loan was $ 294,038 (in thousands) at September 30, 2026.
- Total assets were $ 4,169,244 (in thousands) at September 30, 2026, compared to $ 3,050,967 (in thousands) at December 31, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
Palomar reported a strong third quarter, with gross written premiums of $ 767,046 (in thousands), up 28.4%, and net earned premiums of 365,391 (in thousands), up 62.3%. The difference in growth rates reflects ceded written premiums increasing 17.6%, below gross written-premium growth. Crop gross written premiums increased 89.3% and Surety & Credit increased 228.4%, while Casualty and Earthquake each grew at lower rates of 3.4% and 3.0%, respectively.
GAAP net income was $ 65,335 (in thousands), up 27.0%, and adjusted net income was $ 81,311 (in thousands), up 47.4%. Diluted earnings per share was $ 2.42 and diluted adjusted earnings per share was $ 3.01. Net investment income of 22,406 (in thousands) increased 53.8%; the company attributed the improvement to higher yields and a higher average balance of investments held. This was partly offset by net realized and unrealized losses on investments of (2,692) (in thousands), compared with gains of 3,493 (in thousands) a year earlier.
Underwriting remained profitable but the reported ratios worsened year over year. The loss ratio rose to 41.5% from 32.3%, including catastrophe losses of $ 4,452 (in thousands) and $4.0 million of attritional unfavorable prior year development primarily related to Crop losses reallocated between calendar years. The expense ratio declined to 39.3% from 45.8%, but the combined ratio rose to 80.8% from 78.1%. The adjusted combined ratio was 76.3%, compared with 74.8%, and the adjusted combined ratio excluding catastrophe losses was 75.1%, compared with 74.0%.
Capital returns included repurchases of 70,000 shares for $8.9 million and a declared quarterly cash dividend of $0.45 per share. At September 30, 2026, cash and invested assets totaled $1.8 billion, stockholders’ equity was $ 984,972 (in thousands), and the balance sheet included $ 21,000 (in thousands) of borrowings from credit agreements and a $ 294,038 (in thousands) term loan. Tangible stockholders’ equity declined to $ 756,546 (in thousands) from $ 881,613 (in thousands) at December 31, 2025 as goodwill and intangible assets increased.
Management expects full-year 2026 adjusted net income of $280 million to $285 million, including an estimate of $8 million to $12 million of catastrophe losses for the year. The company did not provide a reconciliation of this adjusted net income outlook to GAAP net income, citing inability to predict certain potentially material reconciling items. The main reported watch items are the full-year catastrophe-loss outcome, underwriting ratios, Crop-related loss development, and growth across the five product categories.
Management, verbatim
Palomar’s third quarter of 2026 was exceptional; highlighted by record gross written premium and adjusted net income, our 16 th consecutive earnings beat and the fourth increase to our 2026 adjusted net income guidance range. Profitable growth anchors Palomar 2X. This quarter’s 47% growth in adjusted net income and 33% adjusted return on equity demonstrate our ability to deliver on that strategy in a dynamic insurance market.
Mac Armstrong, Chairman and Chief Executive Officer
We were especially pleased with written premium growth across all five product categories this quarter: Earthquake, Inland Marine and Property, Casualty, Crop and Surety & Credit. Our “one-of-one” specialty product portfolio is well positioned across market cycles, and this quarter reflected the ballast, diversity and overall strength in the book. It continues to position Palomar for long-term success and shareholder value creation.
Mac Armstrong, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Previous outlook section was not provided, so comparison with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- GAAP net income guidance was not provided.
- Revenue guidance was not provided.
- Gross margin guidance was not provided.
- Operating expense guidance was not provided.
- Tax rate guidance was not provided.
- Quarter-over-quarter comparisons were not reported for the presented metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Palomar Holdings filed a Form 8‑K reporting its Q3 2026 earnings and updated guidance.
Ticker impact
Palomar Holdings reported Q3 2026 net income of $65.3M, a 27% increase YoY, and raised its adjusted net income guidance range.
likely upside as investors price in the earnings beat and raised guidance
Quarterly results exceed prior year and management indicated a fourth increase to the 2026 adjusted net income guidance range, which typically drives buying pressure.
Market effects
Insurance specialty sector may see broader optimism from Palomar's performance.
U.S. specialty insurers could benefit from heightened investor interest.
Limited to U.S. market; no immediate global macro effect.
Counterpoint
If the raised guidance is already priced in, the stock could face short-term profit taking.
Key entities
- companyPalomar Holdings, Inc.
Specialty insurance holding company reporting Q3 2026 results.
