Palomar Holdings, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $244.7 million for the three months ended September 30, 2025, a 64.6% increase from $148.5 million in the same period last year. The company’s net income also saw a substantial rise, climbing to $51.5 million, or $1.93 per share, compared to $30.5 million, or $1.18 per share, in the prior year. For the nine months ending September 30, 2025, net income totaled $140.9 million, reflecting a 70.6% increase from $82.6 million in the previous year.
The growth in revenue was primarily driven by a 43.9% increase in gross written premiums, which reached $597.2 million, up from $415.0 million in the third quarter of 2024. This increase was attributed to higher policy volumes across various lines of business, particularly in Casualty and Crop insurance, as well as strong retention rates and the expansion of distribution partnerships. However, ceded written premiums also increased by 26.1% to $321.9 million, indicating a rise in reinsurance costs associated with the growth in gross written premiums.
Operationally, Palomar has made strategic moves, including the acquisition of First Indemnity of America Insurance Co. (FIA) and Advanced AgProtection, LLC (AAP) earlier in 2025. These acquisitions are expected to enhance the company’s product offerings and market reach. Additionally, the company has initiated a share repurchase program, authorizing the buyback of up to $150 million of its common stock, with $37.3 million already utilized for repurchases in the first nine months of 2025.
In terms of operational metrics, Palomar reported a 66.0% increase in net earned premiums, totaling $225.1 million for the third quarter of 2025. The company’s loss ratio increased to 32.3% from 29.7% year-over-year, while the expense ratio improved to 45.8% from 50.8%, resulting in a combined ratio of 78.1%, down from 80.5%. The company’s investment income also rose significantly, with net investment income increasing by 54.9% to $14.6 million, driven by a higher average balance of investments and improved yields.
Looking ahead, Palomar Holdings, Inc. remains optimistic about its growth trajectory, bolstered by its recent acquisitions and ongoing expansion efforts. The company anticipates continued growth in gross written premiums and net income, supported by its strategic initiatives and favorable market conditions.
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is a specialty insurance provider offering property and casualty products across five segments, including earthquake, inland marine, casualty, fronting, and crop insurance. Utilizing proprietary data analytics and flexible, innovative products, it serves both admitted and surplus markets in the U.S. through diverse distribution channels. The company emphasizes disciplined underwriting, reinsurance, and technology to deliver profitable growth and risk management.
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