Palomar Holdings Reports 35.1% Increase in Gross Written Premiums for Fiscal Year 2024

Palomar Holdings, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with gross written premiums reaching $1.54 billion, a 35.1% increase from $1.14 billion in 2023. The company's net income also rose to $117.6 million, reflecting a 48.4% increase compared to $79.2 million in the previous year. This growth is attributed to a higher volume of policies written across various lines of business, particularly in Casualty and Earthquake products, as well as strong premium retention rates and the expansion of distribution partnerships.

The company has seen a notable shift in its product mix, with earthquake-related premiums accounting for 33.9% of total gross written premiums in 2024, down from 38.3% in 2023. Non-earthquake premiums, particularly in Casualty and Crop insurance, have experienced substantial growth, with Crop premiums increasing by 859.9% year-over-year, marking the first full year of offering these products. Additionally, Palomar completed the acquisition of First Indemnity of America in January 2025, which is expected to further diversify its product offerings and enhance growth opportunities.

Operationally, Palomar's total employee count increased by approximately 19% to 253 as of December 31, 2024. The company continues to leverage its proprietary data analytics and technology platform to enhance underwriting processes and improve customer engagement. The firm has also expanded its geographic footprint, with California representing 43.4% of gross written premiums, followed by Texas and Hawaii. The company maintains a strong market position, being the second-largest earthquake insurer in California and the third-largest in the United States.

Despite the positive financial performance, Palomar faces challenges, including increased losses and loss adjustment expenses, which rose by 85.6% to $134.8 million in 2024. This increase was driven by higher frequency and severity of catastrophe events, including floods and hurricanes. The company's combined ratio, a key measure of underwriting profitability, was reported at 78.1%, indicating effective management of underwriting expenses relative to earned premiums. The company remains focused on maintaining a diversified book of business and optimizing its reinsurance program to mitigate risks associated with catastrophic events.

Looking ahead, Palomar Holdings aims to continue its growth trajectory by expanding its product offerings and geographic reach while maintaining disciplined underwriting practices. The company anticipates that its strategic initiatives, including the recent acquisition and ongoing investments in technology, will position it well for future profitability and market share expansion.