Palomar Holdings Reports 59.8% Revenue Growth to $278.9 Million in Latest Quarter

Palomar Holdings, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $278.9 million for the three months ended March 31, 2026, compared to $174.6 million in the same period last year, marking a 59.8% increase. The company’s net income was $42.9 million, slightly up from $42.9 million in the prior year, resulting in diluted earnings per share of $1.57, consistent with the previous year. The increase in revenue was primarily driven by a substantial rise in gross written premiums, which surged 42.4% to $629.8 million, up from $442.2 million in the first quarter of 2025.

The company experienced notable changes in its operational metrics, particularly in net written premiums, which increased by 59.8% to $337.9 million. This growth was attributed to a higher volume of policies across various lines of business, especially in Casualty and Inland Marine and Property. Additionally, the company reported a significant rise in acquisition expenses, which increased by 51.7% to $70.3 million, reflecting the costs associated with expanding its business operations. Other underwriting expenses also rose sharply, increasing by 81.6% to $64.9 million, driven by higher payroll and technology costs.

Palomar Holdings made strategic moves during the quarter, including the acquisition of Gray Surety, which was completed on January 31, 2026, for approximately $314.8 million. This acquisition is expected to enhance the company’s surety platform and has already contributed $12 million in revenue since its integration. The company also reported a significant increase in stock-based compensation expenses, which rose to $8.8 million from $4.7 million in the prior year, reflecting its commitment to incentivizing employees amid growth.

In terms of operational indicators, the company reported a total of 26.5 million shares outstanding as of March 31, 2026, down slightly from 26.5 million at the end of 2025. The company’s total assets increased to $3.6 billion, up from $3.1 billion at the end of the previous fiscal year, driven by growth in investments and cash reserves. However, cash and cash equivalents decreased to $56.5 million from $106.9 million, primarily due to significant cash outflows related to the acquisition and investment activities.

Looking ahead, Palomar Holdings expressed optimism about its growth trajectory, citing a strong market position and the potential for further expansion in its product offerings. The company aims to leverage its underwriting expertise and innovative solutions to capture additional market share in the property and casualty insurance sector. The management remains focused on maintaining profitability while navigating the challenges posed by market conditions and competition.