Palomar Holdings Reports 55% Revenue Growth to $203.3 Million in Q2 2025

Palomar Holdings, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $203.3 million for the three months ended June 30, 2025, a 55% increase from $131.1 million in the same period last year. The company’s net income also saw a substantial rise, climbing to $46.5 million, up 81% from $25.7 million in the prior year. This growth was driven by a 28.8% increase in gross written premiums, which totaled $496.3 million, compared to $385.2 million in the second quarter of 2024. The increase in premiums was attributed to a higher volume of policies across various lines of business, particularly in Casualty and Crop insurance.

In terms of profitability, Palomar's diluted earnings per share rose to $1.68 for the second quarter of 2025, compared to $1.00 in the same quarter of 2024. The company’s underwriting income also improved significantly, increasing by 49.5% to $38.3 million, reflecting a combined ratio of 78.8%, indicating effective cost management alongside revenue growth. The loss ratio remained stable at 25.7%, slightly up from 24.9% in the previous year, while the expense ratio improved to 53.1% from 54.2%, showcasing operational efficiency.

Strategically, Palomar has expanded its market presence through acquisitions, including the purchase of First Indemnity of America Insurance Co. (FIA) at the beginning of 2025, which contributed to the company’s growth in gross written premiums. The company also launched new products in recent years, such as Crop and Environmental Liability insurance, which have diversified its offerings and broadened its market reach. As of June 30, 2025, Palomar's total assets increased to $2.83 billion, up from $2.26 billion at the end of 2024, driven by growth in investments and cash reserves.

Operationally, Palomar reported a total of 26.8 million shares outstanding as of June 30, 2025, with a slight increase in employee headcount to support its expanding operations. The company’s investment portfolio remains robust, with a fair value of $1.11 billion in fixed maturity securities, reflecting a strategic focus on maintaining liquidity and generating stable investment income. The company’s cash and cash equivalents stood at $81.3 million, providing a solid liquidity position to support ongoing operations and future growth initiatives.

Looking ahead, Palomar Holdings expressed optimism about its growth trajectory, citing a strong pipeline of new business and continued expansion in its product offerings. The company anticipates that its strategic initiatives, including further acquisitions and product innovations, will enhance its competitive position in the specialty insurance market. Management remains focused on leveraging its underwriting expertise and data analytics capabilities to drive profitability and shareholder value in the coming quarters.