LA JOLLA, Calif., Nov. 04, 2026 (GLOBE NEWSWIRE) — 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 net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025. Adjusted net income(1) was $81.3 million, or $3.01 per diluted share, for the third quarter of 2026 as compared to $55.2 million, or $2.01 per diluted share, for the third quarter of 2025.

Third Quarter 2026 Highlights

  • Gross written premiums increased by 28.4% to $767.0 million compared to $597.2 million in the third quarter of 2025
  • Net income increased 27.0% to $65.3 million compared to $51.5 million in the third quarter of 2025
  • Adjusted net income(1) increased 47.4% to $81.3 million compared to $55.2 million in the third quarter of 2025
  • Diluted earnings per share increased by 29.4% to $2.42 compared to $1.87 in the third quarter of 2025
  • Diluted adjusted earnings per share(1) increased by 49.8% to $3.01 compared to $2.01 in the third quarter of 2025
  • Total loss ratio of 41.5% compared to 32.3% in the third quarter of 2025
  • Combined ratio of 80.8% compared to 78.1% in the third quarter of 2025
  • Adjusted combined ratio(1) of 76.3% compared to 74.8% in the third quarter of 2025
  • Annualized return on equity of 26.6% compared to 23.9% in the third quarter of 2025
  • Annualized adjusted return on equity(1) of 33.1% compared to 25.6% in the third quarter of 2025

(1)          See discussion of “Non-GAAP and Key Performance Indicators” below.

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Palomar’s third quarter of 2026 was exceptional; highlighted by record gross written premium and adjusted net income, our 16th 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.”

Mr. Armstrong continued, “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.” 

Underwriting Results
Gross written premiums increased 28.4% to $767.0 million compared to $597.2 million in the third quarter of 2025, while net earned premiums increased 62.3% compared to the prior year’s third quarter.

Losses and loss adjustment expenses for the third quarter were $151.6 million, comprised of $147.2 million of attritional losses and $4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest. The loss ratio for the quarter was 41.5%, comprised of an attritional loss ratio of 40.3% and a catastrophe loss ratio(1) of 1.2% compared to a loss ratio of 32.3% during the same period last year comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio(1) of 0.8%. Additionally, our third quarter results include $4.0 million of attritional unfavorable prior year development primarily related to Crop losses reallocated between calendar years.

Underwriting income(1) for the third quarter was $70.2 million resulting in a combined ratio of 80.8% compared to underwriting income of $49.2 million resulting in a combined ratio of 78.1% during the same period last year. The Company’s adjusted underwriting income(1) was $86.5 million, an increase of 52.6%, resulting in an adjusted combined ratio(1) of 76.3% in the third quarter compared to adjusted underwriting income(1) of $56.7 million and an adjusted combined ratio(1) of 74.8% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses(1) was 75.1% compared to 74.0% during the same period last year.

Investment Results
Net investment income increased by 53.8% to $22.4 million compared to $14.6 million in the prior year’s third quarter. The increase was 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. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.61 years at September 30, 2026. Cash and invested assets totaled $1.8 billion at September 30, 2026. During the third quarter, the Company recorded $2.7 million net realized and unrealized losses related to its investment portfolio as compared to net realized and unrealized gains of $3.5 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended September 30, 2026 was 22.9% compared to 23.4% for the three months ended September 30, 2025. For the current quarter, the Company’s income tax rate differed from the statutory rate of 21% due primarily to non-deductible executive compensation expense.

Stockholders’ Equity and Capital Matters
Stockholders’ equity was $985.0 million at September 30, 2026, compared to $878.1 million at September 30, 2025. For the three months ended September 30, 2026, the Company’s annualized return on equity was 26.6% compared to 23.9% for the same period in the prior year while annualized adjusted return on equity(1) was 33.1% compared to 25.6% for the same period in the prior year.

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.

Full Year 2026 Outlook
For the full year 2026, the Company expects to achieve adjusted net income of $280 million to $285 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.

Conference Call
As previously announced, Palomar will host a conference call on Thursday, November 5, 2026, to discuss its third quarter 2026 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Third Quarter 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on November 5, 2026, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13762752. The replay will be available until 11:59 p.m. (Eastern Time) on November 19, 2026.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), Palomar Crop Insurance Services, Inc. (“PCIS”), and Palomar Casualty and Surety Company (“PCSC”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Property, Casualty, Surety & Credit, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of “A” (Excellent) from A.M. Best and PCSC has a financial strength rating of “A-” (Excellent) from A.M. Best.

To learn more, visit PLMR.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance. Management uses these non-GAAP measures internally to evaluate the Company’s underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company’s operating performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the Company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

The Company has not provided a reconciliation of its full year 2026 adjusted net income outlook to net income, the most directly comparable GAAP financial measure, because it is unable to predict, without unreasonable efforts, certain reconciling items which could be material to net income. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact net income that have not yet occurred, are out of the Company’s control and/or cannot reasonable by predicted. Such forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measure may vary materially from the corresponding GAAP financial measure.

Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including the frequency and severity of catastrophe events; the adequacy of our loss reserves; the availability, cost and collectability of reinsurance; investment performance and interest rate fluctuations; weather conditions and crop price volatility affecting our Crop business; our ability to integrate PCSC and realize the anticipated benefits of acquisitions; competitive conditions; and regulatory developments. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com

Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com
Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three and nine months ended September 30, 2026 and 2025:

    Three Months Ended            
    September 30,            
    2026   2025   Change   % Change
    (in thousands, except per share data)
Gross written premiums   $ 767,046     $ 597,171     $ 169,875       28.4 %
Ceded written premiums     (378,477 )     (321,927 )     (56,550 )     17.6 %
Net written premiums     388,569       275,244       113,325       41.2 %
Net earned premiums     365,391       225,147       140,244       62.3 %
Commission and other income     1,485       1,448       37       2.6 %
Total underwriting revenue (1)     366,876       226,595       140,281       61.9 %
Losses and loss adjustment expenses     151,646       72,812       78,834       108.3 %
Acquisition expenses, net of ceding commissions and fronting fees     72,352       56,270       16,082       28.6 %
Other underwriting expenses     72,722       48,306       24,416       50.5 %
Underwriting income (1)     70,156       49,207       20,949       42.6 %
Interest expense     (5,138 )     (133 )     (5,005 )   NM  
Net investment income     22,406       14,572       7,834       53.8 %
Net realized and unrealized (losses) gains on investments     (2,692 )     3,493       (6,185 )     (177.1 )%
Income before income taxes     84,732       67,139       17,593       26.2 %
Income tax expense     19,397       15,684       3,713       23.7 %
Net income   $ 65,335     $ 51,455     $ 13,880       27.0 %
Adjustments:                        
Net realized and unrealized losses (gains) on investments     2,692       (3,493 )     6,185       (177.1 )%
Expenses associated with transactions     3,133       728       2,405     NM  
Stock-based compensation expense     7,022       5,379       1,643       30.5 %
Amortization of intangibles     6,161       1,346       4,815     NM  
Tax impact     (3,032 )     (251 )     (2,781 )   NM  
Adjusted net income (1)   $ 81,311     $ 55,164     $ 26,147       47.4 %
Key Financial and Operating Metrics                        
Annualized return on equity     26.6 %     23.9 %            
Annualized adjusted return on equity (1)     33.1 %     25.6 %            
Loss ratio     41.5 %     32.3 %            
Expense ratio     39.3 %     45.8 %            
Combined ratio     80.8 %     78.1 %            
Adjusted combined ratio (1)     76.3 %     74.8 %            
Diluted earnings per share   $ 2.42     $ 1.87              
Diluted adjusted earnings per share (1)   $ 3.01     $ 2.01              
Catastrophe losses   $ 4,452     $ 1,900              
Catastrophe loss ratio (1)     1.2 %     0.8 %            
Adjusted combined ratio excluding catastrophe losses (1)     75.1 %     74.0 %            
Adjusted underwriting income (1)   $ 86,472     $ 56,660     $ 29,812       52.6 %
NM – not meaningful                        

__________________________

(1)   Indicates Non-GAAP financial measure – see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.
     

                   
    Nine Months Ended            
    September 30,            
    2026   2025   Change   % Change
    (in thousands, except per share data)
Gross written premiums   $ 2,027,330     $ 1,535,623     $ 491,707       32.0 %
Ceded written premiums     (975,669 )     (819,171 )     (156,498 )     19.1 %
Net written premiums     1,051,661       716,452       335,209       46.8 %
Net earned premiums     913,781       569,175       344,606       60.5 %
Commission and other income     3,664       3,954       (290 )     (7.3 )%
Total underwriting revenue (1)     917,445       573,129       344,316       60.1 %
Losses and loss adjustment expenses     337,732       157,739       179,993       114.1 %
Acquisition expenses, net of ceding commissions and fronting fees     213,923       154,266       59,657       38.7 %
Other underwriting expenses     207,057       129,563       77,494       59.8 %
Underwriting income (1)     158,733       131,561       27,172       20.7 %
Interest expense     (13,243 )     (304 )     (12,939 )   NM  
Net investment income     60,340       40,014       20,326       50.8 %
Net realized and unrealized gains on investments     2,167       9,461       (7,294 )     (77.1 )%
Income before income taxes     207,997       180,732       27,265       15.1 %
Income tax expense     47,123       39,827       7,296       18.3 %
Net income   $ 160,874     $ 140,905     $ 19,969       14.2 %
Adjustments:                        
Net realized and unrealized gains on investments     (2,167 )     (9,461 )     7,294       (77.1 )%
Expenses associated with transactions     10,545       3,570       6,975       195.4 %
Stock-based compensation expense     23,246       15,471       7,775       50.3 %
Amortization of intangibles     21,396       3,400       17,996     NM  
Expenses associated with catastrophe bond     2,330       2,661       (331 )     (12.4 )%
Tax impact     (8,008 )     (1,543 )     (6,465 )   NM  
Adjusted net income (1)   $ 208,216     $ 155,003     $ 53,213       34.3 %
Key Financial and Operating Metrics                        
Annualized return on equity     22.3 %     23.4 %            
Annualized adjusted return on equity (1)     28.8 %     25.7 %            
Loss ratio     37.0 %     27.7 %            
Expense ratio     45.7 %     49.2 %            
Combined ratio     82.7 %     76.9 %            
Adjusted combined ratio (1)     76.3 %     72.5 %            
Diluted earnings per share   $ 5.93     $ 5.12              
Diluted adjusted earnings per share (1)   $ 7.67     $ 5.63              
Catastrophe losses   $ 4,302     $ 1,335              
Catastrophe loss ratio (1)     0.5 %     0.2 %            
Adjusted combined ratio excluding catastrophe losses (1)     75.9 %     72.2 %            
Adjusted underwriting income (1)   $ 216,250     $ 156,663     $ 59,587       38.0 %
NM – not meaningful                        

__________________________

(1)   Indicates Non-GAAP financial measure – see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.
     

Condensed Consolidated Balance Sheets

 
Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except shares and par value data)
         
    September 30,   December 31,
    2026   2025
    (Unaudited)      
Assets            
Investments:            
Fixed maturity securities available for sale, at fair value (amortized cost: $1,650,443 in 2026; $1,227,605 in 2025)   $ 1,565,619     $ 1,224,187  
Fixed maturity securities held to maturity, at amortized cost     14,701       —  
Equity securities, at fair value (cost: $108,026 in 2026; $81,772 in 2025)     123,745       99,333  
Other investments     53,966       28,503  
Total investments     1,758,031       1,352,023  
Cash and cash equivalents     55,627       106,875  
Restricted cash     —       17  
Accrued investment income     15,358       11,545  
Premiums receivable     667,166       452,908  
Deferred policy acquisition costs, net of ceding commissions and fronting fees     162,888       127,718  
Reinsurance recoverable on paid losses and loss adjustment expenses     48,220       56,428  
Reinsurance recoverable on unpaid losses and loss adjustment expenses     604,411       412,273  
Ceded unearned premiums     453,173       355,918  
Prepaid expenses and other assets     168,777       110,896  
Deferred tax assets, net     4,518       761  
Property and equipment, net     2,649       2,551  
Goodwill and intangible assets, net     228,426       61,054  
Total assets   $ 4,169,244     $ 3,050,967  
Liabilities and stockholders’ equity            
Liabilities:            
Accounts payable and other accrued liabilities   $ 183,128     $ 115,663  
Reserve for losses and loss adjustment expenses     1,104,974       688,231  
Unearned premiums     1,257,218       988,143  
Ceded premium payable     270,547       271,413  
Funds held under reinsurance treaty     53,367       44,850  
Borrowings from credit agreements     21,000       —  
Term loan     294,038       —  
Total liabilities     3,184,272       2,108,300  
Stockholders’ equity:            
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2026 and December 31, 2025     —       —  
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,290,067 and 26,520,417 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively     3       3  
Additional paid-in capital     553,574       523,168  
Accumulated other comprehensive loss     (66,266 )     (2,506 )
Retained earnings     497,661       422,002  
Total stockholders’ equity     984,972       942,667  
Total liabilities and stockholders’ equity   $ 4,169,244     $ 3,050,967  
                 

Condensed Consolidated Income Statement

 
Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(in thousands, except shares and per share data)
         
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
Revenues:                        
Gross written premiums   $ 767,046     $ 597,171     $ 2,027,330     $ 1,535,623  
Ceded written premiums     (378,477 )     (321,927 )     (975,669 )     (819,171 )
Net written premiums     388,569       275,244       1,051,661       716,452  
Change in unearned premiums     (23,178 )     (50,097 )     (137,880 )     (147,277 )
Net earned premiums     365,391       225,147       913,781       569,175  
Net investment income     22,406       14,572       60,340       40,014  
Net realized and unrealized (losses) gains on investments     (2,692 )     3,493       2,167       9,461  
Commission and other income     1,485       1,448       3,664       3,954  
Total revenues     386,590       244,660       979,952       622,604  
Expenses:                        
Losses and loss adjustment expenses     151,646       72,812       337,732       157,739  
Acquisition expenses, net of ceding commissions and fronting fees     72,352       56,270       213,923       154,266  
Other underwriting expenses     72,722       48,306       207,057       129,563  
Interest expense     5,138       133       13,243       304  
Total expenses     301,858       177,521       771,955       441,872  
Income before income taxes     84,732       67,139       207,997       180,732  
Income tax expense     19,397       15,684       47,123       39,827  
Net income   $ 65,335     $ 51,455     $ 160,874     $ 140,905  
Other comprehensive income, net:                        
Net unrealized (losses) gains on securities available for sale     (51,107 )     9,541       (63,760 )     22,753  
Net comprehensive (loss) income   $ 14,228     $ 60,996     $ 97,114     $ 163,658  
Per Share Data:                        
Basic earnings per share   $ 2.48     $ 1.93     $ 6.09     $ 5.28  
Diluted earnings per share   $ 2.42     $ 1.87     $ 5.93     $ 5.12  
                         
Weighted-average common shares outstanding:                        
Basic     26,308,497       26,637,592       26,408,217       26,683,856  
Diluted     26,995,574       27,446,519       27,143,378       27,533,533  
                                 

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (“GWP”) by product, location and company are presented below:

    Three Months Ended September 30,            
    2026   2025            
    ($ in thousands)            
          % of         % of         %
    Amount   GWP   Amount   GWP   Change   Change
Product(1)                                    
Crop   $ 226,668       29.6 %   $ 119,757       20.1 %   $ 106,911       89.3 %
Casualty     176,784       23.0 %     170,994       28.6 %     5,790       3.4 %
Inland Marine and Property     160,706       21.0 %     141,739       23.7 %     18,967       13.4 %
Earthquake     154,478       20.1 %     149,940       25.1 %     4,538       3.0 %
Surety & Credit     48,410       6.3 %     14,741       2.5 %     33,669       228.4 %
Total gross written premiums   $ 767,046       100.0 %   $ 597,171       100.0 %   $ 169,875       28.4 %

__________________________

(1)   Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.
     

    Nine Months Ended September 30,            
    2026   2025            
    ($ in thousands)            
          % of         % of         %
    Amount   GWP   Amount   GWP   Change   Change
Product(1)                                    
Casualty   $ 580,576       28.7 %   $ 448,484       29.2 %   $ 132,092       29.5 %
Inland Marine and Property     496,998       24.5 %     408,105       26.6 %     88,893       21.8 %
Earthquake     438,442       21.6 %     431,345       28.1 %     7,097       1.6 %
Crop     391,810       19.3 %     207,440       13.5 %     184,370       88.9 %
Surety & Credit     119,504       5.9 %     40,249       2.6 %     79,255       196.9 %
Total gross written premiums   $ 2,027,330       100.0 %   $ 1,535,623       100.0 %   $ 491,707       32.0 %

__________________________

(1)   Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.
     

    Three Months Ended September 30,   Nine Months Ended September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
          % of         % of         % of         % of
    Amount   GWP   Amount   GWP   Amount   GWP   Amount   GWP
State                                                
California   $ 175,503       22.9 %   $ 168,739       28.3 %   $ 498,429       24.6 %   $ 472,276       30.8 %
Texas     45,159       5.9 %     38,609       6.5 %     170,240       8.4 %     119,308       7.8 %
Missouri     38,019       5.0 %     13,420       2.2 %     57,038       2.8 %     25,219       1.6 %
Hawaii     31,610       4.1 %     26,405       4.4 %     81,714       4.0 %     71,307       4.6 %
Illinois     30,454       4.0 %     20,911       3.5 %     55,725       2.7 %     39,548       2.6 %
Florida     28,648       3.7 %     23,770       4.0 %     92,999       4.6 %     66,391       4.3 %
Kansas     24,476       3.2 %     11,206       1.9 %     45,698       2.3 %     16,847       1.1 %
Oklahoma     23,795       3.1 %     10,587       1.8 %     49,107       2.4 %     16,535       1.1 %
Other     369,382       48.1 %     283,524       47.4 %     976,380       48.2 %     708,192       46.1 %
Total gross written premiums   $ 767,046       100.0 %   $ 597,171       100.0 %   $ 2,027,330       100.0 %   $ 1,535,623       100.0 %
                                                                 

         
    Three Months Ended September 30,   Nine Months Ended September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
          % of         % of         % of         % of
    Amount   GWP   Amount   GWP   Amount   GWP   Amount   GWP
Subsidiary                                                
PSIC   $ 437,645       57.1 %   $ 317,177       53.1 %   $ 1,039,575       51.3 %   $ 781,078       50.9 %
PESIC     271,797       35.4 %     252,318       42.3 %     846,143       41.7 %     681,048       44.4 %
Laulima     28,003       3.6 %     22,804       3.8 %     70,080       3.5 %     58,974       3.8 %
PCSC     26,706       3.5 %     —       — %     60,685       3.0 %     —       — %
FIA     2,895       0.4 %     4,872       0.8 %     10,847       0.5 %     14,523       0.9 %
Total gross written premiums   $ 767,046       100.0 %   $ 597,171       100.0 %   $ 2,027,330       100.0 %   $ 1,535,623       100.0 %
                                                                 

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

    Three Months Ended               Nine Months Ended            
    September 30,         %   September 30,         %
    2026   2025   Change   Change   2026   2025   Change   Change
    ($ in thousands)   ($ in thousands)
Gross earned premiums   $ 736,144     $ 518,783     $ 217,361       41.9 %   $ 1,792,875     $ 1,303,323     $ 489,552       37.6 %
Ceded earned premiums     (370,753 )     (293,636 )     (77,117 )     26.3 %     (879,094 )     (734,148 )     (144,946 )     19.7 %
Net earned premiums   $ 365,391     $ 225,147     $ 140,244       62.3 %   $ 913,781     $ 569,175     $ 344,606       60.5 %
                                                 
Net earned premium ratio     49.6 %     43.4 %                 51.0 %     43.7 %            
                                                         

Loss detail

    Three Months Ended               Nine Months Ended            
    September 30,               September 30,            
    2026   2025   Change   % Change   2026   2025   Change   % Change
    ($ in thousands)   ($ in thousands)
Catastrophe losses   $ 4,452     $ 1,900     $ 2,552       134.3 %   $ 4,302     $ 1,335     $ 2,967       222.2 %
Non-catastrophe losses     147,194       70,912       76,282       107.6 %     333,430       156,404       177,026       113.2 %
Total losses and loss adjustment expenses   $ 151,646     $ 72,812     $ 78,834       108.3 %   $ 337,732     $ 157,739     $ 179,993       114.1 %
                                                 
Catastrophe loss ratio     1.2 %     0.8 %                 0.5 %     0.2 %            
Non-catastrophe loss ratio     40.3 %     31.5 %                 36.5 %     27.5 %            
Total loss ratio     41.5 %     32.3 %                 37.0 %     27.7 %            
                                                         

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

    Three Months Ended September 30,   Nine Months Ended September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period   $ 420,947     $ 199,185     $ 275,959     $ 155,299  
Add: Balances acquired(1)     —       —       22,178       6,788  
Add: Incurred losses and LAE, net of reinsurance, related to:(2)                        
Current year     147,607       78,946       358,347       174,703  
Prior years     4,039       (6,134 )     (20,615 )     (16,964 )
Total incurred     151,646       72,812       337,732       157,739  
Deduct: Loss and LAE payments, net of reinsurance, related to:                        
Current year     48,058       15,655       76,039       38,312  
Prior years     23,972       12,629       59,267       37,801  
Total payments     72,030       28,284       135,306       76,113  
Reserve for losses and LAE net of reinsurance recoverables at end of period     500,563       243,713       500,563       243,713  
Add: Reinsurance recoverables on unpaid losses and LAE at end of period     604,411       440,559       604,411       440,559  
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period   $ 1,104,974     $ 684,272     $ 1,104,974     $ 684,272  

__________________________

(1)   Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of The Gray Casualty and Surety Company (“Gray Surety”) and FIA on 1/31/2026 and 1/1/2025, respectively, in accordance with ASC 805, Business Combinations. See Note 23 of the Notes to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K and Note 14 of our September 30, 2026 Quarterly Report on Form 10-Q for additional information regarding the acquisitions.
(2)   Losses for the three months ended September 30, 2026 and 2025 include $0.3 million and an insignificant amount, respectively, of gains on derivative instruments. Losses for the nine months ended September 30, 2026 and 2025 include $18.2 million and an insignificant amount, respectively, of losses on derivative instruments.
     

Reconciliation of Non-GAAP Financial Measures

For the three and nine months ended September 30, 2026 and 2025, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Total revenue   $ 386,590     $ 244,660     $ 979,952     $ 622,604  
Net investment income     (22,406 )     (14,572 )     (60,340 )     (40,014 )
Net realized and unrealized losses (gains) on investments     2,692       (3,493 )     (2,167 )     (9,461 )
Underwriting revenue   $ 366,876     $ 226,595     $ 917,445     $ 573,129  
                                 

Underwriting income and adjusted underwriting income

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Income before income taxes   $ 84,732     $ 67,139     $ 207,997     $ 180,732  
Net investment income     (22,406 )     (14,572 )     (60,340 )     (40,014 )
Net realized and unrealized losses (gains) on investments     2,692       (3,493 )     (2,167 )     (9,461 )
Interest expense     5,138       133       13,243       304  
Underwriting income   $ 70,156     $ 49,207     $ 158,733     $ 131,561  
Expenses associated with transactions     3,133       728       10,545       3,570  
Stock-based compensation expense     7,022       5,379       23,246       15,471  
Amortization of intangibles     6,161       1,346       21,396       3,400  
Expenses associated with catastrophe bond     —       —       2,330       2,661  
Adjusted underwriting income   $ 86,472     $ 56,660     $ 216,250     $ 156,663  
                                 

Adjusted net income

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Net income   $ 65,335     $ 51,455     $ 160,874     $ 140,905  
Adjustments:                        
Net realized and unrealized losses (gains) on investments     2,692       (3,493 )     (2,167 )     (9,461 )
Expenses associated with transactions     3,133       728       10,545       3,570  
Stock-based compensation expense     7,022       5,379       23,246       15,471  
Amortization of intangibles     6,161       1,346       21,396       3,400  
Expenses associated with catastrophe bond     —       —       2,330       2,661  
Tax impact     (3,032 )     (251 )     (8,008 )     (1,543 )
Adjusted net income   $ 81,311     $ 55,164     $ 208,216     $ 155,003  
                                 

Annualized adjusted return on equity

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Annualized adjusted net income   $ 325,244     $ 220,656     $ 277,621     $ 206,671  
Average stockholders’ equity   $ 982,957     $ 862,654     $ 963,820     $ 803,570  
Annualized adjusted return on equity     33.1 %     25.6 %     28.8 %     25.7 %
                                 

Adjusted combined ratio

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income   $ 295,235     $ 175,940     $ 755,048     $ 437,614  
Denominator: Net earned premiums   $ 365,391     $ 225,147     $ 913,781     $ 569,175  
Combined ratio     80.8 %     78.1 %     82.7 %     76.9 %
Adjustments to numerator:                        
Expenses associated with transactions   $ (3,133 )   $ (728 )   $ (10,545 )   $ (3,570 )
Stock-based compensation expense     (7,022 )     (5,379 )     (23,246 )     (15,471 )
Amortization of intangibles     (6,161 )     (1,346 )     (21,396 )     (3,400 )
Expenses associated with catastrophe bond     —       —       (2,330 )     (2,661 )
Adjusted combined ratio     76.3 %     74.8 %     76.3 %     72.5 %
                                 

Diluted adjusted earnings per share

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    (in thousands, except per share data)   (in thousands, except per share data)
Adjusted net income   $ 81,311     $ 55,164     $ 208,216     $ 155,003  
Weighted-average common shares outstanding, diluted     26,995,574       27,446,519       27,143,378       27,533,533  
Diluted adjusted earnings per share   $ 3.01     $ 2.01     $ 7.67     $ 5.63  
                                 

Catastrophe loss ratio

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Numerator: Losses and loss adjustment expenses   $ 151,646     $ 72,812     $ 337,732     $ 157,739  
Denominator: Net earned premiums   $ 365,391     $ 225,147     $ 913,781     $ 569,175  
Loss ratio     41.5 %     32.3 %     37.0 %     27.7 %
                         
Numerator: Catastrophe losses   $ 4,452     $ 1,900     $ 4,302     $ 1,335  
Denominator: Net earned premiums   $ 365,391     $ 225,147     $ 913,781     $ 569,175  
Catastrophe loss ratio     1.2 %     0.8 %     0.5 %     0.2 %
                                 

Adjusted combined ratio excluding catastrophe losses

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2026   2025   2026   2025
    ($ in thousands)   ($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income   $ 295,235     $ 175,940     $ 755,048     $ 437,614  
Denominator: Net earned premiums   $ 365,391     $ 225,147     $ 913,781     $ 569,175  
Combined ratio     80.8 %     78.1 %     82.7 %     76.9 %
Adjustments to numerator:                        
Expenses associated with transactions   $ (3,133 )   $ (728 )   $ (10,545 )   $ (3,570 )
Stock-based compensation expense     (7,022 )     (5,379 )     (23,246 )     (15,471 )
Amortization of intangibles     (6,161 )     (1,346 )     (21,396 )     (3,400 )
Expenses associated with catastrophe bond     —       —       (2,330 )     (2,661 )
Catastrophe losses     (4,452 )     (1,900 )     (4,302 )     (1,335 )
Adjusted combined ratio excluding catastrophe losses     75.1 %     74.0 %     75.9 %     72.2 %
                                 

Tangible Stockholders’ equity

    September 30,   December 31,
    2026   2025
    ($ in thousands)
Stockholders’ equity   $ 984,972     $ 942,667  
Goodwill and intangible assets     (228,426 )     (61,054 )
Tangible stockholders’ equity   $ 756,546     $ 881,613  
                 


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Palomar Holdings, Inc