Palomar Holdings, Inc. Reports Third Quarter 2025 Results

LA JOLLA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025 compared to net income of $30.5 million, or $1.15 per diluted share, for the third quarter of 2024. Adjusted net income⁽¹⁾ was $55.2 million, or $2.01 per diluted share, for the third quarter of 2025 as compared to $32.4 million, or $1.23 per diluted share, for the third quarter of 2024.

Third Quarter 2025 Highlights

Gross written premiums increased by 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024
Net income of $51.5 million compared to $30.5 million in the third quarter of 2024
Adjusted net income⁽¹⁾ increased 70.0% to $55.2 million compared to $32.4 million in the third quarter of 2024
Total loss ratio of 32.3% compared to 29.7% in the third quarter of 2024
Catastrophe loss ratio⁽¹⁾ of 0.8% compared to 9.5% in the third quarter of 2024
Combined ratio of 78.1% compared to 80.5% in the third quarter of 2024
Adjusted combined ratio⁽¹⁾ of 74.8% compared to 77.1%, in the third quarter of 2024
Annualized return on equity of 23.9% compared to 19.7% in the third quarter of 2024
Annualized adjusted return on equity⁽¹⁾ of 25.6% compared to 21.0% in the third quarter of 2024

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

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our third quarter results were exceptional, highlighted by record gross written premium and adjusted net income. We continue to achieve strong top and bottom-line growth as gross written premium grew 44% and adjusted net income increased a stellar 70% across our unique and diverse portfolio. This strong growth underscores the stability of our balanced book of E&S and admitted residential and commercial property and casualty products. Our operating and return metrics were also impressive as we generated an adjusted combined ratio of 75%, and a 26% adjusted return on equity.”

Mr. Armstrong continued, “Beyond our financial performance, we remain focused on achieving our Palomar 2X strategic imperatives. Notably, during the quarter our young crop franchise’s written premium in the quarter was well ahead of our initial estimates and in October we announced the acquisition of The Gray Casualty and Surety Company. Our investments in Crop and Surety will not only drive long-term profitable growth but also further differentiate our portfolio and better insulate us from P&C market cycles.”

Underwriting Results
Gross written premiums increased 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024, while net earned premiums increased 66.0% compared to the prior year’s third quarter.

Losses and loss adjustment expenses for the third quarter were $72.8 million, comprised of $70.9 million of attritional losses and $1.9 million of catastrophe losses. The loss ratio for the quarter was 32.3%, comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio⁽¹⁾ of 0.8% compared to a loss ratio of 29.7% during the same period last year comprised of an attritional loss ratio of 20.2% and a catastrophe loss ratio⁽¹⁾ of 9.5%. Additionally, our third quarter results include $6.1 million of favorable prior year development primarily from our short tail Inland Marine and Other Property business.

Underwriting income⁽¹⁾ for the third quarter was $49.2 million resulting in a combined ratio of 78.1% compared to underwriting income of $26.4 million resulting in a combined ratio of 80.5% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $56.7 million resulting in an adjusted combined ratio⁽¹⁾ of 74.8% in the third quarter compared to adjusted underwriting income⁽¹⁾of $31.0 million and an adjusted combined ratio⁽¹⁾ of 77.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 74.0% compared to 67.6% during the same period last year.

Investment Results
Net investment income increased by 54.9% to $14.6 million compared to $9.4 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, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.01 years at September 30, 2025. Cash and invested assets totaled $1.3 billion at September 30, 2025. During the third quarter, the Company recorded $3.5 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $2.7 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended September 30, 2025 was 23.4% compared to 20.8% for the three months ended September 30, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to non-deductible executive compensation expense offset by the tax impact of the permanent component of employee stock options.

Stockholders’ Equity and Returns
Stockholders’ equity was $878.1 million at September 30, 2025, compared to $703.3 million at September 30, 2024. For the three months ended September 30, 2025, the Company’s annualized return on equity was 23.9% compared to 19.7% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 25.6% compared to 21.0% for the same period in the prior year. During the current quarter, the Company repurchased 308,417 shares for $37.3 million under its previously announced $150 million share repurchase authorization. As of September 30, 2025, approximately $112.7 million remains available for future repurchases.

Full Year 2025 Outlook
For the full year 2025, the Company expects to achieve adjusted net income of $210 million to $215 million, an increase from the previously announced range of $198 million to $208 million.

Conference Call
As previously announced, Palomar will host a conference call Friday, November 7, 2025, to discuss its third quarter 2025 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 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on November 7, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13755786. The replay will be available until 11:59 p.m. (Eastern Time) on November 14, 2025.

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”), and Palomar Crop Insurance Services, Inc. (“PCIS”). 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 Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating 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.

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.

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 unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. 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, 2025 and 2024:

	Three Months Ended
	September 30,
	2025			2024			Change			% Change
	($ in thousands, except per share data)
Gross written premiums	$	597,171		$	414,977		$	182,194			43.9	%
Ceded written premiums		(321,927	)		(255,267	)		(66,660	)		26.1	%
Net written premiums		275,244			159,710			115,534			72.3	%
Net earned premiums		225,147			135,646			89,501			66.0	%
Commission and other income		1,448			715			733			102.5	%
Total underwriting revenue⁽¹⁾		226,595			136,361			90,234			66.2	%
Losses and loss adjustment expenses		72,812			40,315			32,497			80.6	%
Acquisition expenses, net of ceding commissions and fronting fees		56,270			41,469			14,801			35.7	%
Other underwriting expenses		48,306			28,129			20,177			71.7	%
Underwriting income⁽¹⁾		49,207			26,448			22,759			86.1	%
Interest expense		(133	)		(87	)		(46	)		52.9	%
Net investment income		14,572			9,408			5,164			54.9	%
Net realized and unrealized gains on investments		3,493			2,734			759			27.8	%
Income before income taxes		67,139			38,503			28,636			74.4	%
Income tax expense		15,684			8,006			7,678			95.9	%
Net income	$	51,455		$	30,497		$	20,958			68.7	%
Adjustments:
Net realized and unrealized gains on investments		(3,493	)		(2,734	)		(759	)		27.8	%
Expenses associated with transactions		728			84			644		NM
Stock-based compensation expense		5,379			4,117			1,262			30.7	%
Amortization of intangibles		1,346			389			957			246.0	%
Tax impact		(251	)		91			(342	)	NM
Adjusted net income⁽¹⁾	$	55,164		$	32,444		$	22,720			70.0	%
Key Financial and Operating Metrics
Annualized return on equity		23.9	%		19.7	%
Annualized adjusted return on equity⁽¹⁾		25.6	%		21.0	%
Loss ratio		32.3	%		29.7	%
Expense ratio		45.8	%		50.8	%
Combined ratio		78.1	%		80.5	%
Adjusted combined ratio⁽¹⁾		74.8	%		77.1	%
Diluted earnings per share	$	1.87		$	1.15
Diluted adjusted earnings per share⁽¹⁾	$	2.01		$	1.23
Catastrophe losses	$	1,900		$	12,924
Catastrophe loss ratio⁽¹⁾		0.8	%		9.5	%
Adjusted combined ratio excluding catastrophe losses⁽¹⁾		74.0	%		67.6	%
Adjusted underwriting income⁽¹⁾	$	56,660		$	31,038		$	25,622			82.6	%
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,
	2025			2024			Change			% Change
	($ in thousands, except per share data)
Gross written premiums	$	1,535,623		$	1,168,239		$	367,384			31.4	%
Ceded written premiums		(819,171	)		(692,620	)		(126,551	)		18.3	%
Net written premiums		716,452			475,619			240,833			50.6	%
Net earned premiums		569,175			365,796			203,379			55.6	%
Commission and other income		3,954			2,035			1,919			94.3	%
Total underwriting revenue⁽¹⁾		573,129			367,831			205,298			55.8	%
Losses and loss adjustment expenses		157,739			97,583			60,156			61.6	%
Acquisition expenses, net of ceding commissions and fronting fees		154,266			109,072			45,194			41.4	%
Other underwriting expenses		129,563			84,165			45,398			53.9	%
Underwriting income⁽¹⁾		131,561			77,011			54,550			70.8	%
Interest expense		(304	)		(1,052	)		748			(71.1	)%
Net investment income		40,014			24,506			15,508			63.3	%
Net realized and unrealized gains on investments		9,461			5,768			3,693			64.0	%
Income before income taxes		180,732			106,233			74,499			70.1	%
Income tax expense		39,827			23,625			16,202			68.6	%
Net income	$	140,905		$	82,608		$	58,297			70.6	%
Adjustments:
Net realized and unrealized gains on investments		(9,461	)		(5,768	)		(3,693	)		64.0	%
Expenses associated with transactions		3,570			557			3,013		NM
Stock-based compensation expense		15,471			11,905			3,566			30.0	%
Amortization of intangibles		3,400			1,168			2,232			191.1	%
Expenses associated with catastrophe bond		2,661			2,483			178			7.2	%
Tax impact		(1,543	)		(734	)		(809	)		110.2	%
Adjusted net income⁽¹⁾	$	155,003		$	92,219		$	62,784			68.1	%
Key Financial and Operating Metrics
Annualized return on equity		23.4	%		18.8	%
Annualized adjusted return on equity⁽¹⁾		25.7	%		20.9	%
Loss ratio		27.7	%		26.7	%
Expense ratio		49.2	%		52.3	%
Combined ratio		76.9	%		78.9	%
Adjusted combined ratio⁽¹⁾		72.5	%		74.5	%
Diluted earnings per share	$	5.12		$	3.19
Diluted adjusted earnings per share⁽¹⁾	$	5.63		$	3.56
Catastrophe losses	$	1,335		$	19,724
Catastrophe loss ratio⁽¹⁾		0.2	%		5.4	%
Adjusted combined ratio excluding catastrophe losses⁽¹⁾		72.2	%		69.2	%
Adjusted underwriting income⁽¹⁾	$	156,663		$	93,124		$	63,539			68.2	%
NM - not meaningful

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,
	2025			2024
	(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,146,855 in 2025; $973,330 in 2024)	$	1,141,367		$	939,046
Equity securities, at fair value (cost: $38,482 in 2025; $32,987 in 2024)		52,215			40,529
Equity method investment		—			2,277
Other investments		19,534			5,863
Total investments		1,213,116			987,715
Cash and cash equivalents		111,740			80,438
Restricted cash		20			101
Accrued investment income		10,725			8,440
Premiums receivable		463,230			305,724
Deferred policy acquisition costs, net of ceding commissions and fronting fees		125,076			94,881
Reinsurance recoverable on paid losses and loss adjustment expenses		36,907			47,076
Reinsurance recoverable on unpaid losses and loss adjustment expenses		440,559			348,083
Ceded unearned premiums		361,260			276,237
Prepaid expenses and other assets		113,143			91,086
Deferred tax assets, net		2,537			8,768
Property and equipment, net		2,695			429
Goodwill and intangible assets, net		62,538			13,242
Total assets	$	2,943,546		$	2,262,220
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	109,391		$	70,079
Reserve for losses and loss adjustment expenses		684,272			503,382
Unearned premiums		979,374			741,692
Ceded premium payable		253,446			190,168
Funds held under reinsurance treaty		37,204			27,869
Income taxes payable		1,749			—
Total liabilities		2,065,436			1,533,190
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024		—			—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,494,524 and 26,529,402 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		3			3
Additional paid-in capital		516,355			493,656
Accumulated other comprehensive income (loss)		(4,092	)		(26,845	)
Retained earnings		365,844			262,216
Total stockholders’ equity		878,110			729,030
Total liabilities and stockholders’ equity	$	2,943,546		$	2,262,220

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,
	2025			2024			2025			2024
Revenues:
Gross written premiums	$	597,171		$	414,977		$	1,535,623		$	1,168,239
Ceded written premiums		(321,927	)		(255,267	)		(819,171	)		(692,620	)
Net written premiums		275,244			159,710			716,452			475,619
Change in unearned premiums		(50,097	)		(24,064	)		(147,277	)		(109,823	)
Net earned premiums		225,147			135,646			569,175			365,796
Net investment income		14,572			9,408			40,014			24,506
Net realized and unrealized gains on investments		3,493			2,734			9,461			5,768
Commission and other income		1,448			715			3,954			2,035
Total revenues		244,660			148,503			622,604			398,105
Expenses:
Losses and loss adjustment expenses		72,812			40,315			157,739			97,583
Acquisition expenses, net of ceding commissions and fronting fees		56,270			41,469			154,266			109,072
Other underwriting expenses		48,306			28,129			129,563			84,165
Interest expense		133			87			304			1,052
Total expenses		177,521			110,000			441,872			291,872
Income before income taxes		67,139			38,503			180,732			106,233
Income tax expense		15,684			8,006			39,827			23,625
Net income	$	51,455		$	30,497		$	140,905		$	82,608
Other comprehensive income, net:
Net unrealized gains on securities available for sale		9,541			17,916			22,753			13,852
Net comprehensive income	$	60,996		$	48,413		$	163,658		$	96,460
Per Share Data:
Basic earnings per share	$	1.93		$	1.18		$	5.28		$	3.28
Diluted earnings per share	$	1.87		$	1.15		$	5.12		$	3.19

Weighted-average common shares outstanding:
Basic		26,637,592			25,766,697			26,683,856			25,194,114
Diluted		27,446,519			26,479,566			27,533,533			25,877,257

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,
	2025					2024
	($ in thousands)
			% of					% of						%
	Amount		GWP			Amount		GWP			Change			Change
Product
Casualty	$	152,034		25.5	%	$	56,307		13.6	%	$	95,727			170.0	%
Earthquake		149,940		25.1	%		135,329		32.6	%		14,611			10.8	%
Crop		119,757		20.1	%		59,662		14.4	%		60,095			100.7	%
Inland Marine and Other Property		117,871		19.7	%		78,734		19.0	%		39,137			49.7	%
Fronting		57,569		9.6	%		84,945		20.4	%		(27,376	)		(32.2	)%
Total Gross Written Premiums	$	597,171		100.0	%	$	414,977		100.0	%	$	182,194			43.9	%

	Nine Months Ended September 30,
	2025					2024
	($ in thousands)
			% of					% of						%
	Amount		GWP			Amount		GWP			Change			Change
Product
Earthquake	$	427,869		27.9	%	$	376,088		32.2	%	$	51,781			13.8	%
Casualty		392,473		25.6	%		166,762		14.3	%		225,711			135.3	%
Inland Marine and Other Property		335,462		21.8	%		249,147		21.3	%		86,315			34.6	%
Crop		207,440		13.5	%		100,571		8.6	%		106,869			106.3	%
Fronting		172,379		11.2	%		275,671		23.6	%		(103,292	)		(37.5	)%
Total Gross Written Premiums	$	1,535,623		100.0	%	$	1,168,239		100.0	%	$	367,384			31.4	%

	Three Months Ended September 30,										Nine Months Ended September 30,
	2025					2024					2025					2024
	($ in thousands)										($ in thousands)
			% of					% of					% of					% of
	Amount		GWP			Amount		GWP			Amount		GWP			Amount		GWP
State
California	$	168,739		28.3	%	$	170,265		41.0	%	$	472,276		30.8	%	$	510,879		43.7	%
Texas		38,609		6.5	%		27,019		6.5	%		119,308		7.8	%		96,414		8.3	%
Hawaii		26,405		4.4	%		23,171		5.6	%		71,307		4.6	%		53,922		4.6	%
Florida		23,770		4.0	%		14,433		3.5	%		66,391		4.3	%		58,153		5.0	%
Illinois		20,911		3.5	%		5,557		1.3	%		39,548		2.6	%		13,725		1.2	%
North Dakota		20,022		3.4	%		18,716		4.5	%		23,709		1.5	%		19,893		1.7	%
New York		19,181		3.2	%		8,153		2.0	%		51,240		3.3	%		24,163		2.1	%
Washington		17,560		2.9	%		16,828		4.1	%		50,416		3.3	%		41,893		3.6	%
Other		261,974		43.8	%		130,835		31.5	%		641,428		41.8	%		349,197		29.8	%
Total Gross Written Premiums	$	597,171		100.0	%	$	414,977		100.0	%	$	1,535,623		100.0	%	$	1,168,239		100.0	%

	Three Months Ended September 30,										Nine Months Ended September 30,
	2025					2024					2025					2024
	($ in thousands)										($ in thousands)
			% of					% of					% of					% of
	Amount		GWP			Amount		GWP			Amount		GWP			Amount		GWP
Subsidiary
PSIC	$	317,177		53.1	%	$	236,624		57.0	%	$	781,078		50.9	%	$	652,988		55.9	%
PESIC		252,318		42.3	%		159,305		38.4	%		681,048		44.4	%		472,909		40.5	%
Laulima		22,804		3.8	%		19,048		4.6	%		58,974		3.8	%		42,342		3.6	%
FIA		4,872		0.8	%		—		—	%		14,523		0.9	%		—		—	%
Total Gross Written Premiums	$	597,171		100.0	%	$	414,977		100.0	%	$	1,535,623		100.0	%	$	1,168,239		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,									%
	2025			2024			Change			Change			2025			2024			Change			Change
	($ in thousands)												($ in thousands)
Gross earned premiums	$	518,783		$	395,881		$	122,902			31.0	%	$	1,303,323		$	1,025,716		$	277,607			27.1	%
Ceded earned premiums		(293,636	)		(260,235	)		(33,401	)		12.8	%		(734,148	)		(659,920	)		(74,228	)		11.2	%
Net earned premiums	$	225,147		$	135,646		$	89,501			66.0	%	$	569,175		$	365,796		$	203,379			55.6	%

Net earned premium ratio		43.4	%		34.3	%								43.7	%		35.7	%

Loss detail

	Three Months Ended												Nine Months Ended
	September 30,									%			September 30,									%
	2025			2024			Change			Change			2025			2024			Change			Change
	($ in thousands)												($ in thousands)
Catastrophe losses	$	1,900		$	12,924		$	(11,024	)		(85.3	)%	$	1,335		$	19,724		$	(18,389	)		(93.2	)%
Non-catastrophe losses		70,912			27,391			43,521			158.9	%		156,404			77,859			78,545			100.9	%
Total losses and loss adjustment expenses	$	72,812		$	40,315		$	32,497			80.6	%	$	157,739		$	97,583		$	60,156			61.6	%

Catastrophe loss ratio		0.8	%		9.5	%								0.2	%		5.4	%
Non-catastrophe loss ratio		31.5	%		20.2	%								27.5	%		21.3	%
Total loss ratio		32.3	%		29.7	%								27.7	%		26.7	%

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,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	199,185		$	118,761		$	155,299		$	97,653
Add: Balance acquired from FIA⁽¹⁾		—			—			6,788			—
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year		78,946			40,536			174,703			100,225
Prior years		(6,134	)		(221	)		(16,964	)		(2,642	)
Total incurred		72,812			40,315			157,739			97,583
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		15,655			16,153			38,312			27,909
Prior years		12,629			5,649			37,801			30,053
Total payments		28,284			21,802			76,113			57,962
Reserve for losses and LAE net of reinsurance recoverables at end of period		243,713			137,274			243,713			137,274
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		440,559			360,164			440,559			360,164
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	684,272		$	497,438		$	684,272		$	497,438

(1) - Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.

Reconciliation of Non-GAAP Financial Measures

For the three and nine months ended September 30, 2025 and 2024, 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,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Total revenue	$	244,660		$	148,503		$	622,604		$	398,105
Net investment income		(14,572	)		(9,408	)		(40,014	)		(24,506	)
Net realized and unrealized gains on investments		(3,493	)		(2,734	)		(9,461	)		(5,768	)
Underwriting revenue	$	226,595		$	136,361		$	573,129		$	367,831

Underwriting income and adjusted underwriting income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Income before income taxes	$	67,139		$	38,503		$	180,732		$	106,233
Net investment income		(14,572	)		(9,408	)		(40,014	)		(24,506	)
Net realized and unrealized gains on investments		(3,493	)		(2,734	)		(9,461	)		(5,768	)
Interest expense		133			87			304			1,052
Underwriting income	$	49,207		$	26,448		$	131,561		$	77,011
Expenses associated with transactions		728			84			3,570			557
Stock-based compensation expense		5,379			4,117			15,471			11,905
Amortization of intangibles		1,346			389			3,400			1,168
Expenses associated with catastrophe bond		—			—			2,661			2,483
Adjusted underwriting income	$	56,660		$	31,038		$	156,663		$	93,124

Adjusted net income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Net income	$	51,455		$	30,497		$	140,905		$	82,608
Adjustments:
Net realized and unrealized gains on investments		(3,493	)		(2,734	)		(9,461	)		(5,768	)
Expenses associated with transactions		728			84			3,570			557
Stock-based compensation expense		5,379			4,117			15,471			11,905
Amortization of intangibles		1,346			389			3,400			1,168
Expenses associated with catastrophe bond		—			—			2,661			2,483
Tax impact		(251	)		91			(1,543	)		(734	)
Adjusted net income	$	55,164		$	32,444		$	155,003		$	92,219

Annualized adjusted return on equity

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Annualized adjusted net income	$	220,656		$	129,776		$	206,671		$	122,959
Average stockholders’ equity	$	862,654		$	617,959		$	803,570		$	587,282
Annualized adjusted return on equity		25.6	%		21.0	%		25.7	%		20.9	%

Adjusted combined ratio

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	175,940		$	109,198		$	437,614		$	288,785
Denominator: Net earned premiums	$	225,147		$	135,646		$	569,175		$	365,796
Combined ratio		78.1	%		80.5	%		76.9	%		78.9	%
Adjustments to numerator:
Expenses associated with transactions	$	(728	)	$	(84	)	$	(3,570	)	$	(557	)
Stock-based compensation expense		(5,379	)		(4,117	)		(15,471	)		(11,905	)
Amortization of intangibles		(1,346	)		(389	)		(3,400	)		(1,168	)
Expenses associated with catastrophe bond		—			—			(2,661	)		(2,483	)
Adjusted combined ratio		74.8	%		77.1	%		72.5	%		74.5	%

Diluted adjusted earnings per share

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(in thousands, except per share data)				(in thousands, except per share data)
Adjusted net income	$	55,164	$	32,444	$	155,003	$	92,219
Weighted-average common shares outstanding, diluted		27,446,519		26,479,566		27,533,533		25,877,257
Diluted adjusted earnings per share	$	2.01	$	1.23	$	5.63	$	3.56

Catastrophe loss ratio

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Numerator: Losses and loss adjustment expenses	$	72,812		$	40,315		$	157,739		$	97,583
Denominator: Net earned premiums	$	225,147		$	135,646		$	569,175		$	365,796
Loss ratio		32.3	%		29.7	%		27.7	%		26.7	%

Numerator: Catastrophe losses	$	1,900		$	12,924		$	1,335		$	19,724
Denominator: Net earned premiums	$	225,147		$	135,646		$	569,175		$	365,796
Catastrophe loss ratio		0.8	%		9.5	%		0.2	%		5.4	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(in thousands)						(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	175,940		$	109,198		$	437,614		$	288,785
Denominator: Net earned premiums	$	225,147		$	135,646		$	569,175		$	365,796
Combined ratio		78.1	%		80.5	%		76.9	%		78.9	%
Adjustments to numerator:
Expenses associated with transactions	$	(728	)	$	(84	)	$	(3,570	)	$	(557	)
Stock-based compensation expense		(5,379	)		(4,117	)		(15,471	)		(11,905	)
Amortization of intangibles		(1,346	)		(389	)		(3,400	)		(1,168	)
Expenses associated with catastrophe bond		—			—			(2,661	)		(2,483	)
Catastrophe losses		(1,900	)		(12,924	)		(1,335	)		(19,724	)
Adjusted combined ratio excluding catastrophe losses		74.0	%		67.6	%		72.2	%		69.2	%

Tangible Stockholders’ equity

	September 30,			December 31,
	2025			2024
	(in thousands)
Stockholders’ equity	$	878,110		$	729,030
Goodwill and intangible assets		(62,538	)		(13,242	)
Tangible stockholders’ equity	$	815,572		$	715,788

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.