Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”)
reported net income of $25.7 million, or $1.00 per
diluted share, for the second quarter of 2024 compared to net
income of $17.6 million, or $0.69 per diluted share, for
the second quarter of 2023. Adjusted net income(1)
was $32.0 million, or $1.25 per diluted share, for
the second quarter of 2024 as compared to $21.8 million,
or $0.86 per diluted share, for the second quarter
of 2023.
Second Quarter 2024
Highlights
- Gross written premiums increased by 40.4% to $385.2
million compared to $274.3 million in the second quarter
of 2023
- Net income of $25.7 million, compared to $17.6
million in the second quarter of 2023
- Adjusted net income(1) of $32.0 million, compared
to $21.8 million in the second quarter of 2023
- Total loss ratio of 24.9% compared to 21.5% in
the second quarter of 2023
- Combined ratio of 79.1% compared to 79.0% in
the second quarter of 2023
- Adjusted combined ratio(1) of 73.1%, compared to 72.2%, in
the second quarter of 2023
- Annualized return on equity of 19.9%, compared to 17.2% in
the second quarter of 2023
- Annualized adjusted return on equity(1) of 24.7%, compared
to 21.3% in the second quarter of 2023
(1) See discussion of “Non-GAAP and Key
Performance Indicators” below.
Mac Armstrong, Chairman and Chief Executive
Officer, commented, "I am very pleased with our second quarter
results as we achieved record gross written premium and adjusted
net income during the quarter. Additionally, our profitable
growth remained robust with gross written premium and adjusted net
income increasing 40% and 47%, respectively, year-over-year. Beyond
the strong financial results achieved during the quarter, we had
several other accomplishments including but not limited to:
successfully placing our core excess of loss reinsurance program at
June 1st on terms that were better than anticipated, bringing
on several new leaders who will help scale the Company and execute
our Palomar 2X strategy, and AM Best upgrading our Financial
Strength Rating to an A."
Mr. Armstrong continued, “We introduced our
Palomar 2X strategy at our investor day in 2022 with designs
of doubling our underwriting income over a
three-to-five-year time frame while generating an adjusted ROE in
excess of 20%. Our second quarter results and our further
raising of adjusted net income guidance for the year clearly
demonstrates that we are tracking ahead of these ambitious
goals.”
Underwriting Results
Gross written premiums increased 40.4%
to $385.2 million compared to $274.3 million in
the second quarter of 2023, while net earned premiums
increased 47.1% compared to the prior year’s
second quarter.
Losses and loss adjustment expenses for the
second quarter were $30.4 million, comprised
of $27.0 million of attritional losses
and $3.4 million of catastrophe losses from severe
convective storms. The loss ratio for the quarter was 24.9%,
comprised of an attritional loss ratio of 22.1% and a catastrophe
loss ratio(1) of 2.8%, compared to a loss ratio of 21.5%
during the same period last year comprised of an attritional loss
ratio of 18.9% and a catastrophe loss ratio(1)
of 2.6%.
Underwriting income(1) for the
second quarter was $25.6 million resulting in a combined
ratio of 79.1% compared to underwriting income of $17.4
million resulting in a combined ratio of 79.0% during the same
period last year. The Company’s adjusted underwriting income(1)
was $32.9 million resulting in an adjusted combined ratio(1)
of 73.1% in the second quarter compared to adjusted
underwriting income(1) of $23.1 million and an adjusted
combined ratio(1) of 72.2% during the same period last
year.
Investment ResultsNet
investment income increased by 43.7% to $8.0 million
compared to $5.5 million in the prior year’s
second 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 June 30, 2024 due to
cash generated from operations. The weighted average duration of
the fixed-maturity investment portfolio, including cash
equivalents, was 3.73 years at June 30, 2024. Cash and
invested assets totaled $777.9 million at June 30, 2024.
During the second quarter, the Company recorded immaterial net
realized and unrealized gains related to its investment
portfolio as compared to net realized and unrealized gains
of $1.1 million during the same period last year.
Tax RateThe effective tax rate
for the three months ended June 30, 2024 was 22.9%
compared to 23.7% for the three months ended June 30,
2023. For the current quarter, the Company’s income tax rate
differed from the statutory rate due primarily to the
non-deductible executive compensation expense.
Stockholders’ Equity
and ReturnsStockholders' equity was $532.6 million at
June 30, 2024, compared to $413.7 million at June 30, 2023. For the
three months ended June 30, 2024, the Company’s annualized
return on equity was 19.9% compared to 17.2% for the same
period in the prior year while adjusted return on equity(1) was
24.7% compared to 21.3% for the same period in the prior
year. There were no share repurchases during the three months
ended June 30, 2024.
Full Year 2024 OutlookFor
the full year 2024, the Company is increasing its guidance
range and now expects to achieve adjusted net income of
$124 million to $130 million. This range includes
$6.8 million of catastrophe losses incurred during the six
months ended June 30, 2024 and additional catastrophe losses
incurred during the third quarter of 2024 of approximately
$5 million to $7 million related to Hurricanes Beryl
and Debby.
Conference CallAs previously
announced, Palomar will host a conference call Tuesday, August 6,
2024, to discuss its second quarter 2024 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 Second Quarter
2024 Earnings Conference Call. A replay will be available
starting at 4:00 p.m. (Eastern Time) on August 6, 2024, and can be
accessed by dialing 1-844-512-2921, or for international callers,
1-412-317-6671. The passcode for the replay is 13747528. The replay
will be available until 11:59 p.m. (Eastern Time) on
August 13, 2024.
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., Palomar Insurance
Agency, Inc., Palomar Excess and Surplus Insurance Company
(“PESIC”), and Palomar Underwriters Exchange Organization, Inc.
Palomar's consolidated results also include Laulima Reciprocal
Exchange, 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, Palomar Specialty Insurance Company, Palomar
Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and
Surplus Insurance Company, have 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.
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 StatementPalomar
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.
ContactMedia Inquiries Lindsay
Conner 1-551-206-6217 lconner@plmr.com
Investor RelationsJamie
Lillis1-203-428-3223investors@plmr.comSource: Palomar Holdings,
Inc.
Summary of Operating Results:
The following tables summarize the Company’s results
for the three and six months ended June 30, 2024 and 2023:
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
($ in thousands, except per share data) |
|
Gross written premiums |
$ |
385,184 |
|
|
$ |
274,296 |
|
|
$ |
110,888 |
|
|
|
40.4 |
% |
Ceded written premiums |
|
(209,181 |
) |
|
|
(169,109 |
) |
|
|
(40,072 |
) |
|
|
23.7 |
% |
Net written premiums |
|
176,003 |
|
|
|
105,187 |
|
|
|
70,816 |
|
|
|
67.3 |
% |
Net earned premiums |
|
122,285 |
|
|
|
83,107 |
|
|
|
39,178 |
|
|
|
47.1 |
% |
Commission and other
income |
|
792 |
|
|
|
621 |
|
|
|
171 |
|
|
|
27.5 |
% |
Total underwriting revenue(1) |
|
123,077 |
|
|
|
83,728 |
|
|
|
39,349 |
|
|
|
47.0 |
% |
Losses and loss adjustment
expenses |
|
30,431 |
|
|
|
17,905 |
|
|
|
12,526 |
|
|
|
70.0 |
% |
Acquisition expenses, net of
ceding commissions and fronting fees |
|
35,806 |
|
|
|
26,057 |
|
|
|
9,749 |
|
|
|
37.4 |
% |
Other underwriting
expenses |
|
31,233 |
|
|
|
22,350 |
|
|
|
8,883 |
|
|
|
39.7 |
% |
Underwriting income(1) |
|
25,607 |
|
|
|
17,416 |
|
|
|
8,191 |
|
|
|
47.0 |
% |
Interest expense |
|
(225 |
) |
|
|
(1,064 |
) |
|
|
839 |
|
|
|
(78.9 |
)% |
Net investment income |
|
7,960 |
|
|
|
5,541 |
|
|
|
2,419 |
|
|
|
43.7 |
% |
Net realized and unrealized
gains on investments |
|
32 |
|
|
|
1,127 |
|
|
|
(1,095 |
) |
|
|
(97.2 |
)% |
Income before income
taxes |
|
33,374 |
|
|
|
23,020 |
|
|
|
10,354 |
|
|
|
45.0 |
% |
Income tax expense |
|
7,645 |
|
|
|
5,458 |
|
|
|
2,187 |
|
|
|
40.1 |
% |
Net income |
$ |
25,729 |
|
|
$ |
17,562 |
|
|
$ |
8,167 |
|
|
|
46.5 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized
gains on investments |
|
(32 |
) |
|
|
(1,127 |
) |
|
|
1,095 |
|
|
|
(97.2 |
)% |
Expenses associated with
transactions |
|
472 |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
% |
Stock-based compensation
expense |
|
3,968 |
|
|
|
3,697 |
|
|
|
271 |
|
|
|
7.3 |
% |
Amortization of
intangibles |
|
389 |
|
|
|
389 |
|
|
|
— |
|
|
|
— |
% |
Expenses associated with
catastrophe bond |
|
2,483 |
|
|
|
1,590 |
|
|
|
893 |
|
|
|
56.2 |
% |
Tax impact |
|
(1,029 |
) |
|
|
(317 |
) |
|
|
(712 |
) |
|
|
224.6 |
% |
Adjusted net income(1) |
$ |
31,980 |
|
|
$ |
21,794 |
|
|
$ |
10,186 |
|
|
|
46.7 |
% |
Key Financial and Operating
Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
equity |
|
19.9 |
% |
|
|
17.2 |
% |
|
|
|
|
|
|
|
|
Annualized adjusted return on
equity(1) |
|
24.7 |
% |
|
|
21.3 |
% |
|
|
|
|
|
|
|
|
Loss ratio |
|
24.9 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
Expense ratio |
|
54.2 |
% |
|
|
57.5 |
% |
|
|
|
|
|
|
|
|
Combined ratio |
|
79.1 |
% |
|
|
79.0 |
% |
|
|
|
|
|
|
|
|
Adjusted combined
ratio(1) |
|
73.1 |
% |
|
|
72.2 |
% |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
1.00 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
Diluted adjusted earnings per
share(1) |
$ |
1.25 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
Catastrophe losses |
$ |
3,441 |
|
|
$ |
2,159 |
|
|
|
|
|
|
|
|
|
Catastrophe loss ratio(1) |
|
2.8 |
% |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
Adjusted combined ratio
excluding catastrophe losses(1) |
|
70.3 |
% |
|
|
69.6 |
% |
|
|
|
|
|
|
|
|
Adjusted underwriting
income(1) |
$ |
32,919 |
|
|
$ |
23,092 |
|
|
$ |
9,827 |
|
|
|
42.6 |
% |
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.
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
($ in thousands, except per share data) |
|
Gross written premiums |
$ |
753,262 |
|
|
$ |
524,407 |
|
|
$ |
228,855 |
|
|
|
43.6 |
% |
Ceded written premiums |
|
(437,352 |
) |
|
|
(339,453 |
) |
|
|
(97,899 |
) |
|
|
28.8 |
% |
Net written premiums |
|
315,910 |
|
|
|
184,954 |
|
|
|
130,956 |
|
|
|
70.8 |
% |
Net earned premiums |
|
230,151 |
|
|
|
166,347 |
|
|
|
63,804 |
|
|
|
38.4 |
% |
Commission and other
income |
|
1,320 |
|
|
|
1,316 |
|
|
|
4 |
|
|
|
0.3 |
% |
Total underwriting revenue(1) |
|
231,471 |
|
|
|
167,663 |
|
|
|
63,808 |
|
|
|
38.1 |
% |
Losses and loss adjustment
expenses |
|
57,268 |
|
|
|
38,557 |
|
|
|
18,711 |
|
|
|
48.5 |
% |
Acquisition expenses, net of
ceding commissions and fronting fees |
|
67,604 |
|
|
|
51,736 |
|
|
|
15,868 |
|
|
|
30.7 |
% |
Other underwriting
expenses |
|
56,036 |
|
|
|
41,572 |
|
|
|
14,464 |
|
|
|
34.8 |
% |
Underwriting income(1) |
|
50,563 |
|
|
|
35,798 |
|
|
|
14,765 |
|
|
|
41.2 |
% |
Interest expense |
|
(965 |
) |
|
|
(2,084 |
) |
|
|
1,119 |
|
|
|
(53.7 |
)% |
Net investment income |
|
15,098 |
|
|
|
10,661 |
|
|
|
4,437 |
|
|
|
41.6 |
% |
Net realized and unrealized
gains on investments |
|
3,034 |
|
|
|
1,273 |
|
|
|
1,761 |
|
|
|
138.3 |
% |
Income before income taxes |
|
67,730 |
|
|
|
45,648 |
|
|
|
22,082 |
|
|
|
48.4 |
% |
Income tax expense |
|
15,619 |
|
|
|
10,774 |
|
|
|
4,845 |
|
|
|
45.0 |
% |
Net income |
$ |
52,111 |
|
|
$ |
34,874 |
|
|
$ |
17,237 |
|
|
|
49.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized
gains on investments |
|
(3,034 |
) |
|
|
(1,273 |
) |
|
|
(1,761 |
) |
|
|
138.3 |
% |
Expenses associated with
transactions |
|
472 |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
% |
Stock-based compensation
expense |
|
7,789 |
|
|
|
7,147 |
|
|
|
642 |
|
|
|
9.0 |
% |
Amortization of
intangibles |
|
779 |
|
|
|
703 |
|
|
|
76 |
|
|
|
10.8 |
% |
Expenses associated with
catastrophe bond |
|
2,483 |
|
|
|
1,640 |
|
|
|
843 |
|
|
|
51.4 |
% |
Tax impact |
|
(825 |
) |
|
|
(857 |
) |
|
|
32 |
|
|
|
(3.7 |
)% |
Adjusted net income(1) |
$ |
59,775 |
|
|
$ |
42,234 |
|
|
$ |
17,541 |
|
|
|
41.5 |
% |
Key Financial and Operating
Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
equity |
|
20.8 |
% |
|
|
17.5 |
% |
|
|
|
|
|
|
|
|
Annualized adjusted return on
equity(1) |
|
23.8 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
Loss ratio |
|
24.9 |
% |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
Expense ratio |
|
53.1 |
% |
|
|
55.3 |
% |
|
|
|
|
|
|
|
|
Combined ratio |
|
78.0 |
% |
|
|
78.5 |
% |
|
|
|
|
|
|
|
|
Adjusted combined
ratio(1) |
|
73.0 |
% |
|
|
72.8 |
% |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
2.04 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
Diluted adjusted earnings per
share(1) |
$ |
2.34 |
|
|
$ |
1.66 |
|
|
|
|
|
|
|
|
|
Catastrophe losses |
$ |
6,800 |
|
|
$ |
3,965 |
|
|
|
|
|
|
|
|
|
Catastrophe loss ratio(1) |
|
3.0 |
% |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
Adjusted combined ratio
excluding catastrophe losses(1) |
|
70.1 |
% |
|
|
70.4 |
% |
|
|
|
|
|
|
|
|
Adjusted underwriting
income(1) |
$ |
62,086 |
|
|
$ |
45,288 |
|
|
$ |
16,798 |
|
|
|
37.1 |
% |
(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
SubsidiariesCondensed Consolidated Balance Sheets
(unaudited)(in thousands, except shares and par
value data) |
|
|
June 30, |
|
|
December 31, |
|
|
2024 |
|
|
2023 |
|
|
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
Fixed maturity securities available for sale, at fair value
(amortized cost: $723,940 in 2024; $675,130 in 2023) |
$ |
687,138 |
|
|
$ |
643,799 |
|
Equity securities, at fair value (cost: $32,987 in 2024; $43,003 in
2023) |
|
37,761 |
|
|
|
43,160 |
|
Equity method investment |
|
2,351 |
|
|
|
2,617 |
|
Other investments |
|
2,641 |
|
|
|
— |
|
Total investments |
|
729,891 |
|
|
|
689,576 |
|
Cash and cash equivalents |
|
47,840 |
|
|
|
51,546 |
|
Restricted cash |
|
179 |
|
|
|
306 |
|
Accrued investment income |
|
5,930 |
|
|
|
5,282 |
|
Premiums receivable |
|
357,267 |
|
|
|
261,972 |
|
Deferred policy acquisition costs, net of ceding commissions and
fronting fees |
|
82,486 |
|
|
|
60,990 |
|
Reinsurance recoverable on paid losses and loss adjustment
expenses |
|
33,309 |
|
|
|
32,172 |
|
Reinsurance recoverable on unpaid losses and loss adjustment
expenses |
|
347,840 |
|
|
|
244,622 |
|
Ceded unearned premiums |
|
303,477 |
|
|
|
265,808 |
|
Prepaid expenses and other assets |
|
86,590 |
|
|
|
72,941 |
|
Deferred tax assets, net |
|
9,450 |
|
|
|
10,119 |
|
Property and equipment, net |
|
253 |
|
|
|
373 |
|
Goodwill and intangible assets, net |
|
11,537 |
|
|
|
12,315 |
|
Total assets |
$ |
2,016,049 |
|
|
$ |
1,708,022 |
|
Liabilities and
stockholders' equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Accounts payable and other accrued liabilities |
$ |
52,052 |
|
|
$ |
42,376 |
|
Reserve for losses and loss adjustment expenses |
|
466,601 |
|
|
|
342,275 |
|
Unearned premiums |
|
720,528 |
|
|
|
597,103 |
|
Ceded premium payable |
|
231,182 |
|
|
|
181,742 |
|
Funds held under reinsurance treaty |
|
13,080 |
|
|
|
13,419 |
|
Income taxes payable |
|
— |
|
|
|
7,255 |
|
Borrowings from credit agreements |
|
— |
|
|
|
52,600 |
|
Total liabilities |
|
1,483,443 |
|
|
|
1,236,770 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0
shares issued and outstanding as of June 30, 2024 and December 31,
2023 |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 500,000,000 shares authorized,
24,984,638 and 24,772,987 shares issued and outstanding as of June
30, 2024 and December 31, 2023, respectively |
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
363,904 |
|
|
|
350,597 |
|
Accumulated other comprehensive loss |
|
(28,055 |
) |
|
|
(23,991 |
) |
Retained earnings |
|
196,754 |
|
|
|
144,643 |
|
Total stockholders'
equity |
|
532,606 |
|
|
|
471,252 |
|
Total liabilities and
stockholders' equity |
$ |
2,016,049 |
|
|
$ |
1,708,022 |
|
Condensed Consolidated Income Statement
Palomar Holdings, Inc. and
SubsidiariesCondensed Consolidated Statements
of Income and Comprehensive Income (loss)
(Unaudited)(in thousands, except shares and per
share data) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross written premiums |
$ |
385,184 |
|
|
$ |
274,296 |
|
|
$ |
753,262 |
|
|
$ |
524,407 |
|
Ceded written premiums |
|
(209,181 |
) |
|
|
(169,109 |
) |
|
|
(437,352 |
) |
|
|
(339,453 |
) |
Net written premiums |
|
176,003 |
|
|
|
105,187 |
|
|
|
315,910 |
|
|
|
184,954 |
|
Change in unearned
premiums |
|
(53,718 |
) |
|
|
(22,080 |
) |
|
|
(85,759 |
) |
|
|
(18,607 |
) |
Net earned premiums |
|
122,285 |
|
|
|
83,107 |
|
|
|
230,151 |
|
|
|
166,347 |
|
Net investment income |
|
7,960 |
|
|
|
5,541 |
|
|
|
15,098 |
|
|
|
10,661 |
|
Net realized and unrealized
gains on investments |
|
32 |
|
|
|
1,127 |
|
|
|
3,034 |
|
|
|
1,273 |
|
Commission and other
income |
|
792 |
|
|
|
621 |
|
|
|
1,320 |
|
|
|
1,316 |
|
Total revenues |
|
131,069 |
|
|
|
90,396 |
|
|
|
249,603 |
|
|
|
179,597 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment
expenses |
|
30,431 |
|
|
|
17,905 |
|
|
|
57,268 |
|
|
|
38,557 |
|
Acquisition expenses, net of
ceding commissions and fronting fees |
|
35,806 |
|
|
|
26,057 |
|
|
|
67,604 |
|
|
|
51,736 |
|
Other underwriting
expenses |
|
31,233 |
|
|
|
22,350 |
|
|
|
56,036 |
|
|
|
41,572 |
|
Interest expense |
|
225 |
|
|
|
1,064 |
|
|
|
965 |
|
|
|
2,084 |
|
Total expenses |
|
97,695 |
|
|
|
67,376 |
|
|
|
181,873 |
|
|
|
133,949 |
|
Income before income taxes |
|
33,374 |
|
|
|
23,020 |
|
|
|
67,730 |
|
|
|
45,648 |
|
Income tax expense |
|
7,645 |
|
|
|
5,458 |
|
|
|
15,619 |
|
|
|
10,774 |
|
Net income |
$ |
25,729 |
|
|
$ |
17,562 |
|
|
$ |
52,111 |
|
|
$ |
34,874 |
|
Other comprehensive
income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized (losses) gains
on securities available for sale |
|
(1,550 |
) |
|
|
(3,685 |
) |
|
|
(4,064 |
) |
|
|
1,789 |
|
Net comprehensive income |
$ |
24,179 |
|
|
$ |
13,877 |
|
|
$ |
48,047 |
|
|
$ |
36,663 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.03 |
|
|
$ |
0.71 |
|
|
$ |
2.09 |
|
|
$ |
1.40 |
|
Diluted earnings per
share |
$ |
1.00 |
|
|
$ |
0.69 |
|
|
$ |
2.04 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
24,946,987 |
|
|
|
24,833,852 |
|
|
|
24,904,677 |
|
|
|
24,901,403 |
|
Diluted |
|
25,617,916 |
|
|
|
25,309,526 |
|
|
|
25,554,445 |
|
|
|
25,384,409 |
|
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 June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Change |
|
|
Change |
|
Product(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earthquake |
$ |
135,029 |
|
|
|
35.1 |
% |
|
$ |
107,929 |
|
|
|
39.3 |
% |
|
$ |
27,100 |
|
|
|
25.1 |
% |
Fronting |
|
95,896 |
|
|
|
24.9 |
% |
|
|
79,724 |
|
|
|
29.1 |
% |
|
|
16,172 |
|
|
|
20.3 |
% |
Inland Marine and Other Property |
|
93,453 |
|
|
|
24.3 |
% |
|
|
69,779 |
|
|
|
25.4 |
% |
|
|
23,674 |
|
|
|
33.9 |
% |
Casualty |
|
58,605 |
|
|
|
15.2 |
% |
|
|
16,376 |
|
|
|
6.0 |
% |
|
|
42,229 |
|
|
|
257.9 |
% |
Crop |
|
2,201 |
|
|
|
0.6 |
% |
|
|
488 |
|
|
|
0.2 |
% |
|
|
1,713 |
|
|
|
NM |
|
Total Gross Written Premiums |
$ |
385,184 |
|
|
|
100.0 |
% |
|
$ |
274,296 |
|
|
|
100.0 |
% |
|
$ |
110,888 |
|
|
|
40.4 |
% |
NM - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
|
|
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Change |
|
|
Change |
|
Product(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earthquake |
$ |
240,759 |
|
|
|
32.0 |
% |
|
$ |
201,424 |
|
|
|
38.4 |
% |
|
$ |
39,335 |
|
|
|
19.5 |
% |
Fronting |
|
190,727 |
|
|
|
25.3 |
% |
|
|
171,479 |
|
|
|
32.7 |
% |
|
|
19,248 |
|
|
|
11.2 |
% |
Inland Marine and Other Property |
|
170,329 |
|
|
|
22.6 |
% |
|
|
122,484 |
|
|
|
23.4 |
% |
|
|
47,845 |
|
|
|
39.1 |
% |
Casualty |
|
110,539 |
|
|
|
14.7 |
% |
|
|
28,532 |
|
|
|
5.4 |
% |
|
|
82,007 |
|
|
|
287.4 |
% |
Crop |
|
40,908 |
|
|
|
5.4 |
% |
|
|
488 |
|
|
|
0.1 |
% |
|
|
40,420 |
|
|
|
NM |
|
Total Gross Written Premiums |
$ |
753,262 |
|
|
|
100.0 |
% |
|
$ |
524,407 |
|
|
|
100.0 |
% |
|
$ |
228,855 |
|
|
|
43.6 |
% |
NM - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Beginning in 2024, 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 June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
($ in thousands) |
|
|
($ in thousands) |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
State |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
$ |
183,396 |
|
|
|
47.6 |
% |
|
$ |
157,057 |
|
|
|
57.3 |
% |
|
$ |
340,614 |
|
|
|
45.2 |
% |
|
$ |
288,946 |
|
|
|
55.1 |
% |
Florida |
|
29,796 |
|
|
|
7.7 |
% |
|
|
12,664 |
|
|
|
4.6 |
% |
|
|
43,720 |
|
|
|
5.8 |
% |
|
|
24,760 |
|
|
|
4.7 |
% |
Texas |
|
28,600 |
|
|
|
7.4 |
% |
|
|
25,231 |
|
|
|
9.2 |
% |
|
|
69,396 |
|
|
|
9.2 |
% |
|
|
48,441 |
|
|
|
9.2 |
% |
Hawaii |
|
18,235 |
|
|
|
4.7 |
% |
|
|
12,228 |
|
|
|
4.5 |
% |
|
|
30,751 |
|
|
|
4.1 |
% |
|
|
22,333 |
|
|
|
4.3 |
% |
Washington |
|
13,063 |
|
|
|
3.4 |
% |
|
|
13,645 |
|
|
|
5.0 |
% |
|
|
25,066 |
|
|
|
3.3 |
% |
|
|
25,617 |
|
|
|
4.9 |
% |
New York |
|
7,980 |
|
|
|
2.1 |
% |
|
|
3,785 |
|
|
|
1.4 |
% |
|
|
16,010 |
|
|
|
2.1 |
% |
|
|
7,656 |
|
|
|
1.5 |
% |
Oregon |
|
5,776 |
|
|
|
1.5 |
% |
|
|
5,907 |
|
|
|
2.2 |
% |
|
|
12,851 |
|
|
|
1.7 |
% |
|
|
12,687 |
|
|
|
2.4 |
% |
Michigan |
|
5,008 |
|
|
|
1.3 |
% |
|
|
848 |
|
|
|
0.3 |
% |
|
|
6,711 |
|
|
|
0.9 |
% |
|
|
1,711 |
|
|
|
0.3 |
% |
Other |
|
93,330 |
|
|
|
24.2 |
% |
|
|
42,931 |
|
|
|
15.7 |
% |
|
|
208,143 |
|
|
|
27.6 |
% |
|
|
92,256 |
|
|
|
17.6 |
% |
Total Gross Written Premiums |
$ |
385,184 |
|
|
|
100.0 |
% |
|
$ |
274,296 |
|
|
|
100.0 |
% |
|
$ |
753,262 |
|
|
|
100.0 |
% |
|
$ |
524,407 |
|
|
|
100.0 |
% |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
($ in thousands) |
|
|
($ in thousands) |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
|
|
|
|
% of |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
|
Amount |
|
|
GWP |
|
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PSIC |
$ |
193,709 |
|
|
|
50.3 |
% |
|
$ |
159,846 |
|
|
|
58.3 |
% |
|
$ |
416,366 |
|
|
|
55.3 |
% |
|
$ |
310,550 |
|
|
|
59.2 |
% |
PESIC |
|
177,109 |
|
|
|
46.0 |
% |
|
|
114,450 |
|
|
|
41.7 |
% |
|
|
313,603 |
|
|
|
41.6 |
% |
|
|
213,857 |
|
|
|
40.8 |
% |
Laulima |
|
14,366 |
|
|
|
3.7 |
% |
|
|
— |
|
|
|
— |
% |
|
|
23,293 |
|
|
|
3.1 |
% |
|
|
— |
|
|
|
— |
% |
Total Gross Written Premiums |
$ |
385,184 |
|
|
|
100.0 |
% |
|
$ |
274,296 |
|
|
|
100.0 |
% |
|
$ |
753,262 |
|
|
|
100.0 |
% |
|
$ |
524,407 |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
($ in thousands) |
|
|
($ in thousands) |
|
Gross earned premiums |
$ |
326,964 |
|
|
$ |
242,189 |
|
|
$ |
84,775 |
|
|
|
35.0 |
% |
|
$ |
629,835 |
|
|
$ |
467,432 |
|
|
$ |
162,403 |
|
|
|
34.7 |
% |
Ceded earned premiums |
|
(204,679 |
) |
|
|
(159,082 |
) |
|
|
(45,597 |
) |
|
|
28.7 |
% |
|
|
(399,684 |
) |
|
|
(301,085 |
) |
|
|
(98,599 |
) |
|
|
32.7 |
% |
Net earned premiums |
$ |
122,285 |
|
|
$ |
83,107 |
|
|
$ |
39,178 |
|
|
|
47.1 |
% |
|
$ |
230,151 |
|
|
$ |
166,347 |
|
|
$ |
63,804 |
|
|
|
38.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earned premium ratio |
|
37.4 |
% |
|
|
34.3 |
% |
|
|
|
|
|
|
|
|
|
|
36.5 |
% |
|
|
35.6 |
% |
|
|
|
|
|
|
|
|
Loss detail
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
|
($ in thousands) |
|
|
($ in thousands) |
|
Catastrophe losses |
$ |
3,441 |
|
|
$ |
2,159 |
|
|
$ |
1,282 |
|
|
|
59.4 |
% |
|
$ |
6,800 |
|
|
$ |
3,965 |
|
|
$ |
2,835 |
|
|
|
71.5 |
% |
Non-catastrophe losses |
|
26,990 |
|
|
|
15,746 |
|
|
|
11,244 |
|
|
|
71.4 |
% |
|
|
50,468 |
|
|
|
34,592 |
|
|
|
15,876 |
|
|
|
45.9 |
% |
Total losses and loss
adjustment expenses |
$ |
30,431 |
|
|
$ |
17,905 |
|
|
$ |
12,526 |
|
|
|
70.0 |
% |
|
$ |
57,268 |
|
|
$ |
38,557 |
|
|
$ |
18,711 |
|
|
|
48.5 |
% |
The following table represents a reconciliation of changes in
the ending reserve balances for losses and loss adjustment
expenses:
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Reserve for losses and LAE net of reinsurance recoverables at
beginning of period |
$ |
110,163 |
|
|
$ |
81,366 |
|
|
$ |
97,653 |
|
|
$ |
77,520 |
|
Add: Incurred losses and LAE, net of reinsurance, related to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
33,355 |
|
|
|
18,539 |
|
|
|
59,688 |
|
|
|
35,839 |
|
Prior years |
|
(2,924 |
) |
|
|
(634 |
) |
|
|
(2,420 |
) |
|
|
2,718 |
|
Total incurred |
|
30,431 |
|
|
|
17,905 |
|
|
|
57,268 |
|
|
|
38,557 |
|
Deduct: Loss and LAE payments, net of reinsurance, related to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
6,861 |
|
|
|
6,176 |
|
|
|
11,756 |
|
|
|
7,569 |
|
Prior years |
|
14,972 |
|
|
|
11,795 |
|
|
|
24,404 |
|
|
|
27,208 |
|
Total payments |
|
21,833 |
|
|
|
17,971 |
|
|
|
36,160 |
|
|
|
34,777 |
|
Reserve for losses and LAE net
of reinsurance recoverables at end of period |
|
118,761 |
|
|
|
81,300 |
|
|
|
118,761 |
|
|
|
81,300 |
|
Add: Reinsurance recoverables
on unpaid losses and LAE at end of period |
|
347,840 |
|
|
|
216,783 |
|
|
|
347,840 |
|
|
|
216,783 |
|
Reserve for losses and LAE
gross of reinsurance recoverables on unpaid losses and LAE at end
of period |
$ |
466,601 |
|
|
$ |
298,083 |
|
|
$ |
466,601 |
|
|
$ |
298,083 |
|
Reconciliation of Non-GAAP Financial Measures
For the three and six months ended June 30, 2024 and 2023, the
Non-GAAP financial measures discussed above reconcile to
their most comparable GAAP measures as follows:
Underwriting revenue
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Total revenue |
$ |
131,069 |
|
|
$ |
90,396 |
|
|
$ |
249,603 |
|
|
$ |
179,597 |
|
Net investment income |
|
(7,960 |
) |
|
|
(5,541 |
) |
|
|
(15,098 |
) |
|
|
(10,661 |
) |
Net realized and unrealized
gains on investments |
|
(32 |
) |
|
|
(1,127 |
) |
|
|
(3,034 |
) |
|
|
(1,273 |
) |
Underwriting revenue |
$ |
123,077 |
|
|
$ |
83,728 |
|
|
$ |
231,471 |
|
|
$ |
167,663 |
|
Underwriting income and adjusted underwriting income
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Income before income taxes |
$ |
33,374 |
|
|
$ |
23,020 |
|
|
$ |
67,730 |
|
|
$ |
45,648 |
|
Net investment income |
|
(7,960 |
) |
|
|
(5,541 |
) |
|
|
(15,098 |
) |
|
|
(10,661 |
) |
Net realized and unrealized
gains on investments |
|
(32 |
) |
|
|
(1,127 |
) |
|
|
(3,034 |
) |
|
|
(1,273 |
) |
Interest expense |
|
225 |
|
|
|
1,064 |
|
|
|
965 |
|
|
|
2,084 |
|
Underwriting income |
$ |
25,607 |
|
|
$ |
17,416 |
|
|
$ |
50,563 |
|
|
$ |
35,798 |
|
Expenses associated with
transactions |
|
472 |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
|
Stock-based compensation
expense |
|
3,968 |
|
|
|
3,697 |
|
|
|
7,789 |
|
|
|
7,147 |
|
Amortization of
intangibles |
|
389 |
|
|
|
389 |
|
|
|
779 |
|
|
|
703 |
|
Expenses associated with
catastrophe bond |
|
2,483 |
|
|
|
1,590 |
|
|
|
2,483 |
|
|
|
1,640 |
|
Adjusted underwriting
income |
$ |
32,919 |
|
|
$ |
23,092 |
|
|
$ |
62,086 |
|
|
$ |
45,288 |
|
Adjusted net income
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Net income |
$ |
25,729 |
|
|
$ |
17,562 |
|
|
$ |
52,111 |
|
|
$ |
34,874 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized
gains on investments |
|
(32 |
) |
|
|
(1,127 |
) |
|
|
(3,034 |
) |
|
|
(1,273 |
) |
Expenses associated with
transactions |
|
472 |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
|
Stock-based compensation
expense |
|
3,968 |
|
|
|
3,697 |
|
|
|
7,789 |
|
|
|
7,147 |
|
Amortization of
intangibles |
|
389 |
|
|
|
389 |
|
|
|
779 |
|
|
|
703 |
|
Expenses associated with
catastrophe bond |
|
2,483 |
|
|
|
1,590 |
|
|
|
2,483 |
|
|
|
1,640 |
|
Tax impact |
|
(1,029 |
) |
|
|
(317 |
) |
|
|
(825 |
) |
|
|
(857 |
) |
Adjusted net income |
$ |
31,980 |
|
|
$ |
21,794 |
|
|
$ |
59,775 |
|
|
$ |
42,234 |
|
Annualized adjusted return on equity
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized adjusted net
income |
$ |
127,920 |
|
|
$ |
87,176 |
|
|
$ |
119,550 |
|
|
$ |
84,468 |
|
Average stockholders'
equity |
$ |
517,131 |
|
|
$ |
409,178 |
|
|
$ |
501,928 |
|
|
$ |
399,230 |
|
Annualized adjusted return on
equity |
|
24.7 |
% |
|
|
21.3 |
% |
|
|
23.8 |
% |
|
|
21.2 |
% |
Adjusted combined ratio
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Numerator: Sum of losses and loss adjustment expenses, acquisition
expenses, and other underwriting expenses, net of commission and
other income |
$ |
96,678 |
|
|
$ |
65,691 |
|
|
$ |
179,588 |
|
|
$ |
130,549 |
|
Denominator: Net earned
premiums |
$ |
122,285 |
|
|
$ |
83,107 |
|
|
$ |
230,151 |
|
|
$ |
166,347 |
|
Combined ratio |
|
79.1 |
% |
|
|
79.0 |
% |
|
|
78.0 |
% |
|
|
78.5 |
% |
Adjustments to numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses associated with
transactions |
$ |
(472 |
) |
|
$ |
— |
|
|
$ |
(472 |
) |
|
$ |
— |
|
Stock-based compensation
expense |
|
(3,968 |
) |
|
|
(3,697 |
) |
|
|
(7,789 |
) |
|
|
(7,147 |
) |
Amortization of
intangibles |
|
(389 |
) |
|
|
(389 |
) |
|
|
(779 |
) |
|
|
(703 |
) |
Expenses associated with
catastrophe bond |
|
(2,483 |
) |
|
|
(1,590 |
) |
|
|
(2,483 |
) |
|
|
(1,640 |
) |
Adjusted combined ratio |
|
73.1 |
% |
|
|
72.2 |
% |
|
|
73.0 |
% |
|
|
72.8 |
% |
Diluted adjusted earnings per share
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands, except per share data) |
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
31,980 |
|
|
$ |
21,794 |
|
|
$ |
59,775 |
|
|
$ |
42,234 |
|
Weighted-average common shares
outstanding, diluted |
|
25,617,916 |
|
|
|
25,309,526 |
|
|
|
25,554,445 |
|
|
|
25,384,409 |
|
Diluted adjusted earnings per
share |
$ |
1.25 |
|
|
$ |
0.86 |
|
|
$ |
2.34 |
|
|
$ |
1.66 |
|
Catastrophe loss ratio
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Numerator: Losses and loss adjustment expenses |
$ |
30,431 |
|
|
$ |
17,905 |
|
|
$ |
57,268 |
|
|
$ |
38,557 |
|
Denominator: Net earned
premiums |
$ |
122,285 |
|
|
$ |
83,107 |
|
|
$ |
230,151 |
|
|
$ |
166,347 |
|
Loss ratio |
|
24.9 |
% |
|
|
21.5 |
% |
|
|
24.9 |
% |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: Catastrophe
losses |
$ |
3,441 |
|
|
$ |
2,159 |
|
|
$ |
6,800 |
|
|
$ |
3,965 |
|
Denominator: Net earned
premiums |
$ |
122,285 |
|
|
$ |
83,107 |
|
|
$ |
230,151 |
|
|
$ |
166,347 |
|
Catastrophe loss ratio |
|
2.8 |
% |
|
|
2.6 |
% |
|
|
3.0 |
% |
|
|
2.4 |
% |
Adjusted combined ratio excluding catastrophe losses
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
|
(in thousands) |
|
Numerator: Sum of losses and loss adjustment expenses, acquisition
expenses, and other underwriting expenses, net of commission and
other income |
$ |
96,678 |
|
|
$ |
65,691 |
|
|
$ |
179,588 |
|
|
$ |
130,549 |
|
Denominator: Net earned
premiums |
$ |
122,285 |
|
|
$ |
83,107 |
|
|
$ |
230,151 |
|
|
$ |
166,347 |
|
Combined ratio |
|
79.1 |
% |
|
|
79.0 |
% |
|
|
78.0 |
% |
|
|
78.5 |
% |
Adjustments to numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses associated with
transactions |
$ |
(472 |
) |
|
$ |
— |
|
|
$ |
(472 |
) |
|
$ |
— |
|
Stock-based compensation
expense |
|
(3,968 |
) |
|
|
(3,697 |
) |
|
|
(7,789 |
) |
|
|
(7,147 |
) |
Amortization of
intangibles |
|
(389 |
) |
|
|
(389 |
) |
|
|
(779 |
) |
|
|
(703 |
) |
Expenses associated with
catastrophe bond |
|
(2,483 |
) |
|
|
(1,590 |
) |
|
|
(2,483 |
) |
|
|
(1,640 |
) |
Catastrophe losses |
|
(3,441 |
) |
|
|
(2,159 |
) |
|
|
(6,800 |
) |
|
|
(3,965 |
) |
Adjusted combined ratio
excluding catastrophe losses |
|
70.3 |
% |
|
|
69.6 |
% |
|
|
70.1 |
% |
|
|
70.4 |
% |
Tangible Stockholders’ equity
|
June 30, |
|
|
December 31, |
|
|
2024 |
|
|
2023 |
|
|
(in thousands) |
|
Stockholders' equity |
$ |
532,606 |
|
|
$ |
471,252 |
|
Goodwill and intangible assets |
|
(11,537 |
) |
|
|
(12,315 |
) |
Tangible stockholders' equity |
$ |
521,069 |
|
|
$ |
458,937 |
|
Palomar (NASDAQ:PLMR)
過去 株価チャート
から 8 2024 まで 9 2024
Palomar (NASDAQ:PLMR)
過去 株価チャート
から 9 2023 まで 9 2024