Palomar (PLMR) investor relations material

Executive summary

• Gross written premiums rose 42.4% year-over-year to $629.8 million, driven by growth in Casualty, Inland Marine, and Property lines, new partnerships, and strong retention rates.

• Adjusted net income increased 23.1% to $63.1 million ($2.31/share), while net income was flat at $42.9 million ($1.57/share).

• The acquisition of Gray Surety (now PCSC) was completed for $314.8 million, expanding the surety platform and contributing to Q1 results.

• Announced a new $200 million share repurchase program, with $23.1 million in shares repurchased in Q1.

Financial highlights

• Net earned premiums increased 59.3% to $261.4 million year-over-year.

• Adjusted combined ratio was 76.0% (prior year: 68.5%); combined ratio increased to 84.5% from 73.1% due to higher attritional losses.

• Loss ratio rose to 33.3% from 23.6% year-over-year, with $3 million in catastrophe losses offset by $10.3 million favorable prior year development.

• Net investment income grew 49% to $18.0 million; cash and invested assets totaled $1.6 billion.

• Stockholders’ equity reached $959.0 million; tangible stockholders’ equity was $712.9 million at quarter-end.

Outlook and guidance

• Full-year 2026 adjusted net income guidance raised to $262–278 million, implying 25% year-over-year growth and ROE above 20%.

• Expects adjusted combined ratio in the mid-70s and loss ratio in the mid-to-upper 30s for 2026.

• Net earned premium ratio expected to rise into the upper 40s for 2026.

• Management notes interim results may not reflect full-year performance due to seasonality, especially in Crop.

• Liquidity is considered sufficient, with $1.6 billion in cash and investments as of March 31, 2026.