Palomar (PLMR) 2024 KBW Insurance Conference summary

Strategic imperatives and positioning

• Four key goals for 2024: targeted growth, diversification, consistent earnings, and organizational scaling.

• Confident in execution across all imperatives, setting up for strong 2025 performance.

Surety acquisition and integration

• Acquired First Indemnity of America, a regional surety company, to complement existing lines.

• Chose to buy for expertise and speed, leveraging a seasoned management team.

• Plan to expand surety regionally, focusing on cross-selling and leveraging distribution relationships.

• Integration expected to be light, with focus on strategic growth and knowledge transfer.

• Acquisition expected to close in Q4 2024, with 2025 focused on integration and selective expansion.

Fronting business and market dynamics

• Fronting remains a selective, fee-generative business, with most partners unlikely to graduate to direct writing.

• Recent loss of a fronting client was anticipated; pipeline remains strong with new deals in marine and yachting.

• Focused on managing a handful of high-quality relationships to avoid surprises.

• Competition exists, but selective approach and strong reinsurance relationships provide an edge.