Palomar (PLMR) Investor presentation summary

Growth and profitability highlights

• Achieved gross written premium of $2.03B in 2025, up 31.5% year-over-year, with adjusted net income of $216.1M, a 61.9% increase from 2024.

• Adjusted return on equity reached 25.9% for 2025, with an adjusted combined ratio of 72.7%.

• Fourth quarter 2025 saw gross written premium of $492.6M and adjusted net income of $61.1M, both showing strong year-over-year growth.

• Diversified specialty insurance portfolio with non-earthquake premiums now representing 72% of the mix.

• Closed the Gray Surety acquisition, adding scale and diversification to the Surety & Credit segment.

Product and portfolio diversification

• Five core product categories: Earthquake, Casualty, Inland Marine & Property, Crop, and Surety & Credit, each contributing to balanced growth.

• Surety & Credit, including Gray Surety, represented about 7% of 2025 GWP and is expected to be a key growth driver.

• Crop segment exceeded targets with $248M GWP and is positioned for over 30% growth in 2026.

• Business mix shift has preserved strong margins and profitability, with 14 consecutive quarters of results beating consensus.

• Conservative approach in casualty with disciplined reserving and limited auto exposure.

Risk management and reinsurance

• Comprehensive reinsurance strategy utilizes facultative, quota share, excess of loss, and catastrophe bonds to manage risk and support growth.

• Earthquake reinsurance program provides $3.5B in coverage with $1.15B via catastrophe bonds, maintaining a $20M occurrence retention.

• All perils excluding earthquake have separate reinsurance towers, with reduced per occurrence retention to $11M.

• Recent reinsurance renewals executed at improved terms, with ongoing softening in the property cat reinsurance market expected through 2026.