Palomar (PLMR) KBW Insurance Conference 2025 summary

Strategic execution and portfolio development

• Achieved strong execution year-to-date, building a distinct specialty portfolio balanced across property, casualty, admitted, E&S, residential, and commercial lines.

• Top-line growth up 25% and bottom-line growth over 50% year-to-date, leading to three guidance raises this year.

• Focused on building a business resilient to insurance market cycles by diversifying into crop and surety.

• Palomar 2X initiative aims to double underwriting income within five years while maintaining ROE above 20%.

• Confident in future growth and ability to execute strategic imperatives.

Line of business diversification and performance

• Casualty business is growing rapidly in niche markets with conservative risk appetite and strong leadership.

• Crop premium expected to reach $200 million this year, with intermediate and long-term goals of $500 million and $1 billion, respectively.

• Surety business, acquired via M&A, is performing at or above plan, with plans for continued investment and geographic expansion.

• Diversification across lines provides resilience against market cycles and supports growth.

Risk management, reinsurance, and market environment

• Casualty exposure to social inflation is managed by avoiding high-severity classes and maintaining small net limits.

• Reinsurance strategy focuses on deepening relationships with existing partners, with over 140 reinsurers on the property program.

• Retentions are reviewed annually, with a focus on balancing earnings consistency and growth; recent decisions prioritized stability.

• Increased competition in large commercial earthquake led to recalibrated growth expectations for that segment.

• Builder's Risk and related lines are well-hedged against construction market volatility, with cautious optimism for future demand.