Palomar (PLMR) Q4 2024 earnings summary

Executive summary

• Achieved record fourth quarter and full year 2024 results, surpassing expectations for the ninth consecutive quarter.

• Net income for Q4 2024 rose 35% year-over-year to $35.0M ($1.29 per diluted share); adjusted net income up 47.5% to $41.3M ($1.52 per share).

• Full year 2024 net income increased 48.4% to $117.6M; adjusted net income up 43% to $133.5M.

• Executed on four strategic objectives: profitable growth, diversification, predictable earnings, and organizational scaling.

• Achieved AM Best upgrade and completed acquisition of First Indemnity of America, expanding into Surety.

Financial highlights

• Q4 adjusted net income grew 47.5% year-over-year to $41.3M ($1.52 per share).

• Q4 gross written premiums increased 23.3% to $373.7M; 39% growth excluding runoff.

• Full year adjusted net income rose 43% to $133.5M; adjusted EPS up 38% to $5.09.

• Q4 underwriting income: $34.9M (+44.2%); adjusted underwriting income: $41.0M (+40.2%).

• Net investment income for Q4: $11.3M (+61.3%); full year: $35.8M (+51.1%).

Outlook and guidance

• 2025 adjusted net income guidance: $180M–$192M, including $8M–$12M estimated catastrophe losses.

• Adjusted ROE expected above 20%, targeting 23% at guidance midpoint.

• Net earned premium ratio expected to increase in 2025, with Q3 as the seasonal low.

• Loss ratio projected to rise to low 30s, with combined ratio in mid to upper 70s.

• Management expects continued profitable growth, supported by recent investments and strategic initiatives.