Palomar (PLMR) Q4 2025 earnings summary

Executive summary

• Achieved record gross written premium and adjusted net income in 2025, with 32% and 62% year-over-year growth, respectively, and an adjusted ROE of 26%.

• Exceeded initial full-year adjusted net income guidance, finishing at $216 million, and beat earnings every quarter, resulting in four upward revisions.

• Net income for Q4 2025 rose 60.6% year-over-year to $56.2 million, with adjusted net income up 48.0% to $61.1 million.

• Successfully executed four strategic imperatives, scaled new verticals, integrated acquisitions, and grew the team to over 500 professionals.

• Notable acquisitions included Advanced Ag Protection and The Gray Casualty and Surety Company.

Financial highlights

• Q4 adjusted net income was $61.1 million ($2.24/share), up 48% year-over-year; adjusted underwriting income rose 52%.

• Q4 gross written premiums were $492.6 million, up 32%; net earned premiums were $233.5 million, up 61%.

• Full-year gross written premium reached $2.03 billion (+32%), net earned premiums $802.6 million (+57%), and adjusted net income $216.1 million (+62%).

• Full year 2025 underwriting income: $185.9 million (+66.1% YoY); adjusted underwriting income: $218.9 million (+63.2% YoY).

• Net investment income for 2025 was $56 million, up 56% year-over-year.

Outlook and guidance

• 2026 adjusted net income guidance set at $260–$275 million, implying 24% growth at the midpoint and ROE above 20%.

• Guidance includes $8–12 million in catastrophe losses and a 10% decrease in excess of loss property catastrophe reinsurance costs.

• Loss ratio expected in the mid- to upper 30s for 2026; adjusted combined ratio projected in the mid-70s.

• Crop premium expected to grow over 30% in 2026, with a long-term target of $1 billion.