20 February 2023News

Palomar enjoyed bumper growth in 2022

Palomar Holdings, which has its reinsurance operations in Bermuda, enjoyed robust growth and a record-setting year in 2022 driven by top line growth of some 60%.

The company’s gross written premiums soared by 65% to reach $881.9 million. It posted a new profit of $52.2 million, an improvement on the $45.8 million it made a year earlier. Its combined ratio last year was 80.4% compared with 80% the year before.

Mac Armstrong, chairman and CEO, commented: “Palomar’s strong fourth quarter results are the final illustration of success in a record-setting year. During the quarter we generated nearly 60% top-line growth while also achieving strong profitability with an annualized adjusted return on equity of 22.4%.

“For the full year 2022, we delivered record premium growth and earnings, generating an adjusted ROE of 18.3%. The fourth quarter and full year results demonstrate further execution of Palomar 2X, our strategy to profitably grow the company, deliver predictable earnings, and achieve an ROE in excess of 20% while maintaining industry leading profit margins.”

He continued: “Looking to 2023, we expect to earn adjusted net income of $86 million to $90 million. This guidance implies 23% net income growth and an adjusted ROE of 21% at the midpoint of our expected range – a target that exceeds our PLMR 2X stated objective of 20%. We believe our guidance points to the durability of our business model as we successfully navigate the reinsurance market; execute on diversifying endeavors like PLMR-Front as well as our casualty and inland marine divisions; and invest in underwriting talent, technology and data analytics to support new and existing products.”