Palomar celebrates record gross written premium
Palomar Holdings, which has a Bermuda-based reinsurance subsidiary, said net income jumped 46% to $25.7 million as the company achieved record gross written premium in the quarter.
The re/insurer, which focuses heavily on property catastrophe re/insurance for earthquake risk, said adjusted net income was $32 million compared tp $21.8 million for the second quarter of 2023.
The company said gross written premium increased by 40.4% to $385.2 million from $274.3 million while net earned premiums increased 47.1%.
"I am very pleased with our second quarter results as we achieved record gross written premium and adjusted net income during the quarter," said Mac Armstrong, chairman and chief executive officer. "Additionally, our profitable growth remained robust with gross written premium and adjusted net income increasing 40% and 47%, respectively, year-over-year.
"Beyond the strong financial results achieved during the quarter, we had several other accomplishments including but not limited to: successfully placing our core excess of loss reinsurance program at June 1st on terms that were better than anticipated, bringing on several new leaders who will help scale the Company and execute our Palomar 2X strategy, and AM Best upgrading our Financial Strength Rating to an A.
“We introduced our Palomar 2X strategy at our investor day in 2022 with designs of doubling our underwriting income over a three-to-five-year time frame while generating an adjusted ROE in excess of 20%. Our second quarter results and our further raising of adjusted net income guidance for the year clearly demonstrates that we are tracking ahead of these ambitious goals.”
Losses and loss adjustment expenses for the second quarter were $30.4 million, comprised of $27 million of attritional losses and $3.4 million of catastrophe losses from severe convective storms. The loss ratio for the quarter was 24.9%, comprised of an attritional loss ratio of 22.1% and a catastrophe loss ratio of 2.8%, compared to a loss ratio of 21.5% during the same period last year comprised of an attritional loss ratio of 18.9% and a catastrophe loss ratio of 2.6, the company said.
Underwriting income for the second quarter was $25.6 million resulting in a combined ratio of 79.1% compared to underwriting income of $17.4 million resulting in a combined ratio of 79.0% during the same period last year.
Net investment income increased by 43.7% to $8 million compared to $5.5 million in the prior year’s second quarter. Palomar said the increase was primarily due to higher yields on invested assets and a higher average balance of investments.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
