Palomar Holdings, Inc. (PLMR) Announces Third Quarter 2025 Earnings Results

Palomar Holdings, Inc. (PLMR) today announced its financial results for the most recent quarter, revealing a diluted earnings per share of $1.87, which exceeded analysts’ expectations by $0.27. However, the company reported revenue of $244.66 million, falling short of the estimated $530.37 million. Despite the earnings beat, the significant revenue miss highlights ongoing challenges for the company in meeting market forecasts.

Key Highlights:

• Net income for Q3 2025 was $51.5 million, or $1.87 per diluted share, up from $30.5 million, or $1.15 per diluted share in Q3 2024.
• Adjusted net income increased 70% to $55.2 million, or $2.01 per diluted share, compared to $32.4 million, or $1.23 per diluted share in the prior year.
• Gross written premiums rose by 43.9% to $597.2 million from $415.0 million in Q3 2024.
• The total loss ratio was 32.3%, compared to 29.7% in Q3 2024, while the combined ratio improved to 78.1% from 80.5%.
• Annualized return on equity increased to 23.9% from 19.7% year-over-year.
• The company expects adjusted net income for the full year 2025 to be between $210 million and $215 million, an increase from the previous range of $198 million to $208 million.

In the third quarter of 2025, Palomar Holdings, Inc. reported exceptional financial results, showcasing significant growth in both net income and gross written premiums. CEO Mac Armstrong highlighted the record gross written premium and adjusted net income, stating, “We continue to achieve strong top and bottom-line growth as gross written premium grew 44% and adjusted net income increased a stellar 70% across our unique and diverse portfolio.” The company’s strategic focus on its Palomar 2X imperatives, including the acquisition of The Gray Casualty and Surety Company, is expected to drive long-term profitable growth and enhance its portfolio’s resilience against market cycles.

Palomar’s underwriting results also reflected strong performance, with gross written premiums increasing significantly and a notable improvement in the combined ratio. The company reported a favorable catastrophe loss ratio of 0.8%, down from 9.5% in the previous year, contributing to an adjusted combined ratio of 74.8%. The outlook for the full year remains positive, with management projecting adjusted net income to exceed previous estimates, reinforcing confidence in the company’s growth trajectory and operational stability.

Palomar Holdings, Inc. (PLMR) has experienced a notable price fluctuation recently, with a 4.70% increase over the past week, suggesting a potential rebound in investor sentiment. Over the last month, the stock has risen by 4.33%, indicating a steady upward trend despite a more significant decline of 24.65% over the past six months. This volatility may be attributed to the company’s impressive financial metrics, including a robust two-year compound annual growth rate (CAGR) of 58.23% in earnings per share and a remarkable 90.21% in free cash flow. With a price-to-earnings ratio of 20.56, PLMR appears to be reasonably valued given its strong growth prospects. Additionally, the company boasts a net profit margin of 22.62%, reflecting its efficiency in converting revenue into profit. As investors weigh these fundamentals against recent price movements, Palomar Holdings may be positioning itself for a more stable future, especially with a revenue CAGR of 39.83% that underscores its growth potential. Overall, the stock’s recent performance and solid financial metrics suggest that it could be an attractive option for those looking to capitalize on its recovery trajectory.

Palomar Holdings, Inc., an insurance holding company, provides specialty property insurance to residential and commercial customers. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance, commercial flood, real estate error and omission, and real estate investor products. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.