Palomar Holdings Inc · Q1 2020 earnings

Briefing

Reported strong top-line growth, driven by an attractive rate environment for commercial lines and sustained demand for personal lines, with a 40% year-over-year increase in adjusted net income, resulting in an annualized adjusted ROE of 20.6%.

Palomar Holdings, Inc. reported a net income of $11.8 million, or $0.48 per diluted share, for Q1 2020, compared to a net loss of $14.4 million, or $(0.85) per diluted share, for Q1 2019. Adjusted net income was $12.3 million, or $0.50 per diluted share, for Q1 2020, compared to $8.8 million, or $0.52 per diluted share, for Q1 2019. Gross written premiums increased by 32.3% to $71.5 million compared to the first quarter of 2019.

• Gross written premiums increased by 32.3% to $71.5 million compared to $54.0 million in the first quarter of 2019
• Net income increased to $11.8 million compared to a net loss of $14.4 million in the first quarter of 2019
• Adjusted net income increased by 39.5% to $12.3 million compared to $8.8 million in the first quarter of 2019
• Combined ratio of 63.6% compared to 193.8% in the first quarter of 2019

Headline financials

Revenue & EPS history

The Company affirms prior guidance of adjusted net income of $50.5 to $53.0 million for the full year 2020, equating to a growth rate of 33% to 40% compared to the full year 2019.