NASDAQ$PLMR
Palomar Holdings Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported a strong second quarter with profitable growth and strategic capital allocation.
Palomar Holdings reported a net income of $17.6 million for Q2 2023, with a gross written premium increase of 25.4%. The company strategically focused on targeted segments and successfully placed its June 1 reinsurance program, leading to an adjusted return on equity of 21.3%.
- Gross written premiums increased by 25.4% to $274.3 million.
- Net income reached $17.6 million, compared to $14.6 million in the second quarter of 2022.
- The combined ratio was 79.0%, while the adjusted combined ratio was 72.2%.
- Adjusted net income is $21.8 million.
Headline financials
Revenue & EPS history
Palomar Holdings · Revenue · Quarterly
$90.4M
Revenue by segment
Palomar Holdings · $170M total across 3 segments · Q2 2023
- Earthquake$114M+1284.7%67.0%
- Casualty$40.8M+92.3%24.0%
- Fronting$15.3M-63.7%9.0%
Forward guidance
The Company expects to achieve an adjusted net income of $89 million to $93 million for the full year 2023. This includes catastrophe losses incurred in the first and second quarters of approximately $4.0 million and does not include any additional catastrophe losses for the remainder of the year.
Tailwinds
- Adjusted net income guidance raised to $89 million - $93 million for 2023.
- Successfully placed June 1 reinsurance program.
- Hired professional liability underwriters to expand casualty franchise.
- Received a “positive outlook” from A.M Best.
- Focus on earthquake, inland marine, and casualty segments to maximize risk-adjusted returns.
Headwinds
- Includes catastrophe losses incurred in the first and second quarters of approximately $4.0 million.
- Expected results do not include any additional catastrophe losses for the remainder of the year.
- Elevated catastrophe activity.
- Historically hard reinsurance market.
- Reduced exposure to segments that add volatility.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
+2.9%
Avg return
Earnings day
+6.1%
Avg return
5 days after
+8.2%
Avg return
30 days after
61%
19 / 31 earnings
Positive
+23.9%
Q4 2023
Best reaction
-27.9%
Q3 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.4% | -2.1% | -2.0% | |
| Q4 2025 | -3.5% | -1.3% | -8.7% | |
| Q3 2025 | +8.9% | +12.4% | -1.2% | |
| Q1 2025 | +0.1% | +2.7% | +8.1% | |
| Q4 2024 | +14.7% | +13.9% | +20.9% | |
| Q3 2024 | +2.2% | +13.3% | +25.6% | |
| Q2 2024 | +3.3% | -0.1% | +8.8% | |
| Q1 2024 | +2.3% | +7.7% | +7.3% | |
| Q4 2023 | +23.9% | +24.7% | +38.0% | |
| Q3 2023 | +12.6% | +13.8% | +17.5% | |
| Q2 2023 | -4.0% | -2.9% | -13.4% | |
| Q1 2023 | +0.8% | +4.0% | +11.1% | |
| Q4 2022 | +8.1% | +18.3% | +4.2% | |
| Q3 2022 | -27.9% | -24.1% | -31.0% | |
| Q2 2022 | +9.1% | +13.6% | +30.7% | |
| Q1 2022 | -5.6% | -9.2% | +12.9% | |
| Q4 2021 | -0.2% | +1.5% | +13.7% | |
| Q3 2021 | -1.3% | +3.0% | -27.6% | |
| Q2 2021 | -0.5% | +9.6% | +14.9% | |
| Q1 2021 | +0.7% | +0.2% | +9.9% | |
| Q4 2020 | -6.0% | -1.0% | -21.3% | |
| Q3 2020 | -12.5% | -23.8% | -26.5% | |
| Q2 2020 | +1.7% | +5.2% | +14.5% | |
| Q1 2020 | +4.4% | +11.0% | +53.7% | |
| Q4 2019 | -0.4% | +3.8% | -24.6% | |
| Q3 2018 | +7.8% | +10.5% | +24.4% | |
| Q3 2019 | -2.4% | +2.3% | +14.6% | |
| Q2 2018 | +14.2% | +22.4% | +15.8% | |
| Q2 2019 | +15.5% | +22.9% | +17.0% | |
| Q4 2018 | +18.3% | +19.5% | +24.9% | |
| Q1 2019 | +10.5% | +16.2% | +22.3% | |
| Q1 2018 | — | — | — |
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