NASDAQ$PLMR
Palomar Holdings Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Palomar Holdings reported record gross written premium and adjusted net income, driven by robust growth and strategic initiatives.
Palomar Holdings reported a strong second quarter with a 40% increase in gross written premiums and a 47% increase in adjusted net income year-over-year. The company successfully placed its core excess of loss reinsurance program and received an upgraded financial strength rating from AM Best. Palomar is raising its adjusted net income guidance for the year.
- Gross written premiums increased by 40.4% to $385.2 million.
- Net income reached $25.7 million, compared to $17.6 million in the second quarter of 2023.
- Adjusted net income was $32.0 million, up from $21.8 million in the prior year.
- The company's adjusted combined ratio was 73.1%, compared to 72.2% in the second quarter of 2023.
Headline financials
Revenue & EPS history
Palomar Holdings · Revenue · Quarterly
$131M
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
Palomar Holdings is increasing its guidance range for the full year 2024 and now expects to achieve adjusted net income of $124 million to $130 million. This range includes $6.8 million of catastrophe losses incurred during the six months ended June 30, 2024 and additional catastrophe losses incurred during the third quarter of 2024 of approximately $5 million to $7 million related to Hurricanes Beryl and Debby.
Tailwinds
- Achieve adjusted net income of $124 million to $130 million for the full year 2024.
- 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
- AM Best upgrading our Financial Strength Rating to an A.
- Doubling our underwriting income over a three-to-five-year time frame while generating an adjusted ROE in excess of 20%
Headwinds
- Includes $6.8 million of catastrophe losses incurred during the six months ended June 30, 2024
- Additional catastrophe losses incurred during the third quarter of 2024 of approximately $5 million to $7 million related to Hurricanes Beryl and Debby.
- Unexpected expenditures and costs
- Unexpected results or delays in development and regulatory review
- Regulatory approval requirements
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 2024
+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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