Palomar (PLMR) investor relations material

Company profile and strategy

• Leading specialty insurer with a balanced mix of admitted and E&S, residential and commercial property, and casualty products, anchored by earthquake and diversified by casualty, inland marine, crop, and surety & credit lines.

• Purpose-built risk transfer and reinsurance strategy enables earnings stability and growth, with a focus on doubling adjusted net income every 3-5 years and sustaining ROE above 20%.

• AM Best rated "A" (Excellent) with a Financial Size Category XI.

• Strategic initiatives include deepening positions in existing markets, selective entry into new markets, and leveraging scale for profitable growth.

• Experienced management team with over 20 years average industry experience.

Financial performance and guidance

• Q2 2026 gross written premium reached $630.5M, up 27% YoY; adjusted net income was $63.8M, up 31% YoY.

• Adjusted ROE for Q2 2026 was 26%, with an adjusted combined ratio of 77%.

• 15 consecutive quarters of beating consensus adjusted EPS; full-year adjusted net income guidance raised to $270M–$280M.

• 2026 guidance implies 27% adjusted net income growth and ROE above 20%.

• Consistent outperformance versus initial guidance, with 13 guidance raises since 2023 and a 46% adjusted net income CAGR from 2023–2026E.

Portfolio diversification and risk management

• Business mix is nearly evenly split between admitted (52%) and E&S (48%), and between commercial (51%) and residential property (49%).

• Earthquake (23%), inland marine & property (27%), crop (12%), surety & credit (6%), and casualty (31%) contribute to a diversified specialty portfolio.

• Conservative reserving philosophy prioritizes long-term adequacy and earnings stability, with 84% of casualty reserves held as IBNR.

• Reinsurance program includes catastrophe bonds, XOL, quota share, and facultative placements, supporting margin stability and growth.

• Recent reinsurance activity increased earthquake coverage to $3.92B and hurricane coverage to $135M, with over 100 reinsurers and ILS investors.