Palomar Holdings reported a significant top and bottom-line beat for the third quarter 2026, characterized by record specialty premium volume and strong investment income. The company successfully executed its "Palomar 2X" strategy, resulting in record adjusted net income and leading to management raising the full-year 2026 guidance for the fourth consecutive time.
Key Highlights
- Record gross written premiums increased 28.4% year-over-year to $767.0 million, driven by expansion across all five core specialty product categories.
- Total underwriting revenue grew 61.9% to $366.9 million, while adjusted net income surged 47.4% to $81.3 million.
- Underwriting profitability remained high with an adjusted combined ratio of 76.3%, effectively managing $4.5 million in catastrophe losses from hurricane and flood events.
- Annualized adjusted return on equity expanded to 33.1% from 25.6% in the prior year period, highlighting improved capital efficiency.