Palomar Sets 2026 Adjusted Profit at $280 Million to $285 Million

The Tip Desk · November 10, 2026 · 3 min read

Adjusted net income reached $81.3 million, or $3.01 a share, as gross written premiums hit a record $767.0 million.

Palomar Holdings (PLMR), a specialty insurer covering earthquake, crop, casualty, inland marine and surety lines, reported adjusted net income of $81.3 million, or $3.01 a share, for the third quarter of 2026, up 47.4% from $55.2 million, or $2.01 a share, a year earlier.

That year-over-year increase accelerated from 31.4% in the second quarter and 23.1% in the first. GAAP net income was $65.3 million, or $2.42 a share. Chairman and Chief Executive Officer Mac Armstrong called the quarter exceptional, citing record gross written premium and adjusted net income and a 16th consecutive earnings beat.

Gross written premiums rose 28.4% to $767.0 million from $597.2 million a year earlier, after 27.0% growth in the second quarter and 42.4% growth in the first. Net earned premiums increased 62.3% to $365.4 million. Armstrong said written premium growth occurred across all five product categories.

Crop was the largest product line, with $226.7 million of gross written premium, or 29.6% of the total, up 89.3% from $119.8 million a year earlier. Surety & Credit gross written premium was $48.4 million. Casualty was $176.8 million, Inland Marine and Property $160.7 million, and Earthquake $154.5 million. Palomar Casualty and Surety Company contributed $26.7 million of gross written premium, versus none a year earlier. Palomar Specialty Insurance Company wrote $437.6 million and Palomar Excess and Surplus Insurance Company $271.8 million.

The loss ratio widened to 41.5% from 32.3% a year earlier, after 34.5% in the second quarter and 33.3% in the first. Losses and loss adjustment expenses were $151.6 million, including $147.2 million of attritional losses and $4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest. The attritional loss ratio was 40.3% and the catastrophe loss ratio 1.2%. Results also included $4.0 million of attritional unfavorable prior-year development, primarily related to Crop losses reallocated between calendar years.

The combined ratio was 80.8%, versus 78.1% a year earlier, after 83.3% in the second quarter and 84.5% in the first. The adjusted combined ratio was 76.3%. Underwriting income was $70.2 million. Adjusted underwriting income was $86.5 million, up 52.6% from $56.7 million a year earlier.

Net investment income increased 53.8% to $22.4 million from $14.6 million a year earlier. The company said the increase was primarily due to higher yields on invested assets and a higher average balance of investments held, reflecting cash generated from operations. Cash and invested assets totaled $1.8 billion at September 30, 2026. The company recorded $2.7 million of net realized and unrealized investment losses.

Annualized return on equity was 26.6%, versus 23.9% a year earlier, after 21.7% in the second quarter and 18.1% in the first. Annualized adjusted return on equity was 33.1%. Stockholders’ equity was $985.0 million at September 30, 2026. The company repurchased 70,000 shares for $8.9 million in the quarter.

For the full year 2026, Palomar expects adjusted net income of $280 million to $285 million, including an estimate of $8 million to $12 million of catastrophe losses for the year. On October 29, 2026, the board declared a quarterly cash dividend of $0.45 a share, payable December 2, 2026.