Recent news highlights Palomar's strong Q3 2026 operational performance, including premium growth and earnings, as well as strategic acquisitions and credit facility arrangements.

• Palomar reported strong Q3 2026 earnings with gross written premiums of $767 million and net income of $65.3 million, reflecting significant growth compared to prior year periods [N2].
• The company highlighted strong premium growth and operational execution during its Q3 2026 earnings call [N1].
• Q3 2026 earnings and revenues topped estimates, indicating robust business performance [N4].
• Palomar completed the acquisition of The Gray Casualty & Surety Company in January 2026 and secured a $450 million credit facility to support this and other corporate purposes [S1].
• The company continues to expand its specialty insurance portfolio through acquisitions and new product offerings, enhancing diversification and market reach [N3].

Palomar's rapid growth in gross written premiums and profitability since inception demonstrates its ability to capture market share in specialty insurance segments. Its differentiated product offerings, supported by proprietary analytics and technology, provide a competitive edge in pricing and underwriting. The company's expansion into new specialty lines such as Crop, Surety, and Environmental Liability diversifies its risk profile and broadens its addressable market. Strategic acquisitions have enhanced its geographic reach and product capabilities. The conservative reinsurance program helps stabilize earnings and protect capital. The company's multi-channel distribution and partnerships support scalable growth and fee income generation.

Palomar operates in specialty insurance markets that are subject to catastrophe risk, regulatory changes, and competitive pressures. The company's growth and profitability depend on maintaining disciplined underwriting and risk management; adverse loss experience or increased catastrophe events could impact results. The reliance on proprietary models and data analytics introduces model risk and potential mispricing. Integration risks exist related to recent acquisitions. Changes in reinsurance availability or cost could affect risk transfer effectiveness. Market conditions and regulatory environments may evolve, potentially impacting product offerings and pricing flexibility.

Palomar's competitive advantages stem from its focus on underserved specialty insurance markets, where it leverages specialized underwriting expertise and proprietary data analytics to offer differentiated and flexible products. Its presence in both admitted and excess and surplus lines markets allows it to serve diverse customer needs with regulatory-backed admitted products and more flexible E&S offerings. The company's analytically driven underwriting process, supported by a proprietary technology platform, enables granular risk assessment and pricing at the geocode level, which is more detailed than typical industry practices. Additionally, Palomar's multi-channel distribution model and conservative reinsurance program provide operational flexibility and risk mitigation. The experienced management team and recent strategic acquisitions further strengthen its market position and product portfolio.

• Catastrophe Risk and Loss Volatility: Palomar's specialty insurance products expose it to catastrophe events such as earthquakes and hurricanes, which can cause significant losses and earnings volatility despite reinsurance protections.
• Regulatory and Market Risks: The company operates in regulated admitted markets and less regulated E&S markets; changes in regulations or market conditions could affect product offerings, pricing, and distribution.
• Model and Underwriting Risk: Palomar relies on proprietary data analytics and modeling for underwriting and pricing; inaccuracies or changes in risk factors could lead to mispricing and increased losses.
• Acquisition and Integration Risks: Recent acquisitions expand Palomar's portfolio but also introduce risks related to integration, management focus, and realization of anticipated benefits.
• Reinsurance Dependence: The company's risk transfer strategy depends on reinsurance programs; changes in reinsurance availability, cost, or terms could impact risk mitigation and financial results.

• Palomar Holdings, Inc. is a specialty insurance company providing property and casualty insurance products to individuals and businesses in the United States.
• The company operates in five product categories: Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting.
• Palomar offers coverage in both admitted and excess and surplus lines (E&S) markets, leveraging proprietary data analytics and a technology-enabled platform for customized underwriting and pricing.
• Its insurance subsidiaries include Palomar Specialty Insurance Company (PSIC), Palomar Excess and Surplus Insurance Company (PESIC), First Indemnity of America Insurance Co. (FIA), and Palomar Casualty & Surety Company (PCSC), all carrying A or A- financial strength ratings from A.M. Best.
• Palomar distributes products through multiple channels including retail agents, program administrators, wholesale brokers, and partnerships with other insurance companies.
• The company has grown gross written premiums from $16.6 million in 2014 to $2.0 billion for the year ended December 31, 2025, reflecting a compound annual growth rate of approximately 55%.
• Palomar has been profitable since 2016 with net income growing at a compound annual growth rate of approximately 46%.
• Recent acquisitions include The Gray Casualty & Surety Company (renamed Palomar Casualty & Surety Company) in January 2026, FIA in January 2025, and Advanced AgProtection, LLC in April 2025, enhancing specialty insurance offerings and geographic reach.
• Palomar's business strategy emphasizes growing and diversifying its specialty insurance portfolio by product, market, and geography, with California representing the largest exposure at 31% of gross written premiums in 2025.
• The company uses a highly granular and analytical underwriting process, including automated underwriting for personal lines and a combination of automation and human expertise for commercial lines.
• Palomar's competitive strengths include focus on underserved specialty insurance markets, differentiated and flexible product offerings, presence in both admitted and E&S markets, analytically driven underwriting, multi-channel distribution, conservative risk transfer through reinsurance, and a proprietary technology platform.
• The company maintains a comprehensive risk transfer program with reinsurance coverage limiting pre-tax net loss from single events to $20 million for earthquakes and $11 million for hurricanes as of December 31, 2025.
• Palomar's management team has extensive insurance industry experience, with key executives serving for over five years and recent hires in key operational areas.
• The company generates fee income through quota share reinsurance treaties and partnerships with program administrators and reinsurers.
• For the three months ended September 30, 2026, Palomar reported gross written premiums of $767 million, net income of $65.3 million, and basic earnings per share of $2.48.
• The company reported a 28.4% increase in gross written premiums and a 27.0% increase in net income compared to the same period in 2025.
• Palomar's underwriting income for Q3 2026 was $70.2 million, a 42.6% increase year-over-year.
• Interest expense increased significantly in Q3 2026 due to new credit facilities related to acquisitions.
• Net investment income increased by 53.8% in Q3 2026 compared to Q3 2025.
• The company completed a $450 million unsecured credit facility in January 2026 to facilitate the Gray Surety acquisition.
• Palomar's Q3 2026 earnings call and related news highlight strong premium growth and operational performance.
• Financial figures are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice.