Palomar Holdings, Inc. (PLMR) SEC Filings & Earnings Calls

Catastrophe exposure from earthquake franchise, but reinsurance program provides stability.

“$3.92 billion of total Earthquake limit. Conservative and comprehensive risk transfer strategy.” · word for word

Competitive market for specialty insurance could pressure pricing.

“No direct evidence, but industry context.”

Catastrophe Loss Exposure

“Claims arising from unpredictable and severe catastrophe events, including those caused by global climate change, could reduce or eliminate our earnings and stockholders’ equity, particularly if such events occur with greater frequency or severity than historical experience, and could limit our ability to underwrite new insurance policies.” · word for word

Reinsurer Credit Risk

“Our reinsurers may not pay claims on a timely basis, or at all, which may materially adversely affect our business, financial condition, and results of operations.” · word for word

Reserve Inadequacy Risk

“Our loss reserves are established based on estimates and assumptions, which may be inadequate to cover actual incurred losses, including as a result of changes in claims severity, litigation trends, or other loss development, and could have a material adverse impact on our results of operations and financial condition.” · word for word

California Concentration Risk

“A significant portion of our business is generated in California, and as a result, we are more significantly exposed to California loss activity and regulatory environments, including regulatory constraints on pricing, underwriting actions, and the timing or approval of rate changes.” · word for word

Program Administrator Concentration Risk

“We rely on a select group of brokers and program administrators, and such relationships may not continue or may not perform as expected.” · word for word

Loss ratio increased to 34.5% from 25.7% due to higher attritional losses and catastrophe development.

“Total loss ratio of 34.5% compared to 25.7% in the second quarter of 2025” · word for word

Combined ratio deteriorated to 83.3% from 78.8% YoY, though still profitable.

“Combined ratio of 83.3% compared to 78.8% in the second quarter of 2025” · word for word

Catastrophe risk managed through reinsurance, retention within guideposts.

“per occurrence catastrophe event retention will remain at $11 million for hurricane events and $20 million for earthquake events, levels that are meaningfully within management’s previously stated guideposts”

California Concentration Risk

“Our business is concentrated in California and we are exposed more significantly to California loss activity and regulatory environments, including regulatory constraints on pricing, underwriting actions, and the timing or approval of rate changes.” · word for word

Reinsurance Availability Risk

“We may be unable to purchase third-party reinsurance or otherwise expand our catastrophe coverage in amounts we desire or on terms that are commercially acceptable and adequately protect us, including due to volatility in reinsurance market conditions.” · word for word

Catastrophe Loss Risk

“Claims arising from unpredictable and severe catastrophe events, including those caused by global climate change, could reduce or eliminate our earnings and stockholders’ equity.” · word for word

Combined ratio deteriorated YoY due to higher loss ratio (33.3% vs 23.6%), partly from attritional losses.

“Combined ratio 84.5% vs 73.1%; loss ratio 33.3% vs 23.6%.”

Catastrophe loss estimate for FY2026 is $8-12M, which could pressure earnings if actual losses exceed.

“FY2026 guidance includes $8M to $12M of catastrophe losses.”

Catastrophe loss risk

“Claims arising from unpredictable and severe catastrophe events... could reduce or eliminate our earnings and stockholders’ equity” · word for word

California concentration risk

“Our business is concentrated in California and we are exposed more significantly to California loss activity and regulatory environments” · word for word

Reinsurance counterparty risk

“As of December 31, 2025, we had $468.7 million of aggregate reinsurance recoverables” · word for word

Reserve inadequacy risk

“Our loss reserves are established based on estimates and assumptions, which may be inadequate to cover actual incurred losses” · word for word

Catastrophe exposure in earthquake and property lines

“Earthquake is a key product; company uses reinsurance to manage volatility.”

Higher attritional loss ratio (31.3% vs 20.1% YoY) indicates potential margin pressure from non-catastrophe claims.

“Attritional loss ratio of 31.3% compared to 20.1% in Q4 2024.”

Integration risk of Gray Surety.

“completion of the previously announced acquisition of The Gray Casualty & Surety Company” · word for word

California concentration risk

“Our business is concentrated in California and, as a result, we are exposed more significantly to California loss activity and regulatory environments.” · word for word

Reinsurance availability risk

“We may be unable to purchase third-party reinsurance or otherwise expand our catastrophe coverage in amounts we desire on commercially acceptable terms or on terms that adequately protect us, and this inability may materially adversely affect our business, financial condition and results of operations.” · word for word

Catastrophe loss exposure

“Claims arising from unpredictable and severe catastrophe events, including those caused by global climate change, could reduce or eliminate our earnings and stockholders’ equity and limit our ability to underwrite new insurance policies.” · word for word

Reserve inadequacy risk

“Our loss reserves are established based on estimates which may be inadequate to cover actual incurred losses and could have a material adverse impact on our results of operations and financial condition.” · word for word

Program administrator concentration

“For the nine months ended September 30, 2025, our largest program administrator distributed $310.4 million or 20.2% of our gross written premiums and our second largest program administrator distributed $197.2 million or 12.8% of our gross written premiums.” · word for word

Catastrophe loss exposure remains a risk, though lower this quarter.

“Catastrophe loss ratio of 0.8% compared to 9.5% in the third quarter of 2024.”

Transaction subject to regulatory approvals and customary closing conditions, with risk of delay or termination.

“Transaction expected to close during first half of 2026, subject to regulatory approvals.”