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PLMR

Palomar Holdings, Inc.

PLMR

Palomar Holdings, Inc. • NASDAQ
$124.21 ▲ 0.21% (+0.26)
Market Cap $3.31 B
52w High $175.85
52w Low $98.42
Dividend Yield 0%
P/E 19.38
Volume 96.36K
Outstanding Shares 26.64M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $244.66M ▲ $48.439M ▲ $51.455M ▲ 21.031% ▼ $1.93 ▲ $67.272M ▲
Q2-2025 $201.025M ▲ $43.325M ▲ $46.528M ▲ 23.145% ▼ $1.74 ▲ $59.966M ▲
Q1-2025 $174.633M ▲ $35.733M ▲ $42.922M ▲ 24.578% ▲ $1.61 ▲ $54.505M ▲
Q4-2024 $155.64M ▲ $32.916M ▲ $34.965M ▲ 22.465% ▲ $1.32 ▲ $45.049M ▲
Q3-2024 $148.355M $28.068M $30.497M 20.557% $1.18 $38.59M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.253B ▲ $2.944B ▲ $2.065B ▲ $878.11M ▲
Q2-2025 $1.195B ▲ $2.832B ▲ $1.985B ▲ $847.197M ▲
Q1-2025 $621.215M ▲ $2.427B ▲ $1.636B ▲ $790.449M ▲
Q4-2024 $550.864M ▲ $2.262B ▼ $1.533B ▼ $729.03M ▲
Q3-2024 $515.811M $2.276B $1.573B $703.313M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $51.455M ▲ $83.644M ▼ $-17.737M ▲ $-35.462M ▼ $30.445M ▲ $83.593M ▼
Q2-2025 $0 ▼ $120.878M ▲ $-160.754M ▼ $1.864M ▼ $-38.012M ▼ $119.16M ▲
Q1-2025 $42.922M ▲ $87.183M ▲ $-51.944M ▲ $3.549M ▲ $38.788M ▲ $87.148M ▲
Q4-2024 $0 $72.637M ▼ $-81.36M ▲ $2.678M ▼ $-6.045M ▼ $68.413M ▼
Q3-2024 $0 $100.268M $-179.881M $118.178M $38.565M $98.807M

Five-Year Company Overview

Income Statement

Income Statement Palomar’s income statement shows a company that has been growing quickly and becoming steadily more profitable. Revenue has climbed consistently over the last five years, and profits have risen even faster than sales, which suggests good cost discipline and operating leverage. Earnings per share have increased several times over, showing that growth is flowing through to the bottom line rather than being eaten up by expenses. That said, the pattern in gross profit suggests that loss experience (claims versus premiums) can still be volatile from year to year, which is typical for catastrophe-focused insurers. Overall, though, the direction of travel is positive: higher scale, improving margins, and a clearer path to sustainable profitability.

Balance Sheet

Balance Sheet The balance sheet has expanded meaningfully, with total assets rising steadily as the company has grown its book of business. Shareholders’ equity has also increased over time, which is a healthy sign that profits are being retained and the capital base is strengthening. Debt has been minimal and only used selectively, indicating a conservative approach to leverage. Cash on hand is modest as a share of total assets, but that is common in insurance, where much of the asset base is held in investments rather than raw cash. Overall, the balance sheet looks relatively strong and built to support further growth, though the business still depends heavily on effective risk transfer through reinsurance.

Cash Flow

Cash Flow Palomar’s cash flow profile is a strong point. Operating cash flow has trended upward alongside earnings, indicating that reported profits are largely backed by real cash generation. Free cash flow is very close to operating cash flow because capital spending needs are low; the business is not capital-intensive in the traditional sense. This combination—rising cash inflows and limited ongoing investment requirements—gives the company flexibility. It can fund growth, absorb shocks, and invest in technology and people without constantly needing outside capital. The main caveat is that, as an insurer, cash flows can still be affected by large loss events and changes in reinsurance terms.

Competitive Edge

Competitive Edge Palomar has carved out a strong niche in specialty property and casualty insurance, particularly in catastrophe-exposed areas like earthquake, flood, and wind. Its use of detailed data and analytics to price risk at a very granular level is a key advantage over more traditional insurers that rely on less targeted methods. The company also benefits from a sophisticated reinsurance and catastrophe bond program, which helps limit the impact of large events on its own balance sheet. Its ability to operate in both standard (admitted) markets and excess and surplus lines adds flexibility in product design and pricing. On the flip side, the focus on catastrophe risks means Palomar is inherently exposed to event-driven volatility, changes in reinsurance costs, and regulatory scrutiny in sensitive markets. Even so, within its chosen niches, the firm appears to be a focused and disciplined competitor.

Innovation and R&D

Innovation and R&D Innovation is a central pillar of Palomar’s strategy. The firm has built an in-house technology platform and tools like its automated submission system that streamline quoting and policy binding for agents and brokers. Its heavy use of proprietary analytics and modern finance systems supports more precise underwriting and faster decision-making. Looking ahead, the “Palomar 2X” strategy aims to leverage this tech foundation to scale underwriting income significantly while diversifying away from purely catastrophe-driven lines. Moves into crop, casualty, and surety, combined with targeted acquisitions and continued tech investment, show a clear intent to broaden the product set and smooth earnings. The main execution risk is balancing rapid expansion with disciplined risk selection in these newer areas.

Summary

Palomar looks like a growing specialty insurer with improving profitability, a strengthening capital base, and solid cash generation. Its edge comes from technology-enabled underwriting, a focus on complex and underserved risks, and thoughtful use of reinsurance and catastrophe bonds. The company’s growth strategy—adding new product lines, expanding geographically, and doubling down on analytics—offers meaningful upside but also introduces execution and integration risks. Its concentration in catastrophe-exposed business means results can still swing with major events and shifts in reinsurance markets. In short, Palomar combines strong recent financial momentum with a distinct, innovation-driven competitive model, balanced by the inherent volatility and complexity of the risks it chooses to underwrite.

NEWS

November 4, 2025 · 6:00 PM UTC

AM Best Comments on Credit Ratings of Palomar Holdings, Inc., Its Member Companies and Affiliate

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October 30, 2025 · 4:20 PM UTC

BCP Announces Sale of The Gray Casualty & Surety Company

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October 30, 2025 · 4:15 PM UTC

Palomar Holdings, Inc. Announces Agreement to Acquire The Gray Casualty & Surety Company

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October 28, 2025 · 4:15 PM UTC

Palomar Holdings, Inc. Announces Third Quarter 2025 Financial Results Release Date and Conference Call

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