Palomar Holdings, Inc. Reports Third Quarter 2025 Results
LA JOLLA, Calif. (November 6, 2025) — Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025 compared to net income of $30.5 million, or $1.15 per diluted share, for the third quarter of 2024. Adjusted net income(1) was $55.2 million, or $2.01 per diluted share, for the third quarter of 2025 as compared to $32.4 million, or $1.23 per diluted share, for the third quarter of 2024.
Third Quarter 2025 Highlights
•
Gross written premiums increased by 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024
•
Net income of $51.5 million compared to $30.5 million in the third quarter of 2024
•
Adjusted net income(1) increased 70.0% to $55.2 million compared to $32.4 million in the third quarter of 2024
•
Total loss ratio of 32.3% compared to 29.7% in the third quarter of 2024
•
Catastrophe loss ratio(1) of 0.8% compared to 9.5% in the third quarter of 2024
•
Combined ratio of 78.1% compared to 80.5% in the third quarter of 2024
•
Adjusted combined ratio(1) of 74.8% compared to 77.1%, in the third quarter of 2024
•
Annualized return on equity of 23.9% compared to 19.7% in the third quarter of 2024
•
Annualized adjusted return on equity(1) of 25.6% compared to 21.0% in the third quarter of 2024
(1) See discussion of “Non-GAAP and Key Performance Indicators” below.
Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our third quarter results were exceptional, highlighted by record gross written premium and adjusted net income. We continue to achieve strong top and bottom-line growth as gross written premium grew 44% and adjusted net income increased a stellar 70% across our unique and diverse portfolio. This strong growth underscores the stability of our balanced book of E&S and admitted residential and commercial property and casualty products. Our operating and return metrics were also impressive as we generated an adjusted combined ratio of 75%, and a 26% adjusted return on equity.”
Mr. Armstrong continued, “Beyond our financial performance, we remain focused on achieving our Palomar 2X strategic imperatives. Notably, during the quarter our young crop franchise’s written premium in the quarter was well ahead of our initial estimates and in October we announced the acquisition of The Gray Casualty and Surety Company. Our investments in Crop and Surety will not only drive long-term profitable growth but also further differentiate our portfolio and better insulate us from P&C market cycles.”
Underwriting Results
Gross written premiums increased 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024, while net earned premiums increased 66.0% compared to the prior year’s third quarter.
Losses and loss adjustment expenses for the third quarter were $72.8 million, comprised of $70.9 million of attritional losses and $1.9 million of catastrophe losses. The loss ratio for the quarter was 32.3%, comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio(1) of 0.8% compared to a loss ratio of 29.7% during the same period last year comprised of an attritional loss ratio of 20.2% and a catastrophe loss ratio(1) of 9.5%. Additionally, our third quarter results include $6.1 million of favorable prior year development primarily from our short tail Inland Marine and Other Property business.
Underwriting income(1) for the third quarter was $49.2 million resulting in a combined ratio of 78.1% compared to underwriting income of $26.4 million resulting in a combined ratio of 80.5% during the same period last year. The Company’s adjusted underwriting income(1) was $56.7 million resulting in an adjusted combined ratio(1) of 74.8% in the third quarter compared to adjusted underwriting income(1) of $31.0 million and an adjusted combined ratio(1) of 77.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses(1) was 74.0% compared to 67.6% during the same period last year.
Investment Results
Net investment income increased by 54.9% to $14.6 million compared to $9.4 million in the prior year’s third quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended September 30, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.01 years at September 30, 2025. Cash and invested assets totaled $1.3 billion at September 30, 2025. During the third quarter, the Company recorded $3.5 million net realized and unrealized
1
gains related to its investment portfolio as compared to net realized and unrealized gains of $2.7 million during the same period last year.
Tax Rate
The effective tax rate for the three months ended September 30, 2025 was 23.4% compared to 20.8% for the three months ended September 30, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to non-deductible executive compensation expense offset by the tax impact of the permanent component of employee stock options.
Stockholders’ Equity and Returns
Stockholders’ equity was $878.1 million at September 30, 2025, compared to $703.3 million at September 30, 2024. For the three months ended September 30, 2025, the Company’s annualized return on equity was 23.9% compared to 19.7% for the same period in the prior year while adjusted return on equity(1) was 25.6% compared to 21.0% for the same period in the prior year. During the current quarter, the Company repurchased 308,417 shares for $37.3 million under its previously announced $150 million share repurchase authorization. As of September 30, 2025, approximately $112.7 million remains available for future repurchases.
Full Year 2025 Outlook
For the full year 2025, the Company expects to achieve adjusted net income of $210 million to $215 million, an increase from the previously announced range of $198 million to $208 million.
Conference Call
As previously announced, Palomar will host a conference call Friday, November 7, 2025, to discuss its third quarter 2025 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Third Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on November 7, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13755786. The replay will be available until 11:59 p.m. (Eastern Time) on November 14, 2025.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), and Palomar Crop Insurance Services, Inc. (“PCIS”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating from A.M. Best.
To learn more, visit PLMR.com.
Non-GAAP and Key Performance Indicators
Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.
Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.
Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.
Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.
Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.
2
Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.
Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.
Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.
Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.
Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.
Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.
Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.
Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.
Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.
Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.
Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com
3
Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com
Source: Palomar Holdings, Inc.
4
Summary of Operating Results:
The following tables summarize the Company’s results for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended
September 30,
2025
2024
Change
% Change
($ in thousands, except per share data)
Gross written premiums
$
597,171
$
414,977
$
182,194
43.9
%
Ceded written premiums
(321,927
)
(255,267
)
(66,660
)
26.1
%
Net written premiums
275,244
159,710
115,534
72.3
%
Net earned premiums
225,147
135,646
89,501
66.0
%
Commission and other income
1,448
715
733
102.5
%
Total underwriting revenue (1)
226,595
136,361
90,234
66.2
%
Losses and loss adjustment expenses
72,812
40,315
32,497
80.6
%
Acquisition expenses, net of ceding commissions and fronting fees
56,270
41,469
14,801
35.7
%
Other underwriting expenses
48,306
28,129
20,177
71.7
%
Underwriting income (1)
49,207
26,448
22,759
86.1
%
Interest expense
(133
)
(87
)
(46
)
52.9
%
Net investment income
14,572
9,408
5,164
54.9
%
Net realized and unrealized gains on investments
3,493
2,734
759
27.8
%
Income before income taxes
67,139
38,503
28,636
74.4
%
Income tax expense
15,684
8,006
7,678
95.9
%
Net income
$
51,455
$
30,497
$
20,958
68.7
%
Adjustments:
Net realized and unrealized gains on investments
(3,493
)
(2,734
)
(759
)
27.8
%
Expenses associated with transactions
728
84
644
NM
Stock-based compensation expense
5,379
4,117
1,262
30.7
%
Amortization of intangibles
1,346
389
957
246.0
%
Tax impact
(251
)
91
(342
)
NM
Adjusted net income (1)
$
55,164
$
32,444
$
22,720
70.0
%
Key Financial and Operating Metrics
Annualized return on equity
23.9
%
19.7
%
Annualized adjusted return on equity (1)
25.6
%
21.0
%
Loss ratio
32.3
%
29.7
%
Expense ratio
45.8
%
50.8
%
Combined ratio
78.1
%
80.5
%
Adjusted combined ratio (1)
74.8
%
77.1
%
Diluted earnings per share
$
1.87
$
1.15
Diluted adjusted earnings per share (1)
$
2.01
$
1.23
Catastrophe losses
$
1,900
$
12,924
Catastrophe loss ratio (1)
0.8
%
9.5
%
Adjusted combined ratio excluding catastrophe losses (1)
74.0
%
67.6
%
Adjusted underwriting income (1)
$
56,660
$
31,038
$
25,622
82.6
%
NM - not meaningful
(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.
5
Nine Months Ended
September 30,
2025
2024
Change
% Change
($ in thousands, except per share data)
Gross written premiums
$
1,535,623
$
1,168,239
$
367,384
31.4
%
Ceded written premiums
(819,171
)
(692,620
)
(126,551
)
18.3
%
Net written premiums
716,452
475,619
240,833
50.6
%
Net earned premiums
569,175
365,796
203,379
55.6
%
Commission and other income
3,954
2,035
1,919
94.3
%
Total underwriting revenue (1)
573,129
367,831
205,298
55.8
%
Losses and loss adjustment expenses
157,739
97,583
60,156
61.6
%
Acquisition expenses, net of ceding commissions and fronting fees
154,266
109,072
45,194
41.4
%
Other underwriting expenses
129,563
84,165
45,398
53.9
%
Underwriting income (1)
131,561
77,011
54,550
70.8
%
Interest expense
(304
)
(1,052
)
748
(71.1
)%
Net investment income
40,014
24,506
15,508
63.3
%
Net realized and unrealized gains on investments
9,461
5,768
3,693
64.0
%
Income before income taxes
180,732
106,233
74,499
70.1
%
Income tax expense
39,827
23,625
16,202
68.6
%
Net income
$
140,905
$
82,608
$
58,297
70.6
%
Adjustments:
Net realized and unrealized gains on investments
(9,461
)
(5,768
)
(3,693
)
64.0
%
Expenses associated with transactions
3,570
557
3,013
NM
Stock-based compensation expense
15,471
11,905
3,566
30.0
%
Amortization of intangibles
3,400
1,168
2,232
191.1
%
Expenses associated with catastrophe bond
2,661
2,483
178
7.2
%
Tax impact
(1,543
)
(734
)
(809
)
110.2
%
Adjusted net income (1)
$
155,003
$
92,219
$
62,784
68.1
%
Key Financial and Operating Metrics
Annualized return on equity
23.4
%
18.8
%
Annualized adjusted return on equity (1)
25.7
%
20.9
%
Loss ratio
27.7
%
26.7
%
Expense ratio
49.2
%
52.3
%
Combined ratio
76.9
%
78.9
%
Adjusted combined ratio (1)
72.5
%
74.5
%
Diluted earnings per share
$
5.12
$
3.19
Diluted adjusted earnings per share (1)
$
5.63
$
3.56
Catastrophe losses
$
1,335
$
19,724
Catastrophe loss ratio (1)
0.2
%
5.4
%
Adjusted combined ratio excluding catastrophe losses (1)
72.2
%
69.2
%
Adjusted underwriting income (1)
$
156,663
$
93,124
$
63,539
68.2
%
NM - not meaningful
(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.
6
Condensed Consolidated Balance sheets
Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except shares and par value data)
September 30,
December 31,
2025
2024
(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,146,855 in 2025; $973,330 in 2024)
$
1,141,367
$
939,046
Equity securities, at fair value (cost: $38,482 in 2025; $32,987 in 2024)
52,215
40,529
Equity method investment
—
2,277
Other investments
19,534
5,863
Total investments
1,213,116
987,715
Cash and cash equivalents
111,740
80,438
Restricted cash
20
101
Accrued investment income
10,725
8,440
Premiums receivable
463,230
305,724
Deferred policy acquisition costs, net of ceding commissions and fronting fees
125,076
94,881
Reinsurance recoverable on paid losses and loss adjustment expenses
36,907
47,076
Reinsurance recoverable on unpaid losses and loss adjustment expenses
440,559
348,083
Ceded unearned premiums
361,260
276,237
Prepaid expenses and other assets
113,143
91,086
Deferred tax assets, net
2,537
8,768
Property and equipment, net
2,695
429
Goodwill and intangible assets, net
62,538
13,242
Total assets
$
2,943,546
$
2,262,220
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities
$
109,391
$
70,079
Reserve for losses and loss adjustment expenses
684,272
503,382
Unearned premiums
979,374
741,692
Ceded premium payable
253,446
190,168
Funds held under reinsurance treaty
37,204
27,869
Income taxes payable
1,749
—
Total liabilities
2,065,436
1,533,190
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024
—
—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,494,524 and 26,529,402 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively
3
3
Additional paid-in capital
516,355
493,656
Accumulated other comprehensive income (loss)
(4,092
)
(26,845
)
Retained earnings
365,844
262,216
Total stockholders’ equity
878,110
729,030
Total liabilities and stockholders’ equity
$
2,943,546
$
2,262,220
7
Condensed Consolidated Income Statement
Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(in thousands, except shares and per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Revenues:
Gross written premiums
$
597,171
$
414,977
$
1,535,623
$
1,168,239
Ceded written premiums
(321,927
)
(255,267
)
(819,171
)
(692,620
)
Net written premiums
275,244
159,710
716,452
475,619
Change in unearned premiums
(50,097
)
(24,064
)
(147,277
)
(109,823
)
Net earned premiums
225,147
135,646
569,175
365,796
Net investment income
14,572
9,408
40,014
24,506
Net realized and unrealized gains on investments
3,493
2,734
9,461
5,768
Commission and other income
1,448
715
3,954
2,035
Total revenues
244,660
148,503
622,604
398,105
Expenses:
Losses and loss adjustment expenses
72,812
40,315
157,739
97,583
Acquisition expenses, net of ceding commissions and fronting fees
56,270
41,469
154,266
109,072
Other underwriting expenses
48,306
28,129
129,563
84,165
Interest expense
133
87
304
1,052
Total expenses
177,521
110,000
441,872
291,872
Income before income taxes
67,139
38,503
180,732
106,233
Income tax expense
15,684
8,006
39,827
23,625
Net income
$
51,455
$
30,497
$
140,905
$
82,608
Other comprehensive income, net:
Net unrealized gains on securities available for sale
9,541
17,916
22,753
13,852
Net comprehensive income
$
60,996
$
48,413
$
163,658
$
96,460
Per Share Data:
Basic earnings per share
$
1.93
$
1.18
$
5.28
$
3.28
Diluted earnings per share
$
1.87
$
1.15
$
5.12
$
3.19
Weighted-average common shares outstanding:
Basic
26,637,592
25,766,697
26,683,856
25,194,114
Diluted
27,446,519
26,479,566
27,533,533
25,877,257
8
Underwriting Segment Data
The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (GWP) by product, location and company are presented below:
Three Months Ended September 30,
2025
2024
($ in thousands)
% of
% of
%
Amount
GWP
Amount
GWP
Change
Change
Product
Casualty
$
152,034
25.5
%
$
56,307
13.6
%
$
95,727
170.0
%
Earthquake
149,940
25.1
%
135,329
32.6
%
14,611
10.8
%
Crop
119,757
20.1
%
59,662
14.4
%
60,095
100.7
%
Inland Marine and Other Property
117,871
19.7
%
78,734
19.0
%
39,137
49.7
%
Fronting
57,569
9.6
%
84,945
20.4
%
(27,376
)
(32.2
)%
Total Gross Written Premiums
$
597,171
100.0
%
$
414,977
100.0
%
$
182,194
43.9
%
Nine Months Ended September 30,
2025
2024
($ in thousands)
% of
% of
%
Amount
GWP
Amount
GWP
Change
Change
Product
Earthquake
$
427,869
27.9
%
$
376,088
32.2
%
$
51,781
13.8
%
Casualty
392,473
25.6
%
166,762
14.3
%
225,711
135.3
%
Inland Marine and Other Property
335,462
21.8
%
249,147
21.3
%
86,315
34.6
%
Crop
207,440
13.5
%
100,571
8.6
%
106,869
106.3
%
Fronting
172,379
11.2
%
275,671
23.6
%
(103,292
)
(37.5
)%
Total Gross Written Premiums
$
1,535,623
100.0
%
$
1,168,239
100.0
%
$
367,384
31.4
%
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
($ in thousands)
($ in thousands)
% of
% of
% of
% of
Amount
GWP
Amount
GWP
Amount
GWP
Amount
GWP
State
California
$
168,739
28.3
%
$
170,265
41.0
%
$
472,276
30.8
%
$
510,879
43.7
%
Texas
38,609
6.5
%
27,019
6.5
%
119,308
7.8
%
96,414
8.3
%
Hawaii
26,405
4.4
%
23,171
5.6
%
71,307
4.6
%
53,922
4.6
%
Florida
23,770
4.0
%
14,433
3.5
%
66,391
4.3
%
58,153
5.0
%
Illinois
20,911
3.5
%
5,557
1.3
%
39,548
2.6
%
13,725
1.2
%
North Dakota
20,022
3.4
%
18,716
4.5
%
23,709
1.5
%
19,893
1.7
%
New York
19,181
3.2
%
8,153
2.0
%
51,240
3.3
%
24,163
2.1
%
Washington
17,560
2.9
%
16,828
4.1
%
50,416
3.3
%
41,893
3.6
%
Other
261,974
43.8
%
130,835
31.5
%
641,428
41.8
%
349,197
29.8
%
Total Gross Written Premiums
$
597,171
100.0
%
$
414,977
100.0
%
$
1,535,623
100.0
%
$
1,168,239
100.0
%
9
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
($ in thousands)
($ in thousands)
% of
% of
% of
% of
Amount
GWP
Amount
GWP
Amount
GWP
Amount
GWP
Subsidiary
PSIC
$
317,177
53.1
%
$
236,624
57.0
%
$
781,078
50.9
%
$
652,988
55.9
%
PESIC
252,318
42.3
%
159,305
38.4
%
681,048
44.4
%
472,909
40.5
%
Laulima
22,804
3.8
%
19,048
4.6
%
58,974
3.8
%
42,342
3.6
%
FIA
4,872
0.8
%
—
—
%
14,523
0.9
%
—
—
%
Total Gross Written Premiums
$
597,171
100.0
%
$
414,977
100.0
%
$
1,535,623
100.0
%
$
1,168,239
100.0
%
Gross and net earned premiums
The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:
Three Months Ended
Nine Months Ended
September 30,
%
September 30,
%
2025
2024
Change
Change
2025
2024
Change
Change
($ in thousands)
($ in thousands)
Gross earned premiums
$
518,783
$
395,881
$
122,902
31.0
%
$
1,303,323
$
1,025,716
$
277,607
27.1
%
Ceded earned premiums
(293,636
)
(260,235
)
(33,401
)
12.8
%
(734,148
)
(659,920
)
(74,228
)
11.2
%
Net earned premiums
$
225,147
$
135,646
$
89,501
66.0
%
$
569,175
$
365,796
$
203,379
55.6
%
Net earned premium ratio
43.4
%
34.3
%
43.7
%
35.7
%
Loss detail
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
Change
% Change
2025
2024
Change
% Change
($ in thousands)
($ in thousands)
Catastrophe losses
$
1,900
$
12,924
$
(11,024
)
(85.3
)%
$
1,335
$
19,724
$
(18,389
)
(93.2
)%
Non-catastrophe losses
70,912
27,391
43,521
158.9
%
156,404
77,859
78,545
100.9
%
Total losses and loss adjustment expenses
$
72,812
$
40,315
$
32,497
80.6
%
$
157,739
$
97,583
$
60,156
61.6
%
Catastrophe loss ratio
0.8
%
9.5
%
0.2
%
5.4
%
Non-catastrophe loss ratio
31.5
%
20.2
%
27.5
%
21.3
%
Total loss ratio
32.3
%
29.7
%
27.7
%
26.7
%
10
The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period
$
199,185
$
118,761
$
155,299
$
97,653
Add: Balance acquired from FIA(1)
—
—
6,788
—
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year
78,946
40,536
174,703
100,225
Prior years
(6,134
)
(221
)
(16,964
)
(2,642
)
Total incurred
72,812
40,315
157,739
97,583
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year
15,655
16,153
38,312
27,909
Prior years
12,629
5,649
37,801
30,053
Total payments
28,284
21,802
76,113
57,962
Reserve for losses and LAE net of reinsurance recoverables at end of period
243,713
137,274
243,713
137,274
Add: Reinsurance recoverables on unpaid losses and LAE at end of period
440,559
360,164
440,559
360,164
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period
$
684,272
$
497,438
$
684,272
$
497,438
(1) - Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.
Reconciliation of Non-GAAP Financial Measures
For the three and nine months ended September 30, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:
Underwriting revenue
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Total revenue
$
244,660
$
148,503
$
622,604
$
398,105
Net investment income
(14,572
)
(9,408
)
(40,014
)
(24,506
)
Net realized and unrealized gains on investments
(3,493
)
(2,734
)
(9,461
)
(5,768
)
Underwriting revenue
$
226,595
$
136,361
$
573,129
$
367,831
11
Underwriting income and adjusted underwriting income
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Income before income taxes
$
67,139
$
38,503
$
180,732
$
106,233
Net investment income
(14,572
)
(9,408
)
(40,014
)
(24,506
)
Net realized and unrealized gains on investments
(3,493
)
(2,734
)
(9,461
)
(5,768
)
Interest expense
133
87
304
1,052
Underwriting income
$
49,207
$
26,448
$
131,561
$
77,011
Expenses associated with transactions
728
84
3,570
557
Stock-based compensation expense
5,379
4,117
15,471
11,905
Amortization of intangibles
1,346
389
3,400
1,168
Expenses associated with catastrophe bond
—
—
2,661
2,483
Adjusted underwriting income
$
56,660
$
31,038
$
156,663
$
93,124
Adjusted net income
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Net income
$
51,455
$
30,497
$
140,905
$
82,608
Adjustments:
Net realized and unrealized gains on investments
(3,493
)
(2,734
)
(9,461
)
(5,768
)
Expenses associated with transactions
728
84
3,570
557
Stock-based compensation expense
5,379
4,117
15,471
11,905
Amortization of intangibles
1,346
389
3,400
1,168
Expenses associated with catastrophe bond
—
—
2,661
2,483
Tax impact
(251
)
91
(1,543
)
(734
)
Adjusted net income
$
55,164
$
32,444
$
155,003
$
92,219
Annualized adjusted return on equity
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Annualized adjusted net income
$
220,656
$
129,776
$
206,671
$
122,959
Average stockholders’ equity
$
862,654
$
617,959
$
803,570
$
587,282
Annualized adjusted return on equity
25.6
%
21.0
%
25.7
%
20.9
%
12
Adjusted combined ratio
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income
$
175,940
$
109,198
$
437,614
$
288,785
Denominator: Net earned premiums
$
225,147
$
135,646
$
569,175
$
365,796
Combined ratio
78.1
%
80.5
%
76.9
%
78.9
%
Adjustments to numerator:
Expenses associated with transactions
$
(728
)
$
(84
)
$
(3,570
)
$
(557
)
Stock-based compensation expense
(5,379
)
(4,117
)
(15,471
)
(11,905
)
Amortization of intangibles
(1,346
)
(389
)
(3,400
)
(1,168
)
Expenses associated with catastrophe bond
—
—
(2,661
)
(2,483
)
Adjusted combined ratio
74.8
%
77.1
%
72.5
%
74.5
%
Diluted adjusted earnings per share
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands, except per share data)
(in thousands, except per share data)
Adjusted net income
$
55,164
$
32,444
$
155,003
$
92,219
Weighted-average common shares outstanding, diluted
27,446,519
26,479,566
27,533,533
25,877,257
Diluted adjusted earnings per share
$
2.01
$
1.23
$
5.63
$
3.56
Catastrophe loss ratio
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Numerator: Losses and loss adjustment expenses
$
72,812
$
40,315
$
157,739
$
97,583
Denominator: Net earned premiums
$
225,147
$
135,646
$
569,175
$
365,796
Loss ratio
32.3
%
29.7
%
27.7
%
26.7
%
Numerator: Catastrophe losses
$
1,900
$
12,924
$
1,335
$
19,724
Denominator: Net earned premiums
$
225,147
$
135,646
$
569,175
$
365,796
Catastrophe loss ratio
0.8
%
9.5
%
0.2
%
5.4
%
13
Adjusted combined ratio excluding catastrophe losses
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income
$
175,940
$
109,198
$
437,614
$
288,785
Denominator: Net earned premiums
$
225,147
$
135,646
$
569,175
$
365,796
Combined ratio
78.1
%
80.5
%
76.9
%
78.9
%
Adjustments to numerator:
Expenses associated with transactions
$
(728
)
$
(84
)
$
(3,570
)
$
(557
)
Stock-based compensation expense
(5,379
)
(4,117
)
(15,471
)
(11,905
)
Amortization of intangibles
(1,346
)
(389
)
(3,400
)
(1,168
)
Expenses associated with catastrophe bond
—
—
(2,661
)
(2,483
)
Catastrophe losses
(1,900
)
(12,924
)
(1,335
)
(19,724
)
Adjusted combined ratio excluding catastrophe losses
