LA JOLLA, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $52.6 million, or $1.94 per diluted share, for the second quarter of 2026 compared to net income of $46.5 million, or $1.68 per diluted share, for the second quarter of 2025. Adjusted net income(1) was $63.8 million, or $2.36 per diluted share, for the second quarter of 2026 as compared to $48.5 million, or $1.76 per diluted share, for the second quarter of 2025.
Second Quarter 2026 Highlights
- Gross written premiums increased by 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025
- Net income increased 13.0% to $52.6 million compared to $46.5 million in the second quarter of 2025
- Adjusted net income(1) increased 31.4% to $63.8 million compared to $48.5 million in the second quarter of 2025
- Diluted earnings per share increased by 15.5% to $1.94 compared to $1.68 in the second quarter of 2025
- Diluted adjusted earnings per share(1) increased by 34.1% to $2.36 compared to $1.76 in the second quarter of 2025
- Total loss ratio of 34.5% compared to 25.7% in the second quarter of 2025
- Combined ratio of 83.3% compared to 78.8% in the second quarter of 2025
- Adjusted combined ratio(1) of 76.7% compared to 73.1%, in the second quarter of 2025
- Annualized return on equity of 21.7% compared to 22.7% in the second quarter of 2025
- Annualized adjusted return on equity(1) of 26.3% compared to 23.7% in the second quarter of 2025
(1) See discussion of “Non-GAAP and Key Performance Indicators” below.
Mac Armstrong, Chairman and Chief Executive Officer, commented, “The second quarter of 2026 was another strong one for Palomar; highlighted by record adjusted net income, our 15th consecutive earnings beat and the third increase to our full-year adjusted net income guidance. Gross written premium increased 27% year-over-year, adjusted net income grew 31%, adjusted earnings per share grew 34%, adjusted combined ratio was 77% and our adjusted return on equity was 26% - all outstanding results. Bolstering our financial performance were several operational achievements including the launch of the PLMR.Farm, our innovative crop policy administration system, and exceptional new additions to our team. These results demonstrate our ability to execute in a dynamic insurance market while maintaining discipline in underwriting and capital allocation.
Mr. Armstrong continued, “Our strong and consistent earnings, attractive returns and healthy balance sheet provide ample capacity to not only invest in the businesses driving our Palomar 2X strategy but also return capital to shareholders. As such our Board authorized the introduction of a quarterly dividend of $0.45 per share. Importantly, the dividend does not change our growth strategy or the execution of Palomar 2X; it only enhances our ability to create shareholder value.”
Underwriting Results
Gross written premiums increased 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025, while net earned premiums increased 59.5% compared to the prior year’s second quarter.
Losses and loss adjustment expenses for the second quarter were $99.0 million, comprised of $99.4 million of attritional losses, offset by $0.4 million of favorable development on catastrophe events. The loss ratio for the quarter was 34.5%, comprised of an attritional loss ratio of 34.6% and a catastrophe loss ratio(1) of -0.1% compared to a loss ratio of 25.7% during the same period last year comprised entirely of attritional losses. Additionally, our second quarter results include $14.1 million of attritional and $0.2 million of catastrophe loss favorable prior year development. The majority of the attritional loss prior year favorability related to Inland Marine and Property lines and previous years’ Crop results.
Underwriting income(1) for the second quarter was $48.0 million resulting in a combined ratio of 83.3% compared to underwriting income of $38.3 million resulting in a combined ratio of 78.8% during the same period last year. The Company’s adjusted underwriting income(1) was $67.0 million, an increase of 38.4%, resulting in an adjusted combined ratio(1) of 76.7% in the second quarter compared to adjusted underwriting income(1) of $48.4 million and an adjusted combined ratio(1) of 73.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses(1) was 76.8% compared to 73.1% during the same period last year.
Investment Results
Net investment income increased by 49.2% to $20.0 million compared to $13.4 million in the prior year’s second 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 June 30, 2026 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.33 years at June 30, 2026. Cash and invested assets totaled $1.7 billion at June 30, 2026. During the second quarter, the Company recorded $6.8 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $8.3 million during the same period last year.
Tax Rate
The effective tax rate for the three months ended June 30, 2026 was 24.7% compared to 22.3% for the three months ended June 30, 2025. For the current quarter, the Company’s income tax rate differed from the statutory rate of 21% due primarily to the non-deductible executive compensation expense.
Stockholders’ Equity and Capital Matters
Stockholders’ equity was $980.9 million at June 30, 2026, compared to $847.2 million at June 30, 2025. For the three months ended June 30, 2026, the Company’s annualized return on equity was 21.7% compared to 22.7% for the same period in the prior year while adjusted return on equity(1) was 26.3% compared to 23.7% for the same period in the prior year.
During the current quarter, the Company repurchased 368,719 shares of its common stock for $41.0 million.
On July 30, 2026, the Company’s Board of Directors declared an initial quarterly cash dividend of $0.45 per share of common stock, payable on September 2, 2026, to stockholders of record as of August 19, 2026.
Full Year 2026 Outlook
For the full year 2026, the Company expects to achieve adjusted net income of $270 million to $280 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.
Conference Call
As previously announced, Palomar will host a conference call on Wednesday, August 5, 2026, to discuss its second quarter 2026 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 Second Quarter 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on August 5, 2026, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13761138. The replay will be available until 11:59 p.m. (Eastern Time) on August 19, 2026.
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”), Palomar Crop Insurance Services, Inc. (“PCIS”), and Palomar Casualty and Surety Company (“PCSC”). 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 Property, Casualty, Surety & Credit, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of “A” (Excellent) from A.M. Best and PCSC has a financial strength rating of “A-” (Excellent) 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. Management uses these non-GAAP measures internally to evaluate the Company’s underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company’s operating 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.
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
[email protected]
Investor Relations
Jamie Lillis
1-203-428-3223
[email protected]
Source: Palomar Holdings, Inc.
Summary of Operating Results:
The following tables summarize the Company’s results for the three and six months ended June 30, 2026 and 2025:
Three Months EndedJune 30,
2026
2025
Change
% Change
(in thousands, except per share data)
Gross written premiums
$630,456 $496,288 $134,168 27.0%Ceded written premiums
(305,279) (266,506) (38,773) 14.5%Net written premiums
325,177 229,782 95,395 41.5%Net earned premiums
286,951 179,958 106,993 59.5%Commission and other income
769 1,677 (908) (54.1)%Total underwriting revenue(1)
287,720 181,635 106,085 58.4%Losses and loss adjustment expenses
98,988 46,183 52,805 114.3%Acquisition expenses, net of ceding commissions and fronting fees
71,256 51,637 19,619 38.0%Other underwriting expenses
69,429 45,525 23,904 52.5%Underwriting income(1)
48,047 38,290 9,757 25.5%Interest expense
(4,947) (86) (4,861) NM Net investment income
19,950 13,370 6,580 49.2%Net realized and unrealized gains on investments
6,753 8,306 (1,553) (18.7)%Income before income taxes
69,803 59,880 9,923 16.6%Income tax expense
17,211 13,352 3,859 28.9%Net income
$52,592 $46,528 $6,064 13.0%Adjustments:
Net realized and unrealized gains on investments
(6,753) (8,306) 1,553 (18.7)%Expenses associated with transactions
6 754 (748) (99.2)%Stock-based compensation expense
7,438 5,347 2,091 39.1%Amortization of intangibles
9,180 1,346 7,834 NM Expenses associated with catastrophe bond
2,330 2,661 (331) (12.4)%Tax impact
(1,025) 202 (1,227) NM Adjusted net income(1)
$63,768 $48,532 $15,236 31.4%Key Financial and Operating Metrics
Annualized return on equity
21.7% 22.7% Annualized adjusted return on equity(1)
26.3% 23.7% Loss ratio
34.5% 25.7% Expense ratio
48.8% 53.1% Combined ratio
83.3% 78.8% Adjusted combined ratio(1)
76.7% 73.1% Diluted earnings per share
$1.94 $1.68 Diluted adjusted earnings per share(1)
$2.36 $1.76 Catastrophe losses
$(418) $(22) Catastrophe loss ratio(1)
-0.1% 0.0% Adjusted combined ratio excluding catastrophe losses(1)
76.8% 73.1% Adjusted underwriting income(1)
$67,001 $48,398 $18,603 38.4%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.June 30,
2026
2025
Change
% Change
(in thousands, except per share data)
Gross written premiums$1,260,284 $938,452 $321,832 34.3%Ceded written premiums (597,192) (497,251) (99,941) 20.1%Net written premiums 663,092 441,201 221,891 50.3%Net earned premiums 548,389 344,029 204,360 59.4%Commission and other income 2,178 2,507 (329) (13.1)%Total underwriting revenue(1) 550,567 346,536 204,031 58.9%Losses and loss adjustment expenses 186,085 84,927 101,158 119.1%Acquisition expenses, net of ceding commissions and fronting fees 141,571 97,996 43,575 44.5%Other underwriting expenses 134,336 81,258 53,078 65.3%Underwriting income(1) 88,575 82,355 6,220 7.6%Interest expense (8,105) (171) (7,934) NM Net investment income 37,934 25,441 12,493 49.1%Net realized and unrealized gains on investments 4,860 5,968 (1,108) (18.6)%Income before income taxes 123,264 113,593 9,671 8.5%Income tax expense 27,725 24,143 3,582 14.8%Net income$95,539 $89,450 $6,089 6.8%Adjustments:
Net realized and unrealized gains on investments (4,860) (5,968) 1,108 (18.6)%Expenses associated with transactions 7,412 2,841 4,571 160.9%Stock-based compensation expense 16,224 10,092 6,132 60.8%Amortization of intangibles 15,235 2,054 13,181 NM Expenses associated with catastrophe bond 2,330 2,661 (331) (12.4)%Tax impact (4,976) (1,293) (3,683) 284.8%Adjusted net income(1)$126,904 $99,837 $27,067 27.1%Key Financial and Operating Metrics
Annualized return on equity 19.9% 22.7% Annualized adjusted return on equity(1) 26.4% 25.3% Loss ratio 33.9% 24.7% Expense ratio 49.9% 51.4% Combined ratio 83.8% 76.1% Adjusted combined ratio(1) 76.3% 70.9% Diluted earnings per share$3.51 $3.24 Diluted adjusted earnings per share(1)$4.66 $3.62 Catastrophe losses$(149) $(565) Catastrophe loss ratio(1) 0.0% -0.2% Adjusted combined ratio excluding catastrophe losses(1) 76.4% 71.1% Adjusted underwriting income(1)$129,776 $100,003 $29,773 29.8%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.Condensed Consolidated Balance sheets
Palomar Holdings,Inc. and SubsidiariesCondensed Consolidated Balance Sheets (unaudited)(in thousands, except shares and par value data) June 30,December 31,
2026
2025
(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,523,005 in 2026; $1,227,605 in 2025)$1,502,860 $1,224,187 Equity securities, at fair value (cost: $109,595 in 2026; $81,772 in 2025) 129,515 99,333 Other investments 45,877 28,503 Total investments 1,678,252 1,352,023 Cash and cash equivalents 62,689 106,875 Restricted cash 15 17 Accrued investment income 14,742 11,545 Premiums receivable 655,876 452,908 Deferred policy acquisition costs, net of ceding commissions and fronting fees 153,824 127,718 Reinsurance recoverable on paid losses and loss adjustment expenses 62,237 56,428 Reinsurance recoverable on unpaid losses and loss adjustment expenses 523,790 412,273 Ceded unearned premiums 445,449 355,918 Prepaid expenses and other assets 127,870 110,896 Deferred tax assets, net — 761 Property and equipment, net 2,665 2,551 Goodwill and intangible assets, net 236,756 61,054 Total assets$3,964,165 $3,050,967 Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities$159,331 $115,663 Reserve for losses and loss adjustment expenses 944,737 688,231 Unearned premiums 1,226,105 988,143 Ceded premium payable 295,430 271,413 Funds held under reinsurance treaty 50,910 44,850 Term loan 295,773 — Deferred tax liabilities, net 10,937 — Total liabilities 2,983,223 2,108,300 Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025 — — Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,186,979 and 26,520,417 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 3 3 Additional paid-in capital 542,662 523,168 Accumulated other comprehensive loss (15,159) (2,506)Retained earnings 453,436 422,002 Total stockholders’ equity 980,942 942,667 Total liabilities and stockholders’ equity$3,964,165 $3,050,967
Condensed Consolidated Income Statement
Palomar Holdings,Inc. and SubsidiariesCondensed Consolidated Statements ofIncome and Comprehensive Income (Unaudited)(in thousands, except shares and per share data) Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
Revenues:
Gross written premiums$630,456 $496,288 $1,260,284 $938,452 Ceded written premiums (305,279) (266,506) (597,192) (497,251)Net written premiums 325,177 229,782 663,092 441,201 Change in unearned premiums (38,226) (49,824) (114,703) (97,172)Net earned premiums 286,951 179,958 548,389 344,029 Net investment income 19,950 13,370 37,934 25,441 Net realized and unrealized gains on investments 6,753 8,306 4,860 5,968 Commission and other income 769 1,677 2,178 2,507 Total revenues 314,423 203,311 593,361 377,945 Expenses:
Losses and loss adjustment expenses 98,988 46,183 186,085 84,927 Acquisition expenses, net of ceding commissions and fronting fees 71,256 51,637 141,571 97,996 Other underwriting expenses 69,429 45,525 134,336 81,258 Interest expense 4,947 86 8,105 171 Total expenses 244,620 143,431 470,097 264,352 Income before income taxes 69,803 59,880 123,264 113,593 Income tax expense 17,211 13,352 27,725 24,143 Net income$52,592 $46,528 $95,539 $89,450 Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale 1,294 3,009 (12,653) 13,213 Net comprehensive income$53,886 $49,537 $82,886 $102,663 Per Share Data:
Basic earnings per share$2.00 $1.74 $3.61 $3.35 Diluted earnings per share$1.94 $1.68 $3.51 $3.24 Weighted-average common shares outstanding:
Basic 26,346,887 26,756,095 26,458,904 26,707,371 Diluted 27,056,554 27,628,733 27,208,113 27,568,913
Underwriting Segment Data
The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (“GWP”) by product, location and company are presented below:
Three Months Ended June 30,2026
2025
($ in thousands)
% of
% of
%
Amount
GWP
Amount
GWP
Change
Change
Product(1)
Casualty$197,494 31.3% $144,388 29.1% $53,106 36.8%Inland Marine and Property 169,728 26.9% 153,040 30.8% 16,688 10.9%Earthquake 146,648 23.3% 147,709 29.8% (1,061) (0.7)%Crop 77,368 12.3% 39,464 8.0% 37,904 96.0%Surety & Credit 39,218 6.2% 11,687 2.3% 27,531 235.6%Total gross written premiums$630,456 100.0% $496,288 100.0% $134,168 27.0%
____________________
2026
2025
($ in thousands)
% of
% of
%
Amount
GWP
Amount
GWP
Change
Change
Product(1)
Casualty$403,793 32.0% $277,490 29.6% $126,303 45.5%Inland Marine and Property 336,291 26.7% 266,366 28.4% 69,925 26.3%Earthquake 283,964 22.5% 281,405 30.0% 2,559 0.9%Crop 165,142 13.1% 87,683 9.3% 77,459 88.3%Surety & Credit 71,094 5.7% 25,508 2.7% 45,586 178.7%Total gross written premiums$1,260,284 100.0% $938,452 100.0% $321,832 34.3%
____________________
Six Months Ended June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
% of
% of
% of
% of
Amount GWP
Amount
GWP
Amount GWP
Amount GWP
State
California$165,306 26.2% $163,814 33.0% $322,925 25.6% $303,536 32.3%Texas 61,497 9.7% 35,708 7.2% 125,081 9.9% 80,699 8.6%Florida 34,462 5.5% 23,979 4.8% 64,350 5.1% 42,621 4.5%Hawaii 27,259 4.3% 24,544 4.9% 50,104 4.0% 44,901 4.8%New York 26,971 4.3% 17,462 3.5% 51,454 4.1% 32,857 3.5%Washington 18,207 2.9% 17,188 3.5% 37,406 3.0% 32,059 3.4%Illinois 18,179 2.9% 13,048 2.7% 25,271 2.0% 18,637 2.0%Minnesota 15,644 2.5% 12,004 2.4% 17,656 1.4% 13,042 1.4%Other 262,931 41.7% 188,541 38.0% 566,037 44.9% 370,100 39.5%Total gross written premiums$630,456 100.0% $496,288 100.0% $1,260,284 100.0% $938,452 100.0%
Six Months Ended June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
% of
% of
% of
% of
Amount GWP
Amount GWP
Amount GWP
Amount GWP
Subsidiary
PESIC$304,276 48.3% $237,943 47.9% $574,346 45.6% $428,730 45.7%PSIC 278,176 44.1% 232,983 46.9% 601,929 47.8% 463,900 49.4%Laulima 23,407 3.7% 20,134 4.1% 42,078 3.3% 36,171 3.9%PCSC 21,558 3.4% — —% 33,979 2.7% — —%FIA 3,039 0.5% 5,228 1.1% 7,952 0.6% 9,651 1.0%Total gross written premiums$630,456 100.0% $496,288 100.0% $1,260,284 100.0% $938,452 100.0%
Gross and net earned premiums
The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:
Three Months EndedSix Months Ended
June 30,
%
June 30,
%
2026
2025
Change
Change
2026
2025
Change
Change
($ in thousands)
($ in thousands)
Gross earned premiums$552,859 $408,764 $144,095 35.3% $1,056,731 $784,540 $272,191 34.7%Ceded earned premiums (265,908) (228,806) (37,102) 16.2% (508,342) (440,511) (67,831) 15.4%Net earned premiums$286,951 $179,958 $106,993 59.5% $548,389 $344,029 $204,360 59.4% Net earned premium ratio51.9
% 44.0
% 51.9
% 43.9
%
Loss detail
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
Change
% Change
2026
2025
Change
% Change
($ in thousands)
($ in thousands)
Catastrophe losses$(418) $(22) $(396) NM $(149) $(565) $416 (73.6)%Non-catastrophe losses 99,406 46,205 53,201 115.1
% 186,234 85,492 100,742 117.8%Total losses and loss adjustment expenses$98,988 $46,183 $52,805 114.3
% $186,085 $84,927 $101,158 119.1% Catastrophe loss ratio-0.1
% 0.0
% 0.0
% (0.2
)% Non-catastrophe loss ratio34.6
% 25.7
% 33.9
% 24.9
% Total loss ratio34.5
% 25.7
% 33.9
% 24.7
%
The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:
Three Months Ended June 30,Six Months Ended June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period$341,016 $182,661 $275,959 $155,299 Add: Balances acquired(1) — — 22,178 6,788 Add: Incurred losses and LAE, net of reinsurance, related to:(2)
Current year 113,312 52,698 210,741 95,757 Prior years (14,324) (6,515) (24,656) (10,830)Total incurred 98,988 46,183 186,085 84,927 Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year 7,262 17,659 27,980 22,657 Prior years 11,795 12,000 35,295 25,172 Total payments 19,057 29,659 63,275 47,829 Reserve for losses and LAE net of reinsurance recoverables at end of period 420,947 199,185 420,947 199,185 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 523,790 399,471 523,790 399,471 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period$944,737 $598,656 $944,737 $598,656
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Reconciliation of Non-GAAP Financial Measures
For the three and six months ended June 30, 2026 and 2025, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:
Underwriting revenue
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Total revenue$314,423 $203,311 $593,361 $377,945 Net investment income (19,950) (13,370) (37,934) (25,441)Net realized and unrealized gains on investments (6,753) (8,306) (4,860) (5,968)Underwriting revenue$287,720 $181,635 $550,567 $346,536
Underwriting income and adjusted underwriting income
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Income before income taxes$69,803 $59,880 $123,264 $113,593 Net investment income (19,950) (13,370) (37,934) (25,441)Net realized and unrealized gains on investments (6,753) (8,306) (4,860) (5,968)Interest expense 4,947 86 8,105 171 Underwriting income$48,047 $38,290 $88,575 $82,355 Expenses associated with transactions 6 754 7,412 2,841 Stock-based compensation expense 7,438 5,347 16,224 10,092 Amortization of intangibles 9,180 1,346 15,235 2,054 Expenses associated with catastrophe bond 2,330 2,661 2,330 2,661 Adjusted underwriting income$67,001 $48,398 $129,776 $100,003
Adjusted net income
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Net income$52,592 $46,528 $95,539 $89,450 Adjustments:
Net realized and unrealized gains on investments (6,753) (8,306) (4,860) (5,968)Expenses associated with transactions 6 754 7,412 2,841 Stock-based compensation expense 7,438 5,347 16,224 10,092 Amortization of intangibles 9,180 1,346 15,235 2,054 Expenses associated with catastrophe bond 2,330 2,661 2,330 2,661 Tax impact (1,025) 202 (4,976) (1,293)Adjusted net income$63,768 $48,532 $126,904 $99,837
Annualized adjusted return on equity
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Annualized adjusted net income$255,072 $194,128 $253,808 $199,674 Average stockholders’ equity$969,991 $818,823 $961,805 $788,114 Annualized adjusted return on equity 26.3% 23.7% 26.4% 25.3%
Adjusted combined ratio
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income$238,904 $141,668 $459,814 $261,674 Denominator: Net earned premiums$286,951 $179,958 $548,389 $344,029 Combined ratio 83.3% 78.8% 83.8% 76.1%Adjustments to numerator:
Expenses associated with transactions$(6) $(754) $(7,412) $(2,841)Stock-based compensation expense (7,438) (5,347) (16,224) (10,092)Amortization of intangibles (9,180) (1,346) (15,235) (2,054)Expenses associated with catastrophe bond (2,330) (2,661) (2,330) (2,661)Adjusted combined ratio 76.7% 73.1% 76.3% 70.9%
Diluted adjusted earnings per share
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
(in thousands, except per share data) (in thousands, except per share data)
Adjusted net income$63,768 $48,532 $126,904 $99,837 Weighted-average common shares outstanding, diluted 27,056,554 27,628,733 27,208,113 27,568,913 Diluted adjusted earnings per share$2.36 $1.76 $4.66 $3.62
Catastrophe loss ratio
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Numerator: Losses and loss adjustment expenses$98,988 $46,183 $186,085 $84,927 Denominator: Net earned premiums$286,951 $179,958 $548,389 $344,029 Loss ratio 34.5% 25.7% 33.9% 24.7% Numerator: Catastrophe losses$(418) $(22) $(149) $(565)Denominator: Net earned premiums$286,951 $179,958 $548,389 $344,029 Catastrophe loss ratio -0.1% 0.0% 0.0% -0.2%
Adjusted combined ratio excluding catastrophe losses
Three Months EndedSix Months Ended
June 30,
June 30,
2026
2025
2026
2025
($ in thousands)
($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income$238,904 $141,668 $459,814 $261,674 Denominator: Net earned premiums$286,951 $179,958 $548,389 $344,029 Combined ratio 83.3% 78.8% 83.8% 76.1%Adjustments to numerator:
Expenses associated with transactions$(6) $(754) $(7,412) $(2,841)Stock-based compensation expense (7,438) (5,347) (16,224) (10,092)Amortization of intangibles (9,180) (1,346) (15,235) (2,054)Expenses associated with catastrophe bond (2,330) (2,661) (2,330) (2,661)Catastrophe losses 418 22 149 565 Adjusted combined ratio excluding catastrophe losses 76.8% 73.1% 76.4% 71.1%
Tangible Stockholders’ equity
June 30,December 31,
2026
2025
($ in thousands)
Stockholders’ equity$980,942 $942,667 Goodwill and intangible assets (236,756) (61,054)Tangible stockholders’ equity$744,186 $881,613