Insurer receives upgrades in credit ratings
Palomar Holdings Inc., the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has announced robust financial results for the second quarter of 2024. The company reported net income of $25.7 million, marking a significant 46% increase from the $17.6 million reported in the same period last year.
Adjusted net income for the quarter was $32 million, compared to $21.8 million in Q2 2023. This reflects a substantial year-over-year growth in profitability.
According to a report from The Royal Gazette, gross written premiums surged by 40.4%, reaching a record $385.2 million, up from $274.3 million in the prior-year quarter. This substantial rise underscores the company’s robust market performance and expanded business activities.
The annualized return on equity for the quarter was reported at 19.9%, an increase from 17.2% in Q2 2023. This indicates a strong return on shareholder investments and highlights the company’s effective management and growth strategies.
“I am very pleased with our second-quarter results as we achieved record gross written premium and adjusted net income during the quarter,” Mac Armstrong, chairman and CEO of Palomar Holdings. “Additionally, our profitable growth remained robust with gross written premium and adjusted net income increasing 40% and 47%, respectively, year-over-year,” he said.
In addition to its strong financial performance, Palomar Holdings received an upgrade from AM Best. The agency has raised the long-term issuer credit rating to “bbb” (Good) from “bbb-” (Good), and upgraded the financial strength rating to A (Excellent) from A- (Excellent) for Palomar Holdings and its subsidiaries, including Palomar Re. The outlook for these ratings has been revised to stable from positive.
AM Best attributed the upgrades to Palomar’s very strong balance sheet, solid operating performance, limited business profile, and appropriate enterprise risk management.
Palomar Holdings, publicly traded on Nasdaq (PLMR), is a specialty insurance company that caters to both residential and commercial clients. It specializes in underserved markets like earthquake insurance.
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