Palomar Holdings, Inc., a U.S. specialty insurance company focused on property and casualty insurance, has successfully completed a June 1 reinsurance placement, obtaining approximately $421 million in incremental limits to support the growth of its earthquake business.
The company’s reinsurance coverage for earthquake events has now been expanded to $3.92 billion, and coverage for hurricane events in the continental United States has been expanded to $135 million.
Palomar’s per-event retention will remain at $11 million for hurricane events and $20 million for earthquake events, levels that are within management’s stated guidance of less than a quarter of adjusted net income and 5% of stockholders’ equity.
Of the $3.92 billion in seismic limits, $360 million was secured through the seventh Torrey Pines Re catastrophe bond issuance, which was priced at the lower end of the range shown.
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In addition, Palomar renewed a separate reinsurance treaty supporting Hawaii hurricane policies issued on the Laulima Exchange.
The program provides Laulima with up to $865 million per coverage, an increase of $130 million year-on-year, including $50 million sourced through the Torrey Pines Re platform.
The placement marks the first time Torrey Pines Re has included a stand-alone Hawaiian hurricane segment, further diversifying Palomar’s sources of reinsurance capacity. The program’s per-incident retention amount remains unchanged at $1.5 million.
Palomar also raised its full-year 2026 adjusted net profit guidance to $266 million to $280 million from $262 million to $278 million.
“We are very pleased with the outcome of our June 1 reinsurance arrangement and grateful for the support of our broad and diverse reinsurance group,” said Mac Armstrong, chairman and chief executive officer of Palomar.
“We have added meaningful incremental limits to support growth, retaining activity at levels consistent with the expiring treaty and through another Torrey Pines, despite significant gains and exposure The RE catastrophe bond issuance expands the role of collateralized reinsurance. Importantly, we achieved these targets with attractive economics, which positions Palomar to deliver profitable growth and attractive returns to shareholders, as a result of which we are increasing our full-year 2026 adjusted net profit guidance to a range of $262 million to $278 million.”
Jon Knutzen, chief risk officer at Palomar, added: “The June 1 renewal further enhances Palomar’s ability to manage peak catastrophe volatility while supporting continued earnings growth. The combination of incremental limits in our peak hazard areas and expanded ILS capacity increases the efficiency and diversification of our overall reinsurance program. We appreciate the continued support of our global reinsurance partners and believe this placement positions the company well from a capital management and earnings stability perspective.”
