Specialty property insurer Palomar Holdings has reported a rise of 28.4% in gross written premiums (GWP) for the third quarter of 2026 to $767 million, compared to $597.2 million in Q3’25. For the first nine months of 2026, GWP rose by 32% to $2.03 billion, compared to $1.54 billion for 9M’25.
The quarter’s net premiums written (NPW) were up 41.2% to $388 million compared to $275 million in Q3’25, while NPW for 9M’26 were up by 46.8% to $1.05 billion, compared to $716 million for 9M’25.
Additionally, for the quarter, the insurer’s net premiums earned (NPE) increased 62.3% to $ compared to $ in Q3 ’25. For 9M’26, NPE rose by 60.5% to $913 million, compared to $569 million for 9M’25.
Reflecting these increases, underwriting income was up 42.6% for the quarter to $70.2 million, compared to $49.2 million in Q3’25. For 9M’26, underwriting income rose by 20.7% to $158 million, compared to $131 million for 9M’25.
Despite stronger underwriting results, the quarter’s combined ratio rose to 80.8%, compared to 78.1% in Q3’25, while CoR for 9M’26 was up to 82.7% from 76.9% in 9M’25.
For Q3’26, Palomar’s losses and loss adjustment expenses were $151.6 million, comprised of $147.2 million of attritional losses and $4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest, compared to $1.9 million in Q3’25.
The loss ratio for the quarter was 41.5%, comprised of an attritional loss ratio of 40.3% and a catastrophe loss ratio of 1.2%, compared to a loss ratio of 32.3% in Q3’25, comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio of 0.8%.
The insurer also explained that the third quarter results include $4 million of attritional unfavourable prior-year development primarily related to crop losses reallocated between calendar years.
For 9M’26, losses and loss adjustment expenses were $337 million, compared to $157 million in 9M’25, with catastrophe losses of $4.3 million, compared to $1.34 million for 9M’25.
Meanwhile, net income for Q3’26 increased by 27% to $65.3 million compared to $51.5 million in Q3’25, while net income for 9M’26 was up 14.2% to $161 million, compared to $141 million in 9M’25.
On the asset side, Palomar’s net investment income increased by 53.8% to $22.4 million compared to $14.6 million in Q3’25, primarily driven by higher yields on invested assets and a higher average balance of investments held during the quarter due to cash generated from operations. For 9M’26, net investment income was up to $60.3 million, compared to $40 million for 9M’25.
During the third quarter, the insurer reported $2.7 million in net realised and unrealised losses due to its investment portfolio, compared to net realised and unrealised gains of $3.5 million in Q3’25.
Mac Armstrong, Chairman and Chief Executive Officer, Palomar, commented, “Palomar’s third quarter of 2026 was exceptional; highlighted by record gross written premium and adjusted net income, our 16th consecutive earnings beat and the fourth increase to our 2026 adjusted net income guidance range. Profitable growth anchors Palomar 2X. This quarter’s 47% growth in adjusted net income and 33% adjusted return on equity demonstrate our ability to deliver on that strategy in a dynamic insurance market.”
He continued, “We were especially pleased with written premium growth across all five product categories this quarter: Earthquake, Inland Marine and Property, Casualty, Crop and Surety & Credit. Our “one-of-one” specialty product portfolio is well positioned across market cycles, and this quarter reflected the ballast, diversity and overall strength in the book. It continues to position Palomar for long-term success and shareholder value creation.”
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