Specialty insurer Palomar Holdings, Inc. reported gross written premiums (GWP) increased 42.4% to $629.8 million in the first quarter of 2026, compared with $442.2 million in the first quarter of 2025.
Net premium income in Q1’26 increased 59.3% to US$261.4 million, compared with US$164 million in Q1 last year.
Meanwhile, net written premiums increased 59.8% to $338 million in the quarter, compared with $211 million in the first quarter of 2025.
The company’s underwriting revenue fell 8% to $40.5 million in the first quarter of 2026, with a combined ratio of 84.5%, compared with $44.1 million and a combined ratio of 73.1% in the first quarter of 2025.
Palomar’s adjusted underwriting revenue in 1Q26 was $62.8 million, up 21.6%, with an adjusted combined ratio of 76%, compared with $51.6 million in 1Q25, with an adjusted combined ratio of 68.5%. These increases include losses and loss adjustment expenses of $87.1 million in 1Q26. Of this amount, $86.8 million was natural loss and $300,000 was disaster loss.
The loss rate for this quarter was 33.3%, of which the natural loss rate was 33.2%, and the catastrophe loss rate was 0.1%, while the loss rate in the first quarter of 2025 was 23.6%, of which the natural loss rate was 23.9%, and the catastrophe loss rate was (0.3)%.
In addition, the insurer explained that the current quarter’s results included $7.6 million in natural attrition and $2.7 million in catastrophe losses that were favorable to the prior year, with loss ratios of 2.9 percentage points and 1.0 percentage points, respectively, mainly from short-tail inland shipping and real estate operations. In the first quarter of 2026, Palomar’s net income was flat at $42.9 million.
Looking at the insurer’s investment performance, net investment income increased 49% to $18.0 million from $12.1 million in Q1’26, driven by higher return on invested assets and an increase in average investment balances in Q1’26, reflecting cash generated from operations.
Palomar expects adjusted net income of $262 million to $278 million, including expected catastrophe losses of $8 million to $12 million this year.
Mac Armstrong, Chairman and Chief Executive Officer of Palomar Holdings, commented, “The first quarter was yet another demonstration of our continued profitable growth. Our unique portfolio of ‘one-of-a-kind’ specialty products is designed to generate stable earnings and compelling profits through any market cycle. The combination of Palomar’s personal and commercial product portfolio on both an admitted and excess and surplus basis, along with strong growth in our Crop and Surety franchises, is off to a strong start to the year.”
“Importantly, our growth is not limited to one set of products. In fact, we grew in all five categories this quarter, including seismic. I’m pleased to share that our margins and capital efficiency remained strong in the first quarter with an adjusted combined ratio of 76% and an adjusted return on equity of 27%.”
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