Palomar Holdings has reported a net income of $42.9 million for Q1 2025, up considerably compared to the $26.4 million disclosed in Q1 2024.

Palomar’s gross written premiums were also up in the opening quarter of 2025, expanding 20.1% from the same period of 2024 to $442.2 million, while net earned premiums increased 52.1%.

The firm’s losses and loss adjustment expenses for Q1 2025 were $38.7 million, comprised of $39.2 million of attritional losses, offset by $0.5 million of favourable development on prior year catastrophe events.

Meanwhile, Palomar’s loss ratio for Q1 2025 was 23.6%, comprised of an attritional loss ratio of 23.9% and a catastrophe loss ratio of -0.3% compared to a loss ratio of 24.9% during the same period last year comprised of an attritional loss ratio of 21.8% and a catastrophe loss ratio of 3.1%.

The firm’s underwriting income for Q1 2025 was $44.1 million, resulting in a combined ratio of 73.1% compared to underwriting income of $25.0 million, resulting in a combined ratio of 76.9% during the same period of 2024

At the same time, Palomar’s Q1 2025 net investment income increased by 69.1% to $12.1 million compared to $7.1 million in Q1 2024.

According to the firm, the increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended March 31, 2025 due to cash generated from operations and proceeds from the August 2024 public offering.

With all this in mind, for the full year 2025, Palomar expects to achieve adjusted net income of $186 million to $200 million, an increase from its initial outlook of adjusted net income of $180 million to $192 million.

This range reportedly includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.

Mac Armstrong, Chairman and Chief Executive Officer, commented, “I am very pleased with our strong start to 2025, as our first quarter saw sustained gross written premium growth and record adjusted net income.

“Our results demonstrate our continued execution of the Palomar 2X strategic imperative as well as concerted efforts to build a leading specialty insurance franchise with a resilient and diversified portfolio.

“Beyond our financial performance, we remain focused on executing all our 2025 strategic imperatives.

“We continue to make investments across our organization, including the successful acquisition of Advanced AgProtection. This acquisition enhances the talent and operational scale of our Crop franchise and is expected to strengthen the near-term and long-term prospects of Palomar.”

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