Key Highlights

  • Diluted adjusted EPS was USD 3.01 against an estimate of USD 2.56, and GAAP diluted EPS was USD 2.42.
  • Gross written premiums were USD 767.0 million, compared with USD 597.2 million in the third quarter of 2025.
  • The combined ratio was 80.8% and the adjusted combined ratio was 76.3%, against 78.1% and 74.8% a year earlier.
  • Full year 2026 adjusted Net Income guidance is USD 280 million to USD 285 million, with catastrophe losses included.

Palomar Holdings, Inc. (NASDAQ:PLMR) opened its third quarter report with its fourth increase to the 2026 adjusted net income range this year, which now stands at USD 280 million to USD 285 million. Management said the figure includes an estimate of USD 8 million to USD 12 million of catastrophe losses for the year. The quarter itself produced diluted adjusted EPS of USD 3.01 against an estimate of USD 2.56 and USD 2.01 a year earlier, with GAAP diluted EPS of USD 2.42 against USD 1.87.

Guidance, Dividend and Capital Position

The full year range is stated for adjusted net income, a non-GAAP measure, and the company did not provide a reconciliation to GAAP net income, citing items it cannot predict. The Board declared a quarterly Cash Dividend of USD 0.45 per share on October 29, 2026, payable on December 2, 2026 to holders of record on November 17, 2026.

Stockholders' Equity was USD 985.0 million at September 30, 2026, against USD 878.1 million a year earlier. The company repurchased 70,000 shares for USD 8.9 million during the quarter. The Balance Sheet shows a term Loan of USD 294.0 million and USD 21.0 million of borrowings under Credit agreements.

The Quarter in Detail

Net income was USD 65.3 million against USD 51.5 million, and adjusted net income was USD 81.3 million against USD 55.2 million. Total revenues were USD 386.6 million against USD 244.7 million. Net earned premiums were USD 365.4 million against USD 225.1 million, an increase of 62.3%, and Gross Written Premiums rose 28.4%.

Losses and loss adjustment expenses were USD 151.6 million, made up of USD 147.2 million of attritional losses and USD 4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest. The loss ratio was 41.5% against 32.3%, and the catastrophe loss ratio was 1.2% against 0.8%. The results also include USD 4.0 million of attritional prior year development, mainly Crop losses reallocated between calendar years. Underwriting income was USD 70.2 million against USD 49.2 million, and adjusted underwriting income was USD 86.5 million against USD 56.7 million.

Investments, Returns and Product Lines

Net Investment income was USD 22.4 million against USD 14.6 million, which the company tied to higher yields and a larger average investment balance from operating cash. Cash and invested Assets were USD 1.8 billion, and the fixed-maturity portfolio had a weighted average duration of 4.61 years. Net realized and unrealized losses on investments were USD 2.7 million against gains of USD 3.5 million. The effective tax rate was 22.9% against 23.4%.

Annualized Return on Equity was 26.6% against 23.9%, and annualized adjusted return on equity was 33.1% against 25.6%. Chairman and chief executive Mac Armstrong said written premium grew across all five product categories: Earthquake, Inland Marine and Property, Casualty, Crop, and Surety and Credit. He described the 47% growth in adjusted net income as supporting the company's Palomar 2X strategy.

Quarter in Numbers

Adjusted EPS of USD 3.01 sits alongside GAAP EPS of USD 2.42, and gross written premiums of USD 767.0 million sit alongside total revenues of USD 386.6 million. The combined ratio of 80.8% stands next to an adjusted combined ratio excluding catastrophe losses of 75.1%.

Management named the 2026 adjusted net income range of USD 280 million to USD 285 million, the December 2 dividend payment and the Palomar 2X strategy as its reference points going forward. The company is scheduled to host its Earnings conference call on November 5, 2026.