Palomar Q3 net income beat estimates as premiums rise 28%
Overview
US specialty insurer's Q3 adjusted EPS and adjusted net income beat analyst expectations
Gross written premiums rose 28% yr/yr, driven by growth across all product categories
Company repurchased 70,000 shares for $8.9 mln during the quarter
Outlook
Palomar expects 2026 adjusted net income of $280 mln to $285 mln
Company estimates $8 mln to $12 mln of catastrophe losses for 2026
Result Drivers
PREMIUM GROWTH - Gross written premiums rose 28% yr/yr, with increases across all five product categories, including significant gains in Crop and Surety & Credit
HIGHER INVESTMENT INCOME - Net investment income rose 54% yr/yr, driven by higher yields and a larger investment portfolio
INCREASED LOSS RATIO - Loss ratio rose to 41.5% from 32.3% a year earlier, reflecting higher attritional and catastrophe losses, including hurricane and flood events
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Gross written premiums | $767.05 mln | ||
Q3 Adjusted EPS | Beat | $3.01 | $2.56 (9 Analysts) |
Q3 EPS | $2.42 | ||
Q3 Adjusted Net Income | Beat | $81.31 mln | $67.87 mln (8 Analysts) |
Q3 Net Income | $65.34 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold."
Wall Street's median 12-month price target for Palomar Holdings, Inc. is $156.00, about 9.7% above its November 3 closing price of $142.21
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Nov 3 - Insurer American Financial Group's Q3 adj EPS beats on underwriting and premium growth
Nov 3 - Bowhead Q3 profit beats estimates on divisional premium growth
Nov 3 - Insurer Horace Mann's Q3 core EPS beats; FY outlook raised
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)