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Palomar Q3 net income beat estimates as premiums rise 28%

By Reuters News


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.)

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