Key Highlights

  • Written premium rose 28.4% to USD 767.0 million this quarter, up from USD 597.2 million, with all five product groups contributing.
  • On a GAAP basis profit reached USD 65.3 million, equal to USD 2.42 per diluted share, and the adjusted measure came to USD 81.3 million or USD 3.01 a share.
  • Combined ratios moved to 80.8% from 78.1% on a GAAP basis and to 76.3% from 74.8% when adjusted, while the loss ratio rose from 32.3% to 41.5%.
  • The 2026 adjusted Net Income forecast now sits between USD 280 million and USD 285 million, with USD 8 million to USD 12 million earmarked for catastrophe losses.

Premium Expansion Spans Every Product Line

On November 4, 2026, Palomar Holdings (NASDAQ:PLMR) released its third-quarter 2026 numbers. Gross Written Premium increased 28.4% to USD 767.0 million, and net Earned Premium advanced 62.3%. The chief executive noted gains in Earthquake, Inland Marine, Property, Casualty, Crop and Surety, and Credit lines, calling the period a High-Water Mark for both premium and adjusted profit. Palomar operates as a specialty insurer for homeowners and businesses alike. Management highlighted that this marked a 16th consecutive quarter of beating expectations and a fourth upward revision to the year's adjusted net income range.

Loss Ratio Climbs and Caps Profit Expansion

GAAP profit rose 27.0%, reaching USD 65.3 million or USD 2.42 a diluted share, compared with USD 51.5 million, or USD 1.87 a year earlier. Adjusted net income surged 47.4% to USD 81.3 million, and adjusted EPS climbed 49.8% from USD 2.01. Insured losses and loss adjustment costs totaled USD 151.6 million, of which USD 4.5 million came from catastrophe events linked to Hawaii hurricane and flood activity and Midwest flooding. The loss ratio landed at 41.5%, split between attritional losses of 40.3% and catastrophe losses of 1.2%. Prior-period reserve development added an unfavorable USD 4.0 million, primarily in Crop. Stripping out catastrophe losses, the adjusted combined ratio was 75.1% compared with 74.0%. Underwriting income advanced to USD 70.2 million from USD 49.2 million, while adjusted underwriting income grew 52.6% to USD 86.5 million.

Portfolio Income, Equity Returns and Shareholder Payouts

Net Investment income surged 53.8% to USD 22.4 million, supported by better yields and a bigger investment base that totals USD 1.8 billion in cash and invested assets. Investment results swung to a USD 2.7 million loss from a USD 3.5 million gain a year earlier. The effective tax rate slipped to 22.9% from 23.4%. Return on Equity annualized at 26.6%, while adjusted return on equity reached 33.1%, against stockholders' equity of USD 985.0 million. The company bought back 70,000 shares for USD 8.9 million and set a USD 0.45 quarterly dividend, payable December 2, 2026 to owners of record on November 17, 2026. Because catastrophe exposure is significant for a quake-focused underwriter, the full-year guidance builds in only USD 8 million to USD 12 million of catastrophe costs.

Where Things Stand

Premium expansion carried the period. Gross written premium rose 28.4% and earned premium 62.3%, so profit increased even as the loss ratio moved up from 32.3% to 41.5%, a rise of roughly 9 points (calculated). Palomar Holdings (NASDAQ:PLMR) raised the adjusted net income band to a new USD 280 million to USD 285 million, though the earlier band is not disclosed, so the size of the move cannot be computed. Watch the November 5, 2026 call, fourth-quarter catastrophe activity, the December 2 Dividend and whether premium growth persists across all five lines as losses rise.