Yahoo Finance

• Gross Written Premium Growth: 47.2% increase, driven by crop and casualty products.

• Net Earned Premium Growth: 30% increase.

• Adjusted Net Income Growth: 36% increase.

• Adjusted Return on Equity: 22.9%.

• Stockholders' Equity: Surpassed $500 million.

• Earthquake Premium Growth: 13% increase; excluding one-time benefits, 18% on a same-store basis.

• Inland Marine and Other Property Products Growth: 46% year-over-year.

• U.S. Business Growth: 21% with rate increases of 18%.

• Flood Written Premium Growth: 18% year-over-year.

• Hurricane Premiums Growth: 30% in the first quarter.

• Hawaii Casualty Product Set Growth: 327% over the previous year.

• Professional Liability Premium Growth: 81% year-over-year.

• Frontier Business Growth: Modest 3% year-over-year.

• Crop Premium Written: $38.7 million in the first quarter.

• Adjusted Net Income Guidance for Full Year 2024: Raised to $113 million to $118 million.

• Investment Income: $7.1 million, a 39.4% increase year-over-year.

• Stockholders' Equity: Reached $501.7 million.

• Warning! GuruFocus has detected 6 Warning Sign with PLMR.

Release Date: May 03, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Palomar Holdings Inc (NASDAQ:PLMR) reported a significant increase in gross written premiums by 47.2%, driven by strong contributions from crop and casualty products.

• Net earned premium growth was robust at 30%, with adjusted net income growth of 36% and an adjusted return on equity of 22.9%.

• The company's stockholders' equity surpassed $500 million, moving Palomar Holdings Inc (NASDAQ:PLMR) into a new financial size category, which could open new market segments and distribution channels.

• Palomar Holdings Inc (NASDAQ:PLMR) is on track to achieve its 'two X goal' of doubling adjusted net income over a three to five-year period, indicating strong future growth prospects.

• The company has made strategic partnerships and product expansions, such as the residential earthquake partnership with Cincinnati Financial and new commercial partnerships expected to increase production.

Negative Points

• The growth in the Frontier business was modest at 3% year-over-year, impacted by heightened competition and soft pricing, particularly in the cyber funding program.

• Certain lines within the casualty products are experiencing softer pricing, particularly in private company D&O, which could affect profitability if not managed carefully.

• The company faces potential increases in reinsurance costs, which could impact profitability despite current favorable conditions.

• While Palomar Holdings Inc (NASDAQ:PLMR) has a diversified product portfolio, some products like crop insurance are highly seasonal, which could lead to fluctuations in quarterly performance.

• The attritional loss ratio is expected to continue rising, which could pressure the overall profitability if not offset by adequate rate increases and effective loss control measures.