Specialty property insurance company, Palomar Holdings, Inc. has announced the successful completion of its June 1st, 2019 reinsurance programs.
Including the insurer’s Torrey Pines Re catastrophe bond, Palomar Holdings’ renewed $470 million of its core reinsurance program, and also purchased $200 million of incremental limit that sits at the top of its reinsurance tower.
The insurer’s reinsurance program, effective June 1st 2019, provides coverage up to $1.05 billion for earthquake events, which the firm states allows it to maintain a cushion above the 1:250 year peak zone probable maximum loss and, which significantly exceeds simulated losses from any recorded historical event.
Palomar Holdings maintained its $5 million per event retention during its placement, with prepaid reinstatements on all renewing and new layers where applicable. The placement also features a cascading limit of $331 million.
In addition, the specialty insurer also completed the first placement of a new quota share and excess of loss reinsurance program in its Specialty Homeowners Facility (SHF), which provides protection specifically for its SHF businesses in Texas, Mississippi, and Alabama. Palomar Holdings notes that the SHF includes the flexibility to cover more states that the firm views as a growth opportunity.
Chief Executive Officer (CEO) and Founder, Mac Armstrong, said: “We are very pleased to successfully complete our 6/1 renewal. We were able to procure an incremental $200 million of limit to buttress our growth with the requisite reinsurance capital, preserve our retention at $5.0 million per event and introduce a well-received new quota share and excess of loss program in the SHF. The SHF is emblematic of our strategy of generating a balanced combination of fee and underwriting income.
“This renewal cycle has seen prices tighten and we are thrilled that our non-loss affected layers of reinsurance renewed flat to modestly up on an exposure adjusted basis. Our loss impacted layer, a $10.0 million layer of wind-only coverage attaching at excess of $5.0 million, did see an increase of approximately 15%. Our renewal pricing is a testament to the unique attributes of our program and the historical results we have generated for our reinsurance partners.”
The firm’s President, Heath Fisher, added: “Palomar continues to thoughtfully refine and improve its reinsurance program. Our robust panel of reinsurers have been instrumental in our success to date. The 6/1 renewal was no different and we are very grateful for their support.”