Palomar Holdings has posted a net income of $79.2 million for the full year 2023, representing significant growth from $52.2 million that the company recorded in 2022.
The company’s gross written premiums (GWP) also saw a solid rise, increasing by 29.4% to $1.1 billion compared to $881.9 million in 2022.
Moreover, Palomar Holdings’ total loss ratio for FY23 was 21.0% compared to 24.9% in 2022, while combined ratio sat at 76.6% compared to 80.4% in 2022.
As for their results for the fourth quarter of 2023, Palomar Holdings posted a net income of $25.9 million compared to $18.8 million in the fourth quarter of 2022.
At the same time, gross written premiums increased by 26.8% to $303.2 million compared to $239.1 million in the same period last year.
In Q4 Palomar Holdings also recorded a total loss ratio of 19.1% compared to 22.4% in the fourth quarter of 2022
As well as a combined ratio of 74.2% compared to 75.5% in the prior year quarter.
Meanwhile, underwriting income for the fourth quarter sat at $24.2 million, compared to underwriting income of $20.1 million during the same period last year.
In addition, for the full year 2024, Palomar Holdings stated that it expects to achieve adjusted net income of $110 million to $115 million. This includes an estimate of the losses incurred in the first quarter from the recent catastrophic California flooding of approximately $3.5 million.
Mac Armstrong, Chairman and Chief Executive Officer, commented, “The fourth quarter provided a strong end to what was a stellar 2023. During the quarter, we generated gross written premium and adjusted net income growth of 27% and 33%, respectively, and, importantly, an adjusted return on equity of 25%. When looking at the full year we are especially proud of record gross written premium and adjusted net income, strong top and bottom-line growth and numerous initiatives that led to diversification and reduced earnings volatility.
“Additionally, we introduced multiple new lines of business, including Crop, Environmental Liability and Assumed Reinsurance. This robust and disciplined growth translated into an adjusted return on equity well above the 20% benchmark level espoused in our Palomar 2X strategic plan.”
Adding: “Our ‘grow where we want to’ mantra not only reduces the volatility in our book of business, but also provides numerous growth vectors. The 2023 execution of Palomar 2X in a generationally hard property cat reinsurance market combined with the introduction of new products instills strong conviction and confidence in what we can accomplish across the organization. We exit the year energized by our prospects for profitable growth in 2024 and beyond.”
