California-based specialty insurer Palomar has reported a net income of $16.6 million for the first quarter of 2021, up 41.2% on the $11.8 million achieved during the prior year quarter.
Gross written premiums increased by 44.9% to $103.6 million compared to $71.5 million this time last year.
Adjusted net income increased 56.5% to $19.3 million and a total loss ratio -9.4% compares to the 5.4% announced a year ago.
Meanwhile, Palomar’s combined ratio fell to 60.4% from 63.6%, while adjusted combined ratio marked an even bigger improvement at 53.3%, against 61.6% in the prior year period.
“As we exited 2020, the Palomar team felt we had considerable momentum in our business; the strong growth in the first quarter of 2021 confirmed this belief,” said commented Mac Armstrong, Chairman and Chief Executive Officer.
“During the quarter we generated gross written premium growth of 45% while also executing upon new and existing underwriting actions that we believe will translate into attractive risk adjusted returns and earnings predictability.
“Our strong top line results were led by our earthquake products, which in the case of the commercial offerings grew 96% year-over-year and 25%.
“in the case of our Residential Earthquake offerings. Additionally, new products continued to gather momentum and grow at exceptional rates; most notably, our Inland Marine products grew 315% year-over-year.
“The traction we gained across our entire portfolio continues to validate our specialty insurance offerings.
“Lastly, our E&S carrier, Palomar Excess and Surplus Insurance Company, better known as PESIC, grew rapidly, approaching $100 million in annualized gross written premiums in just its second full quarter of operation.
“PESIC continues to provide opportunities to extend the reach of our existing products and expand our addressable market.”
