Palomar has renewed the $25m aggregate excess of loss reinsurance limit it bought in Q1 2021.
The firm previously secured $25m of aggregate excess of loss reinsurance providing coverage to across all perils above a qualifying level of $2m, and with an attachment point of $30m, in February last year.
According to the firm, the Aggregate Cover incepts on 1 April, still has an attachment point of $30m, and maintains coverage for qualifying events within its per occurrence retention. This coverage applies across all perils including but is not limited to earthquakes, hurricanes, convective storms, and floods above a qualifying level of $2m in ultimate gross loss.
Mac Armstrong, chairman and CEO of Palomar, commented, “We are very pleased to successfully complete the placement of our Aggregate Cover. The Aggregate Cover is a demonstrable example of how we proactively safeguard our business, balance sheet and operating results. The reinsurance facility not only protects our business from losses generated by multiple severe catastrophic events, but also establishes a floor on our adjusted return on equity.”
He added: “Assuming the full utilization of the Aggregate Cover and the mid-point of our previously announced adjusted net income range of $80m to $85m, our 2022 adjusted return on equity has a floor of 14%.”
This is not the only renewal that Palomar has undertaken in the last year. In May, it renewed certain reinsurance programs incepting on 1 June, including the purchase of an additional $180m of limit for earthquakes and $100m of incremental limit for windstorms.
