Palomar has successfully completed its 1 June reinsurance renewal.
The firm said that it had procured approximately $430m of incremental limit for earthquakes and $200m of incremental windstorm limit. Its reinsurance coverage now exhausts at $2.08bn for earthquake events and $900m for hurricane events. Palomar also said that it had maintained its catastrophe event retention of $12.5m for all perils. Additionally, the Company completely placed the excess of loss layers of its catastrophe program. The $12.5m per occurrence pre-tax retention is further backstopped by the $25m catastrophe aggregate excess of loss cover renewed on April 1, 2022.
Mac Armstrong, chief executive officer and chairman of Palomar, said: “We are very pleased to successfully complete our 6/1 placement,” commented. “In a challenging market, we were able to purchase $430m of incremental limit to conservatively support our growth; maintain our per event retention at $12.5m; and further incorporate ILS solutions into our comprehensive reinsurance program.”
The firm also said that it had successfully issued $275m of collateralised capacity through the Torrey Pines Re 144A Catastrophe Bond, bringing its total outstanding Catastrophe Bond capacity to $675m and diversifying its reinsurance capital by accessing ILS investors on a multi-year basis. It has also added nine reinsurers to its panel.
Armstrong added: “The consummation of the 6/1 XOL program along with the renewal of our Aggregate Cover in April are prime examples of Palomar’s commitment to providing consistent earnings and profitable, predictable growth. They are instrumental in our ability to produce attractive earnings and return on equity.”
The news comes a few weeks after the firm revealed net income of $14.5m for Q1 2022, a decline of 12.6% from Q1 2021.
That news came a few weeks after the renewed the $25m aggregate excess of loss reinsurance limit it bought in Q1 2021.
The firm had 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.
