Palomar Holdings, Inc., a US-based specialty insurance company focused on property and casualty coverage, has successfully completed its June 1st reinsurance placement, securing approximately $421 million of incremental limit to support the growth of its earthquake franchise.
The company’s reinsurance coverage now extends to $3.92 billion for earthquake events and $135 million for continental US hurricane events.
Palomar’s per-occurrence event retentions will remain at $11 million for hurricane events and $20 million for earthquake events, levels that sit meaningfully within management’s stated guideposts of less than one quarter of adjusted net income and less than 5% of stockholders’ equity.
Of the $3.92 billion earthquake limit, $360 million was sourced through its seventh Torrey Pines Re catastrophe bond issuance, which was priced at the lower end of the indicated range.
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In addition, Palomar renewed its standalone reinsurance treaty supporting the Hawaii hurricane policies issued by Laulima Exchange.
The programme provides Laulima with up to $865 million of per-occurrence coverage, a $130 million increase year-on-year, including $50 million sourced through the Torrey Pines Re platform.
The placement marked the first inclusion of a standalone Hawaii hurricane tranche within Torrey Pines Re, further diversifying Palomar’s sources of reinsurance capacity. The programme’s per-occurrence event retention remained unchanged at $1.5 million.
Palomar also increased its full-year 2026 adjusted net income guidance to $266 million–$280 million from $262 million–$278 million.
Mac Armstrong, Chairman and Chief Executive Officer of Palomar, said, “We are very pleased with the outcome of our June 1 reinsurance placement and remain grateful for the support of our broad and diversified reinsurance panel.
“We added meaningful incremental limit to support growth, maintain event retentions at levels consistent with the expiring treaty despite significant earnings and exposure growth, and expanding the role of collateralised reinsurance through another Torrey Pines Re catastrophe bond issuance. Importantly, we achieved these objectives at attractive economics which well-positions Palomar to deliver profitable growth and attractive returns for shareholders. As a result, we are increasing our full-year 2026 adjusted net income guidance range to $266 million to $280 million from the previously indicated range of $262 million to $278 million.”
Jon Knutzen, Chief Risk Officer at Palomar, added, “This June 1 renewal further strengthens Palomar’s ability to manage peak catastrophe volatility while supporting continued profitable growth. The combination of incremental limit for our peak peril zones and expanded ILS capacity improves both the efficiency and diversification of our overall reinsurance program. We appreciate the continued support from our global reinsurance partners and believe this placement positions the Company favorably from both a capital management and earnings stability perspective.”
