Specialty insurer Palomar Holdings, Inc. has reported a net income of $52.6 million for the second quarter of 2026, up 13% from $46.5 million in the same period a year earlier.
For the quarter, adjusted net income increased 31.4% to $63.8 million compared with $48.5 million in Q2’25.
Gross written premiums rose 27% to $630.5 million from $496.3 million. Net written premiums increased 41.5% to $325.2 million from $229.8 million, while net earned premiums climbed 59.5% to $287 million from $180 million.
Underwriting income stood at $48 million, up 25.5% from $38.3 million a year earlier.
In Q2’26, the combined ratio increased to 83.3% from 78.8%, reflecting a higher loss ratio of 34.5% versus 25.7%, partially offset by a lower expense ratio of 48.8% compared with 53.1%.
Losses and loss adjustment expenses totalled $99 million, comprising $99.4 million of attritional losses, offset by $0.4 million of favourable catastrophe loss development.
The Q2’26 results included $14.1 million of attritional and $0.2 million of catastrophe loss favourable prior year development.
Net investment income totalled $20 million, up 49.2% from $13.4 million, primarily due to higher yields on invested assets and a higher average investment balance held during the three months ended 30 June 2026 due to cash generated from operations.
Mac Armstrong, Chairman and Chief Executive Officer of Palomar Holdings, commented, “The second quarter of 2026 was another strong one for Palomar; highlighted by record adjusted net income, our 15th consecutive earnings beat and the third increase to our full-year adjusted net income guidance. Gross written premium increased 27% year-over-year, adjusted net income grew 31%, adjusted earnings per share grew 34%, adjusted combined ratio was 77% and our adjusted return on equity was 26% – all outstanding results. Bolstering our financial performance were several operational achievements including the launch of the PLMR.Farm, our innovative crop policy administration system, and exceptional new additions to our team. These results demonstrate our ability to execute in a dynamic insurance market while maintaining discipline in underwriting and capital allocation.
“Our strong and consistent earnings, attractive returns and healthy balance sheet provide ample capacity to not only invest in the businesses driving our Palomar 2X strategy but also return capital to shareholders. As such our Board authorized the introduction of a quarterly dividend of $0.45 per share. Importantly, the dividend does not change our growth strategy or the execution of Palomar 2X; it only enhances our ability to create shareholder value.”
For the full year 2026, Palomar expects to achieve an adjusted net income of $270 million to $280 million, including an estimated $8 million to $12 million of catastrophe losses.
