Specialty insurer Palomar Holdings, Inc. has reported a 60.6% rise in net income to $56.2 million for the fourth quarter of 2025, compared to net income of $35 million in Q4’24.
The insurer reported strong underwriting results for the quarter as gross written premiums (GWP) rose by 31.8% to $492.6 million compared to $373.7 million in Q4’24. Net premiums written (NPW) rose by 46.3% to $247.6 million in Q4’25, compared to $169.2 million in Q4’24. At the same time, net premiums earned (NPE) increased 61.1% to $233.5 million compared to $144.9 million in Q4’24.
Underwriting income for Q4’25 was $54.4 million, with a combined ratio of 76.8%, compared to $34.9 million and 75.9%, respectively, for the same period in 2024.
Meanwhile, losses and loss adjustment expenses for Q4’25 were $70.9 million, comprising of $72.9 million of attritional losses, and $2.1 million of favourable development on catastrophe losses.
The quarter’s loss ratio was 30.4%, comprised of an attritional loss ratio of 31.3% and a catastrophe loss ratio of -0.9% compared to 25.7% in Q4’24, with an attritional loss ratio of 20.1% and a catastrophe loss ratio of 5.6%.
The insurer explained that this quarter’s results include $2.8 million of favourable prior year development primarily from short tail inland marine and other property business.
Taking a look at the asset side, Palomar reported a net investment income increase of 41.3% to $16 million compared to $11.3 million in Q4’24, driven by higher yields on invested assets and a higher average balance of investments held during the three months ended December 31st, 2025, due to cash generated from operations.
Moving on to full-year 2025 results, Palomar reported a GWP rise of 31.5% to $2 billion compared to $1.5 billion in 2024. NPW increased by 49.5% to $964 million compared to $644.8 million in 2024, as NPE rose by 57.2% to $802.6 million compared to $510.7 million in 2024. Underwriting income rose by 66.1% to $185.9 million compared to $111.9 million in 2024.
For 2025, the total loss ratio increased slightly to 28.5% compared to 26.4% in 2024, as the catastrophe loss ratio came down to -0.1% compared to 5.5% in 2024. The FY’25 combined ratio also dipped to 76.9% compared to 78.1% in 2024.
Net income increased 67.6% to $197.1 million for 2025 compared to $117.6 million in 2024.
Mac Armstrong, Chairman and Chief Executive Officer, Palomar Holdings, commented, “Our strong fourth quarter results provided a superb culmination to what was an exceptional 2025. The quarter was highlighted by record adjusted net income, strong top and bottom-line growth as gross written premium grew 32% and adjusted net income increased 48% across our unique and diverse portfolio.
“Our specialty product suite is purpose-built to navigate any market cycle and generate strong, consistent returns. The fourth quarter further demonstrated this capability as we generated an adjusted combined ratio of 73% and a 27% adjusted return on equity.
“The accomplishments of the 2025 were myriad and not limited to strong financial performance. Noteworthy accomplishments include the successful acquisitions of Advanced Ag Protection and The Gray Casualty and Surety Company and the addition of numerous exceptional leaders across the organisation. These investments should sustain our long-term profitable growth trajectory and our Palomar 2X strategic imperative.”
