Palomar Holdings, Inc. completed its June 1 reinsurance placement, the specialty insurer announced Friday, securing approximately $421 million in incremental limit to support the growth of its earthquake business while raising its full-year 2026 adjusted net income guidance.
The NASDAQ-listed company said its reinsurance coverage now extends to $3.92 billion for earthquake events and $135 million for continental US hurricane events, a news release highlighted. Per-occurrence event retentions remain at $20 million for earthquake events and $11 million for hurricane events.
A key component of the placement was Palomar’s seventh Torrey Pines Re catastrophe bond issuance, which secured $410 million in protection and brought the company’s total multi-year insurance-linked securities (ILS) capacity to $1.28 billion. The bond was priced at the lower end of the indicated range. Of the total $3.92 billion earthquake limit, $360 million was sourced through the Torrey Pines Re platform.
The company also renewed its standalone reinsurance treaty supporting Hawaii hurricane policies issued through Laulima Exchange, a variable interest entity for which Palomar serves as primary beneficiary. The renewed program provides up to $865 million in per-occurrence coverage – a $130 million increase year over year – including $50 million sourced through Torrey Pines Re.
The placement marked the first inclusion of a standalone Hawaii hurricane tranche within the Torrey Pines Re platform. The program’s per-occurrence event retention remained unchanged at $1.5 million.
Palomar’s reinsurance panel includes more than 100 reinsurers and ILS investors, all carrying an A- rating or better from A.M. Best and/or S&P or being fully collateralized.
Chairman and chief executive officer Mac Armstrong said the results positioned the company for continued growth.
“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 collateralized reinsurance through another Torrey Pines Re catastrophe bond issuance,” Armstrong said in a statement. “Importantly, we achieved these objectives at attractive economics, which well-positions Palomar to deliver profitable growth and attractive returns for shareholders.”
As a result of the placement, Palomar raised its full-year 2026 adjusted net income guidance to a range of $266 million to $280 million, up from the previously indicated range of $262 million to $278 million.
Chief risk officer Jon Knutzen said the renewal strengthens Palomar’s capacity management heading into peak catastrophe season.
“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,” Knutzen said.
