Palomar Holdings, Inc. announced its Q3 2024 financial results, reporting a net income of $30.5 million ($1.15 per diluted share), an increase to its Q3 2023 net income of $18.4 million, or $0.73 per diluted share.
Gross written premiums grew 32.2% to $415 million, compared to $314.0 million year-over-year, with net earned premiums up 58.1%. Losses and loss adjustment expenses totaled $40.3 million from hurricanes Beryl, Debby, and Helene, affecting the loss ratio at 29.7%. In total, underwriting income for the quarter was $26.4 million, with a combined ratio of 80.5%
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Net investment income increased 56% to $9.4 million thanks to higher yields and greater investment balances from proceeds of their August 2024 secondary offering and cash-generated operations. Palomar's investment portfolio maintained a weighted average of 3.86 years, with cash and invested assets totaling $1.01 billion.
The effective tax rate for Q3 2024 was 20.8%, lower than the 24.9% for the three months ended September 30, 2023. Meanwhile, Stockholders’ equity grew to $703.3 million, compared to $421.3 million in Q3 2023. Lastly, the annualized return on equity reached 19.7%, up from last year’s 17.7%.
Palomar anticipates achieving an adjusted net income between $124 million and $128 million for the full year, including approximately $8 million in additional losses related to Hurricane Milton.
Palomar hosted a conference call on Nov. 5 to discuss these results. The replay will be available until Nov. 12.
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