Palomar Holdings, Inc. reported net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025, up from $30.5 million, or $1.15 per diluted share, in the same period last year.
Adjusted net income reached $55.2 million, or $2.01 per diluted share, representing a 70% increase from $32.4 million, or $1.23 per diluted share, in the third quarter of 2024.
The company’s gross written premiums grew 43.9% to $597.2 million compared to $415.0 million in the year-ago quarter. Net earned premiums increased 66% over the same period.
“Our third quarter results were exceptional, highlighted by record gross written premium and adjusted net income,” said Mac Armstrong, chairman and chief executive officer. “We continue to achieve strong top- and bottom-line growth as gross written premium grew 44% and adjusted net income increased a stellar 70% across our unique and diverse portfolio.”
The company reported a combined ratio of 78.1%, compared to 80.5% in the third quarter of 2024. The adjusted combined ratio improved to 74.8% from 77.1% in the prior-year period.
Losses and loss adjustment expenses totaled $72.8 million for the quarter, comprising $70.9 million in attritional losses and $1.9 million in catastrophe losses. The loss ratio was 32.3%, including an attritional loss ratio of 31.5% and a catastrophe loss ratio of 0.8%. This compared to a 29.7% loss ratio in the year-ago period.
The third-quarter results included $6.1 million in favorable prior-year development, primarily from the company’s short-tail Inland Marine and Other Property business.
Net investment income increased 54.9% to $14.6 million compared to $9.4 million in the prior year’s third quarter, driven by higher yields and larger average investment balances.
Stockholders’ equity stood at $878.1 million as of Sept. 30, 2025, compared to $703.3 million a year earlier. The company’s annualized return on equity was 23.9%, up from 19.7% in the third quarter of 2024.
Armstrong highlighted Palomar’s focus on strategic growth initiatives. “Beyond our financial performance, we remain focused on achieving our Palomar 2X strategic imperatives,” he said. “Notably, during the quarter our young crop franchise’s written premium was well ahead of our initial estimates and in October we announced the acquisition of The Gray Casualty and Surety Company.”
During the quarter, Palomar repurchased 308,417 shares for $37.3 million under its $150 million share repurchase authorization. Approximately $112.7 million remained available for future repurchases as of Sept. 30, 2025.
For full-year 2025, Palomar expects adjusted net income of $210 million to $215 million, up from its previous guidance of $198 million to $208 million.
