Palomar(NASDAQ) PLMR

Palomar helps people and businesses protect their property from expensive disasters. It offers insurance for rare risks like earthquakes, floods, and crop failure. These plans help customers pay for repairs after sudden accidents or natural events.

Protecting Property From Specialized Risks

• Casualty: Liability coverage for various business risks; represents 32.8% of gross written premiums.
• Inland Marine: Protection for property in transit and specialized equipment; accounts for 26.4% of gross written premiums.
• Earthquake: Insurance for building damage caused by seismic activity; makes up 21.8% of gross written premiums.
• Crop: Financial protection for farmers against poor harvests; comprises 13.9% of gross written premiums.
• Surety: Bond products that guarantee contracts are finished; represents 5.1% of gross written premiums.

Strategic Purchases and Risk Bonds

• Acquired Gray Surety on January 31, 2026, to expand its commercial bond business.
• Purchased First Indemnity of America Insurance Co. on January 1, 2025, to grow the specialty platform.
• Closed a new catastrophe bond in the second quarter of 2026 for earthquake risk management.
• Renamed the surety business to Palomar Casualty & Surety Company following the 2026 acquisition.

Pricing Expertise and Financial Safety

The company uses advanced data analytics and a modern software platform to price high-risk insurance policies. It manages financial exposure by purchasing extensive reinsurance to protect against large loss events.

Recent Financial Performance

• Total revenue reached $278.9 million in Q1 2026, up 59.7% year-over-year.
• Gross written premiums hit $629.8 million in Q1 2026, a 42.4% increase from 2025.
• Net income reached $42.9 million in Q1 2026, up 0.1% from the previous year.
• Free cash flow hit $47 million in Q1 2026, down 46% year-over-year.

Bottom Line

Palomar has evolved from a niche earthquake insurer into a diversified specialty property and casualty company. Its strategy of strategic acquisitions and data-driven pricing has expanded its reach into new liability and agricultural markets.