Palomar Holdings, Inc.
- Open
- 136.72
- Day high
- 138.67
- Day low
- 134.25
- Prev close
- 134.23
- Volume
- 272K
- Mkt cap
- $3.6B
- P/E (TTM)
- 18.3
- EPS (TTM)
- $7.41
- P/B
- 3.7
- P/S
- 3.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$2.5M over the last 3 months (0 open-market buys, 14 sales)
- 🏛Institutions mixed (13F)
Palomar Holdings, Inc. (PLMR) is a Financial Services company listed on NASDAQ. The stock is down 3% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 14 sales (SEC Form 4).
Palomar Holdings, Inc. (PLMR) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PLMR earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.17 | $2.31 | +6.5% | $630M | +12.9% |
| Feb 11, 2026 | $2.06 | $2.24 | +8.7% | $493M | +114.3% |
| Nov 6, 2025 | $1.58 | $2.01 | +27.2% | $245M | +16.1% |
| Feb 12, 2025 | $1.22 | $1.52 | +24.6% | $156M | +11.8% |
| May 2, 2024 | $0.94 | $1.09 | +16.0% | $119M | -63.7% |
| Feb 14, 2024 | $0.94 | $1.11 | +18.1% | $105M | -64.6% |
| Nov 1, 2023 | $0.74 | $0.92 | +24.3% | $91M | -72.3% |
| Aug 2, 2023 | $0.83 | $0.86 | +3.6% | $90M | -70.1% |
| May 3, 2023 | $0.74 | $0.80 | +8.1% | $89M | -61.8% |
| Feb 15, 2023 | $0.74 | $0.82 | +10.8% | $89M | -60.0% |
| Nov 2, 2022 | $0.60 | $0.29 | -51.7% | $81M | -64.3% |
| Aug 3, 2022 | $0.67 | $0.73 | +9.0% | $80M | -58.7% |
PLMR insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Christianson Jonofficer: President | Option | 2,434 | $49.53 |
| Jul 6, 2026 | Christianson Jonofficer: President | Sell | 4,429 | $139.50 |
| Jul 6, 2026 | Christianson Jonofficer: President | Option | 4,429 | $87.51 |
| Jun 30, 2026 | Carter Timothyofficer: Chief People Officer | Sell | 300 | $124.29 |
| Jun 30, 2026 | Carter Timothyofficer: Chief People Officer | Option | 492 | — |
| Jun 30, 2026 | Carter Timothyofficer: Chief People Officer | Option | 820 | — |
| Jun 30, 2026 | Carter Timothyofficer: Chief People Officer | Sell | 180 | $124.29 |
| Jun 24, 2026 | Armstrong Macdirector, officer: CEO and Chairman | Sell | 1,495 | $113.28 |
| Jun 24, 2026 | Armstrong Macdirector, officer: CEO and Chairman | Sell | 2,005 | $112.72 |
| May 26, 2026 | Taketa Richard Hdirector | Grant | 1,304 | — |
| May 26, 2026 | BEISER SCOTT Ldirector | Grant | 1,304 | — |
| May 26, 2026 | Fallon Catriona Mdirector | Grant | 1,304 | — |
| May 26, 2026 | Notaras Marthadirector | Grant | 1,304 | — |
| May 26, 2026 | Middleton Dainadirector | Grant | 1,304 | — |
| May 26, 2026 | Bradley Daryldirector | Grant | 1,304 | — |
Source: PLMR SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full PLMR insider & 13F page →Palomar Holdings, Inc. company profile
Overview
Palomar Holdings, Inc. (NASDAQ:PLMR) is a specialty property and casualty insurance company founded in 2013 and headquartered in La Jolla, California. The company went public in April 2019 and has grown from a focused earthquake insurance provider into a diversified specialty insurer serving both residential and commercial markets. Palomar operates through multiple insurance subsidiaries and has expanded its product portfolio significantly through organic growth and strategic acquisitions, including the recent acquisition of First Indemnity of America and Advanced AgProtection.
Business
Palomar operates in the specialty property and casualty insurance industry, which provides coverage for risks that are typically excluded from standard insurance policies or require specialized underwriting expertise. The company focuses on catastrophe-exposed and specialty property risks that many traditional insurers avoid due to their complexity or potential severity. The company's business is organized into several key segments: Earthquake Insurance (approximately 40-45% of gross written premiums): This is Palomar's foundational business, providing both residential and commercial earthquake coverage primarily in California. Earthquake insurance protects property owners against damage from seismic activity, which is excluded from standard homeowners and commercial property policies. The company writes both admitted (state-regulated) and excess & surplus (E&S) earthquake policies. Inland Marine and Other Property (approximately 25-30% of gross written premiums): This segment includes builders risk insurance (covering construction projects), Hawaii hurricane coverage, specialty homeowners policies, and inland marine insurance. Inland marine insurance covers movable property and goods in transit, while builders risk protects construction projects against various perils during the building process. Casualty Lines (approximately 15-20% of gross written premiums): This rapidly growing segment includes professional liability insurance, real estate errors and omissions coverage, contractors' general liability, and environmental liability insurance. These policies protect businesses and professionals against claims of negligence, errors, or omissions in their professional services. Crop Insurance (approximately 8-10% of gross written premiums): A newer business line launched in 2023, providing federal crop insurance to farmers across multiple states. Crop insurance protects agricultural producers against losses due to weather, disease, or other covered perils. Fronting Operations (approximately 5-10% of gross written premiums): This involves issuing insurance policies on behalf of other carriers or managing general agents, typically for a fee while transferring most of the risk through reinsurance arrangements. The company also recently acquired First Indemnity of America, adding surety bonds to its product portfolio. Surety bonds guarantee the performance of contractual obligations, commonly used in construction and other industries.
Revenue model
Palomar generates revenue primarily through insurance premiums collected from policyholders, with additional income from investment returns on its float (the money held between premium collection and claims payment). The company's customers include individual homeowners, commercial property owners, contractors, real estate professionals, farmers, and various businesses requiring specialty coverage. The company's business model involves several revenue streams: 1. Premium Income: The primary revenue source, representing payments from policyholders for insurance coverage. Palomar prices its policies to generate underwriting profits after accounting for expected losses and expenses. 2. Investment Income: Returns generated from investing premium float in fixed-income securities and other investments. 3. Fee Income: Generated from fronting arrangements where Palomar issues policies but transfers the risk to other parties for a fee. 4. Reinsurance Commissions: Income received from reinsurers when Palomar cedes portions of its risk. Several factors influence Palomar's profitability margins: Positive Margin Drivers: Hard insurance market conditions allow for premium rate increases; geographic and product diversification reduces concentration risk; the company's focus on specialty lines typically commands higher margins than commodity insurance; catastrophe-light years improve combined ratios; and effective reinsurance purchasing protects against large losses while preserving profit margins. Negative Margin Pressures: Major catastrophic events can significantly impact results despite reinsurance protection; increasing reinsurance costs reduce net margins; inflation affects both claims costs and replacement values; competitive pressures in certain lines can compress pricing; and regulatory changes, particularly in California, can impact earthquake insurance profitability. The company's underwriting approach emphasizes disciplined risk selection and pricing, with a target combined ratio (losses plus expenses divided by premiums) in the low-to-mid 90s, allowing for consistent underwriting profits.
Competitive moat
Palomar's competitive moat is moderate and primarily built on several specialized capabilities rather than a single dominant advantage. The company's strongest moat elements include its deep expertise in catastrophe modeling and earthquake risk assessment, which requires significant technical knowledge and historical data that competitors cannot easily replicate. This expertise is particularly valuable in California's complex seismic environment. The company also benefits from established relationships with specialty distribution channels, including wholesale brokers and program administrators who value Palomar's willingness to write risks that many carriers avoid. Additionally, Palomar's AM Best "A" rating provides credibility with agents and customers, though this rating advantage is not unique among well-capitalized insurers. However, the company's moat faces several challenges. The specialty insurance market is highly competitive, with numerous well-capitalized competitors including large national carriers, regional specialists, and Lloyd's of London syndicates. Barriers to entry in most of Palomar's business lines are relatively low for well-funded competitors, and the company's products are not particularly differentiated beyond underwriting expertise and service quality. The regulatory environment, particularly in California where much of the earthquake business is concentrated, creates both opportunities and risks. While regulatory constraints limit some competitors' appetite for earthquake risk, they also cap Palomar's pricing flexibility in the admitted market. Potential disruption could come from larger insurers deciding to compete more aggressively in specialty lines, new technology-enabled competitors with superior data analytics, or changes in reinsurance market dynamics that alter the economics of catastrophe coverage. Climate change and increasing natural disaster frequency could also reshape the competitive landscape, potentially attracting new capital or forcing existing players to exit certain markets.
Risks & safety
Palomar demonstrates a strong financial position with adequate margin of safety for a specialty insurer, though typical insurance industry metrics apply. • Liquidity and Solvency: Strong cash position with $119 million in cash and short-term investments as of Q1 2025; no debt obligations; positive operating cash flow of $87 million in Q1 2025; current ratio limitations reflect insurance industry accounting where policy liabilities aren't classified as current liabilities. • Valuation Metrics: Trading at approximately 21x P/E ratio based on recent earnings; EV/EBITDA of 16.2x; price-to-book ratio of 4.6x, reflecting premium valuation typical of profitable specialty insurers; Graham number suggests potential overvaluation at current price levels. • Insurance-Specific Considerations: Combined ratios consistently in low-to-mid 90s indicate profitable underwriting; strong reserve adequacy based on conservative reserving practices; diversified reinsurance program limits catastrophic loss exposure; AM Best "A" rating confirms financial strength; regulatory capital ratios well above minimum requirements. • Growth Sustainability: Revenue growth of 20%+ driven by market expansion and new product lines; consistent profitability with 10 consecutive quarterly earnings beats; raised 2025 guidance indicates management confidence.
Recent development
Over the past few years, Palomar has executed a significant transformation from a focused earthquake insurer to a diversified specialty insurance platform. The company's "Palomar 2X" strategy has driven expansion into multiple new business lines and geographic markets. Strategic Acquisitions: The company completed two major acquisitions - First Indemnity of America (a surety insurance company) and Advanced AgProtection (crop insurance platform). These acquisitions added new product capabilities and expanded Palomar's addressable market beyond traditional property coverage. Organic Growth Initiatives: Palomar launched several new business lines including crop insurance (reaching over $100 million in annual premiums), casualty lines (growing over 100% annually), and environmental liability coverage. The company also expanded geographically, particularly in crop insurance across Midwest states. Operational Scaling: Management has invested heavily in talent acquisition, bringing in experienced executives including heads of casualty, crop insurance, and claims operations. The company also upgraded its AM Best rating to "A" and secured additional reinsurance capacity through innovative structures like the Torrey Pines Re catastrophe bond. Risk Management Evolution: Palomar has become more sophisticated in managing portfolio risk, reducing exposure to certain volatile lines like continental wind while increasing focus on earthquake, Hawaii hurricane, and other specialty property risks. The company has also expanded its reinsurance programs and improved its catastrophe modeling capabilities. Capital Management: The company raised $160 million in equity capital in 2024 to support growth initiatives and acquisitions, demonstrating access to capital markets and investor confidence in the strategy.
PLMR company profile · for informational purposes only — not investment advice.
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