Specialty insurer Palomar Holdings, Inc. has reported a rise of 42.4% in gross written premiums (GWP) for the first quarter of 2026 to $629.8 million, compared to $442.2 million in Q1’25.
Net earned premiums increased 59.3% to $261.4 million for Q1’26, compared to $164 million in the prior year’s first quarter.
At the same time, net written premiums grew by 59.8% this quarter to $338 million compared to $211 million in Q1’25.
The firm’s underwriting income for the first quarter of 2026 went down by 8% to $40.5 million, with a combined ratio of 84.5%, compared to $44.1 million and 73.1%, respectively, for Q1’25.
Palomar’s adjusted underwriting income for Q1’26 was $62.8 million, an increase of 21.6%, with an adjusted combined ratio of 76%, compared to $51.6 million and 68.5%, receptively, in Q1’25. These increases include Q1’26 losses and loss adjustment expenses of $87.1 million. Of these, $86.8 million were attritional losses and $0.3 million were catastrophe losses.
This quarter saw a loss ratio of 33.3%, comprised of an attritional loss ratio of 33.2% and a catastrophe loss ratio of 0.1%, compared to a loss ratio of 23.6% in Q1’25, comprising an attritional loss ratio of 23.9% and a catastrophe loss ratio of (0.3)%.
Additionally, the insurer explained that this quarter’s results include $7.6 million of attritional and $2.7 million of catastrophe loss favourable prior year development, 2.9 points and 1.0 point of loss ratio favourability, respectively, primarily from short tail inland marine, and property business. For Q1’26, Palomar’s net income is flat at $42.9 million.
Taking a look at the insurer’s investment results, net investment income increased by 49% to $18 million from $12.1 million in Q1’25, driven by higher yields on invested assets and a higher average investment balance in Q1’26, reflecting cash generated from operations.
Palomar expects to achieve adjusted net income of $262 million to $278 million, including an estimate of $8 million to $12 million of catastrophe losses for this year.
Mac Armstrong, Chairman and Chief Executive Officer, Palomar Holdings, commented, “The first quarter was another demonstration of our sustained profitable growth. Our unique, ‘one of one’ specialty products portfolio is purposely built to generate consistent earnings and compelling margins in any market cycle. The combination of Palomar’s mix of personal and commercial lines products written on both an admitted and excess and surplus basis, and strong growth from our Crop and Surety franchises, made for a great start to the year.
“Importantly, our growth wasn’t limited to one product set. In fact, we grew across all five categories, including Earthquake, this quarter. I’m happy to share that our profits and capital efficiency stayed strong in the first quarter, with an adjusted combined ratio of 76% and an adjusted return on equity of 27%.”
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