Palomar Q1 adjusted EPS, net income beat estimates

Palomar Holdings

06/05/2026 21:37

Overview

Specialty insurer's Q1 adjusted EPS and adjusted net income beat analyst expectations

Gross written premiums rose 42% yr/yr, driven by growth across all product categories

Outlook

Palomar expects 2026 adjusted net income of $262 mln to $278 mln

Company estimates 2026 catastrophe losses at $8 mln to $12 mln

Result Drivers

PREMIUM GROWTH - Gross written premiums rose 42% yr/yr, with growth across all five product categories, including Earthquake, Crop, and Surety, per CEO Mac Armstrong

HIGHER INVESTMENT INCOME - Net investment income increased 49% yr/yr, primarily due to higher yields and a larger average investment balance

GRAY ACQUISITION - Results include two months of activity from The Gray Casualty & Surety Company, acquired Jan. 31, 2026

Company press release: ID:nGNXbgb7nv

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross written premiums
$629.8 mln
Q1 Adjusted EPS
Beat
$2.31
$2.20 (8 Analysts)
Q1 EPS
$1.57
Q1 Adjusted Net Income
Beat
$63.1 mln
$59.93 mln (8 Analysts)
Q1 Net Income
$42.9 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy"

Wall Street's median 12-month price target for Palomar Holdings Inc is $163.00, about 45.9% above its May 5 closing price of $111.73

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)