Palomar Q3 adjusted EPS beats estimates on lower catastrophe loss ratio

Palomar Holdings

06/11/2025 21:27

Overview

Palomar Q3 gross written premiums rise 43.9% yr/yr

Adjusted EPS for Q3 beats analyst expectations

Company acquired The Gray Casualty and Surety Company in October

Outlook

Company raises full-year 2025 adjusted net income forecast to $210 mln-$215 mln

Company's investments in Crop and Surety expected to drive long-term growth

Result Drivers

GROSS WRITTEN PREMIUMS - Increased 43.9% to $597.2 mln, driven by strong performance across diverse portfolio

ADJUSTED NET INCOME - Rose 70% to $55.2 mln, supported by lower catastrophe loss ratio and improved underwriting income

CROP AND SURETY EXPANSION - Strategic focus on crop and surety segments, including acquisition of The Gray Casualty and Surety Company, to drive growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Gross written premiums
$597.17 mln
Q3 Adjusted EPS
Beat
$2.01
$1.62 (7 Analysts)
Q3 EPS
$1.87
Q3 Adjusted Net Income
Beat
$55.16 mln
$43.97 mln (7 Analysts)
Q3 Net Income
$51.46 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 $164.00, about 28.8% above its November 5 closing price of $116.71

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX94GdSp

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(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.)