Palomar Holdings, Inc. (NASDAQ: PLMR) reported fourth‑quarter and full‑year 2025 results that surpassed consensus estimates. Net income rose to $56.2 million, or $2.06 per diluted share, up from $35.0 million ($1.29 EPS) a year earlier. Adjusted net income climbed to $61.1 million, or $2.24 EPS, reflecting a 48% increase in adjusted earnings. Total revenue reached $253.4 million, beating the consensus estimate of $221.99 million by roughly $31 million, driven by robust demand in crop, casualty, and residential earthquake lines.
Gross written premiums grew 32% to $492.6 million, while net earned premiums increased 61.1% year‑over‑year. The adjusted combined ratio improved to 73%, a tightening that reflects stronger pricing and effective reinsurance placement. The company’s full‑year 2025 results were record‑setting, with adjusted net income of $216.1 million and an adjusted return on equity of 26.9%, close to the 27% figure cited in the report.
"Our strong fourth quarter results provided a superb culmination to what was an exceptional 2025. The quarter was highlighted by record adjusted net income, strong top and bottom‑line growth as gross written premium grew 32% and adjusted net income increased 48% across our unique and diverse portfolio," said Mac Armstrong, Chairman and CEO. The statement underscores the company’s focus on diversification and its ability to generate consistent returns across its specialty lines.
The earnings call, scheduled for 12:00 p.m. Eastern Time on February 12, will provide further detail on the drivers behind the strong results. While the company did not issue new guidance in the release, analysts noted that the earnings beat and improved combined ratio signal confidence in Palomar’s underwriting model and reinsurance strategy.
Market reaction to the results was muted, with investors focusing on the combined ratio miss relative to some analyst estimates. Nevertheless, the EPS beat and revenue outperformance were viewed positively, reflecting strong execution and pricing power in the company’s core segments.
Palomar’s recent acquisition of The Gray Casualty & Surety Company and the closing of a $450 million credit facility, funded by a $300 million term loan, broadened its product mix and balance‑sheet flexibility. The company’s reinsurance‑arbitrage model, which cedes a significant portion of premium to reinsurers, has become more valuable with the expansion of dedicated reinsurance capital.
Overall, Palomar’s Q4 2025 results demonstrate robust growth, effective cost control, and a diversified portfolio that supports a strong outlook for the remainder of the year and beyond.
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