Palomar Highlights Strong Q4 Results and Gray Surety Acquisition

Palomar Holdings ( (PLMR) ) just unveiled an update.

On February 23, 2026, Palomar Holdings, Inc. updated its investor presentation, highlighting fourth-quarter gross written premium of $492.6 million, up 31.8% year on year, and adjusted net income of $61.1 million, a 48% gain that translated into a 26.9% adjusted return on equity and a 73.4% adjusted combined ratio. The company also noted its January 31, 2026 closing of the Gray Surety acquisition, which adds expertise and scale in surety and credit and would have represented about 7% of total gross written premium for full-year 2025 on a pro forma basis.

Palomar emphasized that its non-earthquake business now represents 72% of its specialty premium base, underscoring a deliberate shift toward a more diversified mix that preserves profitability while reducing dependence on a single catastrophe line. The presentation detailed responsible growth in casualty with conservative reserving, increased crop retention to 50% starting January 1, 2026, and a broad, multi-layered reinsurance program that expands earthquake coverage to roughly $3.5 billion while maintaining a $20 million occurrence retention, factors the company argues have helped it beat earnings consensus for 14 consecutive quarters and should continue to support stable margins and long-term value creation for stakeholders.

The most recent analyst rating on (PLMR) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Palomar Holdings stock, see the PLMR Stock Forecast page.

Spark’s Take on PLMR Stock

According to Spark, TipRanks’ AI Analyst, PLMR is a Outperform.

PLMR scores well primarily on strong financial performance (profitability, cash generation, and zero-debt balance sheet) and a very upbeat earnings outlook with raised guidance and strong underwriting metrics. The main offset is weaker near-term technical momentum (below key moving averages with negative MACD), while valuation appears reasonable based on its P/E.

To see Spark’s full report on PLMR stock, click here.

More about Palomar Holdings

Palomar Holdings, Inc. is a leading specialty insurer focused on property and casualty lines, with a balanced mix of admitted and excess & surplus products across residential and commercial markets. Its diversified portfolio spans earthquake, casualty, inland marine and property, crop, and surety and credit, supported by a purpose-built risk transfer and reinsurance strategy aimed at maintaining strong margins and earnings stability through market cycles.

The company leverages an AM Best “A” (Excellent) rating and a larger balance sheet to underwrite niche risks while managing catastrophe exposure via a blend of quota share, excess-of-loss and catastrophe bond structures. Management targets sustained adjusted return on equity above 20% and a long-term goal of doubling adjusted net income every three to five years, positioning Palomar as a growth-oriented, cycle-resilient player in the specialty insurance space.

Average Trading Volume: 254,861

Technical Sentiment Signal: Buy

Current Market Cap: $3.39B

For an in-depth examination of PLMR stock, go to TipRanks’ Overview page.