Palomar completes certain reinsurance programs, increases FY25 net income view

Palomar (PLMR) announced the successful completion of certain reinsurance programs incepting June 1 and increased the company’s full year 2025 adjusted net income guidance. The company has procured approximately $455M of incremental limit to support the growth of its Earthquake franchise. Palomar’s reinsurance coverage now extends to $3.53B for earthquake events and $100M for continental United States hurricane events. Palomar’s per occurrence event retention is $11M for hurricane events, reduced from $15.5M the previous treaty year, and $20M for earthquake events, levels that continue to be meaningfully within management’s previously stated guideposts of less than one quarter’s adjusted net income and less than 5% of stockholders’ equity. “We are very pleased with the outcome of our June 1 excess of loss placement and remain grateful for the continued support of our broad and diverse reinsurance panel,” commented Mac Armstrong, Palomar’s chairman and CEO. “Beyond the risk adjusted rate decrease of approximately 10%, this renewal saw Palomar procure incremental earthquake limit to support our growth, maintain our earthquake event retention despite significant year-over-year exposure growth, reduce our wind event retention to $11 million, upsize our Torrey Pines Re catastrophe bond and successfully execute our first standalone Laulima excess of loss treaty. Importantly these initiatives were consummated at attractive prices that should enhance our earnings prospects for the remainder of 2025 and the first half of 2026. As a result, we are raising our full-year 2025 adjusted net income guidance range to $195 million to $205 million from the previously indicated range of $186 million to $200 million.”