Palomar Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income increased 27.0% to $65.3 million ($2.42 per diluted share) compared to $51.5 million ($1.87 per diluted share) in the third quarter of 2025.
• Adjusted net income increased 47.4% to $81.3 million ($3.01 per diluted share) compared to $55.2 million ($2.01 per diluted share) in the third quarter of 2025.
• Gross written premiums increased 28.4% to $767.0 million compared to $597.2 million in the third quarter of 2025.
• Net earned premiums increased 62.3% to $365.4 million compared to $225.1 million in the third quarter of 2025.
• Total loss ratio was 41.5% compared to 32.3% in the third quarter of 2025.
• Combined ratio was 80.8% compared to 78.1% in the third quarter of 2025.
• Adjusted combined ratio was 76.3% compared to 74.8% in the third quarter of 2025.
• Annualized return on equity was 26.6% compared to 23.9% in the third quarter of 2025.
• Annualized adjusted return on equity was 33.1% compared to 25.6% in the third quarter of 2025.
• Net investment income increased 53.8% to $22.4 million compared to $14.6 million in the prior year's third quarter.
• Cash and invested assets totaled $1.8 billion at September 30, 2026.
• Stockholders' equity was $985.0 million at September 30, 2026, compared to $878.1 million at September 30, 2025.
• Effective tax rate was 22.9% for the three months ended September 30, 2026, compared to 23.4% in the prior year period.

Guidance and Future Outlook:

• For the full year 2026, the Company expects adjusted net income of $280 million to $285 million.
• The full year 2026 outlook includes an estimate of $8 million to $12 million of catastrophe losses.

Business Segments and Product Lines:

• Written premium growth occurred across all five product categories: Earthquake, Inland Marine and Property, Casualty, Crop, and Surety & Credit.
• Crop gross written premiums increased 89.3% to $226.7 million in the third quarter of 2026 compared to $119.8 million in the prior year.
• Surety & Credit gross written premiums increased 228.4% to $48.4 million in the third quarter of 2026 compared to $14.7 million in the prior year.
• Casualty gross written premiums increased 3.4% to $176.8 million in the third quarter of 2026 compared to $171.0 million in the prior year.
• Inland Marine and Property gross written premiums increased 13.4% to $160.7 million in the third quarter of 2026 compared to $141.7 million in the prior year.
• Earthquake gross written premiums increased 3.0% to $154.5 million in the third quarter of 2026 compared to $149.9 million in the prior year.
• PSIC accounted for 57.1% of gross written premiums in the third quarter of 2026.
• PESIC accounted for 35.4% of gross written premiums in the third quarter of 2026.
• Laulima accounted for 3.6% of gross written premiums in the third quarter of 2026.
• PCSC accounted for 3.5% of gross written premiums in the third quarter of 2026.

Market and Competitive Landscape:

• The Company describes its specialty product portfolio as "one-of-one" and well-positioned across market cycles.
• California represented 22.9% of gross written premiums in the third quarter of 2026.
• Texas represented 5.9% of gross written premiums in the third quarter of 2026.
• Missouri represented 5.0% of gross written premiums in the third quarter of 2026.
• Hawaii represented 4.1% of gross written premiums in the third quarter of 2026.
• Illinois represented 4.0% of gross written premiums in the third quarter of 2026.
• Florida represented 3.7% of gross written premiums in the third quarter of 2026.
• Kansas represented 3.2% of gross written premiums in the third quarter of 2026.
• Oklahoma represented 3.1% of gross written premiums in the third quarter of 2026.
• Other states represented 48.1% of gross written premiums in the third quarter of 2026.

Risks and Challenges:

• Losses and loss adjustment expenses for the third quarter were $151.6 million, including $4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest.
• The third quarter results included $4.0 million of attritional unfavorable prior year development primarily related to Crop losses reallocated between calendar years.
• Net realized and unrealized losses on the investment portfolio were $2.7 million in the third quarter of 2026, compared to gains of $3.5 million in the prior year.
• Interest expense increased to $5.1 million in the third quarter of 2026 from $0.1 million in the prior year.
• The Company notes risks including the frequency and severity of catastrophe events, adequacy of loss reserves, availability and cost of reinsurance, investment performance, interest rate fluctuations, weather conditions, crop price volatility, integration of acquisitions, competitive conditions, and regulatory developments.

Management Commentary and Tone:

• Mac Armstrong, Chairman and Chief Executive Officer, described the third quarter of 2026 as "exceptional," highlighting record gross written premium and adjusted net income.
• The Company achieved its 16th consecutive earnings beat and the fourth increase to its 2026 adjusted net income guidance range.
• Management stated that "profitable growth anchors Palomar 2X" and that the quarter's 47% growth in adjusted net income and 33% adjusted return on equity demonstrate the ability to deliver on that strategy.
• Management expressed pleasure with written premium growth across all five product categories and noted the portfolio's ballast, diversity, and overall strength.

Other Key Points:

• The Company repurchased 70,000 shares of its common stock for $8.9 million during the third quarter.
• On October 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.45 per share of common stock, payable on December 2, 2026, to stockholders of record as of November 17, 2026.
• The Company acquired The Gray Casualty and Surety Company ("Gray Surety") on January 31, 2026, and First Indemnity of America Insurance Co. ("FIA") on January 1, 2025, with balances acquired included in reserve calculations.
• Palomar's insurance subsidiaries (PSIC, PSRE, PESIC, and FIA) hold an "A" (Excellent) financial strength rating from A.M. Best, and PCSC holds an "A-" (Excellent) rating.
• The Company hosts a conference call on November 5, 2026, to discuss third quarter 2026 results.
• The Company has updated product categorizations beginning in 2026 to align with management's strategy, with prior year amounts reclassified for comparability.