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Palomar's (PLMR) Q1 Earnings Top on Solid Underwriting
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Palomar Holdings Inc. (PLMR - Free Report) reported first-quarter 2024 operating income of $1.09 per share, which beat the Zacks Consensus Estimate by 34.6%. The bottom line increased 36.3% year over year.
Palomar witnessed improved premiums and net investment income. Premiums benefited from solid contributions from Crop and Casualty products.
Behind the Headlines
Total revenues improved 30.3% year over year to $116 million, mainly attributable to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate by 6.4%.
Gross written premiums increased 47.2% year over year to $368.1 million. Our estimate was $284.3 million.
Net earned premiums increased 29.6% year over year to $93.7 million. Our estimate was $98.1 million. The Zacks Consensus Estimate was pegged at $105.1 million.
Net investment income increased 39.4% year over year to $7.1 million, driven by higher yields on invested assets and a higher average balance of investments due to cash generated from operations. The Zacks Consensus Estimate was pegged at $7.9 million. Our estimate was $6.3 million.
Palomar Holdings, Inc. Price, Consensus and EPS Surprise
Palomar recorded an underwriting income of $29.2 million, up 35.9% year over year. Adjusted underwriting income was nearly $29.2 million, rising 31.5% year over year.
Total expenses of $84.2 million increased 26.4% year over year due to higher loss and loss adjustment expenses, acquisition expenses and other underwriting expenses. Our estimate was $81.9 million.
The loss ratio was 24.9, which improved 10 basis points (bps) year over year. Our estimate was 22.2. The Zacks Consensus Estimate was pegged at 22.1.
Adjusted combined ratio, excluding catastrophe losses, improved 30 bps year over year to 73. The Zacks Consensus Estimate was pegged at 79.3.
Financial Update
Cash and cash equivalents increased 18.8% from 2023-end to $6.2 million at first-quarter 2024-end. Shareholder equity increased 24% from 2023-end to $501.7 million at the end of the first quarter.
Annualized adjusted return on equity in the first quarter of 2024 was 22.9%, up 220 bps year over year. As of Mar 31, 2024, $43.5 million remained under authorization.
2024 View
Palomar aims to achieve adjusted net income in the range of $113 million-$118 million.
The Travelers Companies (TRV - Free Report) reported first-quarter 2024 core income of $4.69 per share, which missed the Zacks Consensus Estimate of $4.75 on higher-than-expected catastrophe loss. The bottom line increased 14.1% year over year, driven by higher underlying underwriting gain and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 15.3% from the year-ago quarter to $11.2 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.1%.
Net written premiums increased 8% year over year to about $10.2 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.9 billion. Travelers witnessed an underwriting gain of $1.4 billion, up 57.3% year over year, driven by higher business volumes.
Consolidated underlying combined ratio of 87.7 improved 290 bps year over year. The combined ratio improved 150 bps year over year to 93.9 due to an improvement in the underlying combined ratio, partially offset by higher catastrophe losses and lower net favorable prior-year reserve development. The Zacks Consensus Estimate was pegged at 94.
Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year. Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1,290 bps from the prior-year quarter’s level to 86.1.
RLI Corp. (RLI - Free Report) reported first-quarter 2024 operating earnings of $1.89 per share, beating the Zacks Consensus Estimate as well as the year-ago number by 16%. The quarterly results reflected continued premium growth across all product segments. Operating revenues for the reported quarter were $394 million, up 17.6% year over year, driven by 17% higher net premiums earned and 21.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.1%.
Gross premiums written increased 13% year over year to $468 million. This uptick can be attributed to the solid performance of the Casualty (up 12.6%), Property (up 13.5%) and Surety (up 12.1%) segments. Our estimate was $511 million. Underwriting income of $77.7 million increased 16%. Combined ratio deteriorated 60 bps year over year to 78.5. The Zacks Consensus Estimate for the metric was pegged at 85, while our estimate was 77.7.
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Palomar's (PLMR) Q1 Earnings Top on Solid Underwriting
Palomar Holdings Inc. (PLMR - Free Report) reported first-quarter 2024 operating income of $1.09 per share, which beat the Zacks Consensus Estimate by 34.6%. The bottom line increased 36.3% year over year.
Palomar witnessed improved premiums and net investment income. Premiums benefited from solid contributions from Crop and Casualty products.
Behind the Headlines
Total revenues improved 30.3% year over year to $116 million, mainly attributable to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate by 6.4%.
Gross written premiums increased 47.2% year over year to $368.1 million. Our estimate was $284.3 million.
Net earned premiums increased 29.6% year over year to $93.7 million. Our estimate was $98.1 million. The Zacks Consensus Estimate was pegged at $105.1 million.
Net investment income increased 39.4% year over year to $7.1 million, driven by higher yields on invested assets and a higher average balance of investments due to cash generated from operations. The Zacks Consensus Estimate was pegged at $7.9 million. Our estimate was $6.3 million.
Palomar Holdings, Inc. Price, Consensus and EPS Surprise
Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. Quote
Palomar recorded an underwriting income of $29.2 million, up 35.9% year over year. Adjusted underwriting income was nearly $29.2 million, rising 31.5% year over year.
Total expenses of $84.2 million increased 26.4% year over year due to higher loss and loss adjustment expenses, acquisition expenses and other underwriting expenses. Our estimate was $81.9 million.
The loss ratio was 24.9, which improved 10 basis points (bps) year over year. Our estimate was 22.2. The Zacks Consensus Estimate was pegged at 22.1.
Adjusted combined ratio, excluding catastrophe losses, improved 30 bps year over year to 73. The Zacks Consensus Estimate was pegged at 79.3.
Financial Update
Cash and cash equivalents increased 18.8% from 2023-end to $6.2 million at first-quarter 2024-end. Shareholder equity increased 24% from 2023-end to $501.7 million at the end of the first quarter.
Annualized adjusted return on equity in the first quarter of 2024 was 22.9%, up 220 bps year over year. As of Mar 31, 2024, $43.5 million remained under authorization.
2024 View
Palomar aims to achieve adjusted net income in the range of $113 million-$118 million.
Zacks Rank
PLMR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported first-quarter 2024 core income of $4.69 per share, which missed the Zacks Consensus Estimate of $4.75 on higher-than-expected catastrophe loss. The bottom line increased 14.1% year over year, driven by higher underlying underwriting gain and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 15.3% from the year-ago quarter to $11.2 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.1%.
Net written premiums increased 8% year over year to about $10.2 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.9 billion. Travelers witnessed an underwriting gain of $1.4 billion, up 57.3% year over year, driven by higher business volumes.
Consolidated underlying combined ratio of 87.7 improved 290 bps year over year. The combined ratio improved 150 bps year over year to 93.9 due to an improvement in the underlying combined ratio, partially offset by higher catastrophe losses and lower net favorable prior-year reserve development. The Zacks Consensus Estimate was pegged at 94.
Progressive Corporation’s (PGR - Free Report) first-quarter 2024 earnings per share of $3.83 beat the Zacks Consensus Estimate of $3.20. The bottom line improved nearly eight times year over year. Operating revenues of $17.1 billion beat the Zacks Consensus Estimate by 2.4% and increased 20.1% year over year.
Net premiums earned grew 19% to $16 billion and beat our estimate of $14.4 billion. Combined ratio — the percentage of premiums paid out as claims and expenses — improved 1,290 bps from the prior-year quarter’s level to 86.1.
RLI Corp. (RLI - Free Report) reported first-quarter 2024 operating earnings of $1.89 per share, beating the Zacks Consensus Estimate as well as the year-ago number by 16%. The quarterly results reflected continued premium growth across all product segments. Operating revenues for the reported quarter were $394 million, up 17.6% year over year, driven by 17% higher net premiums earned and 21.3% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.1%.
Gross premiums written increased 13% year over year to $468 million. This uptick can be attributed to the solid performance of the Casualty (up 12.6%), Property (up 13.5%) and Surety (up 12.1%) segments. Our estimate was $511 million. Underwriting income of $77.7 million increased 16%. Combined ratio deteriorated 60 bps year over year to 78.5. The Zacks Consensus Estimate for the metric was pegged at 85, while our estimate was 77.7.