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Palomar posted Q4 operating EPS of $2.24, up 47%, as revenues surged 59.9% to $251 million.
PLMR saw net earned premiums jump 61% and underwriting income rise over 50% year over year.
Palomar lifted 2026 adjusted net income guidance to $260-$275M, citing strong momentum.
Palomar Holdings, Inc. (PLMR - Free Report) reported fourth-quarter 2025 operating income of $2.24 per share, which beat the Zacks Consensus Estimate by 9%. The bottom line increased 47.4% year over year.
Total revenues improved 59.9% year over year to $251 million, mainly due to higher premiums, commission and other income. The top line beat the Zacks Consensus Estimate by 13.1%.
Palomar delivered strong top and bottom-line growth, driven by robust premium expansion, improved underwriting income and higher investment yields. However, the upside was partially offset by higher expenses.
Palomar Holdings, Inc. Price, Consensus and EPS Surprise
Gross written premiums increased 31.8% year over year to $492.6 million but missed our estimate of $590.6 million.
Net earned premiums rose 61.1% year over year to $233.5 million, exceeding our estimate of $197.9 million and the Zacks Consensus Estimate of $205.6 million.
Net investment income climbed 41.3% year over year to $16 million, driven by higher yields on invested assets and a larger average investment balance supported by strong operating cash flow. The figure surpassed both the Zacks Consensus Estimate of $15.3 million and our estimate of $15.9 million.
Palomar reported adjusted underwriting income of $62.3 million, marking a 51.8% increase from the prior-year level. Reported underwriting income rose 55.7% year over year to $54.4 million, exceeding our estimate of $46.5 million.
Total expenses rose 63.1% year over year to $180.7 million, driven by higher losses and loss adjustment expenses, increased acquisition costs, and elevated underwriting expenses. The figure exceeded our estimate of $152.1 million.
The loss ratio was 30.4%, down 470 basis points year over year. However, it was better than our estimate of 37.9% and slightly below the Zacks Consensus Estimate of 31%.
The adjusted combined ratio worsened 170 basis points year over year to 73.4%, marginally above the Zacks Consensus Estimate of 73.1%.
Full-Year 2025 Highlights
Palomar reported operating revenues of $876 billion in 2025, representing a 58.2% increase from 2024. This metric surpassed the Zacks Consensus Estimate by 4.9%.
Adjusted earnings increased 54.4% year over year to $7.86 per share, driven by higher underwriting income and stronger net investment income. The figure beat the Zacks Consensus Estimate by 2.1%.
Total expenses increased 54.6% to $622.6 million. The adjusted combined ratio improved 100 basis points to 72.7.
Financial Update
Cash and cash equivalents rose 32.9% year over year to $106.9 million. Shareholders’ equity increased 29.3% to $942.7 million over the same period.
Annualized adjusted return on equity for 2025 was 25.9%, representing an expansion of 100 basis points year over year.
The company did not repurchase any common shares during the quarter. As of Dec. 31, 2025, about $112.7 million remained under its $150 million buyback authorization.
2026 Outlook
Palomar raised its 2026 adjusted net income guidance to $260-$275 million from $210-$215 million. The outlook includes $8-$12 million in expected catastrophe losses.
Chubb Limited (CB - Free Report) reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.
CB’s operating revenues improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%. Chubb’s strong performance was driven by solid underwriting profit, robust premium growth and record investment income.
Arch Capital Group Ltd. (ACGL - Free Report) reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year.
ACGL’s operating revenues of $4.7 billion increased 4.4% year over year, driven by higher net premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estimate by 2% on higher premiums in its insurance segment and improved net investment income. These positives were partially offset by higher taxes.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2025 earnings per share of $4.67 beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 14.4% year over year.
PGR’s operating revenues increased 10.6% year over year to $22.49 billion and beat the consensus estimate by 2.5%. Net premiums earned grew 10% to $21 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.9 billion.
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Palomar Q4 Earnings & Revenues Beat Estimates, Premiums Rise Y/Y
Key Takeaways
Palomar Holdings, Inc. (PLMR - Free Report) reported fourth-quarter 2025 operating income of $2.24 per share, which beat the Zacks Consensus Estimate by 9%. The bottom line increased 47.4% year over year.
Total revenues improved 59.9% year over year to $251 million, mainly due to higher premiums, commission and other income. The top line beat the Zacks Consensus Estimate by 13.1%.
Palomar delivered strong top and bottom-line growth, driven by robust premium expansion, improved underwriting income and higher investment yields. However, the upside was partially offset by higher expenses.
Palomar Holdings, Inc. Price, Consensus and EPS Surprise
Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. Quote
Behind the Headlines
Gross written premiums increased 31.8% year over year to $492.6 million but missed our estimate of $590.6 million.
Net earned premiums rose 61.1% year over year to $233.5 million, exceeding our estimate of $197.9 million and the Zacks Consensus Estimate of $205.6 million.
Net investment income climbed 41.3% year over year to $16 million, driven by higher yields on invested assets and a larger average investment balance supported by strong operating cash flow. The figure surpassed both the Zacks Consensus Estimate of $15.3 million and our estimate of $15.9 million.
Palomar reported adjusted underwriting income of $62.3 million, marking a 51.8% increase from the prior-year level. Reported underwriting income rose 55.7% year over year to $54.4 million, exceeding our estimate of $46.5 million.
Total expenses rose 63.1% year over year to $180.7 million, driven by higher losses and loss adjustment expenses, increased acquisition costs, and elevated underwriting expenses. The figure exceeded our estimate of $152.1 million.
The loss ratio was 30.4%, down 470 basis points year over year. However, it was better than our estimate of 37.9% and slightly below the Zacks Consensus Estimate of 31%.
The adjusted combined ratio worsened 170 basis points year over year to 73.4%, marginally above the Zacks Consensus Estimate of 73.1%.
Full-Year 2025 Highlights
Palomar reported operating revenues of $876 billion in 2025, representing a 58.2% increase from 2024. This metric surpassed the Zacks Consensus Estimate by 4.9%.
Adjusted earnings increased 54.4% year over year to $7.86 per share, driven by higher underwriting income and stronger net investment income. The figure beat the Zacks Consensus Estimate by 2.1%.
Total expenses increased 54.6% to $622.6 million. The adjusted combined ratio improved 100 basis points to 72.7.
Financial Update
Cash and cash equivalents rose 32.9% year over year to $106.9 million. Shareholders’ equity increased 29.3% to $942.7 million over the same period.
Annualized adjusted return on equity for 2025 was 25.9%, representing an expansion of 100 basis points year over year.
The company did not repurchase any common shares during the quarter. As of Dec. 31, 2025, about $112.7 million remained under its $150 million buyback authorization.
2026 Outlook
Palomar raised its 2026 adjusted net income guidance to $260-$275 million from $210-$215 million. The outlook includes $8-$12 million in expected catastrophe losses.
Zacks Rank
PLMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Chubb Limited (CB - Free Report) reported fourth-quarter 2025 core operating income of $7.52 per share, which beat the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.9% year over year.
CB’s operating revenues improved 7.4% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 1.7%. Chubb’s strong performance was driven by solid underwriting profit, robust premium growth and record investment income.
Arch Capital Group Ltd. (ACGL - Free Report) reported fourth-quarter 2025 operating income of $2.98 per share, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 31.9% year over year.
ACGL’s operating revenues of $4.7 billion increased 4.4% year over year, driven by higher net premiums earned and net investment income. Revenues surpassed the Zacks Consensus Estimate by 2% on higher premiums in its insurance segment and improved net investment income. These positives were partially offset by higher taxes.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2025 earnings per share of $4.67 beat the Zacks Consensus Estimate by 5.2%. The bottom line increased 14.4% year over year.
PGR’s operating revenues increased 10.6% year over year to $22.49 billion and beat the consensus estimate by 2.5%. Net premiums earned grew 10% to $21 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.9 billion.