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Palomar Q1 Earnings, Revenues Top Estimates, Investment Income Rises Y/Y
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Key Takeaways
PLMR Q1 operating income rose 23.5% and beat estimates as revenues climbed 58.7
Palomar's net earned premiums surged 59.3%, while investment income increased 49%.
PLMR approved a new $200M share repurchase plan and reaffirmed 2026 income guidance.
Palomar Holdings, Inc. (PLMR - Free Report) reported first-quarter 2026 operating income of $2.31 per share, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 23.5% year over year.
Total revenues improved 58.7% year over year to $281 million, mainly driven by higher premiums, commission, investment income and other income. The top line beat the Zacks Consensus Estimate by 7.8%.
Palomar delivered robust first-quarter premium and revenue growth, supported by higher net earned premiums and investment income. However, higher losses and underwriting expenses pressured profitability, leading to a decline in underwriting income.
Palomar Holdings, Inc. Price, Consensus and EPS Surprise
Gross written premiums increased 42.4% year over year to $629.8 million but missed our estimate of $659.9 million.
Net earned premiums rose 59.3% year over year to $261.4 million, exceeding our estimate of $236.6 million and the Zacks Consensus Estimate of $242.5 million.
Net investment income climbed 49% year over year to $18 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 $16.6 million and our estimate of $16.4 million.
Palomar reported adjusted underwriting income of $62.8 million, marking a 21.6% increase from the prior-year level. Reported underwriting income fell 8% year over year to $40.5 million, missing our estimate of $48.1 million.
Total expenses rose 86.5% year over year to $225.5 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure exceeded our estimate of $189.6 million.
The loss ratio was 33.3%, deteriorated 970 basis points year over year. It was higher than our estimate of 30% and the Zacks Consensus Estimate of 32.1%.
The adjusted combined ratio worsened 750 basis points year over year to 76%, above the Zacks Consensus Estimate of 74.9%.
PLMR’s Financial Update
Cash and cash equivalents declined 47.1% to $56.5 million from the 2025-end level.
Shareholders’ equity increased 1.7% to $959 million from the 2025-end level.
Annualized adjusted return on equity for the first quarter of 2026 was 26.6%, down 40 basis points year over year.
PLMR’s Capital Deployment
During the quarter, the company repurchased 0.2 million shares for $23.1 million.
On April 30, 2026, the board of directors approved a share repurchase program, effective May 6, 2026, replacing the previous program, and authorized the company to buyback up to $200 million worth shares through May 6, 2028.
PLMR’s 2026 Guidance
The company expects to achieve adjusted net income in the range of $262-$278 million. This includes an estimate in the range of $8-$12 million for catastrophe losses for the year.
AXIS Capital Holdings Limited (AXS - Free Report) reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. Net premiums written increased 9% to $1.9 billion, driven by a 24% rise in the Insurance segment, partially offset by a 13% decline in the Reinsurance segment.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line decreased 85.2% year over year. CB’s total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
Chubb’s net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income totaled $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
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Palomar Q1 Earnings, Revenues Top Estimates, Investment Income Rises Y/Y
Key Takeaways
Palomar Holdings, Inc. (PLMR - Free Report) reported first-quarter 2026 operating income of $2.31 per share, which beat the Zacks Consensus Estimate by 6.4%. The bottom line increased 23.5% year over year.
Total revenues improved 58.7% year over year to $281 million, mainly driven by higher premiums, commission, investment income and other income. The top line beat the Zacks Consensus Estimate by 7.8%.
Palomar delivered robust first-quarter premium and revenue growth, supported by higher net earned premiums and investment income. However, higher losses and underwriting expenses pressured profitability, leading to a decline in underwriting income.
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 42.4% year over year to $629.8 million but missed our estimate of $659.9 million.
Net earned premiums rose 59.3% year over year to $261.4 million, exceeding our estimate of $236.6 million and the Zacks Consensus Estimate of $242.5 million.
Net investment income climbed 49% year over year to $18 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 $16.6 million and our estimate of $16.4 million.
Palomar reported adjusted underwriting income of $62.8 million, marking a 21.6% increase from the prior-year level. Reported underwriting income fell 8% year over year to $40.5 million, missing our estimate of $48.1 million.
Total expenses rose 86.5% year over year to $225.5 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure exceeded our estimate of $189.6 million.
The loss ratio was 33.3%, deteriorated 970 basis points year over year. It was higher than our estimate of 30% and the Zacks Consensus Estimate of 32.1%.
The adjusted combined ratio worsened 750 basis points year over year to 76%, above the Zacks Consensus Estimate of 74.9%.
PLMR’s Financial Update
Cash and cash equivalents declined 47.1% to $56.5 million from the 2025-end level.
Shareholders’ equity increased 1.7% to $959 million from the 2025-end level.
Annualized adjusted return on equity for the first quarter of 2026 was 26.6%, down 40 basis points year over year.
PLMR’s Capital Deployment
During the quarter, the company repurchased 0.2 million shares for $23.1 million.
On April 30, 2026, the board of directors approved a share repurchase program, effective May 6, 2026, replacing the previous program, and authorized the company to buyback up to $200 million worth shares through May 6, 2028.
PLMR’s 2026 Guidance
The company expects to achieve adjusted net income in the range of $262-$278 million. This includes an estimate in the range of $8-$12 million for catastrophe losses for the year.
Palomar’s 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
AXIS Capital Holdings Limited (AXS - Free Report) reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. Net premiums written increased 9% to $1.9 billion, driven by a 24% rise in the Insurance segment, partially offset by a 13% decline in the Reinsurance segment.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line decreased 85.2% year over year. CB’s total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
Chubb’s net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income totaled $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.