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Palomar (PLMR) Down 1.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Palomar (PLMR - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Palomar due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Palomar Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Palomar Q2 Earnings Top on Higher Premiums, Investment Income Rise Y/Y
Palomar Holdings reported second-quarter 2026 operating income of $2.36 per share, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 34.1% year over year.
Total revenues improved 57.9% year over year to $307.7 million, mainly driven by higher net earned premiums and investment income. The top line beat the Zacks Consensus Estimate by 7.4%.
Palomar delivered another quarter of strong premium and revenue growth, aided by robust net earned premiums and higher investment income. However, elevated losses and underwriting expenses weighed on underwriting margins, resulting in a higher combined ratio.
Behind the Headlines
Gross written premiums increased 27% year over year to $630.5 million, supported by growth across Casualty, Crop and Surety & Credit lines. The figure missed our estimate of $688 million.
Net earned premiums rose 59.5% year over year to $287 million, exceeding our estimate of $260 million and the Zacks Consensus Estimate of $266 million.
Net investment income climbed 49.2% year over year to $20 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 $18.2 million and our estimate of $18.8 million.
Palomar reported adjusted underwriting income of $67 million, marking a 38.4% increase from the prior-year level. Reported underwriting income grew 25.5% year over year to $48 million, surpassing our estimate of $17 million.
Total expenses rose 70.5% year over year to $244.6 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure was lower than our estimate of $248.9 million.
The loss ratio was 34.5%, deteriorating 880 basis points year over year. It was lower than our estimate of 37.8% and the Zacks Consensus Estimate of 35.5%.
The adjusted combined ratio worsened 360 basis points year over year to 76.7%, but was better than the Zacks Consensus Estimate of 78.4%.
PLMR’s Financial Update
Cash and cash equivalents declined 41.3% to $62.7 million from the 2025-end level.
Shareholders’ equity increased 4.1% to $980.9 million from the 2025-end level.
Annualized adjusted return on equity for the second quarter of 2026 was 26.3%, up 260 basis points year over year.
PLMR’s Capital Deployment
During the second quarter, the company repurchased 0.37 million shares for $41 million.
On July 30, 2026, Palomar's board declared its first quarterly cash dividend of 45 cents per share. The dividend is payable on Sept. 2, 2026, to shareholders of record as of Aug. 19, 2026.
PLMR’s 2026 Guidance
The company expects 2026 adjusted net income in the range of $270-$280 million, including estimated catastrophe losses of $8-$12 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Palomar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Palomar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Palomar belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago.
For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Palomar (PLMR) Down 1.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Palomar (PLMR - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Palomar due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Palomar Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Palomar Q2 Earnings Top on Higher Premiums, Investment Income Rise Y/Y
Palomar Holdings reported second-quarter 2026 operating income of $2.36 per share, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 34.1% year over year.
Total revenues improved 57.9% year over year to $307.7 million, mainly driven by higher net earned premiums and investment income. The top line beat the Zacks Consensus Estimate by 7.4%.
Palomar delivered another quarter of strong premium and revenue growth, aided by robust net earned premiums and higher investment income. However, elevated losses and underwriting expenses weighed on underwriting margins, resulting in a higher combined ratio.
Behind the Headlines
Gross written premiums increased 27% year over year to $630.5 million, supported by growth across Casualty, Crop and Surety & Credit lines. The figure missed our estimate of $688 million.
Net earned premiums rose 59.5% year over year to $287 million, exceeding our estimate of $260 million and the Zacks Consensus Estimate of $266 million.
Net investment income climbed 49.2% year over year to $20 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 $18.2 million and our estimate of $18.8 million.
Palomar reported adjusted underwriting income of $67 million, marking a 38.4% increase from the prior-year level. Reported underwriting income grew 25.5% year over year to $48 million, surpassing our estimate of $17 million.
Total expenses rose 70.5% year over year to $244.6 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure was lower than our estimate of $248.9 million.
The loss ratio was 34.5%, deteriorating 880 basis points year over year. It was lower than our estimate of 37.8% and the Zacks Consensus Estimate of 35.5%.
The adjusted combined ratio worsened 360 basis points year over year to 76.7%, but was better than the Zacks Consensus Estimate of 78.4%.
PLMR’s Financial Update
Cash and cash equivalents declined 41.3% to $62.7 million from the 2025-end level.
Shareholders’ equity increased 4.1% to $980.9 million from the 2025-end level.
Annualized adjusted return on equity for the second quarter of 2026 was 26.3%, up 260 basis points year over year.
PLMR’s Capital Deployment
During the second quarter, the company repurchased 0.37 million shares for $41 million.
On July 30, 2026, Palomar's board declared its first quarterly cash dividend of 45 cents per share. The dividend is payable on Sept. 2, 2026, to shareholders of record as of Aug. 19, 2026.
PLMR’s 2026 Guidance
The company expects 2026 adjusted net income in the range of $270-$280 million, including estimated catastrophe losses of $8-$12 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Palomar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Palomar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Palomar belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago.
For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.