The reinsurance renewal at improved economics with unchanged retentions removes a key overhang for PLMR heading into peak hurricane season. The guidance raise reinforces the 2X strategy trajectory. Watch for Q2 earnings to confirm margin stability and crop seasonality impact. The $200M buyback authorization provides downside support.
Price Chart
Executive Summary
Palomar Holdings announced the successful completion of its June 1, 2026, reinsurance renewal, securing $421M of incremental earthquake limit and raising full-year 2026 adjusted net income guidance to $266M-$280M (from $262M-$278M). The company also issued its seventh Torrey Pines Re catastrophe bond for $410M of protection, maintained event retentions at $20M (earthquake) and $11M (hurricane), and expanded the Laulima Hawaii hurricane XOL treaty to $865M. The updated investor presentation highlights Q1 2026 GWP of $629.8M (+42% YoY) and adjusted net income of $63.1M (+23% YoY).
Key Facts
- Raised FY2026 adjusted net income guidance to $266M-$280M from $262M-$278M
- Secured ~$421M of incremental earthquake reinsurance limit; total earthquake coverage now $3.92B
- Issued seventh Torrey Pines Re catastrophe bond securing $410M of protection; $1.28B total multi-year ILS capacity
- Per-occurrence retentions unchanged at $20M (earthquake) and $11M (hurricane)
- Laulima Hawaii hurricane XOL treaty increased to $865M (+$130M YoY), including $50M via Torrey Pines Re
- Q1 2026 GWP $629.8M (+42% YoY); adjusted net income $63.1M (+23% YoY); adjusted combined ratio 76.0%
- Reinsurance panel of 100+ reinsurers/ILS investors, all A- rated or better or fully collateralized
- Board authorized new two-year $200M share repurchase program
Financial Impact
FY2026 adjusted net income guidance raised by $4M at midpoint to $273M, implying ~26% YoY growth from FY2025 actual of $216.1M
Risk Factors
- Catastrophe losses above retained limits could still impact earnings despite expanded coverage
- Crop seasonality may cause Q3 earnings volatility as loss ratio spikes seasonally
- Integration of Gray Surety acquisition and expansion into new lines carry execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-246399 |
| Document: plmr-ex99_1.htm | 0001193125-26-246399 |
| Document: plmr-ex99_2.htm | 0001193125-26-246399 |
| Document: 0001193125-26-246399-index-headers.html | 0001193125-26-246399 |
| Document: 0001193125-26-246399-index.html | 0001193125-26-246399 |
| Document: 0001193125-26-246399.txt | 0001193125-26-246399 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 9w ago | Insider Cluster | $131.76 $127.21 | ▼ −3.45% | ▼ −3.70% | $136.52 (+3.62%) |
Aug 20, 2026 9w ago | Insider Cluster | $130.09 $134.09 | ▲ +3.07% | ▲ +2.06% | $136.52 (+4.94%) |
Aug 10, 2026 11w ago | 8-K | $131.69 $133.11 | ▲ +1.08% | ▲ +2.14% | $136.52 (+3.67%) |
Aug 4, 2026 11w ago | Press Release | $134.00 $132.12 | ▼ −1.40% | ▼ −0.80% | $136.52 (+1.88%) |
Jul 28, 2026 12w ago | Press Release | $142.91 $131.82 | ▼ −7.76% | ▼ −12.78% | $136.52 (−4.47%) |
Jul 22, 2026 13w ago | Insider Cluster | $129.18 $128.87 | ▼ −0.24% | ▼ −3.55% | $136.52 (+5.68%) |
Jul 21, 2026 13w ago | Insider Cluster | $130.45 $126.88 | ▼ −2.74% | ▼ −5.63% | $136.52 (+4.65%) |
Jul 6, 2026 16w ago | Insider Cluster | $145.29 $136.51 | ▼ −6.04% | ▼ −7.38% | $136.52 (−6.04%) |
May 29, 2026 21w ago | 8-K | $107.04 $126.33 | ▲ +18.02% | ▲ +19.82% | $136.52 (+27.54%) |
May 29, 2026 21w ago | Press Release | $107.04 $126.33 | ▲ +18.02% | ▲ +19.82% | $136.52 (+27.54%) |
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