Palomar Holdings Increases FY25 Adjusted Net Income Guidance To $195M-$205M

~ Full-Year 2025 Adjusted Net Income Guidance Increased to $195 Million to $205 Million ~

LA JOLLA, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) ("Palomar" or the "Company") today announced the successful completion of certain reinsurance programs incepting June 1, 2025, and increased the Company's full year 2025 adjusted net income guidance.

The Company has procured approximately $455 million of incremental limit to support the growth of its Earthquake franchise. Palomar's reinsurance coverage now extends to $3.53 billion for earthquake events and $100 million for continental United States hurricane events.

Palomar's per occurrence event retention is $11 million for hurricane events, reduced from $15.5 million the previous treaty year, and $20 million for earthquake events, levels that continue to be meaningfully within management's previously stated guideposts of less than one quarter's adjusted net income and less than 5% of stockholders' equity.

The reinsurance program continues to provide ample capacity for the Company's growth in the subject business lines as well as coverage to a level exceeding Palomar's 1:250-year peak zone Probable Maximum Loss. Of note, $525 million of the $3.53 billion earthquake limit was sourced through Palomar's sixth and largest Torrey Pines Re catastrophe bond issuance, which exceeded management's $425 million target and priced at the lower end of the indicated range.

Effective June 1st, Palomar also executed the first standalone excess of loss (‘XOL') treaty covering the Hawaii hurricane policies issued by Laulima Exchange. This business was previously covered through Palomar's core reinsurance tower, which now consists of over 95% earthquake-only coverage as a result of this change. Laulima's XOL reinsurance program consists of per occurrence coverage up to $735 million with a retention of $1.5 million.