Specialty property insurer Palomar Holdings has reported gross written premium (GWP) of $218.7 million for the second quarter of 2022, a huge increase of 69% compared to $129.4 million from the prior year quarter.
The company also reported a net income of $14.6 million for the quarter, increasing from $12.3 million from the same period last year, while adjusted net income for the quarter was $18.7 million, compared to $13.2 million from the second quarter of 2021.
Underwriting income for the Q2 22 was $20 million, which resulted in a combined ratio of 75.1% compared to underwriting income of $13 million and a combined ratio of 76.0% during the same period last year.
Excluding expenses related to stock-based compensation, amortization of intangibles, and catastrophe bonds, the company’s adjusted combined ratio was 69.1% in the second quarter compared to 73.8% during the same period last year.
At the same time, Palomar Holdings’ net investment income in the second quarter of 2022 increased by 43.1% to $3.1 million, compared to $2.2 million in the prior year’s second quarter.
Mac Armstrong, Chairman and Chief Executive Officer, commented: “Simply put, Palomar had a very strong second quarter. Our results clearly demonstrate further execution of our 2022 strategic objectives and “Palomar 2X”, our intermediate term strategic plan of doubling our adjusted underwriting income and delivering an adjusted return on equity of 20%.
“Highlights of the quarter included 69% year-over-year gross written premium growth, the successful placement of our excess of loss reinsurance program, the conversion of our Texas Specialty Homeowner’s product to a fronting program and incremental traction in our new products including professional liability and PLMR-FRONT.
“Predictable, profitable growth is a key tenant of Palomar 2X and the second quarter results embodied this tenant. During the quarter, we achieved an adjusted combined ratio of approximately 69.1%, an annualized adjusted ROE of 19.7%, and year-over-year adjusted net income growth of 41.3%, even with $4.6 million of unrealized losses in our equity portfolio.”
This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.
