Palomar Holdings Delivers Record-Breaking Q3 2026 Performance Amid Challenging Market Conditions
Palomar Holdings Incorporated has announced an impressive set of results for the third quarter of 2026, surpassing expectations across multiple key metrics. The company's gross written premium reached a record high, while adjusted net income and earnings per share saw significant year-over-year increases.
According to Mac Armstrong, Chairman and Chief Executive Officer, Palomar delivered an excellent Q3 performance, highlighted by the achievement of a 16th consecutive earnings beat. The quarter's results also included a fourth increase to full-year adjusted net income guidance, demonstrating the company's ability to sustain its profitable growth trajectory despite market headwinds.
Palomar's diversified and balanced portfolio has been instrumental in driving this success, with no single product group accounting for more than one-third of gross written premium. The property business, which encompasses earthquake and inland marine and property, accounted for approximately 41% of the company's portfolio, with a split of 48% residential business and 52% commercial business.
The company's deliberate strategy to build a diversified portfolio has given Palomar a unique ability to deploy capacity where risk-adjusted returns remain attractive across market conditions. This is particularly evident in its crop and surety businesses, which collectively totaled over 36% of the third quarter's gross written premium.
Jon Christianson, President of the company, noted that these results underscore the strong execution of the Palomar team and their ability to generate attractive returns across market cycles. The acquisition and successful integration of the Gray Surety team into Palomar have been a key factor in this success, with surety and credit growth reaching an impressive 228%.
Palomar's quarterly performance has also allowed for the repurchase of approximately $8.9 million of common stock and the payment of the inaugural dividend of $0.45 per share in September. This demonstrates the company's commitment to returning capital to shareholders while maintaining its ability to sustain profitable growth.
The annualized adjusted return on equity reached 33%, comfortably exceeding Palomar's target of 20% for Palomar 2X, providing the flexibility to sustain this performance and continue delivering value to stakeholders."
