PLMR Palomar Holdings Inc

Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $35.0 million, or $1.29 per diluted share, for the fourth quarter of 2024 compared to net income of $25.9 million, or $1.02 per diluted share, for the fourth quarter of 2023. Adjusted net income(1) was $41.3 million, or $1.52 per diluted share, for the fourth quarter of 2024 as compared to $28.0 million, or $1.11 per diluted share, for the fourth quarter of 2023. 

Fourth Quarter 2024 Highlights

• Gross written premiums increased by 23.3% to $373.7 million compared to $303.2 million in the fourth quarter of 2023
• Net income increased 35.0% to $35.0 million compared to $25.9 million in the fourth quarter of 2023
• Adjusted net income(1) increased 47.5% to $41.3 million compared to $28.0 million in the fourth quarter of 2023
• Total loss ratio of 25.7% compared to 19.1% in the fourth quarter of 2023
• Combined ratio of 75.9% compared to 74.2% in the fourth quarter of 2023
• Adjusted combined ratio(1) of 71.7% compared to 68.8%, in the fourth quarter of 2023
• Annualized return on equity of 19.5% compared to 23.2% in the fourth quarter of 2023
• Annualized adjusted return on equity(1) of 23.1% compared to 25.1% in the fourth quarter of 2023

Full Year 2024 Highlights

• Gross written premiums increased by 35.1% to $1.5 billion compared to $1.1 billion in 2023
• Net income increased 48.4% to $117.6 million compared to $79.2 million in 2023
• Adjusted net income(1) increased 42.8% to $133.5 million compared to $93.5 million in 2023
• Total loss ratio of 26.4% compared to 21.0% in 2023
• Combined ratio of 78.1% compared to 76.6% in 2023
• Adjusted combined ratio(1) of 73.7% compared to 71.2% in 2023
• Return on equity of 19.6% compared to 18.5% in 2023
• Adjusted return on equity(1) of 22.2% compared to 21.9% in 2023

(1)  See discussion of “Non-GAAP and Key Performance Indicators” below.

Mac Armstrong, Chairman and Chief Executive Officer, commented, "Palomar’s stellar 2024 was capped off by an exceptional fourth quarter. During the quarter, we generated gross written premiums growth of 23%, 39% when excluding run-off business from our results, adjusted net income growth of 48%, inclusive of $8.1 million of catastrophe losses, and, importantly, an adjusted return on equity of 23%. When looking at the full year we not only generated record gross written premiums and adjusted net income, but we grew our top and bottom-line 35% and 43%, respectively. Additionally, throughout 2024 we made significant investments across the organization that we believe will sustain our earnings base and profitable growth trajectory.”  

Mr. Armstrong continued, “Beyond the strong financial results of the fourth quarter and 2024, Palomar’s accomplishments were several and notable, highlighted by our AM Best upgrade and the acquisition of First Indemnity of America, our surety operation.  Furthermore, we accomplished a Palomar 2X fundamental strategic objective by doubling our adjusted underwriting income for the 2021 period in a three-year timeframe. We are energized by our prospects to continue this profitable growth in 2025 and thereafter.”  

Underwriting Results

Gross written premiums increased 23.3% to $373.7 million compared to $303.2 million in the fourth quarter of 2023, additionally net earned premiums increased 54.6% compared to the prior year’s fourth quarter. 

Losses and loss adjustment expenses for the fourth quarter were $37.2 million, comprised of $29.1 million of attritional losses and $8.1 million of catastrophe losses primarily related to Hurricane Milton. The loss ratio for the quarter was 25.7%, comprised of an attritional loss ratio of 20.1% and a catastrophe loss ratio of 5.6%, compared to a loss ratio of 19.1% during the same period last year, all comprised of attritional losses.

Underwriting income(1) for the fourth quarter was $34.9 million resulting in a combined ratio of 75.9% compared to underwriting income of $24.2 million resulting in a combined ratio of 74.2% during the same period last year. The Company’s adjusted underwriting income(1) was $41.0 million resulting in an adjusted combined ratio(1) of 71.7% in the fourth quarter compared to adjusted underwriting income(1) of $29.3 million and an adjusted combined ratio(1) of 68.8% during the same period last year.

Investment ResultsNet investment income increased by 61.3% to $11.3 million compared to $7.0 million in the prior year’s fourth quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended December 31, 2024 due to cash generated from operations and proceeds from our August 2024 stock offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.04 years at December 31, 2024. Cash and invested assets totaled $1.1 billion at December 31, 2024. During the fourth quarter, the Company recorded net realized and unrealized losses of $1.2 million related to its investment portfolio as compared to net realized and unrealized gains of $3.0 million in last year’s fourth quarter.

Tax RateThe effective tax rate for the three months ended December 31, 2024 was 22.2% compared to 22.6% for the three months ended December 31, 2023. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to the non-deductible executive compensation expense, offset by the permanent component of employee stock option exercises.

Stockholders’ Equity and ReturnsStockholders' equity was $729.0 million at December 31, 2024, compared to $471.3 million at December 31, 2023. For the three months ended December 31, 2024, the Company’s annualized return on equity was 19.5% compared to 23.2% for the same period in the prior year while adjusted return on equity(1) was 23.1% compared to 25.1% for the same period in the prior year. 

Full Year 2025 OutlookFor the full year 2025, the Company expects to achieve adjusted net income of $180 million to $192 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.

Conference CallAs previously announced, Palomar will host a conference call Thursday, February 13, 2025, to discuss its fourth quarter 2024 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Fourth Quarter 2024 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on February 13, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13743970. The replay will be available until 11:59 p.m. (Eastern Time) on February 20, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. ("PSRE"), Palomar Insurance Agency, Inc. ("PIA"), Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc ("PUEO"), Palomar Crop Insurance Services, Inc, and First Indemnity of America Insurance Company (acquired 1/1/2025). Palomar's consolidated results also include Laulima Reciprocal Exchange, a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and Surplus Insurance Company, have a financial strength rating of “A” (Excellent) from A.M. Best. 

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. The Company calculates the tax impact only on adjustments which would be included in calculating its income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses.  See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor StatementPalomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

ContactMedia Inquiries Lindsay Conner 1-551-206-6217 lconner@plmr.com 

Investor RelationsJamie Lillis1-203-428-3223investors@plmr.comSource: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three months and year ended December 31, 2024 and 2023:

	Three Months Ended
	December 31,
	2024				2023				Change				% Change
	($ in thousands, except per share data)
Gross written premiums	$	373,723			$	303,152			$	70,571				23.3	%
Ceded written premiums		(204,492	)			(188,742	)			(15,750	)			8.3	%
Net written premiums		169,231				114,410				54,821				47.9	%
Net earned premiums		144,890				93,748				51,142				54.6	%
Commission and other income		750				1,586				(836	)			(52.7	)%
Total underwriting revenue (1)		145,640				95,334				50,306				52.8	%
Losses and loss adjustment expenses		37,176				17,896				19,280				107.7	%
Acquisition expenses, net of ceding commissions and fronting fees		40,585				29,005				11,580				39.9	%
Other underwriting expenses		32,947				24,210				8,737				36.1	%
Underwriting income (1)		34,932				24,223				10,709				44.2	%
Interest expense		(87	)			(824	)			737				(89.4	)%
Net investment income		11,318				7,015				4,303				61.3	%
Net realized and unrealized (losses) gains on investments		(1,201	)			3,044				(4,245	)			(139.5	)%
Income before income taxes		44,962				33,458				11,504				34.4	%
Income tax expense		9,997				7,564				2,433				32.2	%
Net income	$	34,965			$	25,894			$	9,071				35.0	%
Adjustments:
Net realized and unrealized losses (gains) on investments		1,201				(3,044	)			4,245				(139.5	)%
Expenses associated with transactions		922				478				444				92.9	%
Stock-based compensation expense		4,779				4,176				603				14.4	%
Amortization of intangibles		389				389				—				—	%
Tax impact		(964	)			103				(1,067	)			NM
Adjusted net income (1)	$	41,292			$	27,996			$	13,296				47.5	%
Key Financial and Operating Metrics
Annualized return on equity		19.5	%			23.2	%
Annualized adjusted return on equity (1)		23.1	%			25.1	%
Loss ratio		25.7	%			19.1	%
Expense ratio		50.2	%			55.1	%
Combined ratio		75.9	%			74.2	%
Adjusted combined ratio (1)		71.7	%			68.8	%
Diluted earnings per share	$	1.29			$	1.02
Diluted adjusted earnings per share (1)	$	1.52			$	1.11
Catastrophe losses	$	8,122			$	10
Catastrophe loss ratio (1)		5.6	%			—	%
Adjusted combined ratio excluding catastrophe losses (1)		66.1	%			68.8	%
Adjusted underwriting income (1)	$	41,022			$	29,266			$	11,756				40.2	%
NM - not meaningful

(1)- Indicates Non-GAAP financial measure- see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

	Year Ended
	December 31,
	2024				2023				Change				% Change
	($ in thousands, except per share data)
Gross written premiums	$	1,541,962			$	1,141,558			$	400,404				35.1	%
Ceded written premiums		(897,111	)			(731,531	)			(165,580	)			22.6	%
Net written premiums		644,851				410,027				234,824				57.3	%
Net earned premiums		510,687				345,913				164,774				47.6	%
Commission and other income		2,784				3,367				(583	)			(17.3	)%
Total underwriting revenue (1)		513,471				349,280				164,191				47.0	%
Losses and loss adjustment expenses		134,759				72,592				62,167				85.6	%
Acquisition expenses, net of ceding commissions and fronting fees		149,657				107,745				41,912				38.9	%
Other underwriting expenses		117,113				88,172				28,941				32.8	%
Underwriting income (1)		111,942				80,771				31,171				38.6	%
Interest expense		(1,138	)			(3,775	)			2,637				(69.9	)%
Net investment income		35,824				23,705				12,119				51.1	%
Net realized and unrealized gains on investments		4,568				2,941				1,627				55.3	%
Income before income taxes		151,196				103,642				47,554				45.9	%
Income tax expense		33,623				24,441				9,182				37.6	%
Net income	$	117,573			$	79,201			$	38,372				48.4	%
Adjustments:
Net realized and unrealized gains on investments		(4,568	)			(2,941	)			(1,627	)			55.3	%
Expenses associated with transactions		1,479				706				773				109.5	%
Stock-based compensation expense		16,685				14,913				1,772				11.9	%
Amortization of intangibles		1,558				1,481				77				5.2	%
Expenses associated with catastrophe bond		2,483				1,640				843				51.4	%
Tax impact		(1,699	)			(1,480	)			(219	)			14.8	%
Adjusted net income (1)	$	133,511			$	93,520			$	39,991				42.8	%
Key Financial and Operating Metrics
Annualized return on equity		19.6	%			18.5	%
Annualized adjusted return on equity (1)		22.2	%			21.9	%
Loss ratio		26.4	%			21.0	%
Expense ratio		51.7	%			55.7	%
Combined ratio		78.1	%			76.6	%
Adjusted combined ratio (1)		73.7	%			71.2	%
Diluted earnings per share	$	4.48			$	3.13
Diluted adjusted earnings per share (1)	$	5.09			$	3.69
Catastrophe losses	$	27,846			$	3,442
Catastrophe loss ratio (1)		5.5	%			1.0	%
Adjusted combined ratio excluding catastrophe losses (1)		68.3	%			70.2	%
Adjusted underwriting income (1)	$	134,147			$	99,511			$	34,636				34.8	%

Condensed Consolidated Balance sheets

Palomar Holdings, Inc. and SubsidiariesCondensed Consolidated Balance Sheets (unaudited)(in thousands, except shares and par value data)
​	December 31, 2024				December 31, 2023
Assets	​				​
Investments:	​				​
Fixed maturity securities available for sale, at fair value (amortized cost: $973,330 in 2024; $675,130 in 2023)	$	939,046			$	643,799
Equity securities, at fair value (cost: $32,987 in 2024; $43,003 in 2023)		40,529				43,160
Equity method investment		2,277				2,617
Other investments		5,863				—
Total investments		987,715				689,576
Cash and cash equivalents		80,438				51,546
Restricted cash		101				306
Accrued investment income		8,440				5,282
Premium receivable		305,724				261,972
Deferred policy acquisition costs, net of ceding commissions and fronting fees		94,881				60,990
Reinsurance recoverable on paid losses and loss adjustment expenses		47,076				32,172
Reinsurance recoverable on unpaid losses and loss adjustment expenses		348,083				244,622
Ceded unearned premiums		276,237				265,808
Prepaid expenses and other assets		91,086				72,941
Deferred tax assets, net		8,768				10,119
Property and equipment, net		429				373
Goodwill and intangible assets, net		13,242				12,315
Total assets	$	2,262,220			$	1,708,022
Liabilities and stockholders' equity
Liabilities:
Accounts payable and other accrued liabilities	$	70,079			$	42,376
Reserve for losses and loss adjustment expenses		503,382				342,275
Unearned premiums		741,692				597,103
Ceded premium payable		190,168				181,742
Funds held under reinsurance treaty		27,869				13,419
Income taxes payable		—				7,255
Borrowings from credit agreements		—				52,600
Total liabilities		1,533,190				1,236,770
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized as of December 31, 2024 and December 31, 2023, 0 shares issued and outstanding as of December 31, 2024 and December 31, 2023		—				—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,529,402 and 24,772,987 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		3				3
Additional paid-in capital		493,656				350,597
Accumulated other comprehensive loss		(26,845	)			(23,991	)
Retained earnings		262,216				144,643
Total stockholders' equity		729,030				471,252
Total liabilities and stockholders' equity	$	2,262,220			$	1,708,022

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and SubsidiariesCondensed Consolidated Statements of Income and Comprehensive Income (loss) (Unaudited)(in thousands, except shares and per share data)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
Revenues:
Gross written premiums	$	373,723			$	303,152			$	1,541,962			$	1,141,558
Ceded written premiums		(204,492	)			(188,742	)			(897,111	)			(731,531	)
Net written premiums		169,231				114,410				644,851				410,027
Change in unearned premiums		(24,341	)			(20,662	)			(134,164	)			(64,114	)
Net earned premiums		144,890				93,748				510,687				345,913
Net investment income		11,318				7,015				35,824				23,705
Net realized and unrealized (losses) gains on investments		(1,201	)			3,044				4,568				2,941
Commission and other income		750				1,586				2,784				3,367
Total revenues		155,757				105,393				553,863				375,926
Expenses:
Losses and loss adjustment expenses		37,176				17,896				134,759				72,592
Acquisition expenses, net of ceding commissions and fronting fees		40,585				29,005				149,657				107,745
Other underwriting expenses		32,947				24,210				117,113				88,172
Interest expense		87				824				1,138				3,775
Total expenses		110,795				71,935				402,667				272,284
Income before income taxes		44,962				33,458				151,196				103,642
Income tax expense		9,997				7,564				33,623				24,441
Net income	$	34,965			$	25,894			$	117,573			$	79,201
Other comprehensive income, net:
Net unrealized (losses) gains on securities available for sale		(16,707	)			19,229				(2,854	)			12,524
Net comprehensive income	$	18,258			$	45,123			$	114,719			$	91,725
Per Share Data:
Basic earnings per share	$	1.32			$	1.05			$	4.61			$	3.19
Diluted earnings per share	$	1.29			$	1.02			$	4.48			$	3.13
Weighted-average common shares outstanding:
Basic		26,491,939				24,747,347				25,520,343				24,822,004
Diluted		27,206,225				25,272,149				26,223,842				25,327,091

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (GWP) by product, location and company are presented below:

	Three Months Ended December 31,
	2024								2023
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product (1)
Earthquake	$	146,757				39.3	%		$	122,087				40.3	%		$	24,670				20.2	%
Inland Marine and other Property		85,396				22.9	%			63,039				20.8	%			22,357				35.5	%
Casualty		68,484				18.3	%			32,323				10.7	%			36,161				111.9	%
Fronting		57,418				15.4	%			85,708				28.3	%			(28,290	)			(33.0	)%
Crop		15,668				4.2	%			(5	)			(0.0	)%			15,673				NM
Total Gross Written Premiums	$	373,723				100.0	%		$	303,152				100.0	%		$	70,571				23.3	%

NM- Not meaningful

	Year Ended December 31,
	2024								2023
	($ in thousands)
					% of								% of								%
	Amount				GWP				Amount				GWP				Change				Change
Product (1)
Earthquake	$	522,864				33.9	%		$	436,896				38.3	%		$	85,968				19.7	%
Inland Marine and Other Property		334,079				21.7	%			250,023				21.9	%			84,056				33.6	%
Fronting		333,188				21.6	%			352,141				30.8	%			(18,953	)			(5.4	)%
Casualty		235,592				15.3	%			90,388				7.9	%			145,204				160.6	%
Crop		116,239				7.5	%			12,110				1.1	%			104,129				859.9	%
Total Gross Written Premiums	$	1,541,962				100.0	%		$	1,141,558				100.0	%		$	400,404				35.1	%

(1) - Beginning in 2024, the Company has updated the categorization of its products to align with management's current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.

	Three Months Ended December 31,																Year Ended December 31,
	2024								2023								2024								2023
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
State
California	$	157,786				42.2	%		$	165,342				54.5	%		$	668,635				43.4	%		$	600,791				52.6	%
Texas		28,002				7.5	%			22,740				7.5	%			124,416				8.1	%			95,517				8.4	%
Hawaii		18,636				5.0	%			11,562				3.8	%			72,558				4.7	%			47,388				4.2	%
Washington		16,007				4.3	%			14,124				4.7	%			57,900				3.8	%			49,494				4.3	%
New York		14,756				3.9	%			6,775				2.2	%			38,919				2.5	%			18,424				1.6	%
Florida		8,855				2.4	%			11,286				3.7	%			67,008				4.3	%			47,595				4.2	%
Oregon		8,298				2.2	%			6,307				2.1	%			29,550				1.9	%			23,220				2.0	%
Illinois		7,176				1.9	%			6,697				2.2	%			20,901				1.4	%			22,340				2.0	%
Other		114,207				30.6	%			58,319				19.2	%			462,075				30.0	%			236,789				20.7	%
Total Gross Written Premiums	$	373,723				100.0	%		$	303,152				100.0	%		$	1,541,962				100.0	%		$	1,141,558				100.0	%

	Three Months Ended December 31,																Year Ended December 31,
	2024								2023								2024								2023
	($ in thousands)																($ in thousands)
					% of								% of								% of								% of
	Amount				GWP				Amount				GWP				Amount				GWP				Amount				GWP
Subsidiary
PSIC	$	170,275				45.6	%		$	156,590				51.7	%		$	823,263				53.4	%		$	653,809				57.3	%
PESIC		188,496				50.4	%			146,562				48.3	%			661,404				42.9	%			487,749				42.7	%
Laulima		14,952				4.0	%			—				—	%			57,295				3.7	%			—				—	%
Total Gross Written Premiums	$	373,723				100.0	%		$	303,152				100.0	%		$	1,541,962				100.0	%		$	1,141,558				100.0	%

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

	Three Months Ended																Year Ended
	December 31,																December 31,
	2024				2023				Change				% Change				2024				2023				Change				% Change
	($ in thousands)																($ in thousands)
Gross earned premiums	$	371,654			$	276,502			$	95,152				34.4	%		$	1,397,369			$	1,015,722			$	381,647				37.6	%
Ceded earned premiums		(226,764	)			(182,754	)			(44,010	)			24.1	%			(886,682	)			(669,809	)			(216,873	)			32.4	%
Net earned premiums	$	144,890			$	93,748			$	51,142				54.6	%		$	510,687			$	345,913			$	164,774				47.6	%
Net earned premium ratio		39.0	%			33.9	%											36.5	%			34.1	%

Loss detail

	Three Months Ended																Year Ended
	December 31,																December 31,
	2024				2023				Change				% Change				2024				2023				Change				% Change
	($ in thousands)																($ in thousands)
Catastrophe losses	$	8,122			$	10			$	8,112				NM			$	27,846			$	3,442			$	24,404				NM
Non-catastrophe losses		29,054				17,886				11,168				62.4	%			106,913				69,150				37,763				54.6	%
Total losses and loss adjustment expenses	$	37,176			$	17,896			$	19,280				107.7	%		$	134,759			$	72,592			$	62,167				85.6	%
Catastrophe loss ratio		5.6	%			0.0	%											5.5	%			1.0	%
Non-catastrophe loss ratio		20.1	%			19.1	%											20.9	%			20.0	%
Total loss ratio		25.7	%			19.1	%											26.4	%			21.0	%
NM-Not meaningful

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	137,274			$	92,178			$	97,653			$	77,520
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year		37,575				19,409				137,798				70,363
Prior years		(399	)			(1,513	)			(3,039	)			2,229
Total incurred		37,176				17,896				134,759				72,592
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		15,675				5,417				43,582				19,631
Prior years		3,476				7,004				33,531				32,828
Total payments		19,151				12,421				77,113				52,459
Reserve for losses and LAE net of reinsurance recoverables at end of period		155,299				97,653				155,299				97,653
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		348,083				244,622				348,083				244,622
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	503,382			$	342,275			$	503,382			$	342,275

Reconciliation of Non-GAAP Financial Measures

For the three months and year ended December 31, 2024 and 2023, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Total revenue	$	155,757			$	105,393			$	553,863			$	375,926
Net investment income		(11,318	)			(7,015	)			(35,824	)			(23,705	)
Net realized and unrealized (gains) losses on investments		1,201				(3,044	)			(4,568	)			(2,941	)
Underwriting revenue	$	145,640			$	95,334			$	513,471			$	349,280

Underwriting income and adjusted underwriting income

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Income before income taxes	$	44,962			$	33,458			$	151,196			$	103,642
Net investment income		(11,318	)			(7,015	)			(35,824	)			(23,705	)
Net realized and unrealized losses (gains) on investments		1,201				(3,044	)			(4,568	)			(2,941	)
Interest expense		87				824				1,138				3,775
Underwriting income	$	34,932			$	24,223			$	111,942			$	80,771
Expenses associated with transactions		922				478				1,479				706
Stock-based compensation expense		4,779				4,176				16,685				14,913
Amortization of intangibles		389				389				1,558				1,481
Expenses associated with catastrophe bond		—				—				2,483				1,640
Adjusted underwriting income	$	41,022			$	29,266			$	134,147			$	99,511

Adjusted net income

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Net income	$	34,965			$	25,894			$	117,573			$	79,201
Adjustments:
Net realized and unrealized losses (gains) on investments		1,201				(3,044	)			(4,568	)			(2,941	)
Expenses associated with transactions		922				478				1,479				706
Stock-based compensation expense		4,779				4,176				16,685				14,913
Amortization of intangibles		389				389				1,558				1,481
Expenses associated with catastrophe bond		—				—				2,483				1,640
Tax impact		(964	)			103				(1,699	)			(1,480	)
Adjusted net income	$	41,292			$	27,996			$	133,511			$	93,520

Annualized adjusted return on equity

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Annualized adjusted net income	$	165,168			$	111,984			$	133,511			$	93,520
Average stockholders' equity	$	716,171			$	446,293			$	600,140			$	428,002
Annualized adjusted return on equity		23.1	%			25.1	%			22.2	%			21.9	%

Adjusted combined ratio

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	109,958			$	69,525			$	398,745			$	265,142
Denominator: Net earned premiums	$	144,890			$	93,748			$	510,687			$	345,913
Combined ratio		75.9	%			74.2	%			78.1	%			76.6	%
Adjustments to numerator:
Expenses associated with transactions	$	(922	)		$	(478	)		$	(1,479	)		$	(706	)
Stock-based compensation expense		(4,779	)			(4,176	)			(16,685	)			(14,913	)
Amortization of intangibles		(389	)			(389	)			(1,558	)			(1,481	)
Expenses associated with catastrophe bond		—				—				(2,483	)			(1,640	)
Adjusted combined ratio		71.7	%			68.8	%			73.7	%			71.2	%

Diluted adjusted earnings per share

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands, except per share data)								(in thousands, except per share data)
Adjusted net income	$	41,292			$	27,996			$	133,511			$	93,520
Weighted-average common shares outstanding, diluted		27,206,225				25,272,149				26,223,842				25,327,091
Diluted adjusted earnings per share	$	1.52			$	1.11			$	5.09			$	3.69

Catastrophe loss ratio

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Numerator: Losses and loss adjustment expenses	$	37,176			$	17,896			$	134,759			$	72,592
Denominator: Net earned premiums	$	144,890			$	93,748			$	510,687			$	345,913
Loss ratio		25.7	%			19.1	%			26.4	%			21.0	%
Numerator: Catastrophe losses	$	8,122			$	10			$	27,846			$	3,442
Denominator: Net earned premiums	$	144,890			$	93,748			$	510,687			$	345,913
Catastrophe loss ratio		5.6	%			0.0	%			5.5	%			1.0	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended								Year Ended
	December 31,								December 31,
	2024				2023				2024				2023
	(in thousands)								(in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	109,958			$	69,525			$	398,745			$	265,142
Denominator: Net earned premiums	$	144,890			$	93,748			$	510,687			$	345,913
Combined ratio		75.9	%			74.2	%			78.1	%			76.6	%
Adjustments to numerator:
Expenses associated with transactions	$	(922	)		$	(478	)		$	(1,479	)		$	(706	)
Stock-based compensation expense		(4,779	)			(4,176	)			(16,685	)			(14,913	)
Amortization of intangibles		(389	)			(389	)			(1,558	)			(1,481	)
Expenses associated with catastrophe bond		—				—				(2,483	)			(1,640	)
Catastrophe losses		(8,122	)			(10	)			(27,846	)			(3,442	)
Adjusted combined ratio excluding catastrophe losses		66.1	%			68.8	%			68.3	%			70.2	%

Tangible Stockholders’ equity

	December 31,				December 31,
	2024				2023
	(in thousands)
Stockholders' equity	$	729,030			$	471,252
Goodwill and intangible assets		(13,242	)			(12,315	)
Tangible stockholders' equity	$	715,788			$	458,937