It's like a Chubb or AIG, but specializing in specific property risks like earthquake and hurricane insurance for homes and businesses.

Think of Palomar as a property insurer, similar to State Farm or Farmers Insurance, but primarily focused on niche coverages like earthquake and flood insurance.

• Residential and Commercial Earthquake Insurance: Provides coverage for damage caused by earthquakes to homes and businesses.
• Commercial All Risk Insurance: Offers broad coverage for commercial properties against a wide range of perils, excluding specific exclusions.
• Specialty Homeowners Insurance: Provides specialized property coverage for homeowners, often for unique risks not covered by standard policies.
• Inland Marine Insurance: Covers movable property, such as goods in transit, unique assets, or specialized equipment, both on land and in storage.
• Hawaii Hurricane Insurance: Offers specific coverage for property damage resulting from hurricanes in Hawaii.
• Residential Flood Insurance: Protects homeowners against financial losses due to flood damage to their residential properties.
• Assumed Reinsurance: Involves Palomar taking on a portion of the risk from another insurance company's policies.
• Commercial Flood Insurance: Provides businesses with coverage for property damage caused by floods.
• Real Estate Error and Omission Insurance: Protects real estate professionals against claims of negligence, errors, or omissions in their professional services.
• Real Estate Investor Products: Offers insurance solutions tailored for real estate investors, covering various risks associated with their investments.

Palomar Holdings, Inc. (PLMR) sells its specialty property insurance products primarily to other companies and entities that serve as distribution partners. While the company typically works with a broad network rather than a few named "major customers," its direct customers fall into the following categories:

• Retail Agents: Independent insurance agents who directly sell Palomar's insurance policies to residential and commercial customers.
• Wholesale Brokers: Firms that work with other agents or directly with customers, specializing in finding appropriate coverage from various carriers like Palomar.
• Program Administrators: Entities that manage specific insurance programs on behalf of Palomar, handling aspects like underwriting, marketing, and claims for a particular niche.
• Carrier Partnerships: Other insurance companies with whom Palomar collaborates, potentially underwriting portions of their risk or offering Palomar's products through their platforms.

Due to the nature of its distribution model and the lack of specific disclosures in the company background, Palomar does not publicly identify specific retail agents, wholesale brokers, program administrators, or carrier partners by name that comprise its major direct customers. Therefore, it is not possible to list specific company names or their public symbols.

Mac Armstrong, Chief Executive Officer and Chairman of the Board

Mr. Armstrong co-founded Palomar Holdings, Inc. in February 2014 and has served as its Chief Executive Officer and a director since its inception. Before co-founding Palomar, he was President of Arrowhead General Insurance Agency, where he previously held positions as Chief Financial Officer and Chief Operating Officer. He led the sale of Arrowhead to Brown & Brown, Inc. in 2012. Earlier in his career, Mr. Armstrong led the insurance investment practice at Spectrum Equity Investors, a private equity firm, and worked in investment banking at Alex. Brown & Sons. He also serves on the board of advisors for Cloverlay Investment Management LLC, a private equity firm. Palomar itself was established with $75 million of equity capital from Genstar Capital, a private equity firm, and the management team.

Chris Uchida, Chief Financial Officer

Mr. Uchida joined Palomar in 2015 and serves as its Chief Financial Officer. Prior to joining the company, he served as the Executive Vice President and Chief Accounting Officer at Arrowhead General Insurance Agency, a company he joined in 2004. Before his time at Arrowhead, Mr. Uchida was a Tax Manager at PricewaterhouseCoopers LLP.

Jon Christianson, President

Mr. Christianson has served as Palomar's President since April 2022. He previously held the roles of Chief Underwriting Officer from August 2020 and Chief Operating Officer from joining the company in February 2014 to September 2020. Prior to his tenure at Palomar, Mr. Christianson was a Vice President of Holborn Corporation from April 2010 to December 2013, and began his career with John B. Collins Associates in 2002.

Rodolphe Herve, Chief Operating Officer

Mr. Herve was appointed Chief Operating Officer of Palomar, effective July 1, 2024. He joined Palomar from SCOR, where he served as Global Head of P&C Operations and previously as CEO of North America and Chief Transformation & Operations Officer for their Specialty Insurance division. His professional experience also includes various leadership roles at QBE North America and earlier positions at Bain & Company, Orange Ventures, and Morgan Stanley.

Tim Carter, Chief People Officer

Mr. Carter was appointed Chief People Officer of Palomar, effective June 24, 2024. He brings over two decades of executive leadership experience in human resources. Before joining Palomar, he spent ten years as Senior Vice President of Human Resources at LPL Financial, Inc. His background also includes leadership roles at G4S Integrated Services, Parexel, and Home Depot, and service as a Captain in the United States Marine Corps.

Key Risks to Palomar Holdings, Inc. (PLMR)

1. Catastrophic Events and Geographical Concentration: Palomar Holdings, Inc. faces significant risks from unpredictable and severe catastrophic events, particularly those related to earthquakes, hurricanes, and floods, which are exacerbated by global climate change. The company's substantial concentration of business in California exposes it to heightened risks from natural disasters in that specific geographical region, potentially impacting earnings and stockholders' equity.
2. Reliance on Reinsurance and Market Volatility: The company is highly dependent on third-party reinsurance to mitigate its exposure to catastrophe-related risks. The availability, cost, and terms of this reinsurance are subject to significant volatility in the reinsurance market. A "hardening" reinsurance market, characterized by higher prices and more restrictive terms, could lead to increased costs for Palomar and compress its underwriting margins.
3. Regulatory Changes: Palomar operates within a heavily regulated insurance industry across multiple states. Changes in regulations, especially those pertaining to pricing, underwriting, and rate approvals, could constrain the company's business strategies and negatively impact its profitability. Furthermore, increased federal scrutiny or new state-level legislative changes could introduce additional compliance challenges and costs.

Palomar Holdings, Inc. (PLMR) operates in several specialty property insurance markets. Here are the addressable market sizes for their main products:

• Earthquake Insurance: The U.S. earthquake insurance market was approximately USD 2.7 billion in 2024 and is projected to reach USD 4.1 billion by 2034. Another estimate for the U.S. market size was USD 2.39 billion in 2024, projected to grow to around USD 4.87 billion by 2034.
• Commercial All Risk Insurance: As a component of the broader commercial property insurance market, the global commercial property insurance market size was around USD 298 billion in 2023 and is predicted to grow to about USD 621 billion by 2032. North America is a leading region in this market. The overall U.S. commercial insurance market is expected to reach USD 489.1 billion by 2033.
• Specialty Homeowners Insurance: The U.S. home insurance market was valued between approximately USD 73 billion in 2024 and USD 290.5 billion in 2023. Other sources indicate the U.S. homeowners insurance market size was USD 171.7 billion in 2024 and USD 175.1 billion in 2025.
• Inland Marine Insurance: The U.S. inland marine direct premiums written increased to $29.82 billion in 2021. Globally, the inland marine insurance market size was valued at USD 12.6 billion in 2024 or USD 17 billion in 2024, with projections to reach USD 21.33 billion by 2032 or USD 25 billion by 2032. North America holds a significant share of this market, estimated around 35-40%.
• Hawaii Hurricane Insurance: Homeowners' multiperil premiums in Hawaii, which include hurricane coverage, increased to $562.2 million in 2024.
• Residential Flood Insurance: The U.S. residential flood insurance market segment was valued at over USD 6 billion in 2023. The private residential flood insurance market in the U.S. had premium revenue of $0.5 billion in 2024. The U.S. residential flood insurance market covers an estimated 500,000 residential buildings.

Palomar Holdings, Inc. (PLMR) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Diversification and Expansion into New Specialty Product Lines, including Strategic Acquisitions: Palomar's "Palomar 2X" strategy emphasizes both organic and inorganic growth, with a strong focus on expanding its specialty product categories beyond its core earthquake insurance. The company is experiencing significant growth in its casualty, crop, and surety segments. For instance, casualty gross written premiums surged by 120% in Q4 2025, making up approximately 20% of total premiums and significantly reducing concentration risk. The crop business is targeted for 30% growth this year, with ambitious intermediate and long-term goals of reaching $500 million and $1 billion, respectively. Strategic acquisitions, such as First Indemnity of America (January 2025) and Advanced AgProtection (Q1 2025), as well as the Gray Surety acquisition (January 2026), are instrumental in diversifying the portfolio and strengthening capabilities in surety and crop insurance.
2. Leveraging Technology and Data Analytics for Enhanced Underwriting and Operational Efficiency: Technology, including artificial intelligence, is a critical component of Palomar's strategy to improve underwriting and optimize processes. The company utilizes a modern technology platform that incorporates automation and advanced data analytics to ensure efficiency and informed decision-making, which in turn contributes to bottom-line growth. This includes automated data ingestion for catastrophe, hazard, exposure, and market data, along with granular exposure analytics to optimize reinsurance structures and real-time portfolio monitoring.
3. Sustained Organic Growth and Market Share Expansion: Palomar aims to grow at twice the market rate, primarily through organic initiatives. The company's management anticipates continued premium growth and operational leverage by strategically balancing its portfolio across admitted and excess & surplus lines, as well as residential and commercial exposures, to ensure resilience through various insurance cycles. This focus on disciplined organic growth is consistently leading to strong gross written premium increases.
4. Growth in Net Investment Income: Palomar has consistently reported significant increases in net investment income, driven by higher yields on invested assets and a larger average balance of investments. This growing investment portfolio provides a meaningful and increasingly robust earnings stream for the company.

Share Repurchases

• Palomar's Board of Directors approved a share repurchase program effective July 31, 2025, authorizing the repurchase of up to $150 million of its outstanding common stock through July 31, 2027.
• During the year ended December 31, 2025, the company repurchased 308,417 shares for $37.3 million.
• As of February 24, 2026, $112.7 million remained available for future repurchases under the program.

Share Issuance

• Palomar Holdings filed a shelf registration in February 2026 for up to $125.05 million in common stock, covering 1,035,613 shares, to facilitate future Employee Stock Ownership Plan (ESOP) related initiatives.
• Common stock shares issued and outstanding were 26,777,198 as of June 30, 2025, and 26,529,402 as of December 31, 2024.

Inbound Investments

• Stockholders' equity increased to $942.7 million as of December 31, 2025, primarily driven by net income and stock-based compensation activities.
• Stockholders' equity was $847.2 million at June 30, 2025, compared to $532.6 million at June 30, 2024.
• In January 2026, Palomar entered into a new credit agreement providing unsecured credit facilities totaling $450 million, including a $150 million revolving facility and a $300 million term loan, to enhance financial flexibility.

Outbound Investments

• Palomar successfully acquired Advanced AgProtection, which was mentioned in its first quarter 2025 results.
• The company completed the acquisition of Gray Surety on January 31, 2026, an acquisition expected to be modestly accretive to earnings per share in 2026.
• The Gray Surety acquisition diversifies Palomar's business, adds experienced talent, and offers capital investment opportunities to grow and retain additional risk.

Capital Expenditures

• Palomar continues to make investments across its organization to enhance talent and operational scale.
• The company is making ongoing investments in proprietary technology, data analytics, and advanced underwriting disciplines to improve risk assessment and pricing accuracy.