Palomar Holdings, Inc. reported significant growth in its financial performance for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Gross written premiums surged to $414.98 million in Q3 2024, a 32.2% increase from $314.00 million in Q3 2023. For the nine months, gross written premiums reached $1.17 billion, up 39.3% from $838.41 million in the prior year. This growth was attributed to increased policy volume, strong retention rates, and the expansion of distribution channels.
Net written premiums also saw substantial growth, rising 44.3% to $159.71 million in Q3 2024, and 60.9% to $475.62 million for the nine months. Net earned premiums increased by 58.1% to $135.65 million in Q3 and by 45.1% to $365.80 million for the nine-month period. Total revenues for Q3 2024 were $148.50 million, compared to $90.94 million in Q3 2023, while total revenues for the nine months increased to $398.11 million from $270.53 million.
Despite the revenue growth, total expenses for Q3 2024 rose to $110.00 million from $66.40 million in Q3 2023, primarily due to increased losses and loss adjustment expenses (LAE), which jumped to $40.54 million from $15.12 million. The company reported net income of $30.50 million for Q3 2024, a 65.5% increase from $18.43 million in Q3 2023. For the nine months, net income was $82.61 million, up 55.0% from $53.31 million in the previous year.
Palomar's total assets increased to $2.28 billion as of September 30, 2024, from $1.71 billion at the end of 2023, while total liabilities rose to $1.57 billion from $1.24 billion. Stockholders' equity improved significantly to $703.31 million, up from $471.25 million at year-end 2023, bolstered by a secondary stock offering in August 2024 that netted approximately $115.7 million.
Strategically, the company executed a purchase agreement in June 2024 to acquire First Indemnity of America Insurance Company, which specializes in surety bonds for contractors, expected to close in late 2024 or early 2025. The company also maintained a strong focus on catastrophe reinsurance, closing a $420 million catastrophe bond in Q2 2024 to cover earthquake events through June 2027.
Overall, Palomar Holdings demonstrated robust growth in premiums and profitability, alongside strategic acquisitions and capital-raising efforts, positioning itself for continued expansion in the specialty insurance market.
About Palomar Holdings, Inc.
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