Palomar Holdings, Inc. Reports Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) LA JOLLA, Calif., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (Nasdaq:PLMR) (“Palomar” or“Company”) reported net income of $65.3 million, or $2.42 per diluted share, for the third quarter of 2026 compared to net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025. Adjusted net income⁽¹⁾ was $81.3 million, or $3.01 per diluted share, for the third quarter of 2026 as compared to $55.2 million, or $2.01 per diluted share, for the third quarter of 2025.

Third Quarter 2026 Highlights

• Gross written premiums increased by 28.4% to $767.0 million compared to $597.2 million in the third quarter of 2025
• Net income increased 27.0% to $65.3 million compared to $51.5 million in the third quarter of 2025
• Adjusted net income⁽¹⁾ increased 47.4% to $81.3 million compared to $55.2 million in the third quarter of 2025
• Diluted earnings per share increased by 29.4% to $2.42 compared to $1.87 in the third quarter of 2025
• Diluted adjusted earnings per share⁽¹⁾ increased by 49.8% to $3.01 compared to $2.01 in the third quarter of 2025
• Total loss ratio of 41.5% compared to 32.3% in the third quarter of 2025
• Combined ratio of 80.8% compared to 78.1% in the third quarter of 2025
• Adjusted combined ratio⁽¹⁾ of 76.3% compared to 74.8% in the third quarter of 2025
• Annualized return on equity of 26.6% compared to 23.9% in the third quarter of 2025
• Annualized adjusted return on equity⁽¹⁾ of 33.1% compared to 25.6% in the third quarter of 2025

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

Mac Armstrong, Chairman and Chief Executive Officer, commented,“Palomar's third quarter of 2026 was exceptional; highlighted by record gross written premium and adjusted net income, our 16^th consecutive earnings beat and the fourth increase to our 2026 adjusted net income guidance range. Profitable growth anchors Palomar 2X. This quarter's 47% growth in adjusted net income and 33% adjusted return on equity demonstrate our ability to deliver on that strategy in a dynamic insurance market.”

Mr. Armstrong continued,“We were especially pleased with written premium growth across all five product categories this quarter: Earthquake, Inland Marine and Property, Casualty, Crop and Surety & Credit. Our“one-of-one” specialty product portfolio is well positioned across market cycles, and this quarter reflected the ballast, diversity and overall strength in the book. It continues to position Palomar for long-term success and shareholder value creation.”

Underwriting Results
Gross written premiums increased 28.4% to $767.0 million compared to $597.2 million in the third quarter of 2025, while net earned premiums increased 62.3% compared to the prior year's third quarter.

Losses and loss adjustment expenses for the third quarter were $151.6 million, comprised of $147.2 million of attritional losses and $4.5 million of catastrophe losses from hurricane and flood events in Hawaii and flood events in the Midwest. The loss ratio for the quarter was 41.5%, comprised of an attritional loss ratio of 40.3% and a catastrophe loss ratio⁽¹⁾ of 1.2% compared to a loss ratio of 32.3% during the same period last year comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio⁽¹⁾ of 0.8%. Additionally, our third quarter results include $4.0 million of attritional unfavorable prior year development primarily related to Crop losses reallocated between calendar years.

Underwriting income⁽¹⁾ for the third quarter was $70.2 million resulting in a combined ratio of 80.8% compared to underwriting income of $49.2 million resulting in a combined ratio of 78.1% during the same period last year. The Company's adjusted underwriting income⁽¹⁾ was $86.5 million, an increase of 52.6%, resulting in an adjusted combined ratio⁽¹⁾ of 76.3% in the third quarter compared to adjusted underwriting income⁽¹⁾of $56.7 million and an adjusted combined ratio⁽¹⁾ of 74.8% during the same period last year. The Company's adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 75.1% compared to 74.0% during the same period last year.

Investment Results
Net investment income increased by 53.8% to $22.4 million compared to $14.6 million in the prior year's third 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 September 30, 2026 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.61 years at September 30, 2026. Cash and invested assets totaled $1.8 billion at September 30, 2026. During the third quarter, the Company recorded $2.7 million net realized and unrealized losses related to its investment portfolio as compared to net realized and unrealized gains of $3.5 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended September 30, 2026 was 22.9% compared to 23.4% for the three months ended September 30, 2025. For the current quarter, the Company's income tax rate differed from the statutory rate of 21% due primarily to non-deductible executive compensation expense.

Stockholders ' Equity and Capital Matters
Stockholders' equity was $985.0 million at September 30, 2026, compared to $878.1 million at September 30, 2025. For the three months ended September 30, 2026, the Company's annualized return on equity was 26.6% compared to 23.9% for the same period in the prior year while annualized adjusted return on equity⁽¹⁾ was 33.1% compared to 25.6% for the same period in the prior year.

During the current quarter, the Company repurchased 70,000 shares of its common stock for $8.9 million.

On October 29, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.45 per share of common stock, payable on December 2, 2026, to stockholders of record as of November 17, 2026.

Full Year 2026 Outlook
For the full year 2026, the Company expects to achieve adjusted net income of $280 million to $285 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.

Conference Call
As previously announced, Palomar will host a conference call on Thursday, November 5, 2026, to discuss its third quarter 2026 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 Third Quarter 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on November 5, 2026, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13762752. The replay will be available until 11:59 p.m. (Eastern Time) on November 19, 2026.

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 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., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), Palomar Crop Insurance Services, Inc. (“PCIS”), and Palomar Casualty and Surety Company (“PCSC”). Palomar's consolidated results also include Laulima Exchange (“Laulima”), 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 Property, Casualty, Surety & Credit, and Crop. Palomar's insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of“A” (Excellent) from A.M. Best and PCSC has a financial strength rating of“A-” (Excellent) from A.M. Best.

To learn more, visit PLMR.com.

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. Management uses these non-GAAP measures internally to evaluate the Company's underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company's operating 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. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company's 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.

The Company has not provided a reconciliation of its full year 2026 adjusted net income outlook to net income, the most directly comparable GAAP financial measure, because it is unable to predict, without unreasonable efforts, certain reconciling items which could be material to net income. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact net income that have not yet occurred, are out of the Company's control and/or cannot reasonable by predicted. Such forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measure may vary materially from the corresponding GAAP financial measure.

Safe Harbor Statement
Palomar 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 the frequency and severity of catastrophe events; the adequacy of our loss reserves; the availability, cost and collectability of reinsurance; investment performance and interest rate fluctuations; weather conditions and crop price volatility affecting our Crop business; our ability to integrate PCSC and realize the anticipated benefits of acquisitions; competitive conditions; and regulatory developments. 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.

Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
...

Investor Relations
Jamie Lillis
1-203-428-3223
...
Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company's results for the three and nine months ended September 30, 2026 and 2025:

		Three Months Ended
		September 30,
		2026		2025		Change		% Change
		(in thousands, except per share data)
Gross written premiums		$	767,046			$	597,171			$	169,875				28.4	%
Ceded written premiums			(378,477	)			(321,927	)			(56,550	)			17.6	%
Net written premiums			388,569				275,244				113,325				41.2	%
Net earned premiums			365,391				225,147				140,244				62.3	%
Commission and other income			1,485				1,448				37				2.6	%
Total underwriting revenue (1)			366,876				226,595				140,281				61.9	%
Losses and loss adjustment expenses			151,646				72,812				78,834				108.3	%
Acquisition expenses, net of ceding commissions and fronting fees			72,352				56,270				16,082				28.6	%
Other underwriting expenses			72,722				48,306				24,416				50.5	%
Underwriting income (1)			70,156				49,207				20,949				42.6	%
Interest expense			(5,138	)			(133	)			(5,005	)		NM
Net investment income			22,406				14,572				7,834				53.8	%
Net realized and unrealized (losses) gains on investments			(2,692	)			3,493				(6,185	)			(177.1	)%
Income before income taxes			84,732				67,139				17,593				26.2	%
Income tax expense			19,397				15,684				3,713				23.7	%
Net income		$	65,335			$	51,455			$	13,880				27.0	%
Adjustments:
Net realized and unrealized losses (gains) on investments			2,692				(3,493	)			6,185				(177.1	)%
Expenses associated with transactions			3,133				728				2,405			NM
Stock-based compensation expense			7,022				5,379				1,643				30.5	%
Amortization of intangibles			6,161				1,346				4,815			NM
Tax impact			(3,032	)			(251	)			(2,781	)		NM
Adjusted net income (1)		$	81,311			$	55,164			$	26,147				47.4	%
Key Financial and Operating Metrics
Annualized return on equity			26.6	%			23.9	%
Annualized adjusted return on equity (1)			33.1	%			25.6	%
Loss ratio			41.5	%			32.3	%
Expense ratio			39.3	%			45.8	%
Combined ratio			80.8	%			78.1	%
Adjusted combined ratio (1)			76.3	%			74.8	%
Diluted earnings per share		$	2.42			$	1.87
Diluted adjusted earnings per share (1)		$	3.01			$	2.01
Catastrophe losses		$	4,452			$	1,900
Catastrophe loss ratio (1)			1.2	%			0.8	%
Adjusted combined ratio excluding catastrophe losses (1)			75.1	%			74.0	%
Adjusted underwriting income (1)		$	86,472			$	56,660			$	29,812				52.6	%
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.

		Nine Months Ended
		September 30,
		2026		2025		Change		% Change
		(in thousands, except per share data)
Gross written premiums		$	2,027,330			$	1,535,623			$	491,707				32.0	%
Ceded written premiums			(975,669	)			(819,171	)			(156,498	)			19.1	%
Net written premiums			1,051,661				716,452				335,209				46.8	%
Net earned premiums			913,781				569,175				344,606				60.5	%
Commission and other income			3,664				3,954				(290	)			(7.3	)%
Total underwriting revenue (1)			917,445				573,129				344,316				60.1	%
Losses and loss adjustment expenses			337,732				157,739				179,993				114.1	%
Acquisition expenses, net of ceding commissions and fronting fees			213,923				154,266				59,657				38.7	%
Other underwriting expenses			207,057				129,563				77,494				59.8	%
Underwriting income (1)			158,733				131,561				27,172				20.7	%
Interest expense			(13,243	)			(304	)			(12,939	)		NM
Net investment income			60,340				40,014				20,326				50.8	%
Net realized and unrealized gains on investments			2,167				9,461				(7,294	)			(77.1	)%
Income before income taxes			207,997				180,732				27,265				15.1	%
Income tax expense			47,123				39,827				7,296				18.3	%
Net income		$	160,874			$	140,905			$	19,969				14.2	%
Adjustments:
Net realized and unrealized gains on investments			(2,167	)			(9,461	)			7,294				(77.1	)%
Expenses associated with transactions			10,545				3,570				6,975				195.4	%
Stock-based compensation expense			23,246				15,471				7,775				50.3	%
Amortization of intangibles			21,396				3,400				17,996			NM
Expenses associated with catastrophe bond			2,330				2,661				(331	)			(12.4	)%
Tax impact			(8,008	)			(1,543	)			(6,465	)		NM
Adjusted net income (1)		$	208,216			$	155,003			$	53,213				34.3	%
Key Financial and Operating Metrics
Annualized return on equity			22.3	%			23.4	%
Annualized adjusted return on equity (1)			28.8	%			25.7	%
Loss ratio			37.0	%			27.7	%
Expense ratio			45.7	%			49.2	%
Combined ratio			82.7	%			76.9	%
Adjusted combined ratio (1)			76.3	%			72.5	%
Diluted earnings per share		$	5.93			$	5.12
Diluted adjusted earnings per share (1)		$	7.67			$	5.63
Catastrophe losses		$	4,302			$	1,335
Catastrophe loss ratio (1)			0.5	%			0.2	%
Adjusted combined ratio excluding catastrophe losses (1)			75.9	%			72.2	%
Adjusted underwriting income (1)		$	216,250			$	156,663			$	59,587				38.0	%
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.

Condensed Consolidated Balance Sheets

Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except shares and par value data)
		September 30,		December 31,
		2026		2025
		(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,650,443 in 2026; $1,227,605 in 2025)		$	1,565,619			$	1,224,187
Fixed maturity securities held to maturity, at amortized cost			14,701				-
Equity securities, at fair value (cost: $108,026 in 2026; $81,772 in 2025)			123,745				99,333
Other investments			53,966				28,503
Total investments			1,758,031				1,352,023
Cash and cash equivalents			55,627				106,875
Restricted cash			-				17
Accrued investment income			15,358				11,545
Premiums receivable			667,166				452,908
Deferred policy acquisition costs, net of ceding commissions and fronting fees			162,888				127,718
Reinsurance recoverable on paid losses and loss adjustment expenses			48,220				56,428
Reinsurance recoverable on unpaid losses and loss adjustment expenses			604,411				412,273
Ceded unearned premiums			453,173				355,918
Prepaid expenses and other assets			168,777				110,896
Deferred tax assets, net			4,518				761
Property and equipment, net			2,649				2,551
Goodwill and intangible assets, net			228,426				61,054
Total assets		$	4,169,244			$	3,050,967
Liabilities and stockholders' equity
Liabilities:
Accounts payable and other accrued liabilities		$	183,128			$	115,663
Reserve for losses and loss adjustment expenses			1,104,974				688,231
Unearned premiums			1,257,218				988,143
Ceded premium payable			270,547				271,413
Funds held under reinsurance treaty			53,367				44,850
Borrowings from credit agreements			21,000				-
Term loan			294,038				-
Total liabilities			3,184,272				2,108,300
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2026 and December 31, 2025			-				-
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,290,067 and 26,520,417 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			3				3
Additional paid-in capital			553,574				523,168
Accumulated other comprehensive loss			(66,266	)			(2,506	)
Retained earnings			497,661				422,002
Total stockholders' equity			984,972				942,667
Total liabilities and stockholders' equity		$	4,169,244			$	3,050,967

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(in thousands, except shares and per share data)
		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
Revenues:
Gross written premiums		$	767,046			$	597,171			$	2,027,330			$	1,535,623
Ceded written premiums			(378,477	)			(321,927	)			(975,669	)			(819,171	)
Net written premiums			388,569				275,244				1,051,661				716,452
Change in unearned premiums			(23,178	)			(50,097	)			(137,880	)			(147,277	)
Net earned premiums			365,391				225,147				913,781				569,175
Net investment income			22,406				14,572				60,340				40,014
Net realized and unrealized (losses) gains on investments			(2,692	)			3,493				2,167				9,461
Commission and other income			1,485				1,448				3,664				3,954
Total revenues			386,590				244,660				979,952				622,604
Expenses:
Losses and loss adjustment expenses			151,646				72,812				337,732				157,739
Acquisition expenses, net of ceding commissions and fronting fees			72,352				56,270				213,923				154,266
Other underwriting expenses			72,722				48,306				207,057				129,563
Interest expense			5,138				133				13,243				304
Total expenses			301,858				177,521				771,955				441,872
Income before income taxes			84,732				67,139				207,997				180,732
Income tax expense			19,397				15,684				47,123				39,827
Net income		$	65,335			$	51,455			$	160,874			$	140,905
Other comprehensive income, net:
Net unrealized (losses) gains on securities available for sale			(51,107	)			9,541				(63,760	)			22,753
Net comprehensive (loss) income		$	14,228			$	60,996			$	97,114			$	163,658
Per Share Data:
Basic earnings per share		$	2.48			$	1.93			$	6.09			$	5.28
Diluted earnings per share		$	2.42			$	1.87			$	5.93			$	5.12
Weighted-average common shares outstanding:
Basic			26,308,497				26,637,592				26,408,217				26,683,856
Diluted			26,995,574				27,446,519				27,143,378				27,533,533

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 September 30,
		2026		2025
		($ in thousands)
					% of					% of					%
		Amount		GWP		Amount		GWP		Change		Change
Product(1)
Crop		$	226,668				29.6	%		$	119,757				20.1	%		$	106,911				89.3	%
Casualty			176,784				23.0	%			170,994				28.6	%			5,790				3.4	%
Inland Marine and Property			160,706				21.0	%			141,739				23.7	%			18,967				13.4	%
Earthquake			154,478				20.1	%			149,940				25.1	%			4,538				3.0	%
Surety & Credit			48,410				6.3	%			14,741				2.5	%			33,669				228.4	%
Total gross written premiums		$	767,046				100.0	%		$	597,171				100.0	%		$	169,875				28.4	%

__________________________

(1)		Beginning in 2026, 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.

		Nine Months Ended September 30,
		2026		2025
		($ in thousands)
					% of					% of					%
		Amount		GWP		Amount		GWP		Change		Change
Product(1)
Casualty		$	580,576				28.7	%		$	448,484				29.2	%		$	132,092				29.5	%
Inland Marine and Property			496,998				24.5	%			408,105				26.6	%			88,893				21.8	%
Earthquake			438,442				21.6	%			431,345				28.1	%			7,097				1.6	%
Crop			391,810				19.3	%			207,440				13.5	%			184,370				88.9	%
Surety & Credit			119,504				5.9	%			40,249				2.6	%			79,255				196.9	%
Total gross written premiums		$	2,027,330				100.0	%		$	1,535,623				100.0	%		$	491,707				32.0	%

__________________________

(1)		Beginning in 2026, 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 September 30,		Nine Months Ended September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
					% of					% of					% of					% of
		Amount		GWP		Amount		GWP		Amount		GWP		Amount		GWP
State
California		$	175,503				22.9	%		$	168,739				28.3	%		$	498,429				24.6	%		$	472,276				30.8	%
Texas			45,159				5.9	%			38,609				6.5	%			170,240				8.4	%			119,308				7.8	%
Missouri			38,019				5.0	%			13,420				2.2	%			57,038				2.8	%			25,219				1.6	%
Hawaii			31,610				4.1	%			26,405				4.4	%			81,714				4.0	%			71,307				4.6	%
Illinois			30,454				4.0	%			20,911				3.5	%			55,725				2.7	%			39,548				2.6	%
Florida			28,648				3.7	%			23,770				4.0	%			92,999				4.6	%			66,391				4.3	%
Kansas			24,476				3.2	%			11,206				1.9	%			45,698				2.3	%			16,847				1.1	%
Oklahoma			23,795				3.1	%			10,587				1.8	%			49,107				2.4	%			16,535				1.1	%
Other			369,382				48.1	%			283,524				47.4	%			976,380				48.2	%			708,192				46.1	%
Total gross written premiums		$	767,046				100.0	%		$	597,171				100.0	%		$	2,027,330				100.0	%		$	1,535,623				100.0	%

		Three Months Ended September 30,		Nine Months Ended September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
					% of					% of					% of					% of
		Amount		GWP		Amount		GWP		Amount		GWP		Amount		GWP
Subsidiary
PSIC		$	437,645				57.1	%		$	317,177				53.1	%		$	1,039,575				51.3	%		$	781,078				50.9	%
PESIC			271,797				35.4	%			252,318				42.3	%			846,143				41.7	%			681,048				44.4	%
Laulima			28,003				3.6	%			22,804				3.8	%			70,080				3.5	%			58,974				3.8	%
PCSC			26,706				3.5	%			-				-	%			60,685				3.0	%			-				-	%
FIA			2,895				0.4	%			4,872				0.8	%			10,847				0.5	%			14,523				0.9	%
Total gross written premiums		$	767,046				100.0	%		$	597,171				100.0	%		$	2,027,330				100.0	%		$	1,535,623				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								Nine Months Ended
		September 30,					%		September 30,					%
		2026		2025		Change		Change		2026		2025		Change		Change
		($ in thousands)		($ in thousands)
Gross earned premiums		$	736,144			$	518,783			$	217,361				41.9	%		$	1,792,875			$	1,303,323			$	489,552				37.6	%
Ceded earned premiums			(370,753	)			(293,636	)			(77,117	)			26.3	%			(879,094	)			(734,148	)			(144,946	)			19.7	%
Net earned premiums		$	365,391			$	225,147			$	140,244				62.3	%		$	913,781			$	569,175			$	344,606				60.5	%
Net earned premium ratio			49.6	%			43.4	%									51.0	%			43.7	%

Loss detail

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026		2025		Change		% Change		2026		2025		Change		% Change
		($ in thousands)		($ in thousands)
Catastrophe losses		$	4,452			$	1,900			$	2,552				134.3	%		$	4,302			$	1,335			$	2,967				222.2	%
Non-catastrophe losses			147,194				70,912				76,282				107.6	%			333,430				156,404				177,026				113.2	%
Total losses and loss adjustment expenses		$	151,646			$	72,812			$	78,834				108.3	%		$	337,732			$	157,739			$	179,993				114.1	%
Catastrophe loss ratio			1.2	%			0.8	%									0.5	%			0.2	%
Non-catastrophe loss ratio			40.3	%			31.5	%									36.5	%			27.5	%
Total loss ratio			41.5	%			32.3	%									37.0	%			27.7	%

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

		Three Months Ended September 30,		Nine Months Ended September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period		$	420,947			$	199,185			$	275,959			$	155,299
Add: Balances acquired(1)			-				-				22,178				6,788
Add: Incurred losses and LAE, net of reinsurance, related to:(2)
Current year			147,607				78,946				358,347				174,703
Prior years			4,039				(6,134	)			(20,615	)			(16,964	)
Total incurred			151,646				72,812				337,732				157,739
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year			48,058				15,655				76,039				38,312
Prior years			23,972				12,629				59,267				37,801
Total payments			72,030				28,284				135,306				76,113
Reserve for losses and LAE net of reinsurance recoverables at end of period			500,563				243,713				500,563				243,713
Add: Reinsurance recoverables on unpaid losses and LAE at end of period			604,411				440,559				604,411				440,559
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period		$	1,104,974			$	684,272			$	1,104,974			$	684,272

__________________________

(1)		Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of The Gray Casualty and Surety Company (“Gray Surety”) and FIA on 1/31/2026 and 1/1/2025, respectively, in accordance with ASC 805, Business Combinations. See Note 23 of the Notes to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K and Note 14 of our September 30, 2026 Quarterly Report on Form 10-Q for additional information regarding the acquisitions.
(2)		Losses for the three months ended September 30, 2026 and 2025 include $0.3 million and an insignificant amount, respectively, of gains on derivative instruments. Losses for the nine months ended September 30, 2026 and 2025 include $18.2 million and an insignificant amount, respectively, of losses on derivative instruments.

Reconciliation of Non-GAAP Financial Measures

For the three and nine months ended September 30, 2026 and 2025, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Total revenue		$	386,590			$	244,660			$	979,952			$	622,604
Net investment income			(22,406	)			(14,572	)			(60,340	)			(40,014	)
Net realized and unrealized losses (gains) on investments			2,692				(3,493	)			(2,167	)			(9,461	)
Underwriting revenue		$	366,876			$	226,595			$	917,445			$	573,129

Underwriting income and adjusted underwriting income

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Income before income taxes		$	84,732			$	67,139			$	207,997			$	180,732
Net investment income			(22,406	)			(14,572	)			(60,340	)			(40,014	)
Net realized and unrealized losses (gains) on investments			2,692				(3,493	)			(2,167	)			(9,461	)
Interest expense			5,138				133				13,243				304
Underwriting income		$	70,156			$	49,207			$	158,733			$	131,561
Expenses associated with transactions			3,133				728				10,545				3,570
Stock-based compensation expense			7,022				5,379				23,246				15,471
Amortization of intangibles			6,161				1,346				21,396				3,400
Expenses associated with catastrophe bond			-				-				2,330				2,661
Adjusted underwriting income		$	86,472			$	56,660			$	216,250			$	156,663

Adjusted net income

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Net income		$	65,335			$	51,455			$	160,874			$	140,905
Adjustments:
Net realized and unrealized losses (gains) on investments			2,692				(3,493	)			(2,167	)			(9,461	)
Expenses associated with transactions			3,133				728				10,545				3,570
Stock-based compensation expense			7,022				5,379				23,246				15,471
Amortization of intangibles			6,161				1,346				21,396				3,400
Expenses associated with catastrophe bond			-				-				2,330				2,661
Tax impact			(3,032	)			(251	)			(8,008	)			(1,543	)
Adjusted net income		$	81,311			$	55,164			$	208,216			$	155,003

Annualized adjusted return on equity

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Annualized adjusted net income		$	325,244			$	220,656			$	277,621			$	206,671
Average stockholders' equity		$	982,957			$	862,654			$	963,820			$	803,570
Annualized adjusted return on equity			33.1	%			25.6	%			28.8	%			25.7	%

Adjusted combined ratio

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income		$	295,235			$	175,940			$	755,048			$	437,614
Denominator: Net earned premiums		$	365,391			$	225,147			$	913,781			$	569,175
Combined ratio			80.8	%			78.1	%			82.7	%			76.9	%
Adjustments to numerator:
Expenses associated with transactions		$	(3,133	)		$	(728	)		$	(10,545	)		$	(3,570	)
Stock-based compensation expense			(7,022	)			(5,379	)			(23,246	)			(15,471	)
Amortization of intangibles			(6,161	)			(1,346	)			(21,396	)			(3,400	)
Expenses associated with catastrophe bond			-				-				(2,330	)			(2,661	)
Adjusted combined ratio			76.3	%			74.8	%			76.3	%			72.5	%

Diluted adjusted earnings per share

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		(in thousands, except per share data)		(in thousands, except per share data)
Adjusted net income		$	81,311			$	55,164			$	208,216			$	155,003
Weighted-average common shares outstanding, diluted			26,995,574				27,446,519				27,143,378				27,533,533
Diluted adjusted earnings per share		$	3.01			$	2.01			$	7.67			$	5.63

Catastrophe loss ratio

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Numerator: Losses and loss adjustment expenses		$	151,646			$	72,812			$	337,732			$	157,739
Denominator: Net earned premiums		$	365,391			$	225,147			$	913,781			$	569,175
Loss ratio			41.5	%			32.3	%			37.0	%			27.7	%
Numerator: Catastrophe losses		$	4,452			$	1,900			$	4,302			$	1,335
Denominator: Net earned premiums		$	365,391			$	225,147			$	913,781			$	569,175
Catastrophe loss ratio			1.2	%			0.8	%			0.5	%			0.2	%

Adjusted combined ratio excluding catastrophe losses

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
		($ in thousands)		($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income		$	295,235			$	175,940			$	755,048			$	437,614
Denominator: Net earned premiums		$	365,391			$	225,147			$	913,781			$	569,175
Combined ratio			80.8	%			78.1	%			82.7	%			76.9	%
Adjustments to numerator:
Expenses associated with transactions		$	(3,133	)		$	(728	)		$	(10,545	)		$	(3,570	)
Stock-based compensation expense			(7,022	)			(5,379	)			(23,246	)			(15,471	)
Amortization of intangibles			(6,161	)			(1,346	)			(21,396	)			(3,400	)
Expenses associated with catastrophe bond			-				-				(2,330	)			(2,661	)
Catastrophe losses			(4,452	)			(1,900	)			(4,302	)			(1,335	)
Adjusted combined ratio excluding catastrophe losses			75.1	%			74.0	%			75.9	%			72.2	%

Tangible Stockholders' equity

		September 30,		December 31,
		2026		2025
		($ in thousands)
Stockholders' equity		$	984,972			$	942,667
Goodwill and intangible assets			(228,426	)			(61,054	)
Tangible stockholders' equity		$	756,546			$	881,613

MENAFN04112026004107003653ID1111917023