Palomar’s Q3 NWP climbs by 53.5% to $94.3mn
Palomar Holdings saw solid growth in the third quarter as the carrier reduced its underwriting loss and saw a 53.5% jump in its net written premiums.
Palomar’s adjusted diluted earnings also turned positive in the quarter to $0.07 per share.
The carrier’s third-quarter combined ratio dropped by 54 points to 102.8%, driven by improved underwriting results.
The company posted an underwriting loss of $1.8mn at quarter-end, marking an improvement from the $24mn loss reported in the same period last year.
The loss ratio also fell by 54 points to 44% quarter-to-quarter, driven by lower catastrophe losses. The catastrophe loss ratio in the third quarter was 27%, compared with 87% last year.
The third quarter cat losses included hurricanes Ida and Nicholas and the Pacific Gas & Electric excess liability loss, which were partially offset by favorable prior period development.
The carrier’s expense ratio recorded a one-point decrease to 58.8%, from 59.4% in the prior year period.
The carrier reported net investment income growth of 4.6% to $2.2mn year-over-year.