Palomar Holdings, Inc. (PLMR) · Nov 4, 2026 · Earnings
Beat — Adj. EPS $3.01 vs ~$2.55 consensus
Palomar’s Q3 earnings beat consensus and lifted 2026 adjusted-income guidance again, though higher loss ratios diluted the underwriting improvement.
Palomar is expanding a diversified specialty-insurance platform across Crop, Casualty, Property, Earthquake, and Surety & Credit, with growth increasingly coming from newer businesses such as Crop and Surety. The third quarter extends that expansion, but also shows that loss costs are rising as the book scales. Published estimates put Q3 adjusted EPS around $2.55-$2.61, making the reported $3.01 a clear beat.
The earnings beat was substantial, not cosmetic. Adjusted net income rose 47.4% to $81.3 million and adjusted EPS reached $3.01 versus $2.01 a year earlier, well above the roughly $2.55 consensus. (Summary of Operating Results) The result continues Palomar’s reported streak of consecutive earnings beats and gives the business more evidence that its specialty platform can convert rapid premium growth into earnings.
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Adjusted EPS (Summary of Operating Results) | $3.01 | $2.01 | ~$2.55 consensus |
| Gross written premiums (Summary of Operating Results) | $767.0M (+28.4%) | $597.2M | ~$754.6M revenue consensus |
| Adjusted net income (Summary of Operating Results) | $81.3M (+47.4%) | $55.2M | — |
| Adjusted combined ratio (Key Financial and Operating Metrics) | 76.3% | 74.8% | — |
| FY 2026 adjusted net income outlook (Full Year 2026 Outlook) | $280M-$285M | — | $266M-$280M prior guide |
The fourth guidance increase is the bigger business signal. Palomar lifted its full-year adjusted net income outlook to $280 million-$285 million from the previously disclosed $266 million-$280 million range, with the prior range’s midpoint implying roughly 24% growth. That raise suggests management believes the earnings momentum is durable enough to offset the quarter’s higher loss burden.
Growth is broad, but Crop and Surety are doing much of the heavy lifting. Gross written premiums increased 28.4% overall; Crop rose 89.3% and Surety & Credit 228.4%, while all five product categories grew. (Underwriting Segment Data) That supports the strategic shift toward a broader specialty portfolio, although the fastest-growing categories may also add underwriting complexity and volatility.
The main offset is deteriorating loss performance. The total loss ratio increased to 41.5% from 32.3%, including a $4.0 million unfavorable prior-year development charge tied primarily to Crop. The adjusted combined ratio also worsened to 76.3% from 74.8%, and excluding catastrophe losses it rose to 75.1% from 74.0%. (Underwriting Results) Palomar still produced a strong underwriting profit, but the quarter’s earnings beat depended on exceptionally strong premium growth and higher investment income rather than cleaner underlying loss trends.
Bottom line: This was a clear earnings beat with another guidance raise, materially strengthening Palomar’s growth-and-profitability story. The caveat is that loss ratios are moving the wrong way, so the next test is whether the company can keep scaling without giving back underwriting margin.
Q3 earnings call, November 5
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