Palomar Holdings, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
PLMR$155.71+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001193125-26-335508
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001193125-26-450504
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 193 previous paragraphs and 194 current paragraphs.
124 unchanged; 62 reworded; 7 added; 5 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Commission and other income was materially consistent for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.
Current report
Catastrophe loss activity for the quarter ended September 30, 2026 was primarily related to hurricane and flood events in Hawaii and flood events in the Midwest.
Current report
Interest expense increased $5.0 million to $5.1 million for the three months ended September 30, 2026 from $0.1 million for the three months ended September 30, 2025, primarily due to interest on the Term Loan entered into in January 2026 to fund the acquisition of Gray Surety and, to a lesser extent, borrowings under our FHLB line of credit.
Current report
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025
Current report
Catastrophe loss activity for the nine months ended September 30, 2026 was primarily related to hurricane and flood events in Hawaii and flood events in the Midwest during the third quarter, offset by favorable development on prior period catastrophe events.
Current report
Interest expense increased $12.9 million to $13.2 million for the nine months ended September 30, 2026 from $0.3 million for the nine months ended September 30, 2025, primarily due to interest on the Term Loan entered into in January 2026 to fund the acquisition of Gray Surety and, to a lesser extent, borrowings under our FHLB line of credit.
Current report
As of September 30, 2026, we had $294.0 million outstanding on the Term Loan, net of unamortized debt issuance costs, and were in compliance with all covenants under the 2026 Credit Agreement.
Removed paragraphs (5)
Previous report
Interest Expense
Previous report
Catastrophe loss activity for the quarter ended June 30, 2025 was minimal and related to favorable development on prior period catastrophe events.
Previous report
Six months ended June 30, 2026 compared to six months ended June 30, 2025
Previous report
Catastrophe loss activity for the six months ended June 30, 2025 was related to favorable development on prior period catastrophe events.
Previous report
As of June 30, 2026, the Company had $295.8 million outstanding on its Term Loan.
Reworded paragraphs (62)
Previous wording
Forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 appear throughout this report. These forward looking statements generally include words such as “expect,” “predict,” “estimate,” “will,” “should,” “anticipate,” “believe” and similar expressions. Such assumptions are, in turn, based on information available and internal estimates and analyses of general economic conditions, competitive factors, conditions specific to the property and casualty insurance and reinsurance industries, claims development and the impact thereof on our loss reserves, the adequacy and financial security of our reinsurance programs, developments in the securities market and the impact on our investment portfolio, regulatory changes and conditions and other factors. These assumptions are subject to various risks, uncertainties and other factors, including, without limitation those set forth in “Item 1A. Risk Factors” within the Annual Report on Form 10-K for the year ended December 31, 2025 and Part II within this report. Actual results could differ materially from those expressed in, or implied by, these forward looking statements. Forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this report. While the Company may elect to update these forward looking statements at some point in the future, the Company specifically disclaims any obligation to do so. You should review the various risks, uncertainties and other factors listed from time to time in our Securities and Exchange Commission filings.
Current wording
Forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 appear throughout this report. These forward-looking statements generally include words such as “expect,” “predict,” “estimate,” “will,” “should,” “anticipate,” “believe” and similar expressions. Forward-looking statements are based on assumptions that are, in turn, based on information available and internal estimates and analyses of general economic conditions, competitive factors, conditions specific to the property and casualty insurance and reinsurance industries, claims development and the impact thereof on our loss reserves, the adequacy and financial security of our reinsurance programs, developments in the securities market and the impact on our investment portfolio, regulatory changes and conditions and other factors. These assumptions are subject to various risks, uncertainties and other factors, including, without limitation those set forth in “Item 1A. Risk Factors” within the Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A. “Risk Factors” of this Quarterly report on Form 10-Q. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this report. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. You should review the various risks, uncertainties and other factors listed from time to time in our Securities and Exchange Commission filings.
Previous wording
The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the SEC on February 24, 2026.
Current wording
The results of operations for the nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the SEC on February 24, 2026.
Previous wording
We are a specialty insurance company that provides property and casualty insurance products to individuals and businesses. We use our underwriting and analytical expertise to provide innovative solutions in five product categories: Earthquake, Inland Marine and Property, Casualty, Crop, and Surety & Credit. We use proprietary data analytics and a modern technology platform to offer our customers flexible products with customized and granular pricing for both the admitted and excess and surplus lines (“E&S”) markets. Our insurance company subsidiaries, Palomar Specialty Insurance Company (“PSIC”), Palomar Excess and Surplus Insurance Company (“PESIC”), and First Indemnity of America Insurance Co. (“FIA”) carry an “A” (Excellent) rating from A.M. Best Company (“A.M. Best”), a leading rating agency for the insurance industry. Palomar Casualty and Surety Company (“PCSC”) carries an “A-” (Excellent) rating from A.M. Best.
Current wording
We are a specialty insurance company that provides property and casualty insurance products to individuals and businesses. We use our underwriting and analytical expertise to provide innovative solutions in five product categories: Earthquake, Inland Marine and Property, Casualty, Crop, and Surety & Credit. We use proprietary data analytics and a modern technology platform to offer our customers flexible products with customized and granular pricing for both the admitted and excess and surplus lines (“E&S”) markets. Our insurance company subsidiaries, Palomar Specialty Insurance Company (“PSIC”), Palomar Excess and Surplus Insurance Company (“PESIC”), First Indemnity of America Insurance Co. (“FIA”), and Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”) carry an “A” (Excellent) rating from A.M. Best Company (“A.M. Best”), a leading rating agency for the insurance industry. Palomar Casualty and Surety Company (“PCSC”) carries an “A-” (Excellent) rating from A.M. Best.
Previous wording
Founded in 2014, we have significantly grown our business and have generated attractive returns. We have organically increased gross written premiums from $16.6 million in our first year of operations to $2.0 billion for the year ended December 31, 2025, which reflects a compound annual growth rate of approximately 55%. We have also been profitable since 2016 and our net income growth since 2016 reflects a compound annual growth rate of 46%.
Current wording
Founded in 2014, we have significantly grown our business and have generated attractive returns. We have increased gross written premiums from $16.6 million in our first year of operations to $2.0 billion for the year ended December 31, 2025, which reflects a compound annual growth rate of approximately 55%. We have also been profitable since 2016 and our net income growth since 2016 reflects a compound annual growth rate of 46%.
Previous wording
Interest expense consists of interest incurred on borrowings from our U.S. Bank credit agreement and FHLB line of credit and the unused line fee and amortization of the commitment fee on our U.S. Bank credit agreement.
Current wording
Interest expense consists of interest incurred on borrowings under our credit agreements, including the Term Loan and Revolving Facility under our 2026 Credit Agreement, and our FHLB line of credit, as well as the unused line fees and amortization of the debt issuance costs.
Previous wording
We earn investment income on our portfolio of invested assets. We invest primarily in investment grade fixed maturity securities, including U.S. government issues, state government issues, mortgage and asset-backed obligations, and corporate bonds with a small portion of our portfolio in equity securities and cash and cash equivalents. The principal factors that influence net investment income are the size of our investment portfolio, the yield on that portfolio, and investment management expenses. As measured by amortized cost, which excludes fair value fluctuations from changes in interest rates or other factors, the size of our investment portfolio is mainly a function of our invested capital along with premium we receive from our insureds, less payments on policyholder claims and other operating expenses.
Current wording
We earn investment income on our portfolio of invested assets. We invest primarily in investment grade fixed maturity securities, including U.S. government issues, state government issues, mortgage and asset-backed obligations, and corporate bonds with a small portion of our portfolio in equity securities, cash and cash equivalents, and other investments. The principal factors that influence net investment income are the size of our investment portfolio, the yield on that portfolio, and investment management expenses. As measured by amortized cost, which excludes fair value fluctuations from changes in interest rates or other factors, the size of our investment portfolio is mainly a function of our invested capital along with premium we receive from our insureds, less payments on policyholder claims and other operating expenses.
Previous wording
Net realized and unrealized gains and losses on investments are a function of the difference between the amount received by us on the sale of a security and the security’s cost-basis, mark-to-market adjustments, credit losses recognized in earnings, and unrealized gains and losses on equity securities and equity method investments. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income.
Current wording
Net realized and unrealized gains and losses on investments are a function of the difference between the amount received by us on the sale of a security and the security’s cost-basis, mark-to-market adjustments, credit losses recognized in earnings, and unrealized gains and losses on equity securities and equity method investments. Unrealized gains and losses on available-for-sale fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income.
Previous wording
Tangible stockholders’ equity is a non‑GAAP financial measure defined as stockholders’ equity less intangible assets. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.
Current wording
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.
Previous wording
Gross written premiums increased $134.2 million, or 27.0%, to $630.5 million for the three months ended June 30, 2026 compared to $496.3 million for the three months ended June 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:
Current wording
Gross written premiums increased $169.9 million, or 28.4%, to $767.0 million for the three months ended September 30, 2026 compared to $597.2 million for the three months ended September 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Crop and Surety & Credit lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships. Gross written premiums for the three months ended September 30, 2026 also include $26.7 million written by PCSC, which we acquired on January 31, 2026. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:
Previous wording
Ceded written premiums increased $99.9 million, or 20.1%, to $597.2 million for the six months ended June 30, 2026 from $497.3 million for the six months ended June 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines.
Current wording
Ceded written premiums increased $56.6 million, or 17.6%, to $378.5 million for the three months ended September 30, 2026 from $321.9 million for the three months ended September 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Crop and Inland Marine and Property lines.
Previous wording
Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 48.4% for the three months ended June 30, 2026 from 53.7% for the three months ended June 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.
Current wording
Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 49.3% for the three months ended September 30, 2026 from 53.9% for the three months ended September 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.
Previous wording
Net written premiums increased $95.4 million, or 41.5%, to $325.2 million for the three months ended June 30, 2026 from $229.8 million for the three months ended June 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums.
Current wording
Net written premiums increased $113.3 million, or 41.2%, to $388.6 million for the three months ended September 30, 2026 from $275.2 million for the three months ended September 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Crop and Surety & Credit lines, partially offset by increased ceded written premiums.
Previous wording
Net earned premiums increased $107.0 million, or 59.5%, to $287.0 million for the three months ended June 30, 2026 from $180.0 million for the three months ended June 30, 2025 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:
Current wording
Net earned premiums increased $140.2 million, or 62.3%, to $365.4 million for the three months ended September 30, 2026 from $225.1 million for the three months ended September 30, 2025 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:
Previous wording
Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing.
Current wording
Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing versus the prior year.
Previous wording
Losses and loss adjustment expenses increased $52.8 million, or 114.3%, to $99.0 million for the three months ended June 30, 2026 from $46.2 million for the three months ended June 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
Current wording
Losses and loss adjustment expenses increased $78.8 million, or 108.3%, to $151.6 million for the three months ended September 30, 2026 from $72.8 million for the three months ended September 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
Previous wording
Catastrophe loss activity for the quarter ended June 30, 2026 was primarily related to favorable development on prior period catastrophe events.
Current wording
Catastrophe loss activity for the quarter ended September 30, 2025 was primarily related to flood events.
Previous wording
Non-catastrophe losses increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026.
Current wording
Non-catastrophe losses increased for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Crop, Surety & Credit, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026.
Previous wording
Acquisition expenses increased $43.6 million, or 44.5%, to $141.6 million for the six months ended June 30, 2026 from $98.0 million for the six months ended June 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 13.4% for the six months ended June 30, 2026 compared to 12.5% for the six months ended June 30, 2025. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums due to changes in the composition of our business.
Current wording
Acquisition expenses increased $16.1 million, or 28.6%, to $72.4 million for the three months ended September 30, 2026 from $56.3 million for the three months ended September 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 9.8% for the three months ended September 30, 2026 compared to 10.8% for the three months ended September 30, 2025. Acquisition expenses as a percentage of gross earned premiums decreased due to changes in the composition of our business versus the prior year.
Previous wording
Other underwriting expenses increased $23.9 million, or 52.5%, to $69.4 million for the three months ended June 30, 2026 from $45.5 million for the three months ended June 30, 2025. The increase was primarily due to us incurring higher payroll, technology, and stock-based compensation expenses associated with general growth.
Current wording
Other underwriting expenses increased $24.4 million, or 50.5%, to $72.7 million for the three months ended September 30, 2026 from $48.3 million for the three months ended September 30, 2025. The increase was primarily due to higher payroll, technology, and stock-based compensation expenses associated with general growth, including the acquisition of Gray Surety.
Previous wording
Other underwriting expenses as a percentage of gross earned premiums were 12.6% for the three months ended June 30, 2026 compared to 11.1% for the three months ended June 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 9.1% for the three months ended June 30, 2026 compared to 8.7% for the three months ended June 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.
Current wording
Other underwriting expenses as a percentage of gross earned premiums were 9.9% for the three months ended September 30, 2026 compared to 9.3% for the three months ended September 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, amortization of intangibles, and expenses associated with catastrophe bonds, other underwriting expenses as a percentage of gross earned premiums were 7.7% for the three months ended September 30, 2026 compared to 7.9% for the three months ended September 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.
Previous wording
Net investment income increased $6.6 million, or 49.2%, to $20.0 million for the three months ended June 30, 2026 from $13.4 million for the three months ended June 30, 2025. The increase was primarily due to a higher average balance of investments during the three months ended June 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year.
Current wording
Net investment income increased $7.8 million, or 53.8%, to $22.4 million for the three months ended September 30, 2026 from $14.6 million for the three months ended September 30, 2025. The increase was primarily due to a higher average balance of investments during the three months ended September 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year.
Previous wording
We incurred $6.8 million of net realized and unrealized losses on investments for the three months ended June 30, 2026 compared to $8.3 million of net realized and unrealized losses for the three months ended June 30, 2025. In both periods, the balance was primarily driven by unrealized losses on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:
Current wording
We incurred $2.7 million of net realized and unrealized losses on investments for the three months ended September 30, 2026 compared to $3.5 million of net realized and unrealized gains for the three months ended September 30, 2025. In both periods, the balance was primarily driven by unrealized losses and gains, respectively, on our equity securities. Unrealized gains and losses on available-for-sale fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:
Previous wording
Income tax expense increased $3.9 million to $17.2 million for the three months ended June 30, 2026 from $13.4 million for the three months ended June 30, 2025 due to higher pre-tax income for the period ended June 30, 2026. For the three months ended June 30, 2026 and 2025 our income tax rates of 24.7% and 22.3%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.
Current wording
Income tax expense increased $3.7 million to $19.4 million for the three months ended September 30, 2026 from $15.7 million for the three months ended September 30, 2025 due to higher pre-tax income for the period ended September 30, 2026. For the three months ended September 30, 2026 and 2025 our income tax rates of 22.9% and 23.4%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.
Previous wording
The following table summarizes our results for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our results for the nine months ended September 30, 2026 and 2025:
Previous wording
Gross written premiums increased $321.8 million, or 34.3%, to $1.3 billion for the six months ended June 30, 2026 compared to $938.5 million for the six months ended June 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships.
Current wording
Gross written premiums increased $491.7 million, or 32.0%, to $2.0 billion for the nine months ended September 30, 2026 compared to $1.5 billion for the nine months ended September 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Crop and Casualty lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships. Gross written premiums for the nine months ended September 30, 2026 also include $60.7 million written by PCSC, which we acquired on January 31, 2026. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:
Previous wording
Ceded written premiums increased $38.8 million, or 14.5%, to $305.3 million for the three months ended June 30, 2026 from $266.5 million for the three months ended June 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines.
Current wording
Ceded written premiums increased $156.5 million, or 19.1%, to $975.7 million for the nine months ended September 30, 2026 from $819.2 million for the nine months ended September 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Crop and Casualty lines.
Previous wording
Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 47.4% for the six months ended June 30, 2026 from 53.0% for the six months ended June 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.
Current wording
Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 48.1% for the nine months ended September 30, 2026 from 53.3% for the nine months ended September 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.
Previous wording
Net written premiums increased $221.9 million, or 50.3%, to $663.1 million for the six months ended June 30, 2026 from $441.2 million for the six months ended June 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums.
Current wording
Net written premiums increased $335.2 million, or 46.8%, to $1.1 billion for the nine months ended September 30, 2026 from $716.5 million for the nine months ended September 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Crop and Casualty lines, partially offset by increased ceded written premiums.
Previous wording
Net earned premiums increased $204.4 million, or 59.4%, to $548.4 million for the six months ended June 30, 2026 from $344.0 million for the six months ended June 30, 2025 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:
Current wording
Net earned premiums increased $344.6 million, or 60.5%, to $913.8 million for the nine months ended September 30, 2026 from $569.2 million for the nine months ended September 30, 2025 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:
Previous wording
Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing.
Current wording
Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing versus the prior year.
Previous wording
Commission and other income decreased $0.3 million to $2.2 million for the six months ended June 30, 2026 from $2.5 million for the six months ended June 30, 2025. The balance decreased due to the non-recurrence of a reimbursement arrangement that benefited us in the prior quarter.
Current wording
Commission and other income decreased $0.3 million to $3.7 million for the nine months ended September 30, 2026 from $4.0 million for the nine months ended September 30, 2025. The balance decreased due to the non-recurrence of a reimbursement arrangement that benefited us in the prior year.
Previous wording
Losses and loss adjustment expenses increased $101.2 million, or 119.1%, to $186.1 million for the six months ended June 30, 2026 from $84.9 million for the six months ended June 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
Current wording
Losses and loss adjustment expenses increased $180.0 million, or 114.1%, to $337.7 million for the nine months ended September 30, 2026 from $157.7 million for the nine months ended September 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:
Previous wording
Catastrophe loss activity for the six months ended June 30, 2026 was primarily related to Hawaii flood activity offset by favorable development on prior period catastrophe events.
Current wording
Catastrophe loss activity for the nine months ended September 30, 2025 was related to flood losses in the third quarter offset by favorable development on prior period catastrophe events.
Previous wording
Non-catastrophe losses increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026.
Current wording
Non-catastrophe losses increased for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026.
Previous wording
Acquisition expenses increased $19.6 million, or 38.0%, to $71.3 million for the three months ended June 30, 2026 from $51.6 million for the three months ended June 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 12.9% for the three months ended June 30, 2026 compared to 12.6% for the three months ended June 30, 2025. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums due to changes in the composition of our business.
Current wording
Acquisition expenses increased $59.7 million, or 38.7%, to $213.9 million for the nine months ended September 30, 2026 from $154.3 million for the nine months ended September 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 11.9% for the nine months ended September 30, 2026 compared to 11.8% for the nine months ended September 30, 2025. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums due to changes in the composition of our business.
Previous wording
Other underwriting expenses increased $53.1 million, or 65.3%, to $134.3 million for the six months ended June 30, 2026 from $81.3 million for the six months ended June 30, 2025. The increase was primarily due to us incurring higher payroll, technology, and stock-based compensation expenses associated with general growth.
Current wording
Other underwriting expenses increased $77.5 million, or 59.8%, to $207.1 million for the nine months ended September 30, 2026 from $129.6 million for the nine months ended September 30, 2025. The increase was primarily due to higher payroll, technology, and stock-based compensation expenses associated with general growth, including the acquisition of Gray Surety.
Previous wording
Other underwriting expenses as a percentage of gross earned premiums were 12.7% for the six months ended June 30, 2026 compared to 10.4% for the six months ended June 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 8.8% for the six months ended June 30, 2026 compared to 8.1% for the six months ended June 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.
Current wording
Other underwriting expenses as a percentage of gross earned premiums were 11.5% for the nine months ended September 30, 2026 compared to 9.9% for the nine months ended September 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, amortization of intangibles, and expenses associated with catastrophe bonds, other underwriting expenses as a percentage of gross earned premiums were 8.3% for the nine months ended September 30, 2026 compared to 8.0% for the nine months ended September 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.
Previous wording
Net investment income increased $12.5 million, or 49.1%, to $37.9 million for the six months ended June 30, 2026 from $25.4 million for the six months ended June 30, 2025. The increase was primarily due to a higher average balance of investments during the six months ended June 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year.
Current wording
Net investment income increased $20.3 million, or 50.8%, to $60.3 million for the nine months ended September 30, 2026 from $40.0 million for the nine months ended September 30, 2025. The increase was primarily due to a higher average balance of investments during the nine months ended September 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year.
Previous wording
We incurred $4.9 million of net realized and unrealized losses on investments for the six months ended June 30, 2026 compared to $6.0 million of net realized and unrealized losses for the six months ended June 30, 2025. In both periods, the balance was primarily driven by unrealized losses on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:
Current wording
We incurred $2.2 million of net realized and unrealized gains on investments for the nine months ended September 30, 2026 compared to $9.5 million of net realized and unrealized gains for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, the balance was primarily driven by net unrealized gains on other investments and equity securities. For the nine months ended September 30, 2025, the balance was primarily driven by unrealized gains on our equity securities. Unrealized gains and losses on available-for-sale fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:
Previous wording
Income tax expense increased $3.6 million to $27.7 million for the six months ended June 30, 2026 from $24.1 million for the six months ended June 30, 2025 due to higher pre-tax income for the period ended June 30, 2026. For the six months ended June 30, 2026 and 2025, our income tax rates of 22.5% and 21.3%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.
Current wording
Income tax expense increased $7.3 million to $47.1 million for the nine months ended September 30, 2026 from $39.8 million for the nine months ended September 30, 2025 due to higher pre-tax income for the period ended September 30, 2026. For the nine months ended September 30, 2026 and 2025, our income tax rates of 22.7% and 22.0%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In December 2021, we entered into a credit agreement with U.S. Bank National Association (the “2021 Credit Agreement”) which provided a revolving credit facility of up to $100 million through December 8, 2026. In January 2026, we entered into a new credit agreement (the “2026 Credit Agreement”) that replaced the 2021 Credit Agreement.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Commission and other income decreased $0.9 million to $0.8 million for the three months ended June 30, 2026 from $1.7 million for the three months ended June 30, 2025. The balance decreased due to the non-recurrence of a reimbursement arrangement that benefited us in the prior quarter.
Previous report — wording carried elsewhere
The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period: