Palomar Holdings Inc

For the period ended Mar 31, 2024. Filed May 3, 2024.

About 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.

Mar 31, 2024 · Filed May 3, 2024

PLMR$156.78+0.7%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements

PART II. OTHER INFORMATION
	Condensed Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023	3
	Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) for the Three Months Ended March 31, 2024 and 2023	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	41
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 3.	Defaults Upon Senior Securities	65
Item 4.	Mine Safety Disclosures	65
Item 5.	Other Information	65
Item 6.	Exhibits	66
	Signatures	67

Part I: FINANCIAL INFORMATION

Condensed Consolidated Balance Sheets

(in thousands, except shares and par value data)

	March 31,	December 31,
	2024	2023
(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $697,505 in 2024; $675,130 in 2023)	$662,992	$643,799
Equity securities, at fair value (cost: $32,785 in 2024; $43,003 in 2023)	37,171	43,160
Equity method investment	2,597	2,617
Other investments	1,871	—
Total investments	704,631	689,576
Cash and cash equivalents	61,387	51,546
Restricted cash	377	306
Accrued investment income	5,192	5,282
Premiums receivable	322,723	261,972
Deferred policy acquisition costs, net of ceding commissions and fronting fees	66,508	60,990
Reinsurance recoverable on paid losses and loss adjustment expenses	28,542	32,172
Reinsurance recoverable on unpaid losses and loss adjustment expenses	292,024	244,622
Ceded unearned premiums	298,975	265,808
Prepaid expenses and other assets	82,679	72,941
Deferred tax assets, net	9,408	10,119
Property and equipment, net	312	373
Goodwill and intangible assets, net	11,926	12,315
Total assets	$1,884,684	$1,708,022
Liabilities and stockholders' equity
Liabilities:
Accounts payable and other accrued liabilities	$39,637	$42,376
Reserve for losses and loss adjustment expenses	402,187	342,275
Unearned premiums	662,307	597,103
Ceded premium payable	215,329	181,742
Funds held under reinsurance treaty	13,716	13,419
Income taxes payable	6,850	7,255
Borrowings from credit agreements	43,000	52,600
Total liabilities	1,383,026	1,236,770
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2024 and December 31, 2023	—	—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 24,921,060 and 24,772,987 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	3	3
Additional paid-in capital	357,135	350,597
Accumulated other comprehensive loss	(26,505)	(23,991)
Retained earnings	171,025	144,643
Total stockholders' equity	501,658	471,252
Total liabilities and stockholders' equity	$1,884,684	$1,708,022

Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited)

(in thousands, except shares and per share data)

	Three Months Ended
	March 31,
	2024	2023
Revenues:
Gross written premiums	$368,078	$250,112
Ceded written premiums	(228,171)	(170,344)
Net written premiums	139,907	79,768
Change in unearned premiums	(32,041)	3,473
Net earned premiums	107,866	83,241
Net investment income	7,139	5,120
Net realized and unrealized gains on investments	3,002	146
Commission and other income	528	695
Total revenues	118,535	89,202
Expenses:
Losses and loss adjustment expenses	26,837	20,652
Acquisition expenses, net of ceding commissions and fronting fees	31,798	25,679
Other underwriting expenses	24,804	19,222
Interest expense	740	1,020
Total expenses	84,179	66,573
Income before income taxes	34,356	22,629
Income tax expense	7,974	5,316
Net income	$26,382	$17,313
Other comprehensive income, net:
Net unrealized (losses) gains on securities available for sale	(2,514)	5,474
Net comprehensive income	$23,868	$22,787
Per Share Data:
Basic earnings per share	$1.06	$0.69
Diluted earnings per share	$1.04	$0.68
Weighted-average common shares outstanding:
Basic	24,862,367	24,969,703
Diluted	25,468,564	25,442,902

Condensed Consolidated Statements of Changes in Stockholders’** Equity (Unaudited)**

(in thousands, except share data)

Number of · Accumulated
Common · Additional · Other · Total
	Shares	Common	Paid-In	Comprehensive	Retained	Stockholders'
	Outstanding	Stock	Capital	Income (Loss)	Earnings	Equity
Balance at December 31, 2022	25,027,467	$3	$333,558	$(36,515)	$87,708	$384,754
Other comprehensive income, net of tax	—	—	—	5,474	—	5,474
Stock-based compensation	—	—	3,450	—	—	3,450
Issuance of common stock via employee stock purchase plan	7,724	—	394	—	—	394
Issuance of common stock via equity incentive plan	41,685	—	90	—	—	90
Repurchases of common stock	(134,680)	—	—	—	(6,826)	(6,826)
Net income	—	—	—	—	17,313	17,313
Balance at March 31, 2023	24,942,196	$3	$337,492	$(31,041)	$98,195	$404,649
Balance at December 31, 2023	24,772,987	$3	$350,597	$(23,991)	$144,643	$471,252
Other comprehensive loss, net of tax	—	—	—	(2,514)	—	(2,514)
Stock-based compensation	—	—	3,820	—	—	3,820
Issuance of common stock via employee stock purchase plan	9,806	—	434	—	—	434
Issuance of common stock via equity incentive plan	138,267	—	1,857	—	—	1,857
Policyholder contribution to surplus	—	—	427	—	—	427
Net income	—	—	—	—	26,382	26,382
Balance at March 31, 2024	24,921,060	$3	$357,135	$(26,505)	$171,025	$501,658

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.