Palomar Holdings Inc
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
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.
Jun 30, 2024 · Filed Aug 6, 2024
PLMR$156.78+0.7%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements
| Condensed Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023 | 3 | |
| Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 | 4 | |
| Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 | 5 | |
| Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 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 | 45 |
| Item 4. | Controls and Procedures | 46 |
| PART II. OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 47 |
| Item 1A. | Risk Factors | 47 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 70 |
| Item 3. | Defaults Upon Senior Securities | 70 |
| Item 4. | Mine Safety Disclosures | 70 |
| Item 5. | Other Information | 70 |
| Item 6. | Exhibits | 71 |
| Signatures | 72 | |
Part I: FINANCIAL INFORMATION
Condensed Consolidated Balance Sheets
(in thousands, except shares and par value data)
| June 30, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| (Unaudited) | ||
| Assets | ||
| Investments: | ||
| Fixed maturity securities available for sale, at fair value (amortized cost: $723,940 in 2024; $675,130 in 2023) | $687,138 | $643,799 |
| Equity securities, at fair value (cost: $32,987 in 2024; $43,003 in 2023) | 37,761 | 43,160 |
| Equity method investment | 2,351 | 2,617 |
| Other investments | 2,641 | — |
| Total investments | 729,891 | 689,576 |
| Cash and cash equivalents | 47,840 | 51,546 |
| Restricted cash | 179 | 306 |
| Accrued investment income | 5,930 | 5,282 |
| Premiums receivable | 357,267 | 261,972 |
| Deferred policy acquisition costs, net of ceding commissions and fronting fees | 82,486 | 60,990 |
| Reinsurance recoverable on paid losses and loss adjustment expenses | 33,309 | 32,172 |
| Reinsurance recoverable on unpaid losses and loss adjustment expenses | 347,840 | 244,622 |
| Ceded unearned premiums | 303,477 | 265,808 |
| Prepaid expenses and other assets | 86,590 | 72,941 |
| Deferred tax assets, net | 9,450 | 10,119 |
| Property and equipment, net | 253 | 373 |
| Goodwill and intangible assets, net | 11,537 | 12,315 |
| Total assets | $2,016,049 | $1,708,022 |
| Liabilities and stockholders' equity | ||
| Liabilities: | ||
| Accounts payable and other accrued liabilities | $52,052 | $42,376 |
| Reserve for losses and loss adjustment expenses | 466,601 | 342,275 |
| Unearned premiums | 720,528 | 597,103 |
| Ceded premium payable | 231,182 | 181,742 |
| Funds held under reinsurance treaty | 13,080 | 13,419 |
| Income taxes payable | — | 7,255 |
| Borrowings from credit agreements | — | 52,600 |
| Total liabilities | 1,483,443 | 1,236,770 |
| Stockholders' equity: | ||
| Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | — | — |
| Common stock, $0.0001 par value, 500,000,000 shares authorized, 24,984,638 and 24,772,987 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 3 | 3 |
| Additional paid-in capital | 363,904 | 350,597 |
| Accumulated other comprehensive loss | (28,055) | (23,991) |
| Retained earnings | 196,754 | 144,643 |
| Total stockholders' equity | 532,606 | 471,252 |
| Total liabilities and stockholders' equity | $2,016,049 | $1,708,022 |
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited)
(in thousands, except shares and per share data)
| Three Months Ended · Six Months Ended | ||||
|---|---|---|---|---|
| June 30, | June 30, | |||
| 2024 | 2023 | 2024 | 2023 | |
| Revenues: | ||||
| Gross written premiums | $385,184 | $274,296 | $753,262 | $524,407 |
| Ceded written premiums | (209,181) | (169,109) | (437,352) | (339,453) |
| Net written premiums | 176,003 | 105,187 | 315,910 | 184,954 |
| Change in unearned premiums | (53,718) | (22,080) | (85,759) | (18,607) |
| Net earned premiums | 122,285 | 83,107 | 230,151 | 166,347 |
| Net investment income | 7,960 | 5,541 | 15,098 | 10,661 |
| Net realized and unrealized gains on investments | 32 | 1,127 | 3,034 | 1,273 |
| Commission and other income | 792 | 621 | 1,320 | 1,316 |
| Total revenues | 131,069 | 90,396 | 249,603 | 179,597 |
| Expenses: | ||||
| Losses and loss adjustment expenses | 30,431 | 17,905 | 57,268 | 38,557 |
| Acquisition expenses, net of ceding commissions and fronting fees | 35,806 | 26,057 | 67,604 | 51,736 |
| Other underwriting expenses | 31,233 | 22,350 | 56,036 | 41,572 |
| Interest expense | 225 | 1,064 | 965 | 2,084 |
| Total expenses | 97,695 | 67,376 | 181,873 | 133,949 |
| Income before income taxes | 33,374 | 23,020 | 67,730 | 45,648 |
| Income tax expense | 7,645 | 5,458 | 15,619 | 10,774 |
| Net income | $25,729 | $17,562 | $52,111 | $34,874 |
| Other comprehensive income, net: | ||||
| Net unrealized (losses) gains on securities available for sale | (1,550) | (3,685) | (4,064) | 1,789 |
| Net comprehensive income | $24,179 | $13,877 | $48,047 | $36,663 |
| Per Share Data: | ||||
| Basic earnings per share | $1.03 | $0.71 | $2.09 | $1.40 |
| Diluted earnings per share | $1.00 | $0.69 | $2.04 | $1.37 |
| Weighted-average common shares outstanding: | ||||
| Basic | 24,946,987 | 24,833,852 | 24,904,677 | 24,901,403 |
| Diluted | 25,617,916 | 25,309,526 | 25,554,445 | 25,384,409 |
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 | — | — | — | 1,789 | — | 1,789 |
| Stock-based compensation | — | — | 7,147 | — | — | 7,147 |
| Issuance of common stock via employee stock purchase plan | 7,724 | — | 394 | — | — | 394 |
| Issuance of common stock via equity incentive plan | 60,240 | — | 314 | — | — | 314 |
| Repurchases of common stock | (301,162) | — | — | — | (15,564) | (15,564) |
| Net income | — | — | — | — | 34,874 | 34,874 |
| Balance at June 30, 2023 | 24,794,269 | $3 | $341,413 | $(34,726) | $107,018 | $413,708 |
| Balance at December 31, 2023 | 24,772,987 | $3 | $350,597 | $(23,991) | $144,643 | $471,252 |
| Other comprehensive loss, net of tax | — | — | — | (4,064) | — | (4,064) |
| Stock-based compensation | — | — | 7,789 | — | — | 7,789 |
| Issuance of common stock via employee stock purchase plan | 9,806 | — | 434 | — | — | 434 |
| Issuance of common stock via equity incentive plan | 201,845 | — | 3,968 | — | — | 3,968 |
| Policyholder contribution to surplus | — | — | 1,116 | — | — | 1,116 |
| Net income | — | — | — | — | 52,111 | 52,111 |
| Balance at June 30, 2024 | 24,984,638 | $3 | $363,904 | $(28,055) | $196,754 | $532,606 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.