Palomar Holdings Inc

For the period ended Sep 30, 2024. Filed Nov 6, 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.

Sep 30, 2024 · Filed Nov 6, 2024

PLMR$155.71+0.0%Stored close · as of Nov 6, 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 September 30, 2024 (Unaudited) and December 31, 2023	3
	Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits	72
	Signatures	73

Part I: FINANCIAL INFORMATION

Condensed Consolidated Balance Sheets

(in thousands, except shares and par value data)

	September 30,	December 31,
	2024	2023
(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $896,775 in 2024; $675,130 in 2023)	$882,980	$643,799
Equity securities, at fair value (cost: $32,987 in 2024; $43,003 in 2023)	40,196	43,160
Equity method investment	2,499	2,617
Other investments	5,207	—
Total investments	930,882	689,576
Cash and cash equivalents	86,479	51,546
Restricted cash	105	306
Accrued investment income	7,495	5,282
Premiums receivable	326,674	261,972
Deferred policy acquisition costs, net of ceding commissions and fronting fees	86,408	60,990
Reinsurance recoverable on paid losses and loss adjustment expenses	58,889	32,172
Reinsurance recoverable on unpaid losses and loss adjustment expenses	360,164	244,622
Ceded unearned premiums	298,509	265,808
Prepaid expenses and other assets	104,831	72,941
Deferred tax assets, net	4,019	10,119
Property and equipment, net	409	373
Goodwill and intangible assets, net	11,147	12,315
Total assets	$2,276,011	$1,708,022
Liabilities and stockholders' equity
Liabilities:
Accounts payable and other accrued liabilities	$75,424	$42,376
Reserve for losses and loss adjustment expenses	497,438	342,275
Unearned premiums	739,623	597,103
Ceded premium payable	235,157	181,742
Funds held under reinsurance treaty	25,056	13,419
Income taxes payable	—	7,255
Borrowings from credit agreements	—	52,600
Total liabilities	1,572,698	1,236,770
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023	—	—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,452,242 and 24,772,987 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	3	3
Additional paid-in capital	486,198	350,597
Accumulated other comprehensive loss	(10,139)	(23,991)
Retained earnings	227,251	144,643
Total stockholders' equity	703,313	471,252
Total liabilities and stockholders' equity	$2,276,011	$1,708,022

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

(in thousands, except shares and per share data)

Three Months Ended · Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Revenues:
Gross written premiums	$414,977	$313,998	$1,168,239	$838,406
Ceded written premiums	(255,267)	(203,336)	(692,620)	(542,789)
Net written premiums	159,710	110,662	475,619	295,617
Change in unearned premiums	(24,064)	(24,845)	(109,823)	(43,453)
Net earned premiums	135,646	85,817	365,796	252,164
Net investment income	9,408	6,029	24,506	16,690
Net realized and unrealized gains (losses) on investments	2,734	(1,376)	5,768	(103)
Commission and other income	715	465	2,035	1,781
Total revenues	148,503	90,935	398,105	270,532
Expenses:
Losses and loss adjustment expenses	40,315	16,139	97,583	54,696
Acquisition expenses, net of ceding commissions and fronting fees	41,469	27,004	109,072	78,740
Other underwriting expenses	28,129	22,390	84,165	63,962
Interest expense	87	867	1,052	2,952
Total expenses	110,000	66,400	291,872	200,350
Income before income taxes	38,503	24,535	106,233	70,182
Income tax expense	8,006	6,103	23,625	16,877
Net income	$30,497	$18,432	$82,608	$53,305
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale	17,916	(8,494)	13,852	(6,706)
Net comprehensive income	$48,413	$9,938	$96,460	$46,599
Per Share Data:
Basic earnings per share	$1.18	$0.75	$3.28	$2.15
Diluted earnings per share	$1.15	$0.73	$3.19	$2.10
Weighted-average common shares outstanding:
Basic	25,766,697	24,740,455	25,194,114	24,847,164
Diluted	26,479,566	25,244,828	25,877,257	25,340,602

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, 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
Other comprehensive loss, net of tax	—	—	—	(1,550)	—	(1,550)
Stock-based compensation	—	—	3,968	—	—	3,968
Issuance of common stock via employee stock purchase plan	—	—	—	—	—	—
Issuance of common stock via equity incentive plan	63,578	—	2,112	—	—	2,112
Policyholder contribution to surplus	—	—	689	—	—	689
Net income	—	—	—	—	25,729	25,729
Balance at June 30, 2024	24,984,638	$3	$363,904	$(28,055)	$196,754	$532,606
Other comprehensive income, net of tax	—	—	—	17,916	—	17,916
Stock-based compensation	—	—	4,117	—	—	4,117
Issuance of common stock in stock offering, net of offering costs	1,380,000	—	115,724	—	—	115,724
Issuance of common stock via employee stock purchase plan	7,294	—	468	—	—	468
Issuance of common stock via equity incentive plan	80,310	—	1,064	—	—	1,064
Policyholder contribution to surplus	—	—	921	—	—	921
Net income	—	—	—	—	30,497	30,497
Balance at September 30, 2024	26,452,242	$3	$486,198	$(10,139)	$227,251	$703,313

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
Other comprehensive income, net of tax	—	—	—	(3,685)	—	(3,685)
Stock-based compensation	—	—	3,697	—	—	3,697
Issuance of common stock via employee stock purchase plan	—	—	—	—	—	—
Issuance of common stock via equity incentive plan	18,555	—	224	—	—	224
Repurchases of common stock	(166,482)	—	—	—	(8,739)	(8,739)
Net income	—	—	—	—	17,562	17,562
Balance at June 30, 2023	24,794,269	$3	$341,413	$(34,726)	$107,018	$413,708
Other comprehensive loss, net of tax	—	—	—	(8,495)	—	(8,495)
Stock-based compensation	—	—	3,589	—	—	3,589
Issuance of common stock via employee stock purchase plan	9,356	—	406	—	—	406
Issuance of common stock via equity incentive plan	44,999	—	265	—	—	265
Repurchases of common stock	(117,739)	—	—	—	(6,571)	(6,571)
Net income	—	—	—	—	18,432	18,432
Balance at September 30, 2023	24,730,885	$3	$345,673	$(43,221)	$118,879	$421,334

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