Palomar Holdings, Inc.
Palomar Holdings, Inc. is a U.S.-based specialty insurance holding company that underwrites property and casualty coverage through a group of insurance and related operating subsidiaries. Its business spans admitted and excess and surplus lines markets, with products distributed through agents, brokers, program administrators, and strategic partners across the United States.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSpecialty property coverage for earthquake-related losses and related catastrophe exposure.
Liability-oriented specialty insurance products for individuals and businesses.
Property and inland marine coverages for niche commercial and personal risks.
Insurance products tied to agricultural production and weather-related risk.
Fronting arrangements and related premium flows supported by reinsurance structures.
Bond and credit-related insurance products written through specialty subsidiaries.
Customers
Palomar sells primarily to U.S. insurance buyers that need specialty coverage not well served by standard carriers. Its distribution model is intermediary-led, so the end customer is often reached through retail agents, wholesale brokers, program administrators, or strategic partners rather than direct consumer sales.
Agents place specialty policies for individual and commercial insureds that need tailored underwriting.
Brokers source niche or higher-complexity risks, especially in E&S and catastrophe-exposed lines.
Administrators manage delegated programs where Palomar provides underwriting capacity and pricing.
Commercial buyers purchase earthquake, casualty, inland marine, and other specialty coverages.
Farm and crop customers buy weather-sensitive crop insurance protection.
Partners use fronting, reinsurance, or program structures to access underwriting capacity.
Strategy
Palomar’s strategy centers on specialty underwriting, data-driven pricing, and disciplined risk transfer through reinsurance. It also uses multiple distribution channels and selective acquisitions to expand product breadth and access adjacent specialty markets.
Supports pricing discipline in catastrophe-exposed and niche insurance lines.
Limits earnings volatility and protects capital from severe loss events.
Reduces dependence on any single intermediary group and broadens market access.
Adds new specialty lines and adjacent opportunities to the underwriting platform.
Geography
Palomar is headquartered in the United States and writes predominantly U.S. business. Its core underwriting platform is licensed in all 50 states through its insurance subsidiaries, while a Bermuda reinsurance subsidiary supports risk transfer for U.S. operations.
Risks
Palomar’s results are exposed to catastrophe losses, especially earthquake and other severe events, and to the availability and performance of reinsurance counterparties. The company also faces reserve uncertainty, broker concentration, competitive pressure, and state-specific exposure, including California regulatory and loss activity risk.
- Catastrophe loss severityImpact: CriticalLikelihood: Medium
Earthquake and other severe events can produce outsized claims and reduce capital.
Exposure: Earthquake and property lines
- Reinsurance counterparty riskImpact: HighLikelihood: Medium
The business relies on third-party reinsurers to absorb part of large losses.
Exposure: Quota share and catastrophe protection
- Reserve inadequacyImpact: HighLikelihood: Medium
Loss reserves depend on estimates of ultimate claims and development patterns.
Exposure: All underwriting lines
- California concentrationImpact: HighLikelihood: Medium
A meaningful share of exposure is tied to California loss activity and regulation.
Exposure: Property and catastrophe business
- Distribution concentrationImpact: MediumLikelihood: Medium
A limited set of brokers and program administrators can affect premium growth and retention.
Exposure: Wholesale and program channels
- Crop price and weather volatilityImpact: MediumLikelihood: Low
Agricultural insurance performance can shift with weather patterns and commodity prices.
Exposure: Crop insurance
Accounting
Judgemental itemsThese estimates drive underwriting profitability and can materially change over time.
Impact: A reserve strengthening or release can move earnings materially.
Amounts due from reinsurers affect asset quality and claim payment timing.
Impact: Collectability risk can affect both liquidity and earnings.
Written premiums are recognized as earned over the policy term.
Impact: Quarterly revenue can differ from written premium growth.
The portfolio is marked through fair value and can create unrealized gains or losses.
Impact: Reported income can fluctuate with market rates and spreads.
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Last updated: 24/09/2026