Palomar Q2 EPS Beats, Premiums Surge 27%, Initiates Dividend
PLMR sits 35% above its 52-week low of $100.81.
Summary
Palomar delivered a strong Q2, with adjusted EPS of $2.36 beating the $2.18 consensus and gross written premiums jumping 27% to $630.5M, driven by Casualty, Crop, and Surety lines. The company also initiated a $0.45 quarterly dividend and repurchased $41M in shares, signaling confidence in cash generation. Full-year adjusted net income guidance of $270M-$280M and a modest $8M-$12M catastrophe loss expectation suggest disciplined underwriting in a hardening market. This follows the May reinsurance program expansion and the Gray Surety acquisition, reinforcing the growth narrative. The stock trades at 13x forward earnings, with a $165.50 median price target implying 21% upside.
At the time of this announcement, PLMR was trading at $136.11 on NASDAQ in the Finance sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $100.81 to $147.62. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.