February 2022 Investor Presentation – InsuranceNewsNet

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Investor Presentation

February 2022


This presentation contains forward-looking statements about Palomar Holdings, Inc. (the company”). These statements involve known and unknown risks relating to future events or the future financial performance of the Company, and actual results could differ materially from those discussed in this presentation. This presentation also includes financial measures that are not prepared in accordance with generally accepted accounting principles (“GAAP”). For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP , please see the appendix hereto.

Forward-looking statements generally relate to future events or the future financial or operating performance of the Company. In some cases, you can identify forward-looking statements because they contain words such as ”may”, ”should”, ”should”, ”expects”, ”plans”, ” ‘anticipates’, ”could”, ”intends”, ”targets”, ”plans”, ”considers”, ”believes”, ”estimates” ‘, ”predicted”, ”could”, ”potential” or ”continue” or the negative form of these words or other similar terms or expressions which include expectations, strategy, plans or intentions of the Company. These forward-looking statements include, among other things, statements relating to our future financial performance, our business prospects and strategy, our anticipated financial condition, our liquidity and capital requirements and other similar matters. These forward-looking statements are based on management’s current data.


expectations and assumptions regarding future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, among others, future results of operations; financial situation; the impact of the current and global COVID-19 pandemic; general economic, political and other risks, including currency and stock market fluctuations and the uncertain economic environment; the volatility of our common stock price; and our expectations regarding market trends.

The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company’s forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements made by the Company. Although the Company may elect to update these forward-looking statements at some time in the future, the Company currently has no intention of doing so, except as required by applicable law. You should therefore not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this presentation. Other risks and uncertainties relating to the Company and its activities can be consulted in the “Risk Factors” section of the Palomar Holdings, Inc. most recent annual report on Form 10-K, quarterly report on Form 10-Q and other documents filed with the United States Securities and Exchange Commission.

Company profile


Specialist insurer using data analytics and underwriting acumen to capitalize on market disruptions and deliver disruptive products that resonate with producers, other insurers and reinsurers

First earthquake insurer in United States

Multi-channel distribution serving residential and commercial customers

Admitted offers and E&S with national scope

AM Best “A- (Excellent)” FSC Group Rating

Risk transfer strategy limits exposure to major events and reduces earnings volatility

Committed to the environment, social issues, governance, diversity

and inclusion initiatives


  • PRG 2021 from $535.2 millionup 51% compared to 2020
    • T4 PRG of $149.9 millionup 56% compared to Q4 2020
  • 2021 adjusted net income of $53.4 million
    • Adjusted net income for the fourth quarter of $19.2 million
  • 2021 adjusted ROE of 14.1%
    • Q4 adjusted return equity of 19.9%
  • 2021 adjusted combined ratio of 76.1%
    • Fourth quarter adjusted combined ratio of 70.7%
  • New authorized two years $100 million share buyback program January 2022
  • Publication of the second annual report on sustainability and citizenship in February 2022
  • Full-year 2022 adjusted net income target of $80 for $85 million
    • Adjusted ROE of 19% at midrange
    • Adjusted floor ROE of 14% with renewal of the global program

31. This slide contains non-GAAP measures. See GAAP reconciliation in appendix.

Selected Achievements 2021




Driven exceptional revenue growth of 51% year-over-year

  • Commercial earthquakes and residential earthquakes increased by 54% and 21% respectively
  • Further product growth: Inland Marine 270%, Hawaii Hurricane 119% and Residential Flood 42%

E&S company delivered $152.2 million in GWP, representing 416% year-on-year growth

  • New business lines (real estate errors and omissions and excess liability) and builder risk partnerships (TRU and PURE) scaled throughout the year

Concerted efforts to mitigate earnings volatility

  • completed runoff from owners admitted All Risks and Specialties in Louisiana

Reduced probable maximum continental hurricane loss by approximately 40%

Implementation of global reinsurance to protect against multiple serious events and establish a floor ROE

  • Adjusted net income generated from $53.4 million and an adjusted ROE of 14.1% for shareholders

Execution of several noteworthy initiatives

Traction within PLMR-FRONT; targeting $80 for $100 million premiums managed in 2022

  • launched new General lossesprofessional liability and excess assets led by experienced and talented underwriters
  • New authorized two years $100 million share buyback program
  • Launch of the ESG portal and publication of the second annual report on sustainability and citizenship

41. This slide contains non-GAAP measures. See GAAP reconciliation in appendix

2022 strategic initiatives



  • Keep up the momentum in the earthquake book
  • Capitalize on the dislocation of California insurance market and the earthquake in California
    Authority (“AEC”)
  • Pursue additional rate increases and distribution expansion
  • Further expansion of the Inland Marine division
  • Seizing the Residential Flooding Market Opportunity Arising from FEMA Initiative “Risk Rating 2.0”



  • Nurture partnerships with carriers
  • Expand existing programs
  • Climb PLMR-FRONT at $80 million for $100 million premiums managed
  • To construct General lossesProfessional Liability and Surplus Property Divisions
  • Use the inside sales team to amplify agency distribution



  • Reduce continental exposure to hurricanes
  • Generate additional subscription revenue from sectors of activity not exposed to disasters
  • To improve paid revenue stream via PLMR-FRONT
  • Renew global reinsurance protection
  • Use quota share reinsurance to mitigate attrition losses



  • Use technology to optimize costs and increase margins
  • Invest in actuarial, analytics, underwriting and technology departments
  • Improve expense efficiency in claims organization

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Palomar Holdings Inc. published this content on February 28, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on March 01, 2022 02:03:21 UTC.

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