Palomar reports 35% net income growth in Q4 2024

Palomar  reported a net income of $35 million ($1.29 per diluted share) for Q4 2024, a 35% increase from $25.9 million ($1.02 per diluted share) in Q4 2023. Adjusted net income rose 47.5% to $41.3 million ($1.52 per diluted share). Gross written premiums grew 23.3% to $373.7 million, while the combined ratio stood at 75.9%, up from 74.2% in the prior year.

For the full year, Palomar’s net income increased 48.4% to $117.6 million, with gross written premiums reaching $1.5 billion, a 35.1% jump. The company’s return on equity was 19.6%, while adjusted return on equity was 22.2%. CEO Mac Armstrong highlighted Palomar’s AM Best upgrade, the acquisition of First Indemnity of America ( FIA Surety ), and achieving a key milestone of doubling adjusted underwriting income within three years. Looking ahead, Palomar expects adjusted net income of $180 million to $192 million for 2025.

“Beyond the strong financial results of the fourth quarter and 2024, Palomar’s accomplishments were several and notable, highlighted by our AM Best upgrade and the acquisition of First Indemnity of America, our surety operation.  Furthermore, we accomplished a Palomar 2X fundamental strategic objective by doubling our adjusted underwriting income for the 2021 period in a three-year timeframe. We are energized by our prospects to continue this profitable growth in 2025 and thereafter.” – Armstrong.