Palomar Holdings, Inc. Announces Successful Completion of June 1 Reinsurance Renewal
30 Mayo 2023 - 3:15PM
Palomar Holdings, Inc. (NASDAQ: PLMR) (“Palomar” or the “Company”)
today announced the successful completion of certain reinsurance
programs incepting June 1, 2023, and increased the Company’s full
year 2023 adjusted net income guidance.
Palomar’s reinsurance coverage now exhausts at
$2.68 billion for earthquake events including $17.5 million of
additional limit incepting September 1, 2023, $900 million for
Hawaii Hurricane events, and $100 million for all continental
United States hurricane events. The reinsurance program provides
ample capacity for the Company’s growth in the subject business
lines as well as coverage to a level exceeding Palomar’s 1:250-year
peak zone Probable Maximum Loss (“PML”).
Palomar has now purchased approximately $550
million of reinsurance limit to support the growth of its
earthquake franchise in 2023. $200 million of the new limit was
sourced through a new catastrophe bond, the Torrey Pines Re Series
2023-1 notes. The new catastrophe bonds were the fourth Insurance
Linked Securities (“ILS”) issuance Palomar has sponsored.
Palomar’s per occurrence catastrophe event
retention is now $17.5 million, a level that remains well within
management’s previously stated guideposts, on an after-tax basis,
of less than one quarter’s earnings and less than 5% of the
Company’s surplus.
“In what most have deemed the hardest
reinsurance market in thirty years, we successfully completed our
6/1 renewal. Importantly, we maintained our retention within our
previously stated expectations, bought incremental limit to support
our growth, preserved important terms and conditions such as
prepaid reinstatements, and successfully completed our fourth
catastrophe bond,” commented Mac Armstrong, Palomar’s Chairman and
Chief Executive Officer. “While risk-adjusted pricing increased,
the total expense was within our previously stated expectations.
The success of this placement along with our strong start to the
year allow us to raise our full year 2023 adjusted net income
guidance to a range of $88 million to $92 million.”
Other highlights of the Company’s reinsurance
program include:
- $875 million of multi-year ILS
capacity providing diversifying collateralized reinsurance
capital;
- A reinsurance panel of 78
reinsurers, including multiple new reinsurers, all of which have an
“A-” (Excellent) or better financial strength rating from A.M. Best
and/or S&P (Standard & Poor) or are fully
collateralized;
- Prepaid reinstatements for
substantially all layers with a reinstatement provision, thereby
limiting the pre-tax net loss to our $17.5 million retention with
modest additional reinsurance premium due.
Palomar’s Chief Risk Officer, Jon Knutzen,
added, “We successfully navigated the June 1 renewal in an orderly
fashion having achieved results in-line with our expectations and
are pleased with the support of our reinsurance partners. Our
reinsurance placement is a testament to the proactive and
deliberate underwriting changes that we have implemented over the
last few years designed to reduce our risk profile and deliver more
predictable results.”
Mr. Armstrong concluded, “Looking forward, we
have the reinsurance capacity to sustain our profitable growth
trajectory, execute our Palomar 2X strategic objective and build a
preeminent specialty insurance company.”
About Palomar Holdings,
Inc.Palomar Holdings, Inc. is the holding company of
subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar
Specialty Reinsurance Company Bermuda Ltd., Palomar Insurance
Agency, Inc. and Palomar Excess and Surplus Insurance Company
(“PESIC”). Palomar is an innovative insurer serving residential and
commercial clients in specialty markets. Palomar’s insurance
subsidiaries, Palomar Specialty Insurance Company, Palomar
Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and
Surplus Insurance Company, have a financial strength rating of “A-”
(Excellent) from A.M. Best.
To learn more, visit PLMR.com.
Follow Palomar on LinkedIn: @PLMRInsurance
Safe Harbor StatementPalomar
cautions you that statements contained in this press release may
regard matters that are not historical facts but are
forward-looking statements. These statements are based on the
company’s current beliefs and expectations. The inclusion of
forward-looking statements should not be regarded as a
representation by Palomar that any of its plans will be achieved.
Actual results may differ from those set forth in this press
release due to the risks and uncertainties inherent in the
Company’s business. The forward-looking statements are typically,
but not always, identified through use of the words "believe,"
"expect," "enable," "may," "will," "could," "intends," "estimate,"
"anticipate," "plan," "predict," "probable," "potential,"
"possible," "should," "continue," and other words of similar
meaning. Actual results could differ materially from the
expectations contained in forward-looking statements as a result of
several factors, including unexpected expenditures and costs,
unexpected results or delays in development and regulatory review,
regulatory approval requirements, the frequency and severity of
adverse events and competitive conditions. These and other factors
that may result in differences are discussed in greater detail in
the Company's filings with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and the Company undertakes no obligation to update such statements
to reflect events that occur or circumstances that exist after the
date hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
ContactMedia InquiriesLindsay
Conner1-551-206-6217lconner@plmr.com
Investor RelationsJamie
Lillis1-203-428-3223investors@plmr.com
Source: Palomar Holdings, Inc.
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