What caused PLMR's earnings to drop in Q2?

Palomar Holdings Inc.'s (PLMR) earnings dropped in Q2 2024 due to several factors: 1. **Losses and Loss Adjustment Expenses**: The company reported losses and loss adjustment expenses of $30.4 million, with a loss ratio of 24.9%, up from 21.5% in the same period last year. This increase indicates a higher proportion of claims over premiums, leading to lower net income. 2. **Underwriting Income**: The underwriting income for the second quarter was $25.6 million, resulting in a combined ratio of 79.1%. A combined ratio below 100% indicates underwriting profitability, but the higher figure suggests that Palomar incurred more expenses relative to its earned premiums than it earned in premiums. 3. **Market Conditions and Competition**: The insurance industry is highly competitive, and Palomar may have faced challenges from other insurers, such as MetLife's partnership with SKYGEN to revolutionize dental provider experiences, which could have impacted Palomar's market share and pricing power. In summary, Palomar Holdings Inc.'s earnings drop in Q2 2024 was likely caused by a combination of higher losses and loss adjustment expenses, lower underwriting income, and competitive market conditions.