5.3 magnitude earthquake 80 km ESE of Ozernovskiy, Russia: USGS

5.3 magnitude earthquake 80 km ESE of Ozernovskiy, Russia: USGS

Palomar Holdings reported robust financial performance in the second quarter of 2025, with gross written premiums surging to $496.3 million, an impressive 29% increase year-over-year (YoY) [1]. This growth was driven by significant increases in earthquake and casualty insurance segments. Earthquake premiums rose by 9% YoY, while E&S casualty premiums surged by 119%, largely due to rate hikes and new product innovations [1].

Palomar's reinsurance strategy also proved effective, as the company managed to reduce reinsurance costs by 10% and lower retention levels, stabilizing earnings and enhancing risk-adjusted returns [1]. This strategic move aimed to mitigate volatility and ensure consistent earnings.

The Crop segment also performed well, with $39 million in written premiums reported in Q2, attributed to the April acquisition of Advanced AgProtection and strong market reception [1]. The segment's early reporting of acreage data suggests a promising start for the newly integrated business.

Key contradictions discussed in Palomar Holdings' latest earnings call included earthquake segment growth forecasts, reinsurance renewal assumptions, crop premium booking and timing, pricing competition in earthquake insurance, and pricing trends in the casualty segment [1].

In a related development, the U.S. Geological Survey (USGS) reported over 500 earthquakes above a magnitude of 4 in the week following a magnitude 8.8 earthquake off Russia's Kamchatka Peninsula [2]. This is typical of the aftershock activity that often accompanies major earthquakes, underscoring the importance of robust insurance coverage for such events.

References:
[1] https://www.ainvest.com/news/palomar-holdings-q2-2025-navigating-contradictions-earthquake-growth-reinsurance-pricing-trends-2508/
[2] https://www.facebook.com/EarthScope.sci/videos/in-the-week-following-the-magnitude-88-earthquake-off-russias-kamchatka-peninsul/767107949159229/