Palomar Holdings Q2 2025: Navigating Contradictions in Earthquake Growth, Reinsurance, and Pricing Trends

Earthquake segment growth forecasts, reinsurance renewal assumptions, crop premium booking and timing, pricing competition and assumptions in earthquake insurance, pricing trends in the casualty segment are the key contradictions discussed in Palomar Holdings' latest 2025Q2 earnings call.



Revenue and Growth:
- Palomar Holdings reported gross written premiums of $496.3 million in Q2 2025, an increase of 29% compared to the prior year second quarter, or 45% growth when excluding runoff business.
- This growth was driven by strong performance across several product categories, including Earthquake and Inland Marine and other property lines.

Earthquake and Casualty Performance:
- The Earthquake franchise delivered gross written premium growth of 9% year-over-year, with notable growth in Residential Earthquake.
- Casualty lines, especially E&S casualty, saw a strong performance with gross written premium increasing 119% year-over-year, driven by rate increases and new product innovations.

Reinsurance Strategy and Retention Levels:
- Palomar successfully executed its June 1 reinsurance placements, achieving a 10% risk-adjusted rate decrease and lowering its per occurrence retention level.
- This strategy aimed to reduce volatility, improve risk-adjusted returns, and ensure consistency in earnings.

Crop Segment Performance:
- The Crop franchise generated $39 million of written premium in Q2, reflecting scale and execution, with an earlier-than-expected reporting of acreage data.
- This performance is attributed to the April acquisition of Advanced AgProtection and strong market reception of the combined business.