Latest news with #Palomar
Globe and Mail
7 days ago
- Business
- Globe and Mail
Palomar (PLMR) Q2 Revenue Jumps 55%
Key Points Non-GAAP EPS reached $1.76 in Q2 2025, beating non-GAAP analyst estimates and This figure represents a 40.8% increase compared to Q2 2024. GAAP revenue totaled $203.3 million in Q2 2025, This was up 55.1% year over year. Palomar raised its full-year adjusted net income guidance for 2025 and continued to diversify beyond its core earthquake insurance segment. These 10 stocks could mint the next wave of millionaires › Palomar (NASDAQ:PLMR), a specialty property insurance provider known for its focus on niche markets such as earthquake and specialty lines, announced its Q2 2025 results on August 4, 2025. The most important headline: Palomar delivered better-than-expected non-GAAP earnings per share and raised its outlook for adjusted net income for 2025. Non-GAAP earnings per share came in at $1.76, ahead of the $1.67 non-GAAP analyst estimate, while GAAP revenue was reported as $203.3 million. Net earned premiums, a core insurance metric, climbed 47.2% year-over-year (GAAP). Overall, the period was marked by solid organic growth across key business lines, increases in profitability, and tangible progress on Palomar's diversification initiatives. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $1.76 $1.67 $1.25 40.8 % Revenue (GAAP) $203.3 million N/A $131.1 million 55.1 % Net Earned Premiums $180.0 million $122.3 million 47.2 % Adjusted Combined Ratio 73.1 % 73.1 % 0.0 % Annualized Adjusted Return on Equity 23.7 % 24.7 % (1.0) pp Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Palomar's Business and Growth Focus Palomar's core business centers on specialty property and casualty insurance for underserved risk categories. It holds a prominent position in earthquake insurance in California, is growing rapidly in casualty, with gross written premium for casualty increasing 113% year-over-year, and also serves markets like inland marine, fronting, and crop insurance. Its competitive edge comes from using advanced technology platforms and proprietary analytics for underwriting and pricing, allowing for speed and flexibility. In recent years, Palomar has prioritized diversification. It is broadening its insurance offerings outside earthquake coverage, focusing on product expansion, geographic reach, and customer mix. These moves aim to reduce its reliance on any single risk type or region. Key success factors include disciplined risk management, strong reinsurance programs, and investments in operational technology. Quarter in Detail: Revenue Growth, Segment Trends, and Profitability Drivers Palomar saw a notable increase in business activity. Net earned premiums (GAAP) increased from $122.3 million in Q2 2024 to $180.0 million, reflecting expansion across product lines. Growth in premiums written was strongest in the casualty segment, which surged 118.8% to $128.2 million and The casualty segment now composes over a quarter of total gross written premium. Inland marine and property lines gross written premiums grew 28.4%. Crop insurance posted impressive gains, with gross written premium rising from $2.2 million to $39.5 million year over year. Conversely, the fronting segment, previously a larger contributor, declined 36.5% as expected due to the wind-down of a major partnership. The diversification strategy was evident in the quarterly mix: earthquake made up 29.8% of gross written premiums (down from 35.1% in Q2 2024), while no single line exceeded that share. Geographically, California exposure was 33.0% of gross written premium, further highlighting Palomar's broader portfolio. This balance limits concentration risk and reflects a shift toward markets with higher growth potential. Key profitability metrics also improved. The adjusted combined ratio (non-GAAP), which measures claims and expenses as a percentage of premiums earned, remained stable at 73.1%. The combined ratio excluding catastrophe losses ticked up, and upfront expense recognition related to crop business expansion. Loss ratios, which show claims costs compared to premiums, rose modestly from 24.9% in Q2 2024 to 25.7%, while the catastrophe loss ratio (non-GAAP) dropped to zero, signaling an absence of major insured events this period. The expense ratio (GAAP) improved, falling to 53.1% from 54.2% compared to Q2 2024. Earthquake insurance, Palomar's original specialty, recorded slower but steady growth, with management expecting mid- to high-teens gross written premium growth for FY2025. Thanks to investments in new talent and acquisitions like Advanced AgProtection. Notably, the fronting business is in runoff and becoming less significant for the company's outlook. On the finance side, net investment income rose 68.0% year over year, benefiting from higher yields and a bigger asset base, while annualized adjusted return on equity (non-GAAP) was 23.7%. Strategic Initiatives and Risk Management Execution During the period, Palomar made progress on several strategic initiatives. Specialty insurance markets like earthquake remain core to its identity, but expansion in casualty, crop, and inland marine has reshaped its revenue balance. The acquisition of Advanced AgProtection expanded the crop business's geographic reach and distribution footprint. Meanwhile, the planned runoff of the fronting segment, particularly following the termination of larger partnerships, continued as forecast and should have less impact after the next quarter. The company also executed a successful renewal of its reinsurance program at an adjusted rate decrease of approximately 10% year-over-year. Reinsurance is a form of insurance for insurers, letting Palomar limit its exposure to large, unpredictable events like natural disasters. The structure of its catastrophe bond placements and reinsurance treaties has further reduced volatility, as evidenced by the minimal catastrophe losses this quarter. Investment in technology and analytics was again highlighted, supporting automation and operational scale. These efforts allow for more targeted underwriting in specialty lines and maintain Palomar's competitive position, though the company is incurring additional costs as it builds out new lines, especially crop. The company does not currently pay a dividend. Looking Ahead: Outlook and Watch Points Management raised its full-year adjusted net income guidance to a range of $198–208 million (non-GAAP) for 2025, up from the prior estimate of $186–200 million (adjusted net income). This new outlook factors in a likely $8–12 million in catastrophe-related losses for the remainder of the year, as well as the expected seasonal effects from crop insurance operations. Overall, the company expects the combined ratio to be in the mid-to-upper 70% range. Investors should monitor several evolving trends and risks. These include sustained growth in casualty and crop gross written premiums, ongoing reduction in the fronting segment, expense levels tied to scaling new lines, the attritional loss ratio as business mix changes, and potential shifts in reinsurance market conditions. Analysts will look to see—especially as the company adapts to changing competitive pressures. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,019%* — a market-crushing outperformance compared to 178% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
7 days ago
- Business
- Yahoo
Palomar (PLMR) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Palomar (PLMR) reported $195.01 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 48.8%. EPS of $1.76 for the same period compares to $1.25 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $186.21 million, representing a surprise of +4.72%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being $1.68. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Palomar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Loss Ratio: 25.7% compared to the 28.1% average estimate based on six analysts. Combined Ratio: 78.8% compared to the 77.8% average estimate based on five analysts. Expense Ratio: 53.1% versus 49.4% estimated by five analysts on average. Adjusted combined ratio: 73.1% compared to the 74.3% average estimate based on three analysts. Revenues- Net investment income: $13.37 million versus $12.06 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +68% change. Revenues- Commission and other income: $1.68 million versus the six-analyst average estimate of $0.81 million. The reported number represents a year-over-year change of +111.7%. Revenues- Net earned premiums: $179.96 million versus $173.63 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +47.2% change. View all Key Company Metrics for Palomar here>>> Shares of Palomar have returned -12.2% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
28-07-2025
- Business
- Yahoo
Palomar (PLMR) Earnings Expected to Grow: Should You Buy?
Wall Street expects a year-over-year increase in earnings on higher revenues when Palomar (PLMR) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This insurance holding company is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +34.4%. Revenues are expected to be $186.21 million, up 42.1% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 2.41% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Palomar? For Palomar, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.25%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Palomar will most likely beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Palomar would post earnings of $1.59 per share when it actually produced earnings of $1.87, delivering a surprise of +17.61%. Over the last four quarters, the company has beaten consensus EPS estimates four times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Palomar appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Expected Results of an Industry Player Among the stocks in the Zacks Insurance - Property and Casualty industry, Allstate (ALL), is soon expected to post earnings of $3.36 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +108.7%. This quarter's revenue is expected to be $17.16 billion, up 8.5% from the year-ago quarter. The consensus EPS estimate for Allstate has been revised 0.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -4.91%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Allstate will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report The Allstate Corporation (ALL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Are Finance Stocks Lagging Affiliated Managers Group (AMG) This Year?
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Affiliated Managers Group (AMG) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Affiliated Managers Group is one of 870 companies in the Finance group. The Finance group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Affiliated Managers Group is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for AMG's full-year earnings has moved 2.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the most recent data, AMG has returned 8.5% so far this year. Meanwhile, the Finance sector has returned an average of 8.5% on a year-to-date basis. Another stock in the Finance sector, Palomar (PLMR), has outperformed the sector so far this year. The stock's year-to-date return is 37.6%. The consensus estimate for Palomar's current year EPS has increased 5.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Affiliated Managers Group belongs to the Financial - Investment Management industry, a group that includes 36 individual companies and currently sits at #82 in the Zacks Industry Rank. On average, this group has lost an average of 4% so far this year, meaning that AMG is performing better in terms of year-to-date returns. Palomar, however, belongs to the Insurance - Property and Casualty industry. Currently, this 43-stock industry is ranked #145. The industry has moved +5% so far this year. Affiliated Managers Group and Palomar could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-07-2025
- Business
- Yahoo
PLMR Outperforms Industry, Trades at Premium: How to Play the Stock
Shares of Palomar Holdings, Inc. PLMR have gained 85.4% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite's growth of 19.5%, 20.9% and 12.5%, respectively. The insurer has a market capitalization of $4.12 billion. The average volume of shares traded in the last three months was 0.3 million. Image Source: Zacks Investment Research Shares of Palomar Holdings closed at $154.25 on Monday and are trading above the 200-day simple moving average of $122.68, indicating solid upward momentum. Its shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 5.22X is higher than the industry average of of other insurers like The Allstate Corporation ALL, Arch Capital Group Ltd. ACGL and The Progressive Corporation PGR are also trading at a multiple higher than the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Palomar Holdings' 2025 earnings per share indicates a year-over-year increase of 39.2%. The consensus estimate for revenues is pegged at $782.98 million, implying a year-over-year improvement of 42.5%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 17% and 26.3%, respectively, from the corresponding 2025 has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company. Four of the six analysts covering the stock have raised estimates for 2025, and three of the five analysts have raised the same for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 2% and 1.5%, respectively, in the past 30 days. Image Source: Zacks Investment Research Based on short-term price targets offered by six analysts, the Zacks average price target is $183 per share. The average suggests a potential 19.31% upside from the last closing price. Image Source: Zacks Investment Research Return on equity is a measure of profitability reflecting how efficiently the company is utilizing its shareholders' value. Return on equity of 20.5% compared favorably with the industry's average of 7.8%. Also, the return on invested capital in the trailing 12-months was 19.9%, better than the industry average of 5.9%, reflecting the company's efficiency in utilizing funds to generate income. Palomar's fee-based platform, PLMR-FRONT, is positioned to drive medium-term growth. The addition of this revenue stream is expected to strengthen its earnings increasing volume of policies across multiple business lines, strong retention rates, expansion into new geographic areas and distribution channels, and the formation of new partnerships are expected to drive premiums. Palomar also projects that crop insurance will contribute around $200 million in premiums by identifies Surety as an attractive, long-term growth opportunity. Like crop insurance, Surety is not correlated with the traditional property and casualty insurance cycle, offering diversification and investment income is expected to rise, supported by a high-quality fixed-income portfolio, higher average investment balances, and improved yields. This solid investment base is poised to generate strong risk transfer strategy reduces exposure to major catastrophic events, helping to stabilize earnings and improve its combined the insurer maintains a strong capital position and a debt-free balance sheet. As part of its shareholder return initiatives, Palomar continues to execute share these strengths in place, Palomar raised adjusted net income guidance to a range of $186-$200 million in 2025, which includes $8-$12 million of additional catastrophe losses. Palomar is positioning itself as a key player in the crop insurance sector, with its growing emphasis on Surety signaling strong prospects for future expansion. The company's diverse product suite, ongoing geographic growth, onboarding of new producers, strategic partnerships with other insurers, and implemented rate increases are all poised to fuel its a specialty insurer, Palomar leverages reinsurance to effectively mitigate risk exposure. This strategy enables the company to underwrite policies with sufficient coverage while managing potential losses, contributing to a stable and resilient business its strong fundamentals and growth potential, this Zacks Rank #1 (Strong Buy) stock, despite its premium valuation, appears to be a compelling investment. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Allstate Corporation (ALL) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
