Specialty insurance company Palomar Holdings has actually released its very first quarter 2023 results reporting an earnings of $17.3 million, a 46.3% boost in gross composed premiums (GWP) and a combined ratio of 77.9%.
GWP increased from $170.9 million reported in the very first quarter of 2022, to $250.1 million in Q1 2023. Net made premiums increased 9.5% compared to the previous year’s very first quarter.
Net composed premiums decreased 2%, to $79.7 million, from the $81.3 million reported in the very first quarter of 2022.
Losses and loss change costs for Q1 were $20.7 million consisting of $18.9 countless non-catastrophe attritional losses, and $1.8 countless disaster losses from the California flood activity throughout the very first quarter, balanced out a little by beneficial previous duration advancement of disaster losses.
Palomar likewise reported an underwriting earnings of $18.4 million for Q1 2023, leading to a combined ratio of 77.9%. This compares to underwriting earnings of $17.9 million reported in the very same duration in 2015, which led to a combined ratio of 76.5%.
The business’s changed underwriting earnings was $22.2 million, with an adjusted combined ratio of 73.3% in Q1, compared to in 2015’s $21.2 million and an adjusted combined ratio of 72.1%.
Mac Armstrong, Chairman and Chief Executive Officer, commented: “Following a record year in 2022, I am pleased with the strong start to 2023. Our very first quarter outcomes show continued momentum in our business and more execution of our Palomar 2X method.
“Highlights for the quarter include gross written premium growth of 46%, an adjusted combined ratio of 73.3%, and an adjusted return on equity of 20.7%. Importantly, these results were achieved even with elevated catastrophe activity during the quarter.”
Armstrong continued: “Additionally, in March we secured approximately $188 million of incremental excess of loss (“XOL”) limitation offering assistance for more development in our core earthquake business.
“Pricing for the recent XOL placement was in line with budgeted expectations and as a result, we remain confident in our ability to deliver our full-year target of $86 million to $90 million of adjusted net income.”
For the complete year 2023, Palomar Holdings anticipates to attain adjusted earnings of $86 million to $90 million. This consists of disaster losses sustained in the very first quarter of around $1.8 million. The anticipated outcomes do not consist of any extra disaster losses, the business kept in mind.
