LA JOLLA, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) ("Palomar" or "Company") reported net income of $52.6 million, or $1.94 per diluted share, for the second quarter of 2026 compared to net income of $46.5 million, or $1.68 per diluted share, for the second quarter of 2025. Adjusted net income⁽¹⁾ was $63.8 million, or $2.36 per diluted share, for the second quarter of 2026 as compared to $48.5 million, or $1.76 per diluted share, for the second quarter of 2025.

Second Quarter 2026 Highlights

Gross written premiums increased by 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025
Net income increased 13.0% to $52.6 million compared to $46.5 million in the second quarter of 2025
Adjusted net income⁽¹⁾ increased 31.4% to $63.8 million compared to $48.5 million in the second quarter of 2025
Diluted earnings per share increased by 15.5% to $1.94 compared to $1.68 in the second quarter of 2025
Diluted adjusted earnings per share⁽¹⁾ increased by 34.1% to $2.36 compared to $1.76 in the second quarter of 2025
Total loss ratio of 34.5% compared to 25.7% in the second quarter of 2025
Combined ratio of 83.3% compared to 78.8% in the second quarter of 2025
Adjusted combined ratio⁽¹⁾ of 76.7% compared to 73.1%, in the second quarter of 2025
Annualized return on equity of 21.7% compared to 22.7% in the second quarter of 2025
Annualized adjusted return on equity⁽¹⁾ of 26.3% compared to 23.7% in the second quarter of 2025

(1) See discussion of "Non-GAAP and Key Performance Indicators" below.

Mac Armstrong, Chairman and Chief Executive Officer, commented, "The second quarter of 2026 was another strong one for Palomar; highlighted by record adjusted net income, our 15^th consecutive earnings beat and the third increase to our full-year adjusted net income guidance. Gross written premium increased 27% year-over-year, adjusted net income grew 31%, adjusted earnings per share grew 34%, adjusted combined ratio was 77% and our adjusted return on equity was 26% - all outstanding results. Bolstering our financial performance were several operational achievements including the launch of the PLMR.Farm, our innovative crop policy administration system, and exceptional new additions to our team. These results demonstrate our ability to execute in a dynamic insurance market while maintaining discipline in underwriting and capital allocation.

Mr. Armstrong continued, "Our strong and consistent earnings, attractive returns and healthy balance sheet provide ample capacity to not only invest in the businesses driving our Palomar 2X strategy but also return capital to shareholders. As such our Board authorized the introduction of a quarterly dividend of $0.45 per share. Importantly, the dividend does not change our growth strategy or the execution of Palomar 2X; it only enhances our ability to create shareholder value."

Underwriting Results

Gross written premiums increased 27.0% to $630.5 million compared to $496.3 million in the second quarter of 2025, while net earned premiums increased 59.5% compared to the prior year’s second quarter.

Losses and loss adjustment expenses for the second quarter were $99.0 million, comprised of $99.4 million of attritional losses, offset by $0.4 million of favorable development on catastrophe events. The loss ratio for the quarter was 34.5%, comprised of an attritional loss ratio of 34.6% and a catastrophe loss ratio⁽¹⁾ of -0.1% compared to a loss ratio of 25.7% during the same period last year comprised entirely of attritional losses. Additionally, our second quarter results include $14.1 million of attritional and $0.2 million of catastrophe loss favorable prior year development. The majority of the attritional loss prior year favorability related to Inland Marine and Property lines and previous years’ Crop results.

Underwriting income⁽¹⁾ for the second quarter was $48.0 million resulting in a combined ratio of 83.3% compared to underwriting income of $38.3 million resulting in a combined ratio of 78.8% during the same period last year. The Company’s adjusted underwriting income⁽¹⁾ was $67.0 million, an increase of 38.4%, resulting in an adjusted combined ratio⁽¹⁾ of 76.7% in the second quarter compared to adjusted underwriting income⁽¹⁾of $48.4 million and an adjusted combined ratio⁽¹⁾ of 73.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses⁽¹⁾ was 76.8% compared to 73.1% during the same period last year.

Investment Results

Net investment income increased by 49.2% to $20.0 million compared to $13.4 million in the prior year’s second quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended June 30, 2026 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.33 years at June 30, 2026. Cash and invested assets totaled $1.7 billion at June 30, 2026. During the second quarter, the Company recorded $6.8 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $8.3 million during the same period last year.

Tax Rate

The effective tax rate for the three months ended June 30, 2026 was 24.7% compared to 22.3% for the three months ended June 30, 2025. For the current quarter, the Company’s income tax rate differed from the statutory rate of 21% due primarily to the non-deductible executive compensation expense.

Stockholders’ Equity and Capital Matters

Stockholders’ equity was $980.9 million at June 30, 2026, compared to $847.2 million at June 30, 2025. For the three months ended June 30, 2026, the Company’s annualized return on equity was 21.7% compared to 22.7% for the same period in the prior year while adjusted return on equity⁽¹⁾ was 26.3% compared to 23.7% for the same period in the prior year.

During the current quarter, the Company repurchased 368,719 shares of its common stock for $41.0 million.

On July 30, 2026, the Company’s Board of Directors declared an initial quarterly cash dividend of $0.45 per share of common stock, payable on September 2, 2026, to stockholders of record as of August 19, 2026.

Full Year 2026 Outlook

For the full year 2026, the Company expects to achieve adjusted net income of $270 million to $280 million. This includes an estimate of $8 million to $12 million of catastrophe losses for the year.

Conference Call

As previously announced, Palomar will host a conference call on Wednesday, August 5, 2026, to discuss its second quarter 2026 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Second Quarter 2026 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on August 5, 2026, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13761138. The replay will be available until 11:59 p.m. (Eastern Time) on August 19, 2026.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.

Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company ("PSIC"), Palomar Specialty Reinsurance Company Bermuda Ltd. ("PSRE"), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company ("PESIC"), Palomar Underwriters Exchange Organization, Inc. ("PUEO"), First Indemnity of America Insurance Co. ("FIA"), Palomar Crop Insurance Services, Inc. ("PCIS"), and Palomar Casualty and Surety Company ("PCSC"). Palomar’s consolidated results also include Laulima Exchange ("Laulima"), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Property, Casualty, Surety & Credit, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, and FIA have a financial strength rating of "A" (Excellent) from A.M. Best and PCSC has a financial strength rating of "A-" (Excellent) from A.M. Best.

To learn more, visit PLMR.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance. Management uses these non-GAAP measures internally to evaluate the Company’s underlying business performance and operating results, and to make resource allocation and strategic decisions. Management believes that disclosure of these measures provides investors with the same insight used internally to assess the Company’s operating performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor Statement

Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact

Media Inquiries

Lindsay Conner

1-551-206-6217

lconner@plmr.com

Investor Relations

Jamie Lillis

1-203-428-3223

investors@plmr.com

Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended
	June 30,
	2026			2025			Change			% Change
	(in thousands, except per share data)
Gross written premiums	$	630,456		$	496,288		$	134,168		27.0	%
Ceded written premiums		(305,279	)		(266,506	)		(38,773	)	14.5	%
Net written premiums		325,177			229,782			95,395		41.5	%
Net earned premiums		286,951			179,958			106,993		59.5	%
Commission and other income		769			1,677			(908	)	(54.1	)%
Total underwriting revenue⁽¹⁾		287,720			181,635			106,085		58.4	%
Losses and loss adjustment expenses		98,988			46,183			52,805		114.3	%
Acquisition expenses, net of ceding commissions and fronting fees		71,256			51,637			19,619		38.0	%
Other underwriting expenses		69,429			45,525			23,904		52.5	%
Underwriting income⁽¹⁾		48,047			38,290			9,757		25.5	%
Interest expense		(4,947	)		(86	)		(4,861	)	NM
Net investment income		19,950			13,370			6,580		49.2	%
Net realized and unrealized gains on investments		6,753			8,306			(1,553	)	(18.7	)%
Income before income taxes		69,803			59,880			9,923		16.6	%
Income tax expense		17,211			13,352			3,859		28.9	%
Net income	$	52,592		$	46,528		$	6,064		13.0	%
Adjustments:
Net realized and unrealized gains on investments		(6,753	)		(8,306	)		1,553		(18.7	)%
Expenses associated with transactions		6			754			(748	)	(99.2	)%
Stock-based compensation expense		7,438			5,347			2,091		39.1	%
Amortization of intangibles		9,180			1,346			7,834		NM
Expenses associated with catastrophe bond		2,330			2,661			(331	)	(12.4	)%
Tax impact		(1,025	)		202			(1,227	)	NM
Adjusted net income⁽¹⁾	$	63,768		$	48,532		$	15,236		31.4	%
Key Financial and Operating Metrics
Annualized return on equity		21.7	%		22.7	%
Annualized adjusted return on equity⁽¹⁾		26.3	%		23.7	%
Loss ratio		34.5	%		25.7	%
Expense ratio		48.8	%		53.1	%
Combined ratio		83.3	%		78.8	%
Adjusted combined ratio⁽¹⁾		76.7	%		73.1	%
Diluted earnings per share	$	1.94		$	1.68
Diluted adjusted earnings per share⁽¹⁾	$	2.36		$	1.76
Catastrophe losses	$	(418	)	$	(22	)
Catastrophe loss ratio⁽¹⁾		-0.1	%		0.0	%
Adjusted combined ratio excluding catastrophe losses⁽¹⁾		76.8	%		73.1	%
Adjusted underwriting income⁽¹⁾	$	67,001		$	48,398		$	18,603		38.4	%
NM - not meaningful

____________________

(1)	Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

	Six Months Ended
	June 30,
	2026			2025			Change			% Change
	(in thousands, except per share data)
Gross written premiums	$	1,260,284		$	938,452		$	321,832		34.3	%
Ceded written premiums		(597,192	)		(497,251	)		(99,941	)	20.1	%
Net written premiums		663,092			441,201			221,891		50.3	%
Net earned premiums		548,389			344,029			204,360		59.4	%
Commission and other income		2,178			2,507			(329	)	(13.1	)%
Total underwriting revenue⁽¹⁾		550,567			346,536			204,031		58.9	%
Losses and loss adjustment expenses		186,085			84,927			101,158		119.1	%
Acquisition expenses, net of ceding commissions and fronting fees		141,571			97,996			43,575		44.5	%
Other underwriting expenses		134,336			81,258			53,078		65.3	%
Underwriting income⁽¹⁾		88,575			82,355			6,220		7.6	%
Interest expense		(8,105	)		(171	)		(7,934	)	NM
Net investment income		37,934			25,441			12,493		49.1	%
Net realized and unrealized gains on investments		4,860			5,968			(1,108	)	(18.6	)%
Income before income taxes		123,264			113,593			9,671		8.5	%
Income tax expense		27,725			24,143			3,582		14.8	%
Net income	$	95,539		$	89,450		$	6,089		6.8	%
Adjustments:
Net realized and unrealized gains on investments		(4,860	)		(5,968	)		1,108		(18.6	)%
Expenses associated with transactions		7,412			2,841			4,571		160.9	%
Stock-based compensation expense		16,224			10,092			6,132		60.8	%
Amortization of intangibles		15,235			2,054			13,181		NM
Expenses associated with catastrophe bond		2,330			2,661			(331	)	(12.4	)%
Tax impact		(4,976	)		(1,293	)		(3,683	)	284.8	%
Adjusted net income⁽¹⁾	$	126,904		$	99,837		$	27,067		27.1	%
Key Financial and Operating Metrics
Annualized return on equity		19.9	%		22.7	%
Annualized adjusted return on equity⁽¹⁾		26.4	%		25.3	%
Loss ratio		33.9	%		24.7	%
Expense ratio		49.9	%		51.4	%
Combined ratio		83.8	%		76.1	%
Adjusted combined ratio⁽¹⁾		76.3	%		70.9	%
Diluted earnings per share	$	3.51		$	3.24
Diluted adjusted earnings per share⁽¹⁾	$	4.66		$	3.62
Catastrophe losses	$	(149	)	$	(565	)
Catastrophe loss ratio⁽¹⁾		0.0	%		-0.2	%
Adjusted combined ratio excluding catastrophe losses⁽¹⁾		76.4	%		71.1	%
Adjusted underwriting income⁽¹⁾	$	129,776		$	100,003		$	29,773		29.8	%
NM - not meaningful

____________________

(1)	Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

Condensed Consolidated Balance sheets

Palomar Holdings,Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except shares and par value data)

	June 30,			December 31,
	2026			2025
	(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $1,523,005 in 2026; $1,227,605 in 2025)	$	1,502,860		$	1,224,187
Equity securities, at fair value (cost: $109,595 in 2026; $81,772 in 2025)		129,515			99,333
Other investments		45,877			28,503
Total investments		1,678,252			1,352,023
Cash and cash equivalents		62,689			106,875
Restricted cash		15			17
Accrued investment income		14,742			11,545
Premiums receivable		655,876			452,908
Deferred policy acquisition costs, net of ceding commissions and fronting fees		153,824			127,718
Reinsurance recoverable on paid losses and loss adjustment expenses		62,237			56,428
Reinsurance recoverable on unpaid losses and loss adjustment expenses		523,790			412,273
Ceded unearned premiums		445,449			355,918
Prepaid expenses and other assets		127,870			110,896
Deferred tax assets, net		—			761
Property and equipment, net		2,665			2,551
Goodwill and intangible assets, net		236,756			61,054
Total assets	$	3,964,165		$	3,050,967
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and other accrued liabilities	$	159,331		$	115,663
Reserve for losses and loss adjustment expenses		944,737			688,231
Unearned premiums		1,226,105			988,143
Ceded premium payable		295,430			271,413
Funds held under reinsurance treaty		50,910			44,850
Term loan		295,773			—
Deferred tax liabilities, net		10,937			—
Total liabilities		2,983,223			2,108,300
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025		—			—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,186,979 and 26,520,417 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively		3			3
Additional paid-in capital		542,662			523,168
Accumulated other comprehensive loss		(15,159	)		(2,506	)
Retained earnings		453,436			422,002
Total stockholders’ equity		980,942			942,667
Total liabilities and stockholders’ equity	$	3,964,165		$	3,050,967

Condensed Consolidated Income Statement

Palomar Holdings,Inc. and Subsidiaries
Condensed Consolidated Statements ofIncome and Comprehensive Income (Unaudited)
(in thousands, except shares and per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Revenues:
Gross written premiums	$	630,456		$	496,288		$	1,260,284		$	938,452
Ceded written premiums		(305,279	)		(266,506	)		(597,192	)		(497,251	)
Net written premiums		325,177			229,782			663,092			441,201
Change in unearned premiums		(38,226	)		(49,824	)		(114,703	)		(97,172	)
Net earned premiums		286,951			179,958			548,389			344,029
Net investment income		19,950			13,370			37,934			25,441
Net realized and unrealized gains on investments		6,753			8,306			4,860			5,968
Commission and other income		769			1,677			2,178			2,507
Total revenues		314,423			203,311			593,361			377,945
Expenses:
Losses and loss adjustment expenses		98,988			46,183			186,085			84,927
Acquisition expenses, net of ceding commissions and fronting fees		71,256			51,637			141,571			97,996
Other underwriting expenses		69,429			45,525			134,336			81,258
Interest expense		4,947			86			8,105			171
Total expenses		244,620			143,431			470,097			264,352
Income before income taxes		69,803			59,880			123,264			113,593
Income tax expense		17,211			13,352			27,725			24,143
Net income	$	52,592		$	46,528		$	95,539		$	89,450
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale		1,294			3,009			(12,653	)		13,213
Net comprehensive income	$	53,886		$	49,537		$	82,886		$	102,663
Per Share Data:
Basic earnings per share	$	2.00		$	1.74		$	3.61		$	3.35
Diluted earnings per share	$	1.94		$	1.68		$	3.51		$	3.24

Weighted-average common shares outstanding:
Basic		26,346,887			26,756,095			26,458,904			26,707,371
Diluted		27,056,554			27,628,733			27,208,113			27,568,913

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums ("GWP") by product, location and company are presented below:

	Three Months Ended June 30,
	2026				2025
	($ in thousands)
			% of				% of					%
	Amount		GWP		Amount		GWP		Change			Change
Product(1)
Casualty	$	197,494	31.3	%	$	144,388	29.1	%	$	53,106		36.8	%
Inland Marine and Property		169,728	26.9	%		153,040	30.8	%		16,688		10.9	%
Earthquake		146,648	23.3	%		147,709	29.8	%		(1,061	)	(0.7	)%
Crop		77,368	12.3	%		39,464	8.0	%		37,904		96.0	%
Surety & Credit		39,218	6.2	%		11,687	2.3	%		27,531		235.6	%
Total gross written premiums	$	630,456	100.0	%	$	496,288	100.0	%	$	134,168		27.0	%

____________________

(1)	Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.

	Six Months Ended June 30,
	2026				2025
	($ in thousands)
			% of				% of					%
	Amount		GWP		Amount		GWP			Change		Change
Product(1)
Casualty	$	403,793	32.0	%	$	277,490		29.6	%	$	126,303	45.5	%
Inland Marine and Property		336,291	26.7	%		266,366		28.4	%		69,925	26.3	%
Earthquake		283,964	22.5	%		281,405		30.0	%		2,559	0.9	%
Crop		165,142	13.1	%		87,683		9.3	%		77,459	88.3	%
Surety & Credit		71,094	5.7	%		25,508		2.7	%		45,586	178.7	%
Total gross written premiums	$	1,260,284	100.0	%	$	938,452		100.0	%	$	321,832	34.3	%

____________________

(1)	Beginning in 2026, the Company has updated the categorization of its products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.

	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
			% of				% of				% of				% of
	Amount		GWP		Amount		GWP		Amount		GWP		Amount		GWP
State
California	$	165,306	26.2	%	$	163,814	33.0	%	$	322,925	25.6	%	$	303,536	32.3	%
Texas		61,497	9.7	%		35,708	7.2	%		125,081	9.9	%		80,699	8.6	%
Florida		34,462	5.5	%		23,979	4.8	%		64,350	5.1	%		42,621	4.5	%
Hawaii		27,259	4.3	%		24,544	4.9	%		50,104	4.0	%		44,901	4.8	%
New York		26,971	4.3	%		17,462	3.5	%		51,454	4.1	%		32,857	3.5	%
Washington		18,207	2.9	%		17,188	3.5	%		37,406	3.0	%		32,059	3.4	%
Illinois		18,179	2.9	%		13,048	2.7	%		25,271	2.0	%		18,637	2.0	%
Minnesota		15,644	2.5	%		12,004	2.4	%		17,656	1.4	%		13,042	1.4	%
Other		262,931	41.7	%		188,541	38.0	%		566,037	44.9	%		370,100	39.5	%
Total gross written premiums	$	630,456	100.0	%	$	496,288	100.0	%	$	1,260,284	100.0	%	$	938,452	100.0	%

	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	($ in thousands)								($ in thousands)
			% of				% of				% of				% of
	Amount		GWP		Amount		GWP		Amount		GWP		Amount		GWP
Subsidiary
PESIC	$	304,276	48.3	%	$	237,943	47.9	%	$	574,346	45.6	%	$	428,730	45.7	%
PSIC		278,176	44.1	%		232,983	46.9	%		601,929	47.8	%		463,900	49.4	%
Laulima		23,407	3.7	%		20,134	4.1	%		42,078	3.3	%		36,171	3.9	%
PCSC		21,558	3.4	%		—	—	%		33,979	2.7	%		—	—	%
FIA		3,039	0.5	%		5,228	1.1	%		7,952	0.6	%		9,651	1.0	%
Total gross written premiums	$	630,456	100.0	%	$	496,288	100.0	%	$	1,260,284	100.0	%	$	938,452	100.0	%

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

	Three Months Ended												Six Months Ended
	June 30,									%			June 30,									%
	2026			2025			Change			Change			2026			2025			Change			Change
	($ in thousands)												($ in thousands)
Gross earned premiums	$	552,859		$	408,764		$	144,095			35.3	%	$	1,056,731		$	784,540		$	272,191			34.7	%
Ceded earned premiums		(265,908	)		(228,806	)		(37,102	)		16.2	%		(508,342	)		(440,511	)		(67,831	)		15.4	%
Net earned premiums	$	286,951		$	179,958		$	106,993			59.5	%	$	548,389		$	344,029		$	204,360			59.4	%

Net earned premium ratio	51.9		%	44.0		%							51.9		%	43.9		%

Loss detail

	Three Months Ended											Six Months Ended
	June 30,											June 30,
	2026			2025			Change			% Change		2026			2025			Change		% Change
	($ in thousands)											($ in thousands)
Catastrophe losses	$	(418	)	$	(22	)	$	(396	)	NM		$	(149	)	$	(565	)	$	416	(73.6	)%
Non-catastrophe losses		99,406			46,205			53,201		115.1	%		186,234			85,492			100,742	117.8	%
Total losses and loss adjustment expenses	$	98,988		$	46,183		$	52,805		114.3	%	$	186,085		$	84,927		$	101,158	119.1	%

Catastrophe loss ratio	-0.1		%	0.0		%						0.0		%	(0.2		)%
Non-catastrophe loss ratio	34.6		%	25.7		%						33.9		%	24.9		%
Total loss ratio	34.5		%	25.7		%						33.9		%	24.7		%

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$	341,016		$	182,661		$	275,959		$	155,299
Add: Balances acquired⁽¹⁾		—			—			22,178			6,788
Add: Incurred losses and LAE, net of reinsurance, related to:⁽²⁾
Current year		113,312			52,698			210,741			95,757
Prior years		(14,324	)		(6,515	)		(24,656	)		(10,830	)
Total incurred		98,988			46,183			186,085			84,927
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year		7,262			17,659			27,980			22,657
Prior years		11,795			12,000			35,295			25,172
Total payments		19,057			29,659			63,275			47,829
Reserve for losses and LAE net of reinsurance recoverables at end of period		420,947			199,185			420,947			199,185
Add: Reinsurance recoverables on unpaid losses and LAE at end of period		523,790			399,471			523,790			399,471
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$	944,737		$	598,656		$	944,737		$	598,656

____________________

(1)	Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of The Gray Casualty and Surety Company ("Gray Surety") and FIA on 1/31/2026 and 1/1/2025, respectively, in accordance with ASC 805, Business Combinations. See Note 23 of the Notes to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K and Note 14 of our June 30, 2026 Quarterly Report on Form 10-Q for additional information regarding the acquisitions.
(2)	Losses for the three months ended June 30, 2026 and 2025 include $6.2 million and an insignificant amount, respectively, of losses on derivative instruments. Losses for the six months ended June 30, 2026 and 2025 include $18.5 million and an insignificant amount, respectively, of losses on derivative instruments.

Reconciliation of Non-GAAP Financial Measures

For the three and six months ended June 30, 2026 and 2025, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Total revenue	$	314,423		$	203,311		$	593,361		$	377,945
Net investment income		(19,950	)		(13,370	)		(37,934	)		(25,441	)
Net realized and unrealized gains on investments		(6,753	)		(8,306	)		(4,860	)		(5,968	)
Underwriting revenue	$	287,720		$	181,635		$	550,567		$	346,536

Underwriting income and adjusted underwriting income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Income before income taxes	$	69,803		$	59,880		$	123,264		$	113,593
Net investment income		(19,950	)		(13,370	)		(37,934	)		(25,441	)
Net realized and unrealized gains on investments		(6,753	)		(8,306	)		(4,860	)		(5,968	)
Interest expense		4,947			86			8,105			171
Underwriting income	$	48,047		$	38,290		$	88,575		$	82,355
Expenses associated with transactions		6			754			7,412			2,841
Stock-based compensation expense		7,438			5,347			16,224			10,092
Amortization of intangibles		9,180			1,346			15,235			2,054
Expenses associated with catastrophe bond		2,330			2,661			2,330			2,661
Adjusted underwriting income	$	67,001		$	48,398		$	129,776		$	100,003

Adjusted net income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Net income	$	52,592		$	46,528		$	95,539		$	89,450
Adjustments:
Net realized and unrealized gains on investments		(6,753	)		(8,306	)		(4,860	)		(5,968	)
Expenses associated with transactions		6			754			7,412			2,841
Stock-based compensation expense		7,438			5,347			16,224			10,092
Amortization of intangibles		9,180			1,346			15,235			2,054
Expenses associated with catastrophe bond		2,330			2,661			2,330			2,661
Tax impact		(1,025	)		202			(4,976	)		(1,293	)
Adjusted net income	$	63,768		$	48,532		$	126,904		$	99,837

Annualized adjusted return on equity

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Annualized adjusted net income	$	255,072		$	194,128		$	253,808		$	199,674
Average stockholders’ equity	$	969,991		$	818,823		$	961,805		$	788,114
Annualized adjusted return on equity		26.3	%		23.7	%		26.4	%		25.3	%

Adjusted combined ratio

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	238,904		$	141,668		$	459,814		$	261,674
Denominator: Net earned premiums	$	286,951		$	179,958		$	548,389		$	344,029
Combined ratio		83.3	%		78.8	%		83.8	%		76.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(6	)	$	(754	)	$	(7,412	)	$	(2,841	)
Stock-based compensation expense		(7,438	)		(5,347	)		(16,224	)		(10,092	)
Amortization of intangibles		(9,180	)		(1,346	)		(15,235	)		(2,054	)
Expenses associated with catastrophe bond		(2,330	)		(2,661	)		(2,330	)		(2,661	)
Adjusted combined ratio		76.7	%		73.1	%		76.3	%		70.9	%

Diluted adjusted earnings per share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(in thousands, except per share data)				(in thousands, except per share data)
Adjusted net income	$	63,768	$	48,532	$	126,904	$	99,837
Weighted-average common shares outstanding, diluted		27,056,554		27,628,733		27,208,113		27,568,913
Diluted adjusted earnings per share	$	2.36	$	1.76	$	4.66	$	3.62

Catastrophe loss ratio

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Numerator: Losses and loss adjustment expenses	$	98,988		$	46,183		$	186,085		$	84,927
Denominator: Net earned premiums	$	286,951		$	179,958		$	548,389		$	344,029
Loss ratio		34.5	%		25.7	%		33.9	%		24.7	%

Numerator: Catastrophe losses	$	(418	)	$	(22	)	$	(149	)	$	(565	)
Denominator: Net earned premiums	$	286,951		$	179,958		$	548,389		$	344,029
Catastrophe loss ratio		-0.1	%		0.0	%		0.0	%		-0.2	%

Adjusted combined ratio excluding catastrophe losses

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	($ in thousands)						($ in thousands)
Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income	$	238,904		$	141,668		$	459,814		$	261,674
Denominator: Net earned premiums	$	286,951		$	179,958		$	548,389		$	344,029
Combined ratio		83.3	%		78.8	%		83.8	%		76.1	%
Adjustments to numerator:
Expenses associated with transactions	$	(6	)	$	(754	)	$	(7,412	)	$	(2,841	)
Stock-based compensation expense		(7,438	)		(5,347	)		(16,224	)		(10,092	)
Amortization of intangibles		(9,180	)		(1,346	)		(15,235	)		(2,054	)
Expenses associated with catastrophe bond		(2,330	)		(2,661	)		(2,330	)		(2,661	)
Catastrophe losses		418			22			149			565
Adjusted combined ratio excluding catastrophe losses		76.8	%		73.1	%		76.4	%		71.1	%

Tangible Stockholders’ equity

	June 30,			December 31,
	2026			2025
	($ in thousands)
Stockholders’ equity	$	980,942		$	942,667
Goodwill and intangible assets		(236,756	)		(61,054	)
Tangible stockholders’ equity	$	744,186		$	881,613