Palomar Holdings, Inc. Secures $25 Million of Aggregate Reinsurance Protection

Rhea-AI Summary

Palomar Holdings (NASDAQ:PLMR) has renewed its $25 million Aggregate Cover for excess of loss reinsurance, starting April 1, 2022. The coverage has a $30 million attachment point and protects against various catastrophic events, including earthquakes and hurricanes, with a qualifying loss threshold of $2 million. CEO Mac Armstrong stated this reinsurance placement enhances the company's financial stability and establishes a 14% floor on the adjusted return on equity for 2022, based on an anticipated adjusted net income of $80-$85 million.

Positive

• Renewed $25 million Aggregate Cover for reinsurance enhances financial stability.
• Protection against multiple severe catastrophic events reduces risk exposure.
• Establishes a 14% floor on adjusted return on equity for 2022.

Negative

• None.

LA JOLLA, Calif., March 17, 2022 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) today announced that it has renewed $25.0 million of aggregate excess of loss reinsurance limit (“Aggregate Cover”). The Aggregate Cover incepts April 1, 2022, has an attachment point of $30.0 million and maintains coverage for qualifying events within its per occurrence retention. This coverage applies across all perils including but not limited to earthquakes, hurricanes, convective storms, and floods above a qualifying level of $2.0 million in ultimate gross loss.

Mac Armstrong, Chairman and Chief Executive Officer of Palomar, commented, “We are very pleased to successfully complete the placement of our Aggregate Cover. The Aggregate Cover is a demonstrable example of how we proactively safeguard our business, balance sheet and operating results. The reinsurance facility not only protects our business from losses generated by multiple severe catastrophic events, but also establishes a floor on our adjusted return on equity. Assuming the full utilization of the Aggregate Cover and the mid-point of our previously announced adjusted net income range of $80 - $85 million, our 2022 adjusted return on equity has a floor of 14%.”

About Palomar Holdings, Inc.

Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd., Palomar Insurance Agency, Inc. and Palomar Excess and Surplus Insurance Company (“PESIC”). Palomar is an innovative insurer that focuses on the provision of specialty insurance for residential and commercial clients. Palomar’s underwriting and analytical expertise allow it to concentrate on certain markets that it believes are underserved by other insurance companies, such as the markets for earthquake, hurricane and flood insurance. Palomar’s insurance subsidiaries, Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and Surplus Insurance Company, have a financial strength rating of “A-” (Excellent) from A.M. Best.

To learn more, visit PLMR.com.   

Follow Palomar on Facebook, LinkedIn and Twitter: @PLMRInsurance

Contact
Media Inquiries
Bill Bold
1-619-890-5972
bbold@plmr.com

Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com   

Source: Palomar Holdings, Inc.

 

FAQ

What is the significance of Palomar's $25 million Aggregate Cover?

The $25 million Aggregate Cover provides Palomar with enhanced financial stability and protection against catastrophic events, reducing risk exposure.

When does the new Aggregate Cover for Palomar take effect?

The new Aggregate Cover takes effect on April 1, 2022.

What is the expected return on equity for Palomar in 2022?

Palomar has established a 14% floor on its adjusted return on equity for 2022, assuming full utilization of the Aggregate Cover.

What types of events does the Aggregate Cover protect against?

The Aggregate Cover protects against various catastrophic events, including earthquakes, hurricanes, convective storms, and floods.

What is the loss threshold for the Aggregate Cover?

The Aggregate Cover applies to losses above a qualifying level of $2 million in ultimate gross loss.