Palomar Holdings Inc 2024年度报告

2024 A N N U A LR E P O R T $1.5B With strong financial resultsand a focus on sustainable,profitable growth, we areproud to have deliveredsignificant shareholdervalue this year. Gross Written Premiums $117.6MNet Income $133.5MAdjusted Net Income Founded in 2014 by a team with deep experience acrossunderwriting, analytics, reinsurance, and capital markets,Palomar is an innovative specialty insurer serving residentialand commercial clients in five product categories: Earthquake,Inland Marine & Other Property, Fronting, Casualty, andCrop. Our underwriting and analytical expertise allow us toconcentrate on certain markets that we believe are underservedand can generate attractive risk-adjusted returns.1 78%Combined Ratio 74% Adjusted Combined Ratio 35%Gross writtenpremium growth 20% Return on Equity A 22%Adjusted Return on Equity Upgraded to “A” (Excellent) FSC X grouprating by AM Best Added exceptionalleaders to an alreadystrong team Entered Suretymarket byacquiring FirstIndemnity ofAmerica (FIA) Delivering ProfitableGrowth for Shareholders QGross Written PremiumsQAdjusted Net Income1 Palomar’s diverse portfolio of innovativespecialty insurance products is designedto expertly manage risk, reduce earningsvolatility, and sustain profitable growth. Percentage of Total Gross WrittenPremiums by Product Category 22%Inland Marine& Other Property Palomar 2X Strategy Introduced in 2022, Palomar 2X is a strategic imperative that aimsto double adjusted net income and achieve an adjusted return onequity above 20% over an intermediate time frame. Achieved initial Palomar 2X goal within three years. Palomar’s 2024financial results werestellar as we continuedour strong record ofprofitable growth. As we closed out our eleventhyear, I can’t help but look backon the tremendous progresswe have made. 2024 was abanner year for Palomar. Weachieved several meaningful andnoteworthy accomplishments,driven by the dedication, hardwork, and innovative spirit ofour exceptional team. Mac ArmstrongChairman and Chief Executive Officer “Core to our success in 2024 was the execution of the four strategicobjectives we laid out at the beginning of the year: Grow Where WeWant, Manage Dislocation and Diversification, Deliver PredictableEarnings, and Scale the Organization.” Residential and Commercial Earthquake products anchoredour growth as we maintained strong new business salesand high policy retention. Our balanced approach of writingboth Residential and Commercial Earthquake productshelped us navigate market cycles and maintain margins,even when commercial rates soften. Our financial results were stellar as we continued our strongrecord of profitable growth. Our gross written premiumsand adjusted net income growth of 35% and 43%,respectively, led to record top- and bottom-line results. Additionally, the year featured significant milestonesincluding an upgrade by AM Best to an “A” (Excellent)rating, as well as the acquisition of FIA. We expanded ourteam by recruiting seasoned industry professionals, whoseaddition helped us reach our Palomar 2X target of doubling2021 adjusted underwriting income in three years, theshorter end of our intermediate time frame. Our Casualty franchise saw significant growth with grosswritten premiums increasing 161%. Our strategy in theCasualty market is firmly rooted in expertly underwritingspecialized niche segments. A few standout performers thisyear included Real Estate E&O, Commercial ContractorsLiability, Primary Casualty, and Environmental Liability. Weare judiciously growing these lines of business throughdisciplined underwriting, prudent risk management, andconservative reserving practices. Core to our success in 2024 was the execution of fourstrategic imperatives we laid out at the beginning of theyear: Grow Where We Want, Manage Dislocation andDiversification, Deliver Predictable Earnings, and Scalethe Organization. Lastly, our Crop franchise continues to grow and scale. Inthe fourth quarter, Benson Latham, Executive Vice President,Head of Crop, joined our team to spearhead Palomar’s Cropfranchise, bolstering the efforts made over the past twoyears to build the foundation for a much larger business.We delivered $116 million in gross written premiums in ourfirst full year in operation, up from $12 million in 2023. I amenthusiastic about the significant growth opportunities forPalomar in the Crop market. Imperative 1: Grow Where We Want Our first imperative,Grow Where We Want was centeredon achieving targeted premium growth across our fivekey product categories (Earthquake, Inland Marine & OtherProperty, Fronting, Casualty, and Crop) while limiting portfoliovolatility and generating strong risk-adjusted returns. Driven by this mantra, we achieved record premiums of over$1.5 billion in 2024 and continued to establish ourselvesas a leader in the Earthquake market. During the year, our Imperative 2: Manage Dislocationand Diversification Imperative 3: Deliver Predicta