Palomar Holdings (PLMR) concentration risks

The company's concentration profile contains two medium-share, structural exposures that are geographically and product-line linked. California represents the largest current geographic exposure, accounting for 31% of gross written premiums for the year ended December 31, 2025. As a specialty insurer, the California concentration is a natural consequence of where catastrophic property risk — particularly earthquake risk — is most prevalent and where demand for specialized coverage is highest. At a medium disclosed size, it is a meaningful but not dominant single-state concentration. The second exposure is product-level: approximately 28% of gross written premiums were related to earthquake insurance. This is structural — the company has deliberately positioned itself in specialty catastrophe lines — and the two exposures are tightly correlated. A significant portion of the California premium base is earthquake-related, meaning a major seismic event in California would simultaneously stress both the geographic and product-line concentration. The interaction of these two exposures is the key feature of the profile: while each is medium-share individually, they point toward the same underlying loss scenario. A large California earthquake is the concentration-defining tail event, and the reinsurance structure and aggregate limits governing that exposure are the most important mitigants to assess. There is no disclosed customer, supplier, or counterparty concentration to layer on top. On balance, the profile is coherent and reflects the company's specialty focus, but the correlated California earthquake scenario is the single most important scenario for an investor to evaluate.

For the engine’s reasoning on PLMR’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.