Palomar Holdings is a specialty property and casualty insurer with a perfect 4-for-4 earnings beat streak, 60% revenue growth, and exceptional free cash flow conversion of 268%, trading at an attractive forward P/E of 10.1x — though it remains below its 200-day moving average in a confirmed downtrend.
Thesis pillars
- Perfect Earnings Beat Streak↑Improving
- Revenue Growth Leadership→Stable
- Fcf Quality Premium↑Improving
- +1 more pillar — see the Why tab for full reasoning
Palomar Holdings, Inc. (PLMR) Stock Analysis
Financial Services · Insurance - Property & Casualty
Wait for pullback to $124.42. At $128.21 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $124.42 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum.
Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting—distributed through agents, brokers, and strategic insurer partnerships in both admitted and E&S markets.... Read more
Wait for pullback to $124.42. At $128.21 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $124.42 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Score 6.6/10, moderate confidence.
Passes 4/8 gates (news events none recent, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: speculative.
About Palomar Holdings, Inc.
About Palomar Holdings, Inc.
Palomar Holdings generated $2.0 billion in gross written premiums for the year ended December 31, 2025, up from $16.6 million in its first year of operations in 2014 — a compound annual growth rate of approximately 55%. California accounts for 31% of gross written premiums and earthquake insurance represented approximately 28% of the 2025 premium base. The company's insurance subsidiaries carried an A (Excellent) financial strength rating from A.M. Best, with a return on equity of 23.6% for fiscal 2025.
Palomar earns revenue across five specialty product categories — Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting — distributing through retail agents, program administrators, wholesale brokers, and strategic partnerships with over 35 insurance companies. The company generates additional fee income through quota share reinsurance treaties where third-party reinsurers pay ceding commissions for access to Palomar's underwriting pools. Reinsurance caps net pre-tax per-event losses at $20 million for earthquakes and $11 million for hurricanes, with $468.7 million in aggregate reinsurance recoverables as of December 31, 2025; a $525 million catastrophe bond via Torrey Pines Re Ltd. closed in the second quarter of 2025 to supplement traditional coverage. In January 2026, Palomar completed the acquisition of Gray Casualty & Surety Company — financed through $450 million in unsecured credit facilities maturing in January 2031 — broadening casualty and surety capacity.
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California's 31% share of gross written premiums creates the company's largest geographic concentration: the 10-K explicitly notes the company is 'concentrated in California' and exposed to the state's regulatory environment, which includes constraints on pricing, underwriting actions, and rate-change timing or approval. If the San Andreas Fault generates a major seismic event, earthquake reinsurance coverage exhausts at $3.1 billion per event, while the company's net earthquake retention stands at $20 million — approximately 2.1% of total stockholders' equity as of December 31, 2025. California regulatory constraints may limit the company's ability to adjust rates swiftly following catastrophic loss events.
See also: Financial Services · Insurance - Property & Casualty
From Palomar Holdings, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-08-15Recent Developments — Palomar Holdings, Inc.
Latest news
- NEWS Empowered Funds LLC Buys New Holdings in Palomar Holdings, Inc. $PLMR - MarketBeat — MarketBeat positive
- NEWS Palomar Holdings, Inc. Announces First Quarter 2026 Financial Results Release Date and Conference Call - The Globe and M — The Globe and Mail neutral
- NEWS Palomar Holdings (PLMR) CEO sells 3,500 shares under 10b5-1 plan - Stock Titan — Stock Titan negative
- NEWS 3 Reasons We Love Palomar Holdings (PLMR) - StockStory — StockStory positive
- NEWS Is Palomar Holdings Inc (PLMR) a Bargain After 3.2% Drop? GF Val - GuruFocus — GuruFocus neutral
Generated 2026-08-15T10:37:20Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicCalifornia31%10-K Item 1: 'California represents our largest current exposure with 31% of our gross written premiums for the year ended December 31, 2025'
- MEDIUMProductearthquake insurance28%10-K Item 1: 'approximately 28% of our gross written premiums were related to earthquake insurance'
Material Events(8-K, last 90d)
- 2026-05-26Item 5.02LOWScott Beiser appointed Class I director of Palomar Holdings, effective May 21, 2026, to serve until 2029 Annual Meeting. Appointed to Audit, Compensation, and Investment Committees. No officer departure; no reason cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $124.42. At $128.21 the A.R:R is 1.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $124.42 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Target $141.96 (+10.7%), stop $115.71 (−10.8%), A.R:R 1.4:1. Score 6.6/10, moderate confidence.
Take-profit target: $141.96 (+10.7% upside). Target $141.96 (+10.7%), stop $115.71 (−10.8%), A.R:R 1.4:1. Stop-loss: $115.71.
Palomar Holdings, Inc. trades at a P/E of 17.1 (forward 11.4). TrendMatrix value score: 7.7/10. Verdict: Buy (Wait for Entry).
15 analysts cover PLMR with a consensus score of 4.1/5. Average price target: $163.
What does Palomar Holdings, Inc. do?Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty,...
Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting—distributed through agents, brokers, and strategic insurer partnerships in both admitted and E&S markets. The company generated $2.0 billion in gross written premiums for 2025, growing from $16.6 million in its first year, and has been profitable since 2016.