At a glance
Palomar Holdings Inc is worth $3.59B, about 19 times its fiscal 2025 earnings. Revenue grew 58.2% to $876.0M in fiscal 2025, with 22.5% kept as profit; over 5 years it has grown 39.1% a year. It pays no dividend; it spent $109.8M buying back its shares over FY2021–FY2025. The stock returned +21.4% over the past year with dividends reinvested and +9.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 31.8% in the 2020 crash (S&P 500: 33.7%) and 27.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month after the low.
The business in plain English
Palomar Holdings is a specialty insurer founded in 2014. It offers property and casualty insurance to individuals and businesses in five categories: Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting (issuing policies for partners while passing most of the risk on). Personal policies are mostly "admitted," meaning state regulators approve the rates and state guaranty funds back them. Commercial policies are mostly "excess and surplus" lines, which face lighter rules and let Palomar reprice faster.
Palomar collects premiums and aims to pay out less in claims and expenses than it takes in, while investing the money it holds. Its own models price personal policies automatically, down to the ZIP code level. It reaches customers through retail agents, program administrators, wholesale brokers and more than 35 partner insurers. It uses reinsurance (insurance for insurers) to limit disaster losses. Gross written premiums (total premiums on policies written) grew from $16.6 million in its first year to $2.0 billion in 2025.
Earthquake cover made up all of Palomar's premiums in 2014 but about 28% of gross written premiums in 2025. Its 10-K calls it California's 2nd largest earthquake insurer. California supplied 31% of gross written premiums. Acquisitions of First Indemnity of America (January 2025) and Gray Surety (January 2026) added surety bonds, which guarantee that contractors complete their contracts.
Price history
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PLMR +21.4% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $314.4M, up 54.7% from a year earlier, and net income was $52.6M (+13.0%).
- For fiscal 2025, revenue was $876.0M (+58.2% year over year; +39.1% a year from FY2020 to FY2025) with a 22.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +39.1% good |
|---|---|
| Free cash flow margin | 46.7% good |
| Return on equity (FY2025) | 20.9% good |
| Return on assets (FY2025) | 6.5% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $168.5M | $6.3M | $57.4M |
| FY2021 | $247.8M | $45.8M | $87.8M |
| FY2022 | $327.1M | $52.2M | $169.3M |
| FY2023 | $375.9M | $79.2M | $116.1M |
| FY2024 | $553.9M | $117.6M | $260.9M |
| FY2025 | $876.0M | $197.1M | $409.0M |
Valuation snapshot
| Market value | $3.59B |
|---|---|
| P/E ratio | 19 |
| Dividend yield | 0.33% |
Rank among 1514 US companies
Market value at each year end
Palomar Holdings’s market value went from $1.18B at the end of 2019 to $3.59B on Oct 28, 2026, about 3.0 times as much; since the end of 2025 it is up 1%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.59B | +0.5% |
| 2025 | $3.57B | +27.8% |
| 2024 | $2.79B | +103.6% |
| 2023 | $1.37B | +20.5% |
| 2022 | $1.14B | -30.8% |
| 2021 | $1.65B | -27.4% |
| 2020 | $2.27B | +91.3% |
| 2019 | $1.18B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PLMR price data to Oct 28, 2026 | +1.6% | +21.4% | +40.5% | +9.1% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.6% |
| 2025 | +27.6% |
| 2024 | +90.3% |
| 2023 | +22.9% |
| 2022 | -30.3% |
| 2021 | -27.1% |
| 2020 | +76.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.9% over that stretch · deepest drop along the way 31.8%, back to its old high 1.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 41.4% over that stretch · deepest drop along the way 27%, back to its old high 1.2 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($135.00) and 30 sales ($12.6M), 19 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 15, 2026 | Mac Armstrong CEO and Chairman, Director | sell | $7.6M |
| Jul 2, 2026 | Jon Christianson President | sell (plan) | $618K |
| Jul 15, 2026 | Mac Armstrong CEO and Chairman, Director | sell | $421K |
| Jul 20, 2026 | Jon Christianson President | sell (plan) | $419K |
| Jul 2, 2026 | Jon Christianson President | sell (plan) | $340K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.7% | Mar 31, 2025 |
| Vanguard Capital Management | 5.25% | Mar 31, 2026 |
| Champlain Investment Partners, LLC | 4.5% | Sep 30, 2024 |
ETFs with the most weight in PLMR
| FFTY Innovator IBD 50 ETF | 3.17% |
| AZTD Aztlan Global Stock Selection DM SMID ETF | 2.78% |
| GRPZ Invesco S&P SmallCap 600 GARP ETF | 2.64% |
| KIE SPDR S&P Insurance ETF | 2.09% |
| PFI Invesco Dorsey Wright Financial Momentum ETF | 1.81% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 1.8% |
| MMSC First Trust Multi-Manager Small Cap Opportunities ETF | 1.78% |
| XSHQ Invesco S&P SmallCap Quality ETF | 1.34% |
What could go wrong
- A major quake or disaster could erase profits. Earthquakes, wildfires, hurricanes and floods can bring huge claims. Palomar has suffered heavy catastrophe losses several times, and a severe event, or more frequent ones from climate change, could erase earnings and eat into capital.
- Heavy dependence on California. California supplied 31% of Palomar's gross written premiums in 2025. Losses there weigh heavily on results, and state regulators can limit pricing and underwriting or delay the rate increases Palomar requests.
- Reinsurance may fail or cost too much. Palomar relies on reinsurance, insurance for insurers, to limit disaster losses. Reinsurers might pay late or not at all, and swings in the reinsurance market could make cover scarce or costly.
- Newer crop and surety lines add risk. Palomar has expanded through acquisitions such as Gray Surety in January 2026. Crop results can swing with weather and crop prices, surety losses rise when contractors default, and integrating acquired businesses may not go smoothly.
- Claim reserves could prove too small. Palomar sets aside reserves for future claims based on estimates. If claims grow more severe or lawsuit trends push costs higher, it may need to add to reserves, which cuts reported profit.
- Debt and a possible ratings downgrade. A downgrade of its insurers' "A" financial strength rating could cost business and affect loan covenants (borrowing conditions). Total debt was $296 million as of June 30, 2026.
Recent events
- Investor presentation or announcement
- Quarterly results released; Other company announcement
- Investor presentation or announcement; Other company announcement
- Executive or board change; Shareholder vote results; Investor presentation or announcement
- Quarterly results released; Other company announcement
- Investor presentation or announcement
- Quarterly results released
- Major agreement signed; Acquisition or sale of assets completed; New debt or financial obligation; Investor presentation or announcement
- Quarterly results released
- Major agreement signed; Investor presentation or announcement
For income and retirement investors
Palomar's filings show no dividends paid in fiscal 2021 through 2025. For an income investor, that means returns came only from changes in the share price. The company spent $109.8 million on buybacks over those five years, including $37.3 million in 2025 and none in 2024. Even so, the share count rose 3.6% between November 1, 2021 and August 2, 2026.
In past market crashes, the stock fell hard but bounced back fast. In the 2020 COVID crash it dropped 31.8% between February 20 and March 16, 2020, then regained its peak by April 20. In January 2022 it fell 27% in under three weeks and recovered by February 28. Across the broad market's slide to October 12, 2022, it gained 41.4%, yet it still ended 2022 down 30.3%. Its deepest drop in about 7.5 years of price history was 62.9%, as of October 28, 2026. Single stocks like Palomar carry more risk than diversified funds.
Questions investors ask
How does Palomar Holdings make money?
Palomar makes money by writing specialty property and casualty insurance and paying out less in claims and costs than it collects in premiums. Like other insurers, it also invests the premiums it holds until claims come due. Its five product categories are Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting. In 2025, revenue was $876 million and net income was $197 million, on $2.0 billion of gross written premiums (total premiums on policies written).
Does Palomar Holdings pay a dividend?
Palomar's filings show no dividends paid in fiscal 2021 through 2025. The company returned cash through buybacks instead, spending $109.8 million over those five years, including $37.3 million in 2025. Those buybacks did not shrink the share count, which rose 3.6% between November 1, 2021 and August 2, 2026. Because Palomar is a holding company, any dividend would depend on cash its insurance subsidiaries are permitted to pay it. Income seekers would rely on share price gains alone.
How much of Palomar's business is earthquake insurance?
About 28% of Palomar's gross written premiums came from earthquake insurance in 2025, down from all of its premiums in its first year, 2014. Its 10-K describes it as the 2nd largest earthquake insurer in California and the 3rd largest in the US. California supplied 31% of gross written premiums in 2025. Reinsurance limits the damage from a major quake, but a severe California earthquake could still erase earnings.
How has Palomar stock performed over the years?
Palomar's returns have been strong but uneven. As of October 28, 2026, the share price had risen 177% over three years and 55% over five years, about 9.1% a year. Calendar years swung widely: up 76% in 2020, down 27% in 2021 and 30% in 2022, then up 23% in 2023, 90% in 2024 and 28% in 2025. For 2026 through October 28, it was up 1.6%. Its deepest fall in about 7.5 years of price history was 62.9%.
What is Palomar's P/E ratio?
Palomar traded at about 19 times its 2025 earnings as of October 28, 2026, giving it a market value of about $3.59 billion. The P/E (price-to-earnings) ratio compares the share price with profit per share, which was $7.17 for 2025. Profit had grown fast, with net income up 67.6% in 2025. In the quarter ended June 30, 2026, net income rose a slower 13% from a year earlier, while revenue grew 54.7%.