Palomar Q4 Earnings, Revenues Top Estimates, Premiums Rise Y/Y

Palomar Holdings, Inc. PLMR reported fourth-quarter 2024 operating income of $1.52 per share, which beat the Zacks Consensus Estimate by 22.6%. The bottom line increased 36.9% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Palomar witnessed higher premiums, improved adjusted underwriting income and higher yields on invested assets, partly offset by higher losses and loss adjustment expenses, as well as underwriting expenses. Palomar incurred a higher-than-expected catastrophe loss in the reported quarter.Behind the HeadlinesTotal revenues improved 53.9% year over year to $157 million, mainly attributable to higher premiums and net investment income. The top line beat the Zacks Consensus Estimate by 6.6%.Palomar Holdings, Inc. Price, Consensus and EPS Surprise Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. QuoteGross written premiums increased 23.3% year over year to $373.7 million. Our estimate was $403.6 million.Net earned premiums increased 54.6% year over year to $135.6 million. Our estimate was $132.3 million. The Zacks Consensus Estimate was pegged at $137 million.Net investment income increased 61.3% year over year to $11.3 million, driven by higher yields on invested assets and a higher average balance of investments held during the three months ended Dec. 31, 2024, due to higher cash generated from operations. The Zacks Consensus Estimate was pegged at $10.7 million, while our estimate was $8.4 million.Palomar recorded an adjusted underwriting income of $41 million, which increased 39.9% from the year-ago quarter. Underwriting income was $34.9 million, up 44.2% year over year. Our estimate was $29.9 million.  Total expenses of $110.8 million increased 54% year over year due to higher losses and loss adjustment expenses, underwriting expenses and acquisition expenses, net of ceding commissions and fronting fees. Our estimate was $103.2 million. The loss ratio was 25.7%, which deteriorated 660 basis points (bps) year over year.  The Zacks Consensus Estimate was 27.7%. Our estimate was 26.5%. Adjusted combined ratio, excluding catastrophe losses, deteriorated 290 bps year over year to 71.7. The Zacks Consensus Estimate was pegged at 72%.Financial UpdateCash and cash equivalents increased 55.4% from 2023-end to $80.5 million at the end of 2024. Shareholder equity increased 54.7% from 2023-end to $729 million at the end of 2024. Annualized adjusted return on equity in 2024 was 22.2%, up 30 bps year over year.2025 ViewPalomar expects adjusted net income in the range of $180-192 million. This range takes into account catastrophe loss between $8 million and $12 million.Zacks RankPLMR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersThe Travelers Companies TRV reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.RLI Corp. RLI reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.W.R. Berkley Corporation’s WRB fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Palomar Holdings, Inc. (PLMR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks