Palomar Holdings Inc. (NASDAQ: PLMR) reported Q2 EPS of $0.30, $0.01 better than the analyst estimate of $0.29. Revenue for the quarter came in at $58.35 million versus the consensus estimate of $50.4 million.

Second Quarter 2019 Highlights

• Gross written premiums increased by 56.2% to $58.3 million compared to $37.3 million in the second quarter of 2018
• Net income of $6.7 million compared to net income of $6.9 million in the second quarter of 2018
• Adjusted net income(1) increased by 15.4% to $8.0 million compared to $6.9 million in the second quarter of 2018
• Total loss ratio of 2.8% compared to 4.0% in the second quarter of 2018
• Combined ratio of 69.2% compared to 65.1% in the second quarter of 2018
• Adjusted combined ratio(1) of 63.8%, compared to 65.1% in the second quarter of 2018
• Annualized return on equity of 17.8%
• Annualized adjusted return on equity(1) of 21.2%

“We are pleased with our second quarter results, highlighted by gross written premium growth of 56.2%, year over year, driven by strong performance across all of our product lines. Additionally, we successfully renewed $470 million of our core reinsurance program at June 1, 2019 and purchased $200 million of incremental limit at the top of our reinsurance tower, expanding our coverage for earthquake events up to $1.05 billion. We continue to pursue what we believe is a substantial market opportunity while maintaining a thoughtful and conservative risk transfer strategy. Our retention remains at $5.0 million per earthquake or wind event, which not only provides loss protection but also strong visibility into our earnings,” commented Mac Armstrong, Chief Executive Officer and Founder. “Our core products continued to demonstrate high retention, improving pricing trends, and strong new business activity. In addition, we maintained our focus on developing innovative products that address underserved markets and saw increasing contributions from several of our newer product offerings including our recently launched Inland Marine and Assumed Reinsurance divisions. Looking forward, we believe we are well positioned for growth as we continue to scale our existing lines of business, introduce new products and expand our geographic footprint.”

For earnings history and earnings-related data on Palomar Holdings Inc. (PLMR) click here.