Palomar Holdings Inc. (NASDAQ: PLMR) reported Q3 EPS of $0.31, $0.09 worse than the analyst estimate of $0.40. Revenue for the quarter came in at $66.24 million versus the consensus estimate of $56.78 million.

Third Quarter 2019 Highlights

• Gross written premiums increased by 65.6% to $66.2 million compared to $40.0 million in the third quarter of 2018
• Net income increased by 376.0% to $7.5 million compared to $1.6 million in the third quarter of 2018
• Adjusted net income(1) increased by 253.2% to $9.6 million compared to $2.7 million in the third quarter of 2018
• Total loss ratio of 8.8% compared to 33.5% in the third quarter of 2018
• Combined ratio of 73.4% compared to 100.2% in the third quarter of 2018
• Adjusted combined ratio(1) of 63.6%, compared to 94.0% in the third quarter of 2018
• Annualized return on equity of 14.6%
• Annualized adjusted return on equity(1) of 18.8%

“Our third quarter results demonstrate the continued successful execution of Palomar’s strategy as we delivered gross written premium growth of 65.6% year-over-year” commented Mac Armstrong, Chief Executive Officer and Founder. “Our results were driven by broad based strength across our portfolio, highlighted by an increase of 67.5% in our earthquake products over the prior year period, 62.1% growth in our non-earthquake products over the prior year period and accelerating rate increases in our commercial lines.”

Mr. Armstrong continued, “Growth in our earthquake lines of business was driven in part by a surge in demand for our residential earthquake products following the Ridgecrest earthquake in July, new distribution sources as well as a stronger rate environment in the commercial earthquake market. Our non-earthquake products and notably our newer lines of business continue to see solid market adoption. Compared to the prior year period, our commercial all risk business grew 108.6% and our flood business grew 172.0%. Our inland marine and assumed reinsurance divisions, both launched this year, are already contributing to the overall growth of Palomar. While we are pleased with our third quarter results, we see significant runway for continued growth across all of our product lines.”

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