Palomar is evolving from a volatile earthquake specialist into a diversified, technology-enabled specialty insurance compounder trading at a discounted valuation despite exceptional growth, high ROE and disciplined reinsurance protection.
Overview
Palomar Holdings is a high-growth specialty insurer serving underserved catastrophe-exposed property and specialty markets. Its revenue is overwhelmingly driven by underwriting premiums, supported by investment income and small fronting fees. The company combines admitted and E&S capabilities, proprietary PASS underwriting technology, granular catastrophe pricing and flexible distribution through agents, brokers and carrier partnerships. Its flagship earthquake franchise has exceptional retention, while newer crop, casualty, surety and property lines broaden the platform beyond its historic California earthquake concentration.