By Mia MacGregor

Feb 12 - (The Insurer) - Palomar Holdings reported an earnings beat for the fourth quarter on Wednesday, in results that included a 1.7 percentage point deterioration in the combined ratio to 75.9 percent and a 23.3 percent increase in gross written premiums.

• Q4 adjusted net income of $1.52 per share beats consensus of $1.23

• Q4 UW income of $34.9mn, compared to $24.2mn in prior-year period

• Combined ratio of 75.9% compared to 74.2% in Q4 2023

• GWP increased 23.3% in Q4, reaching $373.7mn

Palomar reported adjusted net income of $41.3mn, or $1.52 per diluted share, for the fourth quarter of 2024, surpassing the $1.23 consensus estimate of nine analysts as per MarketWatch, and up from $1.11 in Q4 2023.

Underwriting income for the quarter was $34.9mn, resulting in a combined ratio of 75.9 percent, compared to underwriting income of $24.2mn and a combined ratio of 74.2 percent in the same period of 2023.

The California-based company reported an adjusted combined ratio of 71.7 percent, compared to 68.8 percent in the prior-year period.

Gross written premiums increased 23.3 percent to $373.7mn, compared to $303.2mn in Q4 2023.

Losses and loss adjustment expenses for the quarter totallad $37.2mn, including $29.1mn in attritional losses and $8.1mn in catastrophe losses, which the company said primarily related to Hurricane Milton.

The quarter's loss ratio was 25.7 percent, with an attritional loss ratio of 20.1 percent and a catastrophe loss ratio of 5.6 percent, compared to a total loss ratio of 19.1 percent in Q4 2023, which was entirely composed of attritional losses.

For the full year, Palomar's adjusted net income increased by 42.8 percent to $133.5mn, compared to $93.5mn in 2023.

The company's full-year combined ratio was 78.1 percent, up from 76.6 percent in 2023, while its adjusted combined ratio was 73.7 percent, compared to 71.2 percent in the prior year.

Gross written premiums for 2024 increased 35.1 percent to $1.5bn, compared to $1.1bn in 2023.

Commenting on the results, chairman and CEO Mac Armstrong said: “Beyond the strong financial results of the fourth quarter and 2024, Palomar’s accomplishments were several and notable, highlighted by our AM Best upgrade and the acquisition of First Indemnity of America, our surety operation."

He added: “Furthermore, we accomplished a Palomar 2X fundamental strategic objective by doubling our adjusted underwriting income for the 2021 period in a three-year timeframe."