Palomar Holdings, Inc. Reports Third Quarter 2025 Results

LA JOLLA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $51.5 million, or $1.87 per diluted share, for the third quarter of 2025 compared to net income of $30.5 million, or $1.15 per diluted share, for the third quarter of 2024. Adjusted net income(1) was $55.2 million, or $2.01 per diluted share, for the third quarter of 2025 as compared to $32.4 million, or $1.23 per diluted share, for the third quarter of 2024.

Third Quarter 2025 Highlights

Gross written premiums increased by 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024Net income of $51.5 million compared to $30.5 million in the third quarter of 2024Adjusted net income(1) increased 70.0% to $55.2 million compared to $32.4 million in the third quarter of 2024Total loss ratio of 32.3% compared to 29.7% in the third quarter of 2024Catastrophe loss ratio(1) of 0.8% compared to 9.5% in the third quarter of 2024Combined ratio of 78.1% compared to 80.5% in the third quarter of 2024Adjusted combined ratio(1) of 74.8% compared to 77.1%, in the third quarter of 2024Annualized return on equity of 23.9% compared to 19.7% in the third quarter of 2024Annualized adjusted return on equity(1) of 25.6% compared to 21.0% in the third quarter of 2024

(1)See discussion of “Non-GAAP and Key Performance Indicators” below.

Mac Armstrong, Chairman and Chief Executive Officer, commented, “Our third quarter results were exceptional, highlighted by record gross written premium and adjusted net income. We continue to achieve strong top and bottom-line growth as gross written premium grew 44% and adjusted net income increased a stellar 70% across our unique and diverse portfolio. This strong growth underscores the stability of our balanced book of E&S and admitted residential and commercial property and casualty products. Our operating and return metrics were also impressive as we generated an adjusted combined ratio of 75%, and a 26% adjusted return on equity.”

Mr. Armstrong continued, “Beyond our financial performance, we remain focused on achieving our Palomar 2X strategic imperatives. Notably, during the quarter our young crop franchise’s written premium in the quarter was well ahead of our initial estimates and in October we announced the acquisition of The Gray Casualty and Surety Company. Our investments in Crop and Surety will not only drive long-term profitable growth but also further differentiate our portfolio and better insulate us from P&C market cycles.”

Underwriting Results Gross written premiums increased 43.9% to $597.2 million compared to $415.0 million in the third quarter of 2024, while net earned premiums increased 66.0% compared to the prior year’s third quarter.

Losses and loss adjustment expenses for the third quarter were $72.8 million, comprised of $70.9 million of attritional losses and $1.9 million of catastrophe losses. The loss ratio for the quarter was 32.3%, comprised of an attritional loss ratio of 31.5% and a catastrophe loss ratio(1) of 0.8% compared to a loss ratio of 29.7% during the same period last year comprised of an attritional loss ratio of 20.2% and a catastrophe loss ratio(1) of 9.5%. Additionally, our third quarter results include $6.1 million of favorable prior year development primarily from our short tail Inland Marine and Other Property business.

Underwriting income(1) for the third quarter was $49.2 million resulting in a combined ratio of 78.1% compared to underwriting income of $26.4 million resulting in a combined ratio of 80.5% during the same period last year. The Company’s adjusted underwriting income(1) was $56.7 million resulting in an adjusted combined ratio(1) of 74.8% in the third quarter compared to adjusted underwriting income(1) of $31.0 million and an adjusted combined ratio(1) of 77.1% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses(1) was 74.0% compared to 67.6% during the same period last year.

Investment Results
Net investment income increased by 54.9% to $14.6 million compared to $9.4 million in the prior year’s third quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended September 30, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.01 years at September 30, 2025. Cash and invested assets totaled $1.3 billion at September 30, 2025. During the third quarter, the Company recorded $3.5 million net realized and unrealized gains related to its investment portfolio as compared to net realized and unrealized gains of $2.7 million during the same period last year.

Tax Rate
The effective tax rate for the three months ended September 30, 2025 was 23.4% compared to 20.8% for the three months ended September 30, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to non-deductible executive compensation expense offset by the tax impact of the permanent component of employee stock options.

Stockholders’ Equity and Returns
Stockholders’ equity was $878.1 million at September 30, 2025, compared to $703.3 million at September 30, 2024. For the three months ended September 30, 2025, the Company’s annualized return on equity was 23.9% compared to 19.7% for the same period in the prior year while adjusted return on equity(1) was 25.6% compared to 21.0% for the same period in the prior year. During the current quarter, the Company repurchased 308,417 shares for $37.3 million under its previously announced $150 million share repurchase authorization. As of September 30, 2025, approximately $112.7 million remains available for future repurchases.

Full Year 2025 Outlook
For the full year 2025, the Company expects to achieve adjusted net income of $210 million to $215 million, an increase from the previously announced range of $198 million to $208 million.

Conference Call
As previously announced, Palomar will host a conference call Friday, November 7, 2025, to discuss its third quarter 2025 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Third Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on November 7, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13755786. The replay will be available until 11:59 p.m. (Eastern Time) on November 14, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), and Palomar Crop Insurance Services, Inc. (“PCIS”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating from A.M. Best.

To learn more, visit PLMR.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
[email protected]

Investor Relations
Jamie Lillis
1-203-428-3223
[email protected]
Source: Palomar Holdings, Inc.

Summary of Operating Results:

The following tables summarize the Company’s results for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025 2024 Change % Change ($ in thousands, except per share data) Gross written premiums $597,171 $414,977 $182,194 43.9%Ceded written premiums (321,927) (255,267) (66,660) 26.1%Net written premiums 275,244 159,710 115,534 72.3%Net earned premiums 225,147 135,646 89,501 66.0%Commission and other income 1,448 715 733 102.5%Total underwriting revenue(1) 226,595 136,361 90,234 66.2%Losses and loss adjustment expenses 72,812 40,315 32,497 80.6%Acquisition expenses, net of ceding commissions and fronting fees 56,270 41,469 14,801 35.7%Other underwriting expenses 48,306 28,129 20,177 71.7%Underwriting income(1) 49,207 26,448 22,759 86.1%Interest expense (133) (87) (46) 52.9%Net investment income 14,572 9,408 5,164 54.9%Net realized and unrealized gains on investments 3,493 2,734 759 27.8%Income before income taxes 67,139 38,503 28,636 74.4%Income tax expense 15,684 8,006 7,678 95.9%Net income $51,455 $30,497 $20,958 68.7%Adjustments: Net realized and unrealized gains on investments (3,493) (2,734) (759) 27.8%Expenses associated with transactions 728 84 644 NM Stock-based compensation expense 5,379 4,117 1,262 30.7%Amortization of intangibles 1,346 389 957 246.0%Tax impact (251) 91 (342) NM Adjusted net income(1) $55,164 $32,444 $22,720 70.0%Key Financial and Operating Metrics Annualized return on equity 23.9% 19.7% Annualized adjusted return on equity(1) 25.6% 21.0% Loss ratio 32.3% 29.7% Expense ratio 45.8% 50.8% Combined ratio 78.1% 80.5% Adjusted combined ratio(1) 74.8% 77.1% Diluted earnings per share $1.87 $1.15 Diluted adjusted earnings per share(1) $2.01 $1.23 Catastrophe losses $1,900 $12,924 Catastrophe loss ratio(1) 0.8% 9.5% Adjusted combined ratio excluding catastrophe losses(1) 74.0% 67.6% Adjusted underwriting income(1) $56,660 $31,038 $25,622 82.6%NM - not meaningful

(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

Nine Months Ended September 30, 2025 2024 Change % Change ($ in thousands, except per share data) Gross written premiums $1,535,623 $1,168,239 $367,384 31.4%Ceded written premiums (819,171) (692,620) (126,551) 18.3%Net written premiums 716,452 475,619 240,833 50.6%Net earned premiums 569,175 365,796 203,379 55.6%Commission and other income 3,954 2,035 1,919 94.3%Total underwriting revenue(1) 573,129 367,831 205,298 55.8%Losses and loss adjustment expenses 157,739 97,583 60,156 61.6%Acquisition expenses, net of ceding commissions and fronting fees 154,266 109,072 45,194 41.4%Other underwriting expenses 129,563 84,165 45,398 53.9%Underwriting income(1) 131,561 77,011 54,550 70.8%Interest expense (304) (1,052) 748 (71.1)%Net investment income 40,014 24,506 15,508 63.3%Net realized and unrealized gains on investments 9,461 5,768 3,693 64.0%Income before income taxes 180,732 106,233 74,499 70.1%Income tax expense 39,827 23,625 16,202 68.6%Net income $140,905 $82,608 $58,297 70.6%Adjustments: Net realized and unrealized gains on investments (9,461) (5,768) (3,693) 64.0%Expenses associated with transactions 3,570 557 3,013 NM Stock-based compensation expense 15,471 11,905 3,566 30.0%Amortization of intangibles 3,400 1,168 2,232 191.1%Expenses associated with catastrophe bond 2,661 2,483 178 7.2%Tax impact (1,543) (734) (809) 110.2%Adjusted net income(1) $155,003 $92,219 $62,784 68.1%Key Financial and Operating Metrics Annualized return on equity 23.4% 18.8% Annualized adjusted return on equity(1) 25.7% 20.9% Loss ratio 27.7% 26.7% Expense ratio 49.2% 52.3% Combined ratio 76.9% 78.9% Adjusted combined ratio(1) 72.5% 74.5% Diluted earnings per share $5.12 $3.19 Diluted adjusted earnings per share(1) $5.63 $3.56 Catastrophe losses $1,335 $19,724 Catastrophe loss ratio(1) 0.2% 5.4% Adjusted combined ratio excluding catastrophe losses(1) 72.2% 69.2% Adjusted underwriting income(1) $156,663 $93,124 $63,539 68.2%NM - not meaningful

(1) - Indicates Non-GAAP financial measure - see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

Condensed Consolidated Balance sheets

Palomar Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands, except shares and par value data) September 30, December 31, 2025 2024 (Unaudited) Assets Investments: Fixed maturity securities available for sale, at fair value (amortized cost: $1,146,855 in 2025; $973,330 in 2024) $1,141,367 $939,046 Equity securities, at fair value (cost: $38,482 in 2025; $32,987 in 2024) 52,215 40,529 Equity method investment — 2,277 Other investments 19,534 5,863 Total investments 1,213,116 987,715 Cash and cash equivalents 111,740 80,438 Restricted cash 20 101 Accrued investment income 10,725 8,440 Premiums receivable 463,230 305,724 Deferred policy acquisition costs, net of ceding commissions and fronting fees 125,076 94,881 Reinsurance recoverable on paid losses and loss adjustment expenses 36,907 47,076 Reinsurance recoverable on unpaid losses and loss adjustment expenses 440,559 348,083 Ceded unearned premiums 361,260 276,237 Prepaid expenses and other assets 113,143 91,086 Deferred tax assets, net 2,537 8,768 Property and equipment, net 2,695 429 Goodwill and intangible assets, net 62,538 13,242 Total assets $2,943,546 $2,262,220 Liabilities and stockholders’ equity Liabilities: Accounts payable and other accrued liabilities $109,391 $70,079 Reserve for losses and loss adjustment expenses 684,272 503,382 Unearned premiums 979,374 741,692 Ceded premium payable 253,446 190,168 Funds held under reinsurance treaty 37,204 27,869 Income taxes payable 1,749 — Total liabilities 2,065,436 1,533,190 Stockholders’ equity: Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,494,524 and 26,529,402 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 3 3 Additional paid-in capital 516,355 493,656 Accumulated other comprehensive income (loss) (4,092) (26,845)Retained earnings 365,844 262,216 Total stockholders’ equity 878,110 729,030 Total liabilities and stockholders’ equity $2,943,546 $2,262,220

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (in thousands, except shares and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues: Gross written premiums $597,171 $414,977 $1,535,623 $1,168,239 Ceded written premiums (321,927) (255,267) (819,171) (692,620)Net written premiums 275,244 159,710 716,452 475,619 Change in unearned premiums (50,097) (24,064) (147,277) (109,823)Net earned premiums 225,147 135,646 569,175 365,796 Net investment income 14,572 9,408 40,014 24,506 Net realized and unrealized gains on investments 3,493 2,734 9,461 5,768 Commission and other income 1,448 715 3,954 2,035 Total revenues 244,660 148,503 622,604 398,105 Expenses: Losses and loss adjustment expenses 72,812 40,315 157,739 97,583 Acquisition expenses, net of ceding commissions and fronting fees 56,270 41,469 154,266 109,072 Other underwriting expenses 48,306 28,129 129,563 84,165 Interest expense 133 87 304 1,052 Total expenses 177,521 110,000 441,872 291,872 Income before income taxes 67,139 38,503 180,732 106,233 Income tax expense 15,684 8,006 39,827 23,625 Net income $51,455 $30,497 $140,905 $82,608 Other comprehensive income, net: Net unrealized gains on securities available for sale 9,541 17,916 22,753 13,852 Net comprehensive income $60,996 $48,413 $163,658 $96,460 Per Share Data: Basic earnings per share $1.93 $1.18 $5.28 $3.28 Diluted earnings per share $1.87 $1.15 $5.12 $3.19 Weighted-average common shares outstanding: Basic 26,637,592 25,766,697 26,683,856 25,194,114 Diluted 27,446,519 26,479,566 27,533,533 25,877,257

Underwriting Segment Data

The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (GWP) by product, location and company are presented below:

Three Months Ended September 30, 2025 2024 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Product Casualty $152,034 25.5% $56,307 13.6% $95,727 170.0%Earthquake 149,940 25.1% 135,329 32.6% 14,611 10.8%Crop 119,757 20.1% 59,662 14.4% 60,095 100.7%Inland Marine and Other Property 117,871 19.7% 78,734 19.0% 39,137 49.7%Fronting 57,569 9.6% 84,945 20.4% (27,376) (32.2)%Total Gross Written Premiums $597,171 100.0% $414,977 100.0% $182,194 43.9%

Nine Months Ended September 30, 2025 2024 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Product Earthquake $427,869 27.9% $376,088 32.2% $51,781 13.8%Casualty 392,473 25.6% 166,762 14.3% 225,711 135.3%Inland Marine and Other Property 335,462 21.8% 249,147 21.3% 86,315 34.6%Crop 207,440 13.5% 100,571 8.6% 106,869 106.3%Fronting 172,379 11.2% 275,671 23.6% (103,292) (37.5)%Total Gross Written Premiums $1,535,623 100.0% $1,168,239 100.0% $367,384 31.4%

Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $168,739 28.3% $170,265 41.0% $472,276 30.8% $510,879 43.7%Texas 38,609 6.5% 27,019 6.5% 119,308 7.8% 96,414 8.3%Hawaii 26,405 4.4% 23,171 5.6% 71,307 4.6% 53,922 4.6%Florida 23,770 4.0% 14,433 3.5% 66,391 4.3% 58,153 5.0%Illinois 20,911 3.5% 5,557 1.3% 39,548 2.6% 13,725 1.2%North Dakota 20,022 3.4% 18,716 4.5% 23,709 1.5% 19,893 1.7%New York 19,181 3.2% 8,153 2.0% 51,240 3.3% 24,163 2.1%Washington 17,560 2.9% 16,828 4.1% 50,416 3.3% 41,893 3.6%Other 261,974 43.8% 130,835 31.5% 641,428 41.8% 349,197 29.8%Total Gross Written Premiums $597,171 100.0% $414,977 100.0% $1,535,623 100.0% $1,168,239 100.0%

Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Subsidiary PSIC $317,177 53.1% $236,624 57.0% $781,078 50.9% $652,988 55.9%PESIC 252,318 42.3% 159,305 38.4% 681,048 44.4% 472,909 40.5%Laulima 22,804 3.8% 19,048 4.6% 58,974 3.8% 42,342 3.6%FIA 4,872 0.8% — —% 14,523 0.9% — —%Total Gross Written Premiums $597,171 100.0% $414,977 100.0% $1,535,623 100.0% $1,168,239 100.0%

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

Three Months Ended Nine Months Ended September 30, % September 30, % 2025 2024 Change Change 2025 2024 Change Change ($ in thousands) ($ in thousands) Gross earned premiums $518,783 $395,881 $122,902 31.0% $1,303,323 $1,025,716 $277,607 27.1%Ceded earned premiums (293,636) (260,235) (33,401) 12.8% (734,148) (659,920) (74,228) 11.2%Net earned premiums $225,147 $135,646 $89,501 66.0% $569,175 $365,796 $203,379 55.6% Net earned premium ratio 43.4% 34.3% 43.7% 35.7%

Loss detail

Three Months Ended Nine Months Ended September 30, % September 30, % 2025 2024 Change Change 2025 2024 Change Change ($ in thousands) ($ in thousands) Catastrophe losses $1,900 $12,924 $(11,024) (85.3)% $1,335 $19,724 $(18,389) (93.2)%Non-catastrophe losses 70,912 27,391 43,521 158.9% 156,404 77,859 78,545 100.9%Total losses and loss adjustment expenses $72,812 $40,315 $32,497 80.6% $157,739 $97,583 $60,156 61.6% Catastrophe loss ratio 0.8% 9.5% 0.2% 5.4% Non-catastrophe loss ratio 31.5% 20.2% 27.5% 21.3% Total loss ratio 32.3% 29.7% 27.7% 26.7%

The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

Three Months Ended 
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period $199,185 $118,761 $155,299 $97,653 Add: Balance acquired from FIA(1) — — 6,788 — Add: Incurred losses and LAE, net of reinsurance, related to: Current year 78,946 40,536 174,703 100,225 Prior years (6,134) (221) (16,964) (2,642)Total incurred 72,812 40,315 157,739 97,583 Deduct: Loss and LAE payments, net of reinsurance, related to: Current year 15,655 16,153 38,312 27,909 Prior years 12,629 5,649 37,801 30,053 Total payments 28,284 21,802 76,113 57,962 Reserve for losses and LAE net of reinsurance recoverables at end of period 243,713 137,274 243,713 137,274 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 440,559 360,164 440,559 360,164 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period $684,272 $497,438 $684,272 $497,438

(1) - Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.

Reconciliation of Non-GAAP Financial Measures

For the three and nine months ended September 30, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Total revenue $244,660 $148,503 $622,604 $398,105 Net investment income (14,572) (9,408) (40,014) (24,506)Net realized and unrealized gains on investments (3,493) (2,734) (9,461) (5,768)Underwriting revenue $226,595 $136,361 $573,129 $367,831

Underwritingincome and adjusted underwriting income

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Income before income taxes $67,139 $38,503 $180,732 $106,233 Net investment income (14,572) (9,408) (40,014) (24,506)Net realized and unrealized gains on investments (3,493) (2,734) (9,461) (5,768)Interest expense 133 87 304 1,052 Underwriting income $49,207 $26,448 $131,561 $77,011 Expenses associated with transactions 728 84 3,570 557 Stock-based compensation expense 5,379 4,117 15,471 11,905 Amortization of intangibles 1,346 389 3,400 1,168 Expenses associated with catastrophe bond — — 2,661 2,483 Adjusted underwriting income $56,660 $31,038 $156,663 $93,124

Adjusted net income

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Net income $51,455 $30,497 $140,905 $82,608 Adjustments: Net realized and unrealized gains on investments (3,493) (2,734) (9,461) (5,768)Expenses associated with transactions 728 84 3,570 557 Stock-based compensation expense 5,379 4,117 15,471 11,905 Amortization of intangibles 1,346 389 3,400 1,168 Expenses associated with catastrophe bond — — 2,661 2,483 Tax impact (251) 91 (1,543) (734)Adjusted net income $55,164 $32,444 $155,003 $92,219

Annualized adjusted return on equity

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Annualized adjusted net income $220,656 $129,776 $206,671 $122,959 Average stockholders’ equity $862,654 $617,959 $803,570 $587,282 Annualized adjusted return on equity 25.6% 21.0% 25.7% 20.9%

Adjusted combined ratio

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $175,940 $109,198 $437,614 $288,785 Denominator: Net earned premiums $225,147 $135,646 $569,175 $365,796 Combined ratio 78.1% 80.5% 76.9% 78.9%Adjustments to numerator: Expenses associated with transactions $(728) $(84) $(3,570) $(557)Stock-based compensation expense (5,379) (4,117) (15,471) (11,905)Amortization of intangibles (1,346) (389) (3,400) (1,168)Expenses associated with catastrophe bond — — (2,661) (2,483)Adjusted combined ratio 74.8% 77.1% 72.5% 74.5%

Diluted adjusted earnings per share

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands, except per share data) (in thousands, except per share data) Adjusted net income $55,164 $32,444 $155,003 $92,219 Weighted-average common shares outstanding, diluted 27,446,519 26,479,566 27,533,533 25,877,257 Diluted adjusted earnings per share $2.01 $1.23 $5.63 $3.56

Catastrophe loss ratio

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Numerator: Losses and loss adjustment expenses $72,812 $40,315 $157,739 $97,583 Denominator: Net earned premiums $225,147 $135,646 $569,175 $365,796 Loss ratio 32.3% 29.7% 27.7% 26.7% Numerator: Catastrophe losses $1,900 $12,924 $1,335 $19,724 Denominator: Net earned premiums $225,147 $135,646 $569,175 $365,796 Catastrophe loss ratio 0.8% 9.5% 0.2% 5.4%

Adjusted combined ratio excluding catastrophe losses

Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $175,940 $109,198 $437,614 $288,785 Denominator: Net earned premiums $225,147 $135,646 $569,175 $365,796 Combined ratio 78.1% 80.5% 76.9% 78.9%Adjustments to numerator: Expenses associated with transactions $(728) $(84) $(3,570) $(557)Stock-based compensation expense (5,379) (4,117) (15,471) (11,905)Amortization of intangibles (1,346) (389) (3,400) (1,168)Expenses associated with catastrophe bond — — (2,661) (2,483)Catastrophe losses (1,900) (12,924) (1,335) (19,724)Adjusted combined ratio excluding catastrophe losses 74.0% 67.6% 72.2% 69.2%

Tangible Stockholders’ equity

September 30, December 31, 2025 2024 (in thousands) Stockholders’ equity $878,110 $729,030 Goodwill and intangible assets (62,538) (13,242)Tangible stockholders’ equity $815,572 $715,788