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Should Palomar Holdings’ (PLMR) Rapid Premium and Book Value Growth Require Action From Investors?

Simply Wall St · 2d ago
  • In recent months, Palomar Holdings, a specialty US property and casualty insurer, reported that its net premiums earned expanded at an annual rate of 46.1% over the last two years.
  • Over the same period, book value per share increased at an annual rate of 39.5%, highlighting a markedly stronger balance sheet that may underpin investor confidence in the business.
  • We’ll now explore how this rapid expansion in net premiums earned could reshape Palomar Holdings’ existing investment narrative for long-term investors.

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Palomar Holdings Investment Narrative Recap

To own Palomar, you need to believe its niche focus in catastrophe and specialty lines can convert rapid premium expansion into durable, well priced underwriting profits despite event risk and competition. The recent surge in net premiums earned and book value growth appears to support the current growth catalyst of gaining share in underserved markets, while not fundamentally changing the near term risk that a major catastrophe or a sharp shift in reinsurance terms could test earnings resilience.

The most relevant recent update here is Palomar’s Q3 2025 earnings release, which showed strong growth in revenue and net income alongside rising EPS. That operating performance, combined with the acceleration in net premiums earned highlighted in the newer data, helps frame the key question for investors: whether the company can keep scaling its catastrophe exposed book while preserving underwriting discipline and attractive returns on equity.

Yet this rapid expansion comes with one issue investors should be aware of, especially around Palomar’s reliance on catastrophe exposed property lines and...

Read the full narrative on Palomar Holdings (it's free!)

Palomar Holdings' narrative projects $1.3 billion revenue and $268.3 million earnings by 2028. This requires 23.0% yearly revenue growth and about a $113.4 million earnings increase from $154.9 million today.

Uncover how Palomar Holdings' forecasts yield a $160.00 fair value, a 31% upside to its current price.

Exploring Other Perspectives

PLMR 1-Year Stock Price Chart
PLMR 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$148 to almost US$590 per share, reflecting very different expectations. When you set those views against Palomar’s rapid premium and book value growth, it underlines why examining several independent perspectives on its catastrophe risk exposure can be so important.

Explore 6 other fair value estimates on Palomar Holdings - why the stock might be worth just $148.30!

Build Your Own Palomar Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.