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what it is
Palomar sells insurance for ugly, specialized risks like earthquakes, hurricanes, flood, and niche commercial property.
how it gets paid
Last year Palomar made $876M in revenue. Residential Earthquake was the main engine at $298M, or 34% of sales.
why it's growing
Revenue grew 58.2% last year. Revenue grew 154% vs. prior year. EPS grew 174%.
what just happened
Palomar just posted $623M in quarterly revenue and $5.12 in EPS, both far above the prior year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
45/100 earnings predictability — expect surprises
19.7x trailing p/e — priced about right
15.1% return on capital — nothing to write home about
$7.18 fy2025 eps est
xvary composite: 59/100 — below average
What they do
Palomar sells insurance for ugly, specialized risks like earthquakes, hurricanes, flood, and niche commercial property.
Palomar writes the policies bigger insurers often avoid: earthquake, hurricane, flood, and niche property risk. With 253 employees, it produced $876 million in annual revenue, or about $3.5 million per employee. Data analytics → computer-driven pricing → faster quotes and tighter pricing, so you get a company that can profit in weird markets without carrying a giant cost base.
How they make money
$876M
annual revenue · their business grew +58.2% last year
Residential Earthquake
$298M
Specialty Homeowners
$175M
Commercial Earthquake
$158M
Inland Marine
$140M
Hawaii Hurricane and Residential Flood
$105M
The products that matter
primary catastrophe coverage
Earthquake Insurance
~$525M · about 60% of premiums
this is still the core book. when growth here slowed, the stock stopped getting valued like the old version of the story and started trading at 17.7x earnings instead of its 30.8x 10-year median.
core line
specialty property coverage
Inland Marine & Other Property
~$263M · about 30% of premiums
this book helped push total revenue to $876M, up 58% last year. it matters because diversification is now part of the thesis, not a side note.
growth offset
program and risk-sharing platform
Fronting
within the remaining ~10%
fronting broadens the business beyond pure catastrophe underwriting, but the feed is thin here. for now, you should treat it as supporting diversification, not the main reason to own the stock.
watch list
Key numbers
$7.18
2025 EPS est
At $126.54, you are paying about 17.6 times this year's expected earnings. Plain English: the stock is priced like a grower, but not like a bubble.
$876M
annual revenue
That is the current revenue base after 58.2% vs. prior year growth, which tells you Palomar is no longer a tiny niche experiment.
15.1%
return on capital
Return on capital → profit generated from money invested in the business → so what: 15.1% says management is turning capital into earnings better than average.
$5.12
latest EPS
Latest-quarter EPS rose 174% vs. prior year, which is what makes the current 19.7x trailing P/E look less stretched than it first appears.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PLMR right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Palomar just posted $623M in quarterly revenue and $5.12 in EPS, both far above the prior year.
Revenue grew 154% vs. prior year. EPS grew 174%. The quiet part out loud: this is what a niche insurer looks like when pricing and volume both work at once.
$623M
revenue
$5.12
eps
n/a
n/a
the number that mattered
The 154% revenue growth matters most because it shows Palomar is still taking share in specialty markets while many insurers are busy pulling back.
source: company earnings report, 2026
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What could go wrong
the #1 risk is earthquake premium growth failing to stabilize. this is not a side issue. roughly 60% of premiums still sit in that book, and the stock's 43% discount to its 10-year median p/e says investors already see the problem.
high
earthquake growth stall
palomar's flagship line is still about 60% of premiums, or roughly $525M of the book. if that line keeps lagging, the market has little reason to pay anything close to the old 30.8x median multiple.
direct exposure: roughly $525M of premiums and the valuation narrative built on top of it.
high
catastrophe loss concentration
this company sells catastrophe coverage for a living. one severe seismic event can turn a calm underwriting year into a capital conversation fast.
if losses spike, annual earnings and capital flexibility take the hit at the same time.
med
reinsurance cost pressure
specialty cat insurers do not keep all of this risk. if reinsurance gets pricier or harder to secure, premium growth can keep printing while underwriting economics get worse.
the damage shows up in margins first, then in the multiple investors are willing to pay.
med
diversification without rerating
inland marine, property, casualty, fronting, and crop helped drive 58% revenue growth. if investors keep treating those lines as useful but second-tier, business growth will not automatically turn into stock performance.
you can get better top-line mix and still stay stuck near 17.7x earnings.
about 60% of premiums still come from earthquake coverage, so a weak core book, a major loss event, or pricier reinsurance would all hit the same thing: the earnings power behind a stock already trading at a discount.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q1 2026 earnings report
estimated for may 4, 2026. you are looking for evidence that the earthquake book stopped being the reason the stock stays discounted.
core metric
earthquake mix versus the rest
earthquake is still roughly 60% of premiums. if that share falls because other lines grow faster, you need to know whether that is healthy diversification or core slippage.
sentiment
analyst split
8 of 11 analysts rate it a buy, but one hold downgrade on mar 1, 2026 shows the consensus is thinner than the headline makes it sound.
risk
reinsurance terms
if protection gets more expensive, premium growth can still look healthy while underlying economics get worse. that's the kind of problem a headline revenue beat will not tell you.
Analyst rankings
earnings predictability
45 / 100
earnings are less predictable than average. in human-speak, this is not the kind of insurer you buy for perfectly smooth quarters.
street stance
8 / 11 buy
most analysts still lean positive, but one recent move to hold tells you support is conditional. they want the same thing you do: proof the core line is steadying.
source: institutional data
Institutional activity
institutional ownership data for PLMR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$127
current price
n/a
target midpoint · n/a from current
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