Peter Knudsen's questions to Palomar Holdings (PLMR) leadership • Q2 2025
Question
Peter Knudsen from Evercore ISI requested a growth breakdown between residential and commercial earthquake lines and asked about the pricing assumptions in the updated outlook. He also questioned the drivers of the quarter's elevated accident year loss ratio, excluding catastrophes.
Answer
Chairman and CEO Mac Armstrong noted that while specific growth rates aren't disclosed, the larger residential quake book is growing healthily, and July results support the high single-digit outlook for the franchise. CFO Chris Uchida attributed the higher loss ratio to a mix shift, primarily the earlier-than-expected recognition of premium and losses from the Crop business, which does not alter the full-year outlook.