• Palomar Holdings, Inc. Reports First Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 02 May 2024 15:10:55   America/Chicago

    LA JOLLA, Calif., May 02, 2024 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $26.4 million, or $1.04 per diluted share, for the first quarter of 2024 compared to net income of $17.3 million, or $0.68 per diluted share, for the first quarter of 2023. Adjusted net income(1) was $27.8 million, or $1.09 per diluted share, for the first quarter of 2024 as compared to $20.4 million, or $0.80 per diluted share, for the first quarter of 2023.

    First Quarter 2024 Highlights

    • Gross written premiums increased by 47.2% to $368.1 million compared to $250.1 million in the first quarter of 2023
    • Net income of $26.4 million, compared to $17.3 million in the first quarter of 2023
    • Adjusted net income(1) of $27.8 million, compared to $20.4 million in the first quarter of 2023
    • Total loss ratio of 24.9% compared to 24.8% in the first quarter of 2023
    • Combined ratio of 76.9% compared to 77.9% in the first quarter of 2023
    • Adjusted combined ratio(1) of 73.0%, compared to 73.3%, in the first quarter of 2023
    • Annualized return on equity of 21.7%, compared to 17.5% in the first quarter of 2023
    • Annualized adjusted return on equity(1) of 22.9%, compared to 20.7% in the first quarter of 2023

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

    Mac Armstrong, Chairman and Chief Executive Officer, commented, “The strong results of our first quarter are a testament to Palomar's focus on profitable growth. We further demonstrated our ability to ‘grow where we want to’ and deliver predictable earnings. Our five product categories combined to generate gross written premium growth of 47.2% with especially strong contributions from our Crop and Casualty products. These younger product lines combined with our market leading Earthquake franchise, which grew 18% on a same-store basis, drove adjusted net income growth of 36.0%, and an adjusted return on equity of 22.9%." 

    Mr. Armstrong continued, “Our portfolio of specialty insurance products is well positioned and provides a strong foundation to our full year outlook which we have raised today. Additionally, our continued investment across the organization will sustain not only our Palomar 2X strategic plan but also deliver industry leading profitability and returns. We are off to a terrific start to the year.”

    Underwriting Results

    Gross written premiums increased 47.2% to $368.1 million compared to $250.1 million in the first quarter of 2023, while net earned premiums increased 29.6% compared to the prior year’s first quarter. 

    Losses and loss adjustment expenses for the first quarter were $26.8 million, comprised of $23.5 million of non-catastrophe attritional losses and $3.4 million of catastrophe losses from flood activity. The loss ratio for the quarter was 24.9%, comprised of a catastrophe loss ratio(1) of 3.1% and an attritional loss ratio of 21.8%, compared to a loss ratio of 24.8% during the same period last year comprised of a catastrophe loss ratio(1) of 2.2% and attritional loss ratio of 22.6%.

    Underwriting income(1) for the first quarter was $25.0 million resulting in a combined ratio of 76.9% compared to underwriting income of $18.4 million resulting in a combined ratio of 77.9% during the same period last year. The Company’s adjusted underwriting income(1) was $29.2 million resulting in an adjusted combined ratio(1) of 73.0% in the first quarter compared to adjusted underwriting income(1) of $22.2 million and an adjusted combined ratio(1) of 73.3% during the same period last year.

    Investment Results
    Net investment income increased by 39.4% to $7.1 million compared to $5.1 million in the prior year’s first 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 March 31, 2024 due to cash generated from operations. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 3.62 years at March 31, 2024. Cash and invested assets totaled $766.4 million at March 31, 2024. During the first quarter, the Company recorded net realized and unrealized gains of $3.0 million related to its investment portfolio as compared to net realized and unrealized gains of $0.1 million during the same period last year.

    Tax Rate
    The effective tax rate for the three months ended March 31, 2024 was 23.2% compared to 23.5% for the three months ended March 31, 2023. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to the non-deductible executive compensation expense.

    Stockholders’ Equity and Returns
    Stockholders' equity was $501.7 million at March 31, 2024, compared to $404.6 million at March 31, 2023. For the three months ended March 31, 2024, the Company’s annualized return on equity was 21.7% compared to 17.5% for the same period in the prior year while adjusted return on equity(1) was 22.9% compared to 20.7% for the same period in the prior year. There were no share repurchases during the three months ended March 31, 2024.

    Full Year 2024 Outlook
    For the full year 2024, the Company is increasing its guidance range and now expects to achieve adjusted net income of $113 million to $118 million. This range includes $3.4 million of catastrophe losses incurred during the three months ended March 31, 2024. 

    Conference Call
    As previously announced, Palomar will host a conference call Friday May 3, 2024, to discuss its first quarter 2024 results at 11:00 a.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 First Quarter 2024 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on May 3, 2024, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13745676. The replay will be available until 11:59 p.m. (Eastern Time) on May 10, 2024.

    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., Palomar Insurance Agency, Inc.,  Palomar Excess and Surplus Insurance Company (“PESIC”), and Palomar Underwriters Exchange Organization, Inc. Palomar's consolidated results also include Laulima Reciprocal Exchange, 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, Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and Surplus Insurance Company, have a financial strength rating of “A-” (Excellent) 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 
    lconner@plmr.com 

    Investor Relations
    Jamie Lillis
    1-203-428-3223
    investors@plmr.com
    Source: Palomar Holdings, Inc.


    Summary of Operating Results:

    The following tables summarize the Company’s results for the three months ended March 31, 2024 and 2023:

      Three Months Ended         
      March 31,         
      2024  2023  Change  % Change
      ($ in thousands, except per share data) 
    Gross written premiums $368,078  $250,112  $117,966   47.2%
    Ceded written premiums  (228,171)  (170,344)  (57,827)  33.9%
    Net written premiums  139,907   79,768   60,139   75.4%
    Net earned premiums  107,866   83,241   24,625   29.6%
    Commission and other income  528   695   (167)  (24.0)%
    Total underwriting revenue (1)  108,394   83,936   24,458   29.1%
    Losses and loss adjustment expenses  26,837   20,652   6,185   29.9%
    Acquisition expenses, net of ceding commissions and fronting fees  31,798   25,679   6,119   23.8%
    Other underwriting expenses  24,804   19,222   5,582   29.0%
    Underwriting income (1)  24,955   18,383   6,572   35.8%
    Interest expense  (740)  (1,020)  280   (27.5)%
    Net investment income  7,139   5,120   2,019   39.4%
    Net realized and unrealized gains on investments  3,002   146   2,856   NM 
    Income before income taxes  34,356   22,629   11,727   51.8%
    Income tax expense  7,974   5,316   2,658   50.0%
    Net income $26,382  $17,313  $9,069   52.4%
    Adjustments:                
    Net realized and unrealized gains on investments  (3,002)  (146)  (2,856)  NM 
    Stock-based compensation expense  3,820   3,450   370   10.7%
    Amortization of intangibles  390   313   77   24.6%
    Expenses associated with catastrophe bond  —   50   (50)  (100.0)%
    Tax impact  204   (540)  744   (137.8)%
    Adjusted net income (1) $27,794  $20,440  $7,354   36.0%
    Key Financial and Operating Metrics                
    Annualized return on equity  21.7%  17.5%        
    Annualized adjusted return on equity (1)  22.9%  20.7%        
    Loss ratio  24.9%  24.8%        
    Expense ratio  52.0%  53.1%        
    Combined ratio  76.9%  77.9%        
    Adjusted combined ratio (1)  73.0%  73.3%        
    Diluted earnings per share $1.04  $0.68         
    Diluted adjusted earnings per share (1) $1.09  $0.80         
    Catastrophe losses $3,359  $1,806         
    Catastrophe loss ratio (1)  3.1%  2.2%        
    Adjusted combined ratio excluding catastrophe losses (1)  69.8%  71.2%        
    Adjusted underwriting income (1) $29,165  $22,196  $6,969   31.4%
    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)
     
      March 31,  December 31, 
      2024  2023 
      (Unaudited)     
    Assets        
    Investments:        
    Fixed maturity securities available for sale, at fair value (amortized cost: $697,505 in 2024; $675,130 in 2023) $662,992  $643,799 
    Equity securities, at fair value (cost: $32,785 in 2024; $43,003 in 2023)  37,171   43,160 
    Equity method investment  2,597   2,617 
    Other investments  1,871   — 
    Total investments  704,631   689,576 
    Cash and cash equivalents  61,387   51,546 
    Restricted cash  377   306 
    Accrued investment income  5,192   5,282 
    Premiums receivable  322,723   261,972 
    Deferred policy acquisition costs, net of ceding commissions and fronting fees  66,508   60,990 
    Reinsurance recoverable on paid losses and loss adjustment expenses  28,542   32,172 
    Reinsurance recoverable on unpaid losses and loss adjustment expenses  292,024   244,622 
    Ceded unearned premiums  298,975   265,808 
    Prepaid expenses and other assets  82,679   72,941 
    Deferred tax assets, net  9,408   10,119 
    Property and equipment, net  312   373 
    Goodwill and intangible assets, net  11,926   12,315 
    Total assets $1,884,684  $1,708,022 
    Liabilities and stockholders' equity        
    Liabilities:        
    Accounts payable and other accrued liabilities $39,637  $42,376 
    Reserve for losses and loss adjustment expenses  402,187   342,275 
    Unearned premiums  662,307   597,103 
    Ceded premium payable  215,329   181,742 
    Funds held under reinsurance treaty  13,716   13,419 
    Income taxes payable  6,850   7,255 
    Borrowings from credit agreements  43,000   52,600 
    Total liabilities  1,383,026   1,236,770 
    Stockholders' equity:        
    Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2024 and December 31, 2023  —   — 
    Common stock, $0.0001 par value, 500,000,000 shares authorized, 24,921,060 and 24,772,987 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively  3   3 
    Additional paid-in capital  357,135   350,597 
    Accumulated other comprehensive loss  (26,505)  (23,991)
    Retained earnings  171,025   144,643 
    Total stockholders' equity  501,658   471,252 
    Total liabilities and stockholders' equity $1,884,684  $1,708,022 


    Condensed Consolidated Income Statement

    Palomar Holdings, Inc. and Subsidiaries

    Condensed Consolidated Statements of Income and Comprehensive Income (loss) (Unaudited)

    (in thousands, except shares and per share data)
     
      Three Months Ended 
      March 31, 
      2024  2023 
    Revenues:        
    Gross written premiums $368,078  $250,112 
    Ceded written premiums  (228,171)  (170,344)
    Net written premiums  139,907   79,768 
    Change in unearned premiums  (32,041)  3,473 
    Net earned premiums  107,866   83,241 
    Net investment income  7,139   5,120 
    Net realized and unrealized gains on investments  3,002   146 
    Commission and other income  528   695 
    Total revenues  118,535   89,202 
    Expenses:        
    Losses and loss adjustment expenses  26,837   20,652 
    Acquisition expenses, net of ceding commissions and fronting fees  31,798   25,679 
    Other underwriting expenses  24,804   19,222 
    Interest expense  740   1,020 
    Total expenses  84,179   66,573 
    Income before income taxes  34,356   22,629 
    Income tax expense  7,974   5,316 
    Net income $26,382  $17,313 
    Other comprehensive income, net:        
    Net unrealized (losses) gains on securities available for sale  (2,514)  5,474 
    Net comprehensive income $23,868  $22,787 
    Per Share Data:        
    Basic earnings per share $1.06  $0.69 
    Diluted earnings per share $1.04  $0.68 
             
    Weighted-average common shares outstanding:        
    Basic  24,862,367   24,969,703 
    Diluted  25,468,564   25,442,902 


    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 March 31,        
      2024 2023        
      ($ in thousands)     
          % of     % of     %
      Amount GWP Amount GWP Change Change
    Product (1)                        
    Earthquake $105,729   28.7% $93,495   37.4% $12,234   13.1%
    Fronting  94,831   25.8%  91,755   36.7%  3,076   3.4%
    Inland Marine and Other Property  76,876   20.9%  52,705   21.1%  24,171   45.9%
    Casualty  51,935   14.1%  12,157   4.9%  39,778   327.2%
    Crop  38,707   10.5%  —   —%  38,707   —%
    Total Gross Written Premiums $368,078   100.0% $250,112   100.0% $117,966   47.2%
                             

    (1) - Beginning in 2024, the Company has updated the categorization of its products to align with management's current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums.


      Three Months Ended March 31,
      2024 2023
      ($ in thousands) 
          % of     % of
      Amount GWP Amount GWP
    State                
    California $157,217   42.7% $131,889   52.7%
    Texas  40,795   11.1%  23,210   9.3%
    Florida  13,924   3.8%  12,096   4.8%
    Hawaii  12,516   3.4%  10,105   4.0%
    Washington  12,002   3.3%  11,972   4.8%
    Colorado  9,605   2.6%  1,848   0.7%
    New York  8,030   2.2%  3,871   1.5%
    New Mexico  7,469   2.0%  194   0.1%
    Other  106,520   28.9%  54,927   22.0%
    Total Gross Written Premiums $368,078   100.0% $250,112   100.0%


      Three Months Ended March 31,
      2024 2023
      ($ in thousands) 
          % of     % of
      Amount GWP Amount GWP
    Subsidiary                
    PSIC $222,657   60.5% $150,704   60.3%
    PESIC  136,493   37.1%  99,408   39.7%
    Laulima  8,928   2.4%  —   —%
    Total Gross Written Premiums $368,078   100.0% $250,112   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        
      March 31,        
      2024 2023 Change % Change
      ($ in thousands) 
    Gross earned premiums $302,872  $225,243  $77,629   34.5%
    Ceded earned premiums  (195,006)  (142,002)  (53,004)  37.3%
    Net earned premiums $107,866  $83,241  $24,625   29.6%
                     
    Net earned premium ratio  35.6%  37.0%        
                     

    Loss detail

      Three Months Ended        
      March 31,        
      2024 2023 Change % Change
      ($ in thousands) 
    Catastrophe losses $3,359  $1,806  $1,553   86.0%
    Non-catastrophe losses  23,478   18,846   4,632   24.6%
    Total losses and loss adjustment expenses $26,837  $20,652  $6,185   29.9%


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

      Three Months Ended March 31, 
      2024  2023 
      (in thousands) 
    Reserve for losses and LAE net of reinsurance recoverables at beginning of period $97,653  $77,520 
    Add: Incurred losses and LAE, net of reinsurance, related to:        
    Current year  26,333   17,300 
    Prior years  504   3,352 
    Total incurred  26,837   20,652 
    Deduct: Loss and LAE payments, net of reinsurance, related to:        
    Current year  4,895   1,393 
    Prior years  9,432   15,413 
    Total payments  14,327   16,806 
    Reserve for losses and LAE net of reinsurance recoverables at end of period  110,163   81,366 
    Add: Reinsurance recoverables on unpaid losses and LAE at end of period  292,024   183,601 
    Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period $402,187  $264,967 


    Reconciliation of Non-GAAP Financial Measures

    For the three months ended March 31, 2024 and 2023, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

    Underwriting revenue

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Total revenue $118,535  $89,202 
    Net investment income  (7,139)  (5,120)
    Net realized and unrealized gains on investments  (3,002)  (146)
    Underwriting revenue $108,394  $83,936 


    Underwriting income and adjusted underwriting income

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Income before income taxes $34,356  $22,629 
    Net investment income  (7,139)  (5,120)
    Net realized and unrealized gains on investments  (3,002)  (146)
    Interest expense  740   1,020 
    Underwriting income $24,955  $18,383 
    Stock-based compensation expense  3,820   3,450 
    Amortization of intangibles  390   313 
    Expenses associated with catastrophe bond  —   50 
    Adjusted underwriting income $29,165  $22,196 


    Adjusted net income

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Net income $26,382  $17,313 
    Adjustments:        
    Net realized and unrealized gains on investments  (3,002)  (146)
    Stock-based compensation expense  3,820   3,450 
    Amortization of intangibles  390   313 
    Expenses associated with catastrophe bond  —   50 
    Tax impact  204   (540)
    Adjusted net income $27,794  $20,440 


    Annualized adjusted return on equity

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
             
    Annualized adjusted net income $111,176  $81,761 
    Average stockholders' equity $486,455  $394,701 
    Annualized adjusted return on equity  22.9%  20.7%

    Adjusted combined ratio

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $82,911  $64,858 
    Denominator: Net earned premiums $107,866  $83,241 
    Combined ratio  76.9%  77.9%
    Adjustments to numerator:        
    Stock-based compensation expense  (3,820)  (3,450)
    Amortization of intangibles  (390)  (313)
    Expenses associated with catastrophe bond  —   (50)
    Adjusted combined ratio  73.0%  73.3%


    Diluted adjusted earnings per share

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands, except per share data) 
             
    Adjusted net income $27,794  $20,440 
    Weighted-average common shares outstanding, diluted  25,468,564   25,442,902 
    Diluted adjusted earnings per share $1.09  $0.80 


    Catastrophe loss ratio

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Numerator: Losses and loss adjustment expenses $26,837  $20,652 
    Denominator: Net earned premiums $107,866  $83,241 
    Loss ratio  24.9%  24.8%
             
    Numerator: Catastrophe losses $3,359  $1,806 
    Denominator: Net earned premiums $107,866  $83,241 
    Catastrophe loss ratio  3.1%  2.2%


    Adjusted combined ratio excluding catastrophe losses

      Three Months Ended 
      March 31, 
      2024  2023 
      (in thousands) 
    Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $82,911  $64,858 
    Denominator: Net earned premiums $107,866  $83,241 
    Combined ratio  76.9%  77.9%
    Adjustments to numerator:        
    Stock-based compensation expense  (3,820)  (3,450)
    Amortization of intangibles  (390)  (313)
    Expenses associated with catastrophe bond  —   (50)
    Catastrophe losses  (3,359)  (1,806)
    Adjusted combined ratio excluding catastrophe losses  69.8%  71.2%


    Tangible Stockholders’ equity

      March 31,  December 31, 
      2024  2023 
      (in thousands) 
    Stockholders' equity $501,658  $471,252 
    Goodwill and intangible assets  (11,926)  (12,315)
    Tangible stockholders' equity $489,732  $458,937 

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