Palomar (PLMR) S-1 7 Jan 20 IPO registration Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2019
Document and Entity Information
Entity Registrant Name	Palomar Holdings, Inc.
Entity Central Index Key	0001761312
Document Type	S-1
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false

Consolidated Balance Sheets

Consolidated Balance Sheets $ in Thousands	Dec. 31, 2017USD ($)
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $216,623 in 2019; $122,949 in 2018)	$ 101,913
Equity securities, at fair value (cost: $21,213 in 2019; $27,188 in 2018)	23,586
Total investments	125,499
Cash and cash equivalents	10,780
Restricted cash	152
Accrued investment income	788
Receivables for securities	250
Premium receivable	15,087
Deferred policy acquisition costs	15,161
Reinsurance recoverable on unpaid losses and loss adjustment expenses	13,352
Reinsurance recoverable on paid losses and loss adjustment expenses	1,280
Prepaid reinsurance premium	3,175
Prepaid expenses and other assets	1,260
Property and equipment, net	827
Intangible assets	744
Total assets	188,355
Liabilities:
Accounts payable and other accrued liabilities	6,497
Reserve for losses and loss adjustment expenses	17,784
Unearned premiums	61,976
Ceded premium payable	5,069
Funds held under reinsurance treaty	1,517
Income and excise taxes payable	11
Long-term notes payable	17,087
Total liabilities	109,941
Shareholder's equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized, 23,468,750 and 17,000,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	2
Additional paid in capital	68,498
Accumulated other comprehensive income (loss)	2,993
Retained earnings	6,921
Total shareholder's equity	78,414
Total liabilities and shareholder's equity	$ 188,355

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Fixed maturity securities available for sale, amortized cost	$ 216,623	$ 122,949	$ 102,301
Equity securities, cost	$ 21,213	$ 27,188	$ 19,569
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000	500,000,000
Common stock, shares issued	23,468,750	17,000,000	17,000,000
Common stock, shares outstanding	23,468,750	17,000,000	17,000,000

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Gross written premiums	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
Ceded written premiums	(28,060)	(20,764)	(78,797)	(61,200)	(82,949)	(46,951)	(29,636)
Net written premiums	38,182	19,230	99,822	50,148	71,942	73,283	52,651
Change in unearned premiums	(10,520)	(3,194)	(30,602)	2,132	(2,045)	(17,738)	(12,329)
Net earned premiums	27,662	16,036	69,220	52,280	69,897	55,545	40,322
Net investment income	1,729	865	4,172	2,211	3,238	2,125	1,615
Net realized and unrealized gains on investments	361	1,336	3,265	969	(2,569)	608	499
Commission and other income	709	679	2,017	1,869	2,405	1,188	260
Total revenues	30,461	18,916	78,674	57,329	72,971	59,466	42,696
Expenses:
Losses and loss adjustment expenses	2,439	5,374	3,398	7,043	6,274	12,125	7,292
Acquisition expenses	10,243	6,392	26,189	21,632	28,224	25,522	17,340
Other underwriting expenses (includes stock-based compensation of $410 and $0 for the three months ended September 30, 2019 and 2018, respectively and $23,677 and $0 for the nine months ended September 30, 2019 and 2018, respectively)	8,330	4,976	44,348	13,119	17,957	15,146	10,153
Interest expense		605	1,068	1,444	2,303	1,745	1,634
Total expenses	21,012	17,347	75,003	43,238	54,758	54,538	36,419
Income before income taxes	9,449	1,569	3,671	14,091	18,213	4,928	6,277
Income tax expense (benefit)	1,995	3	3,929	(1)	(6)	1,145	(337)
Net income (loss)	7,454	1,566	(258)	14,092	18,219	3,783	6,614
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale for the three and nine months ended September 30, 2019 and 2018, respectively	974	(309)	6,459	(1,299)	(341)	1,522	1,475
Net comprehensive income	$ 8,428	$ 1,257	$ 6,201	$ 12,793	$ 17,878	$ 5,305	$ 8,089
Per Share Data:
Basic earnings per share	$ 0.32	$ 0.09	$ (0.01)	$ 0.83
Diluted earnings per share	$ 0.31	$ 0.09	$ (0.01)	$ 0.83
Earnings per share, basic and diluted					$ 1.07	$ 0.22	$ 0.39
Weighted-average common shares outstanding:
Weighted-average common shares outstanding, basic and diluted					17,000,000	17,000,000	17,000,000
Weighted-average common shares outstanding, basic	23,468,750	17,000,000	20,838,599	17,000,000
Weighted-average common shares outstanding, diluted	23,885,137	17,000,000	20,838,599	17,000,000

Consolidated Statements of In_2

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Income and Comprehensive Income
Net unrealized (losses) gains on securities available for sale, tax	$ 0	$ 704	$ 734

Consolidated Statements of Shar

Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Beginning balance at Dec. 31, 2015	$ 2	$ 68,498	$ (458)	$ (3,022)	$ 65,020
Beginning balance (in shares) at Dec. 31, 2015	17,000,000
Changes in Stockholders' Equity
Change in net unrealized loss (gain) on investments			1,475		1,475
Net income (loss)				6,614	6,614
Ending balance at Dec. 31, 2016	$ 2	68,498	1,017	3,592	73,109
Ending balance (in shares) at Dec. 31, 2016	17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			454	(454)
Change in net unrealized loss (gain) on investments			1,522		1,522
Net income (loss)				3,783	3,783
Ending balance at Dec. 31, 2017	$ 2	68,498	2,993	6,921	$ 78,414
Ending balance (in shares) at Dec. 31, 2017	17,000,000				17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			(3,215)	3,215
Change in net unrealized loss (gain) on investments			(1,299)		$ (1,299)
Net income (loss)				14,092	14,092
Ending balance at Sep. 30, 2018	$ 2	68,498	(1,521)	24,228	91,207
Ending balance (in shares) at Sep. 30, 2018	17,000,000
Beginning balance at Dec. 31, 2017	$ 2	68,498	2,993	6,921	$ 78,414
Beginning balance (in shares) at Dec. 31, 2017	17,000,000				17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			(3,215)	3,215
Change in net unrealized loss (gain) on investments			(341)		$ (341)
Net income (loss)				18,219	18,219
Ending balance at Dec. 31, 2018	$ 2	68,498	(563)	28,355	$ 96,292
Ending balance (in shares) at Dec. 31, 2018	17,000,000				17,000,000
Changes in Stockholders' Equity
Change in net unrealized loss (gain) on investments			6,459		$ 6,459
Distribution to stockholder				(5,120)	(5,120)
Stock-based compensation		23,677			23,677
Proceeds from common stock sold in initial public offering, net of offering costs		87,412			87,412
Proceeds from common stock sold in initial public offering, net of offering costs (in shares)	6,468,750
Net income (loss)				(258)	(258)
Ending balance at Sep. 30, 2019	$ 2	$ 179,587	$ 5,896	$ 22,977	$ 208,462
Ending balance (in shares) at Sep. 30, 2019	23,468,750				23,468,750

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net income	$ 18,219	$ 3,783	$ 6,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	212	160	88
Amortization of debt issuance costs	443	114	89
Loss on asset disposal		1	18
Amortization of premium on fixed maturity securities	481	966	973
Deferred income tax expense (benefit)		1,134	(337)
Changes in operating assets and liabilities:
Accrued investment income	54	(137)	(61)
Premium receivable	(3,546)	(3,845)	(2,757)
Deferred policy acquisition costs	1,109	(4,507)	(3,850)
Reinsurance recoverables	70	(13,089)	(1,304)
Prepaid reinsurance premium	(15,109)	(1,527)	(613)
Prepaid expenses and other assets	(4,603)	(1)	(371)
Accounts payable and other accrued liabilities	2,748	2,238	1,772
Reserve for losses and loss adjustment expenses	(1,723)	13,006	3,010
Unearned premiums	17,154	19,266	12,942
Ceded premiums payable	5,538	3,487	(375)
Funds held under reinsurance treaty	(797)	(204)	486
Income taxes payable	(11)	11
Net cash provided by operating activities	22,808	20,248	15,825
Investing activities
Purchases of property and equipment	(332)	(68)	(898)
Proceeds from sale of property and equipment			4
Purchases of fixed maturity securities	(102,745)	(43,485)	(27,380)
Purchases of equity securities	(33,712)	(10,723)	(12,718)
Sales and maturities of fixed maturity securities	81,215	28,628	18,984
Sales of equity securities	29,959	6,770	10,477
Securities receivable or payable, net	250	(250)
Net cash used in investing activities	(25,365)	(19,128)	(11,531)
Financing activities
Repayment of surplus notes	(17,500)
Proceeds from issuance of Floating Rate Notes, net of issuance costs	19,049
Net cash provided by financing activities	1,549
Net increase (decrease) in cash, cash equivalents, and restricted cash	(1,008)	1,120	4,294
Cash, cash equivalents and restricted cash at beginning of period	10,932	9,812	5,518
Cash, cash equivalents and restricted cash at end of period	9,924	10,932	9,812
Supplementary cash flow information:
Cash paid for income taxes	11	9	3
Cash paid for interest	$ 1,727	$ 1,632	$ 1,545

Summary of Operations and Basis

Summary of Operations and Basis of Presentation	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Summary of Operations and Basis of Presentation
Summary of Operations and Basis of Presentation	1. Summary of Operations and Basis of Presentation Summary of Operations Palomar Holdings, Inc. (the Company) is an insurance holding company that was incorporated in Delaware on March 14, 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Specialty Reinsurance Company (PSRE) and Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC) and Prospect General Insurance Agency, Inc. (PGIA). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented. Initial Public Offering (IPO) On April 22, 2019, the Company completed its IPO with the sale of 6,468,750 shares of common stock at a price to the public of $15.00 per share, including 843,750 shares sold upon the exercise in full of the underwriter’s option to purchase additional shares. After underwriter discounts and commissions and offering expenses, net proceeds from the IPO were approximately $87.4 million. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments. Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligations. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard became effective for the Company January 1, 2019. However, the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company expects to adopt this standard using the modified retrospective method. The Company does not expect adoption to have a material impact on its consolidated financial statements, but will continue to assess the potential impact of adoption throughout 2019. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is currently effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. However, the FASB has recently voted to defer the effective date of this update by one year. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. In 2019, the FASB issued amendments to this guidance which provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance. This update and its amendments will be effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements.	1. Summary of Operations and Basis of Presentation Summary of Operations Palomar Holdings, Inc. (the Company), is an insurance holding company that was incorporated in Delaware in March 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC), Prospect General Insurance Agency, Inc. (PGIA), and Palomar Specialty Reinsurance Company Bermuda Ltd. (PSRE). On February 12, 2014, GCPH through PIH acquired PSIC from Pacific Indemnity Company in a stock purchase transaction. PSIC is a property and casualty insurance company domiciled in the state of Oregon. The Company’s core focus is on the residential and commercial earthquake markets in earthquake‑exposed states such as California, Oregon, Washington, and states with exposure to the New Madrid Seismic Zone. In 2015, PSIC expanded into broader geographic regions and perils, to include Hawaii residential hurricane and Texas specialty homeowners products. In 2016, PSIC began a commercial all risk insurance program which covers commercial property primarily in southeastern wind‑exposed states. PSIC underwrites catastrophe insurance on an admitted basis in 24 states in the United States, as of December 31, 2018, mainly through managing general insurance agencies, wholesale brokers, and independent agents. PGIA is a property and casualty general insurance agency for PSIC and unaffiliated insurance carriers. As a general insurance agency, PGIA assists in developing insurance products, underwriting insurance policies, and receiving and disbursing funds from premium and loss transactions under contracts on behalf of insurance companies. PGIA earns commissions from the product development, marketing, and servicing of the insurance companies’ programs. PGIA also earns fee income from policyholder transactions. PSRE is a Bermuda captive reinsurance company that reinsures earthquake and Hawaii Hurricane premium on a quota share basis exclusively for PSIC. The Company operates as an insurance holding company system and is subject to the insurance holding company laws of the State of Oregon, the state in which PSIC is domiciled. The Company is also commercially domiciled in California and, as a result, subject to the insurance holding company laws of that state. These statutes require that each insurance company in the system register with the insurance department of its state of domicile and furnish information concerning the operations of companies within the holding company system that may materially affect the operations, management or financial condition of the insurers within the system and domiciled in that state. The Company’s chief operating decision‑maker is the Chief Executive Officer. While the chief decision‑maker monitors the revenue streams of the various products and services, operations are managed, resources are allocated, and financial performance is evaluated on a Company‑wide basis. The Company has a single operating segment, the property and casualty insurance business. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented. Use of Estimates The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include time deposits and marketable securities with original maturities of three months or less at acquisition and are stated at cost, which approximates fair value. The Company maintains cash balances in federally insured financial institutions. Restricted Cash Restricted cash includes cash on deposit with reinsurance carriers. Restricted cash also includes cash held in a fiduciary capacity for the benefit of third party insurance carriers. Deferred Offering Costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees relating to the Company’s initial public offering (IPO), are capitalized as incurred. The deferred offering costs will be offset against the IPO proceeds upon the consummation of the offering. In the event the offering is terminated, deferred offering costs will be expensed. Deferred offering costs were $1.1 million at December 31, 2018 and are classified as Prepaid expenses and other assets on the Company’s consolidated balance sheet. There were no deferred offering costs at December 31, 2017. Investments All of the Company’s investments in fixed maturity securities are classified as available‑for‑sale and are carried at fair value. Unrealized gains and losses related to fixed maturity securities are included in accumulated other comprehensive income as a separate component of shareholder’s equity. Equity securities are carried at fair value with unrealized gains and losses included as a component of net income on the Company’s consolidated statement of income. Prior to 2018, unrealized gains and losses on equity securities were included in accumulated other comprehensive income as a separate component of shareholder’s equity. Premiums and discounts on mortgage‑backed securities and asset‑backed securities are amortized or accrued using the prospective method which considers anticipated prepayments at the date of purchase. To the extent that the estimated lives of such securities change as a result of changes in estimated prepayment rates, the adjustments are included in net investment income using the prospective method. Investment income consists primarily of interest and dividends. Interest income is recognized on an accrual basis. Dividend income is recognized on the ex‑dividend date. Net investment income represents investment income, net of expenses. Other‑than‑temporary declines in fair value of fixed maturity securities are evaluated for amounts considered credit losses by comparing the expected present value of cash flows to be collected to the amortized cost. Once the amount of other‑than‑temporary impairment (OTTI) related to the credit loss is determined, the unrealized loss is then bifurcated into the credit‑related loss and the loss related to all other factors. The credit‑related OTTI loss is recognized as a realized loss in the statement of comprehensive income and the cost basis of the security is reduced. The OTTI related to other factors remain in accumulated other comprehensive income. Before 2018, other‑than‑temporary declines in the fair value of equity securities would have been recorded as realized losses in the consolidated statement of comprehensive income and the cost basis of the security would have been reduced (see Note 3). The Company uses the specific‑identification method to determine the cost of fixed maturity securities sold and the first‑in, first‑out method for lots of equity securities sold. Fair Value Fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. The three‑tier hierarchy of inputs is summarized in the three broad levels listed below: Level 1—Unadjusted quoted prices are available in active markets for identical investments as of the reporting date. Level 2—Pricing inputs are quoted prices for similar investments in active markets; quoted prices for identical or similar investments in inactive markets; or valuations based on models where the significant inputs are observable or can be corroborated by observable market data. Level 3—Pricing inputs into models are unobservable for the investment. The unobservable inputs require significant management judgment or estimation. To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. The fair values obtained from the outside investment managers are reviewed for reasonableness and any discrepancies are investigated for final valuation. The fair value of the Company’s investments in fixed maturity securities is estimated using relevant inputs, including available market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. An Option Adjusted Spread model is also used to develop prepayment and interest rate scenarios. Industry standard models are used to analyze and value securities with embedded options or prepayment sensitivities. These fair value measurements are estimated based on observable, objectively verifiable market information rather than market quotes; therefore, these investments are classified and disclosed in Level 2 of the hierarchy. The fair value of the Company’s investments in equity securities is based on quoted prices available in active markets and classified and disclosed in Level 1 of the hierarchy. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, fixed maturity securities and reinsurance recoverables. The Company places its cash and cash equivalents with high credit quality financial institutions and its fixed maturity securities in securities of the U.S. government, U.S. government agencies, and high credit quality issuers of debt securities. The Company evaluates the financial condition of its reinsurers and reinsures its business with highly rated reinsurers and sometimes requires letters of credit or retains funds from reinsurers (see Note 8). Premiums Receivable Premiums receivable are carried at face value net of any allowance for doubtful accounts which approximates fair value. If necessary, the Company records an allowance for doubtful accounts in an amount approximating anticipated losses. Individual uncollectible accounts are written off against the allowance when collection of the individual accounts is not reasonably assured. No allowance for doubtful accounts was required at December 31, 2018 or 2017. Deferred Policy Acquisition Costs The costs of successfully acquiring new business, principally commission expense and premium taxes, are deferred and amortized over the unexpired terms of the policies in force. Premiums Earned Gross premiums written are recorded at policy inception and are earned as revenue ratably over the term of the respective policies. Premiums written not yet recognized as revenue are reflected as unearned premiums on the balance sheet, or as advanced premiums if received prior to the policy effective date. Premiums written but not yet received are recognized as premiums receivable. Premiums receivable are presented on the consolidated balance sheets net of estimated uncollectible amounts. Based on management’s review no allowance for bad debt was required at December 31, 2018 and 2017. A premium deficiency is recognized if the sum of expected losses and loss adjustment expenses, unamortized acquisition costs, and policy maintenance costs exceeds the remaining unearned premiums. A premium deficiency would first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency were greater than unamortized acquisition costs, a liability would be accrued for the excess deficiency. The Company does not consider anticipated investment income when determining if a premium deficiency exists. There was no premium deficiency at December 31, 2018 or 2017. Commission and Other Income Commission and other income is comprised of commissions earned on policies where the Company has no exposure to underlying risk and fees earned in conjunction with underwriting policies. Commission and fee income is earned at the time the policy is written. Property and Equipment Property and equipment are capitalized and carried at cost less accumulated depreciation. Depreciation for property and equipment is calculated on a straight‑line basis using useful lives of 3 to 5 years. Leasehold improvements and other fixed assets are capitalized and depreciated over the useful lives of the properties and equipment. Expenditures for maintenance and repairs are charged to operations as incurred. Upon disposition, the asset cost and related depreciation are removed from the accounts and the resulting gain or loss is included in the Company’s results of operations. Intangible Assets Upon acquisition, the entire PSIC purchase price was allocated to separately identifiable indefinite lived intangible assets. The Company acquired seven state licenses in the acquisition to which $0.7 million was allocated. Indefinite lived intangible assets are initially recognized and measured at fair value; intangible assets are subsequently evaluated for impairment annually or more frequently if circumstances warrant it. No impairments of intangible assets were recognized for the years ended December 31, 2018 and 2017. Impairment of Long‑Lived Assets Long‑lived assets with finite lives are tested for impairment whenever recognized events or changes in circumstances indicate the carrying value of these assets may not be recoverable. If indicators of impairment are present, the fair value is calculated using estimated future cash flows expected to be generated from the use of those assets. An impairment loss is recognized only if the carrying amount of a long‑lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long‑lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. This assessment is based on the carrying amount of the asset or asset group at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long‑lived asset or asset group exceeds its fair value. No impairments of long‑lived assets were recognized for the years ended December 31, 2018, 2017 and 2016. Reserve for Losses and Loss Adjustment Expenses The reserve for unpaid losses and loss adjustment expenses includes estimates for unpaid claims and claim adjustment expenses on reported losses and estimates of losses incurred but not reported (IBNR), net of salvage and subrogation recoveries. The liability is based on individual claims, case reserves and other estimates reported by policyholders, as well as management estimates of ultimate losses and loss adjustment expenses. Inherent in the estimates of ultimate losses and loss adjustment expenses are expected trends in claims severity and frequency and other factors that could vary significantly as claims are settled. The Company’s estimates of ultimate losses and loss adjustment expenses are based in part upon the estimation of claims resulting from natural disasters such as hurricanes and earthquakes. Estimation by management of the ultimate losses and loss adjustment expenses resulting from catastrophic events is inherently difficult because of the potential severity of property catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historic claims experience, for purposes of providing an estimate of ultimate losses and loss adjustment expenses. For other difficult estimates of ultimate losses and loss adjustment expenses, the Company utilizes historical severity data that may be immature and subject to significant variation, in addition to using loss development methods based on paid and reported losses. For these estimates, industry data may also be utilized. Ultimate losses and loss adjustment expenses may vary materially from the amounts provided in the consolidated financial statements. Estimates of unpaid losses and loss adjustment expenses are reviewed regularly and, as experience develops and new information becomes known, the liabilities are adjusted as necessary. Such adjustments, if any, are reflected in operations in the period in which they become known and are accounted for as changes in estimates. The Company does not discount its liability for unpaid losses and loss adjustment expenses. The Company does not write insurance policies covering toxic clean‑up, asbestos‑related illness or other environmental remediation exposures. Reinsurance The Company purchases excess of loss and quota share reinsurance to protect it against the impact of losses. Reinsurance premiums, commissions, ceded unearned premiums are accounted for on bases consistent with the underlying terms of the reinsurance contracts and in proportion to the amount of insurance protection provided. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are capitalized and amortized as a reduction of underwriting, acquisition and insurance expenses. Amounts applicable to prepaid reinsurance premiums are reported as assets in the accompanying consolidated balance sheets. Reinsurance recoverables represent paid losses and loss adjustment expenses and reserves for unpaid losses and loss adjustment expenses ceded to reinsurers that are subject to reimbursement under reinsurance treaties. Premiums earned and losses and loss adjustment expenses incurred are stated in the accompanying consolidated statements of income and comprehensive income net of amounts ceded to reinsurers. Income Taxes The Company is taxed as a property/casualty insurer for federal income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and the tax bases of assets and liabilities, using enacted tax rates expected to be in effect during the year in which the basis differences reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes the tax benefit of uncertain tax positions where the position is more likely than not to be sustained assuming examination by taxing authorities. Based on its evaluation for the tax years ended December 31, 2018 and 2017, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company recognizes interest and penalties related to uncertain tax positions, if any, as a component of income tax expense. The Company has not been assessed interest or penalties by any major tax jurisdictions for the respective tax years ended December 31, 2018, 2017, and 2016. Earnings Per Share Earnings per share is calculated by dividing net income by the weighted‑average number of common shares outstanding for the period. The Company currently does not have any additional securities which could convert to common stock and be dilutive to its earnings per share. Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently adopted accounting pronouncements In January 2016, the FASB issued “ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities .” Among other things, this new guidance requires the Company’s equity investments to be measured at fair value with changes in fair value recognized in net income. Under the current guidance, equity investments are measured at fair value with changes in fair value recognized in accumulated other comprehensive income as a component of shareholder’s equity. The Company adopted this guidance on January 1, 2018 and began recognizing changes in fair value of equity securities into net income. Upon adoption, the Company made a $3.2 million cumulative‑effect adjustment to increase retained earnings and decrease accumulated other comprehensive income. In the future, this guidance will impact the Company’s results of operations, as changes in fair value of equity investments will impact net income rather than other comprehensive income. The future impact will vary depending on the volatility of the overall equity market and the amount the Company decides to invest in equity securities. In August 2016, the FASB issued “ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” , in order to reduce diversity in the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This standard will be effective for annual and interim reporting periods beginning after December 15, 2018 and may be adopted earlier. Currently, provisions of this guidance may apply to the Company’s commissions and fee income, however, the Company does not expect adoption to have a material impact on its consolidated financial statements. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases that commenced before the effective date and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. This update will be effective for annual reporting periods beginning after December 15, 2020 and interim reporting periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this updated guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑15, Intangibles—Goodwill and Other—Internal‑Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018‑15 requires a customer in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal‑use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. Relevant implementation costs in the development stage are capitalized, while costs incurred during the preliminary project and post‑implementation stages are expensed as the activities are performed. Capitalized costs are expensed over the term of the hosting arrangement. This ASU is effective for annual and interim reporting periods beginning after December 15, 2020. Early adoption is permitted. This update can either be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company retrospectively adopted this guidance for the year ended December 31, 2018. As this guidance is in line with current accounting for fees paid in a cloud computing arrangement that is a service contract, the adoption of this update had no impact on the Company’s consolidated financial statements.

Investments

Investments	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Investments	2. Investments The Company’s available‑for‑sale investments are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,085 $ 461 $ (7) $ 13,539 States, territories, and possessions 2,300 169 — 2,469 Political subdivisions 1,922 33 — 1,955 Special revenue excluding mortgage/asset-backed securities 17,762 614 (3) 18,373 Industrial and miscellaneous 123,835 5,051 (31) 128,855 Mortgage/asset-backed securities 57,719 1,090 (14) 58,795 Total available-for-sale investments $ 216,623 $ 7,418 $ (55) $ 223,986 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset-backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset-backed securities 27,284 133 (81) 27,336 Total available-for-sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Security holdings in an unrealized loss position As of September 30, 2019, the Company held 39 fixed maturity securities in an unrealized loss position with a total estimated fair value of $18.3 million and total gross unrealized losses of $0.1 million. As of December 31, 2018, the Company held 173 fixed maturity securities in an unrealized loss position with a total estimated fair value of $73.8 million and total gross unrealized losses of $1.3 million. The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018, are as follows: Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments 1,485 — $ 1,824 $ (7) $ 3,309 $ (7) States, territories, and possessions — — — — — — Political subdivisions 546 — — — 546 — Special revenue excluding mortgage/asset-backed securities 569 (1) 997 (2) 1,566 (3) Industrial and miscellaneous 3,936 (22) 3,457 (9) 7,393 (31) Mortgage/asset-backed securities 5,261 (13) 263 (1) 5,524 (14) Total $ 11,797 $ (36) $ 6,541 $ (19) $ 18,338 $ (55) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset-backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset-backed securities 6,653 (39) 3,830 (42) 10,483 (81) Total $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) The Company considers the following factors in determining whether declines in the fair value of investments are other‑than‑temporary: · The significance of the decline in fair value compared to the cost basis, · The time period during which there has been a significant decline in fair value, · Whether the unrealized loss is credit‑driven or a result of changes in market interest rates, · A fundamental analysis of the business prospects and financial condition of the issuer, · The Company’s intent to sell the securities as of each reporting date, and · If the Company does not expect to recover the entire amortized cost basis or cost of the investment. Based on the Company’s reviews as of September 30, 2019 and December 31, 2018, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. None of the fixed maturity securities were determined to be other‑than‑temporarily impaired. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. Therefore, none of the fixed maturity securities were written down during the respective periods. Contractual maturities of available‑for‑sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at September 30, 2019, by contractual maturity, are shown below. Amortized Fair Cost Value (in thousands) Due within one year $ 7,098 $ 7,099 Due after one year through five years 68,726 69,853 Due after five years through ten years 55,711 59,609 Due after ten years 27,369 28,630 Mortgage and asset-backed securities 57,719 58,795 $ 216,623 $ 223,986 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Net investment income summary Net investment income is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest income $ 1,678 $ 816 $ 4,140 $ 2,083 Dividend income 132 118 299 365 Investment expense (81) (69) (267) (237) Net investment income $ 1,729 $ 865 $ 4,172 $ 2,211 Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 38 $ 11 $ 135 $ 20 Gains on sales of equity securities — 18 64 421 Total realized gains 38 29 199 441 Realized losses: Losses on sales of fixed maturity securities (1) (102) (70) (257) Losses on sales of equity securities (21) (229) (174) (4,287) Total realized losses (22) (331) (244) (4,544) Net realized investment gains (losses) 16 (302) (45) (4,103) Net unrealized gains on equity securities 345 1,638 3,310 5,072 Net realized and unrealized gains on investments $ 361 $ 1,336 $ 3,265 $ 969 Proceeds from the sale of fixed maturity securities were $28.8 million and $32.4 million for the three months ended September 30, 2019 and September 30, 2018, respectively. Proceeds from the sale of fixed maturity securities were $88.1 million and $62.3 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. At September 30, 2019 and December 31, 2018, the carrying value of securities on deposit with state regulatory authorities was $5.1 million.	3. Investments The Company’s available‑for‑sale investments are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset‑backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset‑backed securities 27,284 133 (81) 27,336 Total available‑for‑sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,393 $ — $ (108) $ 13,285 States, territories, and possessions 3,188 10 (1) 3,197 Political subdivisions 4,118 — (51) 4,067 Special revenue excluding mortgage/asset‑backed securities 24,039 42 (167) 23,914 Industrial and miscellaneous 44,582 150 (201) 44,531 Mortgage/asset‑backed securities 12,981 2 (64) 12,919 Total fixed maturities 102,301 204 (592) 101,913 Equity securities 19,569 4,126 (109) 23,586 Total available‑for‑sale investments $ 121,870 $ 4,330 $ (701) $ 125,499 Security holdings in an unrealized loss position As of December 31, 2018, the Company held 173 fixed maturity securities in an unrealized loss position with a total estimated fair value of $73.8 million and total gross unrealized losses of $1.3 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. As of December 31, 2017, the Company held 125 fixed maturity securities in an unrealized loss position with a total estimated fair value of $80.2 million and total gross unrealized losses of $0.6 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. As of December 31, 2017, the Company held 16 equity securities in an unrealized loss position with a total estimated fair value of $2.8 million and total gross unrealized losses of $0.1 million. The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017, are as follows: Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset‑backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset‑backed securities 6,653 (39) 3,830 (42) 10,483 (81) $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 11,426 $ (89) $ 1,858 $ (19) $ 13,284 $ (108) States, territories, and possessions 1,568 (1) — — 1,568 (1) Political subdivisions 2,996 (24) 1,071 (27) 4,067 (51) Special revenue excluding mortgage/asset‑backed securities 17,109 (129) 2,140 (38) 19,249 (167) Industrial and miscellaneous 23,914 (137) 4,463 (64) 28,377 (201) Mortgage/asset‑backed securities 7,588 (31) 3,298 (33) 10,886 (64) Total fixed maturity 64,601 (411) 12,830 (181) 77,431 (592) Equity securities 1,995 (57) 807 (52) 2,802 (109) $ 66,596 $ (468) $ 13,637 $ (233) $ 80,233 $ (701) The Company considers the following factors in determining whether declines in the fair value of investments are other‑than‑temporary: · The significance of the decline in fair value compared to the cost basis, · The time period during which there has been a significant decline in fair value, · Whether the unrealized loss is credit‑driven or a result of changes in market interest rates, · A fundamental analysis of the business prospects and financial condition of the issuer, · For fixed maturity securities, the Company’s intent to sell the securities as of each reporting date, · If the Company does not expect to recover the entire amortized cost basis or cost of the investment, · For equity securities, the general macro‑economic outlook for the underlying economy represented, and · For equity securities, the Company’s ability and intent to hold the investments for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s reviews as of December 31, 2018 and 2017, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. None of the fixed maturity securities were determined to be other‑than‑temporarily impaired. The company does not intend to sell the investments and it is not more likely than not that that the Company will be required to sell the investments before the recovery of their amortized cost basis. Therefore, none of the fixed maturity securities were written down during the respective years. Based on the Company’s reviews as of December 31, 2017, the Company determined that the unrealized losses of the equity securities lots were temporary due to the severity of the declines. The Company had the ability and intent to hold these investments until a recovery of fair value. Therefore, none of the equity securities were written down at December 31, 2017 and the remaining unrealized losses of equity securities at that time were recognized to retained earnings upon adoption of ASU 2016‑01 on January 1, 2018. See “Recent Accounting Pronouncements.” Contractual maturities of available‑for‑sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at December 31, 2018, by contractual maturity, are shown below. 2018 Amortized Fair Cost Value (in thousands) Due within one year $ 2,621 $ 2,614 Due after one year through five years 50,677 49,802 Due after five years through ten years 32,471 32,518 Due after ten years 9,896 9,950 Mortgage and asset‑backed securities 27,284 27,336 $ 122,949 $ 122,220 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Change in unrealized gains (losses) of investments The following table presents the change in available‑for‑sale gross unrealized gains or losses by investment type: Years Ended December 31, 2018 2017 2016 (in thousands) Change in net unrealized gains (losses) Fixed maturities $ (341) $ (6) $ (60) Equity securities — 2,232 2,269 Net (decrease) increase $ (341) $ 2,226 $ 2,209 Net investment income summary Net investment income is summarized as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Interest income $ 3,036 $ 1,916 $ 1,425 Dividend income 514 514 472 Less: investment expense (312) (305) (282) Net investment income $ 3,238 $ 2,125 $ 1,615 Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: Years Ended December 31, 2018 2017 2016 (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 19 $ 3 $ 56 Gains on sales of equity securities 4,287 802 592 Total realized gains 4,306 805 648 Realized losses: Losses on sales of fixed maturity securities (418) (48) — Losses on sales of equity securities (421) (149) (149) Total realized losses (839) (197) (149) Net realized investment gains 3,467 608 499 Net unrealized losses on equity securities (6,036) — — Net realized and unrealized (losses) gains on investments $ (2,569) $ 608 $ 499 The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. At December 31, 2018 and 2017, the carrying value of securities on deposit with state regulatory authorities was $5.0 million and $5.0 million, respectively.

Fair value measurements

Fair value measurements	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair value measurements
Fair value measurements	3. Fair value measurements Fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. The three‑tier hierarchy of inputs is summarized in the three broad levels listed below: Level 1—Unadjusted quoted prices are available in active markets for identical investments as of the reporting date. Level 2—Pricing inputs are quoted prices for similar investments in active markets; quoted prices for identical or similar investments in inactive markets; or valuations based on models where the significant inputs are observable or can be corroborated by observable market data. Level 3—Pricing inputs into models are unobservable for the investment. The unobservable inputs require significant management judgment or estimation. To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. The fair values obtained from the outside investment managers are reviewed for reasonableness and any discrepancies are investigated for final valuation. The fair value of the Company’s investments in fixed maturity securities is estimated using relevant inputs, including available market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. An Option Adjusted Spread model is also used to develop prepayment and interest rate scenarios. Industry standard models are used to analyze and value securities with embedded options or prepayment sensitivities. These fair value measurements are estimated based on observable, objectively verifiable market information rather than market quotes; therefore, these investments are classified and disclosed in Level 2 of the hierarchy. The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,539 $ — $ 13,539 States, territories, and possessions — 2,469 — 2,469 Political subdivisions — 1,955 — 1,955 Special revenue excluding mortgage/asset-backed securities — 18,373 — 18,373 Industrial and miscellaneous — 128,855 — 128,855 Mortgage/asset-backed securities — 58,795 — 58,795 Equity securities 22,326 — — 22,326 Cash, cash equivalents, and restricted cash 16,902 — — 16,902 Total assets $ 39,228 $ 223,986 $ — $ 263,214 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset-backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset-backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long-term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 The carrying amounts of financial assets and liabilities reported in the accompanying condensed consolidated balance sheet including cash and cash equivalents, restricted cash, receivables, reinsurance recoverable, and accounts payable and other accrued liabilities approximate fair value due to their short term‑maturity. The fair value of the Company’s long‑term note payable was determined by calculating the present value of expected future cash flows under the terms of the note agreements discounted at an estimated market rate of interest at December 31, 2018. This is a level 3 measurement. The Company repaid its long term-notes payable in May 2019 and did not have any long-term debt at September 30, 2019. Transfers between levels result from changes in the availability of market observable inputs and are recorded at the beginning of the reporting period. There were no transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2019 or the three and nine months ended September 30, 2018 .	4. Fair value measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of December 31, 2018 and 2017: December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset‑backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset‑backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long‑term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,285 $ — $ 13,285 States, territories, and possessions — 3,197 — 3,197 Political subdivisions — 4,067 — 4,067 Special revenue excluding mortgage/asset‑backed securities — 23,914 — 23,914 Industrial and miscellaneous — 44,531 — 44,531 Mortgage/asset‑backed securities — 12,919 — 12,919 Equity securities 23,586 — — 23,586 Cash, cash equivalents, and restricted cash 10,932 — — 10,932 Total assets $ 34,518 $ 101,913 $ — $ 136,431 Liabilities: Long‑term notes payable $ — $ — $ 18,095 $ 18,095 Total liabilities $ — $ — $ 18,095 $ 18,095 The carrying amounts of financial assets and liabilities reported in the accompanying consolidated balance sheet including cash and cash equivalents, restricted cash, receivables, reinsurance recoverable, and accounts payable and other accrued liabilities approximate fair value due to their short term‑maturity. The fair value of the Company’s long‑term debt was determined by calculating the present value of expected future cash flows under the terms of the note agreements discounted at an estimated market rate of interest at December 31, 2018 and 2017, respectively. This is a level 3 measurement. Transfers between levels result from changes in the availability of market observable inputs and are recorded at the beginning of the reporting period. There were no transfers between Level 1, Level 2 or Level 3 during 2018 or 2017.

Policy Acquisition Costs

Policy Acquisition Costs	12 Months Ended
	Dec. 31, 2018
Policy Acquisition Costs
Policy Acquisition Costs	5. Policy Acquisition Costs The following tables present the policy acquisition costs deferred and amortized: December 31, 2018 2017 2016 (in thousands) Deferred Policy Acquisition Costs: Balance, beginning of year $ 15,161 $ 10,654 $ 6,804 Additions to deferred balance: Direct commissions 36,934 27,976 21,453 Ceding commissions (15,218) (3,224) (3,648) Premium taxes 3,362 2,625 1,807 Total net additions 25,078 27,377 19,612 Amortization of net policy acquisition costs (26,187) (22,870) (15,762) Balance, end of year $ 14,052 $ 15,161 $ 10,654 Acquisition expenses: Amortization of net policy acquisition costs $ 26,187 $ 22,870 $ 15,762 Period costs 2,037 2,652 1,578 Total Acquisition expenses $ 28,224 $ 25,522 $ 17,340

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2018
Property and Equipment
Property and Equipment	6. Property and Equipment Property and Equipment, net consist of the following: Accumulated Net December 31, 2018 Cost Depreciation Book Value (in thousands) Leasehold improvements $ 879 $ (225) $ 654 Computer hardware 108 (51) 57 Office equipment and furniture 454 (218) 236 Total $ 1,441 $ (494) $ 947 Accumulated Net December 31, 2017 Cost Depreciation Book Value (in thousands) Leasehold improvements $ 652 $ (115) $ 537 Computer hardware 83 (35) 48 Office equipment and furniture 374 (132) 242 Total $ 1,109 $ (282) $ 827 Depreciation expense for the years ended December 31, 2018, 2017, and 2016 was $0.2 million, $0.2 million, and $0.1 million respectively.

Reserve for Losses and Loss Adj

Reserve for Losses and Loss Adjustment Expenses	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reserve for Losses and Loss Adjustment Expenses
Reserve for Losses and Loss Adjustment Expenses	4. Reserve for Losses and Loss Adjustment Expenses 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, 2019 2018 2019 2018 (in thousands) (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,428 $ 3,159 $ 4,165 $ 4,432 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 2,647 5,258 3,660 8,445 Prior years (208) 116 (262) (1,402) Total incurred 2,439 5,374 3,398 7,043 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 641 392 1,044 1,656 Prior years 312 459 3,605 2,137 Total payments 953 851 4,649 3,793 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 2,914 7,682 2,914 7,682 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 14,052 10,950 14,052 10,950 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,966 $ 18,632 $ 16,966 $ 18,632 Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to stockholders’ equity. The Company experienced favorable development of $0.2 million in the three months ended September 30, 2019 and adverse development of $0.1 million in the three months ended September 30, 2018. Favorable development in the three months ended September 30, 2019 was primarily due to lower than anticipated frequency and severity of claims in the specialty homeowners line. Adverse development in the three months ended September 30, 2018 was primarily due to higher than anticipated frequency and severity of claims in the commercial all risk line related to the 2017 accident year. The Company experienced favorable development of $0.3 million and $1.4 million in the nine months ended September 30, 2019 and 2018, respectively. Favorable development for both periods was primarily due to lower than anticipated frequency and severity of claims in the specialty homeowners line.	7. Reserve for Losses and Loss Adjustment Expenses Loss and loss adjustment expenses reserves represent management’s best estimate of the ultimate cost of all reported and unreported losses incurred through December 31, 2018 and 2017. The Company does not discount loss and loss adjustment expense reserves. The reserves for unpaid losses and loss adjustment expenses are estimated using individual case‑basis valuations and statistical analyses. Those estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, management believes the reserves for losses and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any adjustments to estimates are recorded in the current period. The following table provides a reconciliation of the beginning and ending reserve balances for losses and LAE on a net of reinsurance basis to the gross amounts reported in the accompanying balance sheet: December 31, 2018 2017 2016 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 4,432 $ 3,336 $ 1,562 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 8,165 12,257 7,472 Prior year (1,891) (132) (180) Total incurred 6,274 12,125 7,292 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 4,409 8,986 4,824 Prior year 2,132 2,043 694 Total payments 6,541 11,029 5,518 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 4,165 4,432 3,336 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 11,896 13,352 1,442 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,061 $ 17,784 $ 4,778 Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to shareholder’s equity. The foregoing reconciliation shows loss and loss adjustment expense reserve redundancies of $1.9 million, $0.1 million, and $0.2 million developed in 2018, 2017 and 2016, respectively. This favorable reserve development was primarily in the Texas homeowners segment for all accident years presented. Expectations of ultimate losses from these periods have decreased due to lower than originally anticipated frequency and severity of claims. The Company compiles and aggregates its claims data by grouping the claims according to the year in which the claim occurred (Accident Year) when analyzing claim payment and emergence patterns and trends over time. For the purpose of defining claims frequency, the number of reported claims is by loss occurrence and includes claims that do not result in a liability or payment associated with them. The Company analyzed the usefulness of disaggregation of its results and determined the characteristics associated with the policies and the related unpaid loss reserves, incurred losses, and payment patterns are similar in nature. The Company separates its special property and other claim experience from its homeowner claim experience when analyzing losses and allocated loss adjustment expenses incurred and paid development and claim count triangles, as there are distinct differences in the development and claim count emergence patterns as well as methods of IBNR projection. The Special Property classification includes fire, allied lines, inland marine, and earthquake claims. As such, the following tables show the Company’s historical homeowner and special property incurred and cumulative paid losses and LAE development, net of reinsurance, as well as IBNR loss reserves and the number of reported claims on an aggregate basis as of December 31, 2018 for each of the previous two accident years. The information provided herein about incurred and paid accident year claims development for the years ended December 31, 2017 and prior is presented as unaudited supplementary information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 2,048 $ 1,785 $ 1,658 $ 1,636 $ 3 379 2016 6,069 5,878 5,721 4 1,080 2017 9,534 7,418 83 2,944 2018 2,193 249 668 Total $ 16,968 $ 339 5,071 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 860 $ 1,379 $ 1,523 $ 1,615 2016 4,120 5,356 5,585 2017 7,135 7,375 2018 1,550 Total $ 16,125 Reserve for losses and loss adjustment expense, net of reinsurance $ 843 (1) Data presented for these calendar years is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Homeowners’ Insurance (unaudited) Year 1 Year 2 Year 3 Year 4 Payout percentage 72.85 % 18.86 % 6.41 % 5.61 % Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 630 $ 719 $ 671 $ 671 $ 3 8 2016 1,381 1,249 1,251 2 50 2017 3,071 3,475 120 255 2018 5,970 158 336 Total $ 11,367 $ 283 649 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 265 $ 438 $ 586 $ 626 2016 703 1,064 1,216 2017 1,967 3,344 2018 2,859 Total 8,045 Reserve for losses and loss adjustment expense, net of reinsurance 3,322 (1) Data presented for these calendar years is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Special Property Insurance (unaudited) Year 1 Year 2 Year 3 Year 4 Payout percentage 50.05 % 31.42 % 17.10 % 5.96 % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows: 2018 (in thousands) Net outstanding liabilities: Homeowners’ insurance $ 843 Special property 3,322 Reserve for losses and loss adjustment expense, net of reinsurance 4,165 Reinsurance recoverable on unpaid claims: Homeowners’ insurance $ 5,650 Special property 6,246 Total reinsurance recoverable on unpaid claims 11,896 Total reserve for losses and loss adjustment expenses $ 16,061

Reinsurance

Reinsurance	12 Months Ended
	Dec. 31, 2018
Reinsurance
Reinsurance	8. Reinsurance The Company utilizes reinsurance in order to limit its exposure to losses and enable it to underwrite policies with sufficient limits to meet policyholder needs. The Company utilizes both excess of loss (XOL) and quota share reinsurance. In an XOL treaty, the Company retains losses for any occurrence up to a specified amount (its “retention”) and reinsurers assume any losses above that amount. Prior to March 1, 2015, the Company had a retention of $15 million on non‑earthquake events. This was reduced to $5 million on March 1, 2015 and remained in place through December 31, 2018. The Company’s retention for earthquake events was $15 million from its inception through December 31, 2017 and was reduced to $5 million on January 1, 2018 and remained in place through December 31, 2018. The Company maintained XOL coverage up to $825 million and $750 million for earthquake events as of December 31, 2018 and 2017, respectively, and $625 million and $550 million for non‑earthquake events as of December 31, 2018 and 2017, respectively. As of December 31, 2018, for non‑earthquake events the Company retains 54.55% of losses between $230 million and $351 million and 30% of losses between $351 million and $501 million. In a quota share agreement, the Company transfers, or cedes, part or all of its exposure to a reinsurer who receives a portion of the associated premium in exchange. The reinsurer also must share an agreed upon portion of losses and agreed upon portion of the associated commission expense. The Company has quota share reinsurance agreements on several of its lines, the largest being its Texas Homeowners line, a component of its specialty homeowners product. In June 2018, the Company began ceding substantially all exposure relating to Texas Homeowners. Ceded written premium related to the Texas Homeowners line was $24.9 million, $2.4 million and $2.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. No other quota share program accounted for more than 10% of total ceded written premium for those years. The Company recognizes ceded unearned premiums related to quota share agreements on its consolidated balance sheet as a prepaid reinsurance premium asset. As of December 31, 2018 and 2017, prepaid reinsurance premiums totaled $18.3 million and $3.2 million, respectively. The increase in 2018 was driven primarily by the increased ceding on the Texas Homeowners line. As part of its reinsurance program, in June 2017, the Company obtained catastrophe protection through a reinsurance agreement with Torrey Pines Re Ltd. (“TPRe”). In connection with the reinsurance agreement, TPRe issued notes to unrelated investors in an amount equal to the full $166 million of coverage provided under the reinsurance agreement covering a three year period. At the time of the agreement, the Company performed an evaluation of TPRe to determine if it meets the definition of a variable interest entity (“VIE”). The Company concluded that TPRe is a VIE but it does not have a variable interest in the entity, as the variability in results is expected to be absorbed entirely by the investors in TPRe. Accordingly, TPRe is not consolidated in the Company’s financial statements. The premium ceded to TPRe for the year ended December 31, 2018 was approximately $7.5 million. The effect of reinsurance on premiums written and earned and on losses and LAE incurred for the years ended December 31, 2018, 2017 and 2016, is as follows: 2018 2017 2016 Written Earned Written Earned Written Earned (in thousands) Premiums Written and Earned: Direct $ 144,821 $ 129,071 $ 112,974 $ 94,799 $ 79,492 $ 66,765 Assumed 10,070 8,688 7,260 6,162 2,795 2,551 Ceded (82,949) (67,862) (46,951) (45,416) (29,636) (28,994) Net $ 71,942 $ 69,897 $ 73,283 $ 55,545 $ 52,651 $ 40,322 2018 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 12,153 $ 2,113 $ 14,266 Assumed 46 6 52 Ceded (6,580) (1,464) (8,044) Net $ 5,619 $ 655 $ 6,274 2017 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 24,266 $ 6,608 $ 30,874 Assumed 2 — 2 Ceded (14,651) (4,100) (18,751) Net $ 9,617 $ 2,508 $ 12,125 2016 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 6,914 $ 2,300 $ 9,214 Assumed — 3 3 Ceded (1,388) (537) (1,925) Net $ 5,526 $ 1,766 $ 7,292 The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policy coverage, and therefore the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance agreement. To minimize exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. To reduce credit exposure to reinsurance recoverable balances, the Company obtains letters of credit from certain reinsurers that are not authorized as reinsurers under U.S. state insurance regulations. In addition, under the terms of its reinsurance contracts, the Company may retain funds due from reinsurers as security for those recoverable balances. As of December 31, 2018 and 2017, the Company had retained $0.7 million and $1.5 million in funds from reinsurers. The Company is able to use the funds in the ordinary course of its business. The funds are held in cash and cash equivalents and investments with an offsetting liability on the accompanying consolidated balance sheet. For the year ended December 31, 2018, reinsurance premiums ceded to the Company’s three largest reinsurers totaled $7.5 million, $7.2 million, and $5.2 million, representing 24.0% of the total balance. For the year ended December 31, 2017, reinsurance premiums ceded to the Company’s three largest reinsurers totaled $4.0 million, $3.4 million, and $2.4 million, representing 20.8% of the total balance. For the year ended December 31, 2016, reinsurance premiums ceded to the Company’s three largest reinsurers totaled $2.3 million, $1.8 million, and $1.7 million, representing 19.5% of the total balance. At December 31, 2018 reinsurance recoverables on paid and unpaid losses by the Company’s three largest reinsurers were $1.8 million, $0.8 million, and $0.8 million representing 23.0% of the total balance. At December 31, 2017 reinsurance recoverable on unpaid losses by the Company’s three largest reinsurers were $1.9 million, $1.1 million, and $0.8 million representing 26.7% of the total balance. All of the Company’s reinsurers post collateral or have an A.M. best rating of A− (excellent) or better.

Long-term debt

Long-term debt	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Long-term debt
Long-term debt	5. Long-term debt Prior to September 2018, the Company had $17.5 million in outstanding surplus notes which had been issued by PSIC on February 3, 2015 for a term of seven years. The surplus notes bore interest at the rate of LIBOR plus 8.00% and had restrictions as to payments of interest and principal and any such payment required the prior approval of the Oregon Insurance Commissioners before such payment could be made. Such payments could only be made from surplus. In September 2018, the Company completed a private placement financing of $20.0 million floating rate senior secured notes (Floating Rate Notes). As part of the financing agreement, the Company immediately used surplus funds to pay down the existing $17.5 million in surplus notes. As part of this pre‑payment, the Company incurred a penalty of $0.1 million which, along with unamortized debt issuance costs of $0.4 million, was charged to income in September 2018. The Floating Rate Notes were redeemed pursuant to their terms on May 23, 2019, at a redemption price equal to 102% of the principal amount of the Floating Rate Notes, or $20.4 million (plus $0.3 million of accrued and unpaid interest thereon). The Company recognized a charge of $1.3 million upon redemption with $0.4 million due to the redemption premium and $0.9 million due to the write-off of unamortized debt issuance costs. The $0.4 million redemption premium was recognized as a component of interest expense and the $0.9 million issuance cost write-off was recognized as a component of other underwriting expenses in the Company's Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income (Loss). The Floating Rate Notes would have matured on September 6, 2028 and bore interest at the three‑month treasury rate plus 6.50% per annum. The Company incurred $0.6 million in interest expense related to the surplus notes for the three months ended September 30, 2018 (inclusive of a $0.1 million prepayment penalty) and paid $0.3 million. The Company incurred $1.1 million in interest expense related to the Floating Rate Notes for the nine months ended September 30, 2019 (inclusive of the $0.4 million redemption premium) and $1.4 million in interest expense related to the surplus notes for the nine months end September 30, 2018. The Company paid $1.2 million of interest for each period.	9. Long‑term debt Prior to September 2018, the Company had $17.5 million in outstanding surplus notes which had been issued by PSIC on February 3, 2015 for a term of seven years. The surplus notes bore interest at the rate of LIBOR plus 8.00% and had restrictions as to payments of interest and principal and any such payment required the prior approval of the Oregon Insurance Commissioners before such payment could be made. Such payments could only be made from surplus. In September 2018, the Company completed a private placement financing of $20.0 million floating rate senior secured notes (the “Floating Rate Notes”). As part of the financing agreement, the Company immediately used surplus funds to pay down the existing $17.5 million in surplus notes. As part of this pre‑payment, the Company incurred a penalty of $0.1 million which, along with unamortized debt issuance costs of $0.4 million, was charged to income in 2018. The Floating Rate Notes mature on September 6, 2028 and bear interest at the three‑month treasury rate plus 6.50% per annum. This rate resets quarterly and interest is payable quarterly in arrears on March 20, June 20, September 20 and December 20 of each year, commencing on December 20, 2018. Prior to September 6, 2019, Palomar Insurance Holdings, Inc. may redeem the Floating Rate Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Floating Rate Notes redeemed, plus a “make‑whole” premium and accrued and unpaid interest and additional interest, if any. After September 6, 2019, Palomar Insurance Holdings, Inc. may redeem the Floating Rate Notes at its option, in whole or in part, at certain redemption prices. If a change of control occurs, Palomar Insurance Holdings, Inc. must offer to purchase the Floating Rate Notes at 100% of their principal amount, plus accrued and unpaid interest. The Floating Rate Notes are fully and unconditionally guaranteed on a senior secured basis by a pledge of the capital stock owned by Palomar Holdings, Inc. of its equity interests in Palomar Insurance Holdings, Inc. Such security interest consists of a first‑priority lien with respect to the collateral. The Floating Rate Notes contain certain customary affirmative and negative covenants and events of default. The negative covenants limit Palomar Insurance Holdings, Inc.’s ability to, among other things, incur additional indebtedness, create liens on certain assets, pay dividends or prepay junior debt or make other restricted payments, make certain loans, acquisitions or investments, engage in transactions with affiliates, conduct asset sales, restrict dividends from subsidiaries or restrict liens, or merge, consolidate, sell or otherwise dispose of all or substantially all of Palomar Insurance Holdings, Inc.’s assets. The Company was in compliance with all debt covenants as of December 31, 2018. Approved interest incurred and paid through September 6, 2018 relating to the Surplus notes totaled $5.7 million of which $1.2 million, $1.6 million and $1.5 million was incurred and paid in each of 2018, 2017 and 2016, respectively. The Company had no unpaid and unapproved interest as of September 6, 2018, December 31, 2017 and 2016. The Company incurred $0.6 million in interest expense relating to the Floating Rate Notes for the year ended December 31, 2018 and paid $0.5 million in interest. The Company had $0.1 million of interest accrued at December 31, 2018

Income Taxes

Income Taxes	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Income Taxes
Income Taxes	6. Income Taxes Prior to March 2019, the Company was a Cayman Islands incorporated holding company with U.K. tax residency. On March 14, 2019, the Company implemented a domestication (the Domestication) pursuant to Section 388 of the Delaware General Corporation Law and Section 206 of the Companies Law (2018 Revision), as amended, of the Cayman Islands pursuant to which it became a Delaware corporation and no longer subject to the laws of the Cayman Islands. Historically, the Company’s Bermuda based subsidiary, PSRE, was not required to pay any taxes on its income or capital gains but was subject to a 1% U.S. federal excise tax on reinsurance premiums assumed. As a result of the Domestication, PSRE’s income is subject to U.S. federal income tax in 2019. Prior to 2019, the Company maintained a valuation allowance on the U.S. tax attributes due to significant negative evidence, including cumulative U.S. losses in the most recent three-year period and our assessment that the realization of the net deferred tax assets did not meet the "more likely than not" criteria under ASC 740, Income Taxes . Management assessed available positive and negative evidence to estimate whether sufficient future taxable income would be generated to permit use of the existing deferred tax assets. The projected reversal of temporary differences, the Domestication, and projected future operating income in the U.S. represents significant positive evidence, which outweighed the historical negative evidence. Based on this evidence, management determined it was more likely than not that the federal deferred tax assets are recoverable and therefore the associated valuation allowance was released as of March 31, 2019. State NOL carryforwards, due to the limited carryforward period, do not meet the “more likely than not” criteria and the Company will continue to maintain a valuation allowance on the associated deferred tax assets. The Company decreased the valuation allowance on the federal deferred tax assets by $1.7 million as a result of this analysis. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period change or if objective negative evidence in the form of cumulative losses is no longer present. The tax expense for the three months ended September 30, 2019 was in line with the expected tax computed at the statutory rate of 21%. For the nine months ended September 30, 2019 tax expense differs from the expected tax computed at the statutory tax rate of 21% primarily due to a U.S. tax benefit of $1.7 million for the reversal of a significant portion of our U.S. deferred tax valuation allowance offset by tax expense of $4.8 million from the addback related to the stock compensation charge recognized during the first quarter that is not deductible for tax purposes.	10. Income Taxes As of December 31, 2018 and 2017, the Company was a Cayman Islands incorporated holding company with U.K. tax residency. The Company’s Bermuda based subsidiary, PSRE, is not required to pay any taxes on its income or capital gains but is subject to a 1% U.S. federal excise tax on reinsurance premiums assumed. The Company’s U.S. domiciled affiliates (PIH, PSIC and PGIA) file a consolidated federal income tax return and combined or separate state returns as required by state law. The insurance company pays premium taxes on gross premiums written in lieu of some states’ income or franchise taxes. The components of the Company’s federal income tax expense (benefit) are as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Current $ (6) $ 11 $ — Deferred — 1,134 (337) Income tax expense (benefit) $ (6) $ 1,145 $ (337) As of December 31, 2018 and 2017, significant components of the Company’s deferred tax assets and liabilities were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Losses and LAE reserve discount $ 22 $ 22 Net operating losses 702 1,476 Investment amortization 119 119 Unearned premiums 1,914 2,469 Capitalized organizational costs 304 334 Unrealized losses on investments 505 — Other 306 457 Total deferred tax assets $ 3,872 $ 4,877 Deferred tax liabilities: Deferred acquisition costs $ (2,127) $ (3,184) Unrealized gains on investments — (734) Other (68) (12) Total deferred tax liabilities (2,195) (3,930) Net deferred tax asset before valuation allowance 1,677 947 Valuation allowance (1,677) (947) Total net deferred tax assets $ — $ — Management assessed available positive and negative evidence to estimate whether sufficient future taxable income would be generated to permit use of the existing deferred tax assets. The Company recorded a valuation allowance in 2017 due to a 3‑year cumulative loss and a large catastrophe event during 2017. The Company increased the valuation allowance by $0.7 million in 2018 due to an increase in net deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present. The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the tax years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 2016 ($ in thousands) Expense computed at federal tax rate $ 3,825 21.00 % $ 1,675 34.00 % $ 2,135 34.00 % Non‑U.S. group member income (4,409) (24.21) % (1,632) (33.12) % (2,093) (33.34) % Dividend received deduction and tax‑exempt interest (144) (0.79) % (467) (9.47) % (415) (6.61) % Impact of tax reform — — 580 11.76 % — — Valuation allowance 678 3.72 % 947 19.23 % — — Other 44 0.24 % 42 0.83 % 36 0.58 % Income tax expense (benefit) $ (6) (0.03) % $ 1,145 23.23 % $ (337) (5.37) % The Company has a federal net operating loss carryforward of $3.3 million at December 31, 2018. Unless utilized, the Company’s net operating loss carryforwards will begin to expire in 2034. On December 22, 2017, the President of the United States signed into law the Tax Act. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates from 35% to 21%, effective January 1, 2018. U.S. GAAP requires companies to recognize the effect of tax law changes in the period of enactment. We evaluated all available information and made reasonable estimates of the impact of tax reform to substantially all components of our net deferred tax assets as of December 31, 2017. We finalized our accounting for the Tax Act during 2018 with no significant impact to earnings or deferred taxes. As of December 31, 2018 and 2017, the Company had no uncertain tax positions that required either recognition or disclosure in the consolidated financial statements. This is not expected to change significantly during the next twelve months. The Company classifies interest and penalties, if any, related to the liability for unrecognized tax benefits as a component of the provision for income taxes. The Company’s income tax returns for 2014 through 2018 remain subject to examination by the tax authorities.

Capital Stock

Capital Stock	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Capital Stock
Capital Stock	7. Capital Stock As of September 30, 2019, the Company has 5,000,000 preferred shares authorized with a par value of $0.0001 and no preferred shares issued and outstanding. There were no preferred shares authorized as of December 31, 2018. As of September 30, 2019 and December 31, 2018, the Company has 500,000,000 common shares authorized and 23,468,750 and 17,000,000 common shares issued and outstanding, respectively, with a par value of $0.0001. Additional paid in capital is $179.6 million as of September 30, 2019 and $68.5 million as of December 31, 2018. Common stock reserved for future issuance consists of the following as of September 30, 2019: Stock options outstanding under 2019 Equity Incentive Plan 985,206 Restricted stock units outstanding under 2019 Equity Incentive Plan 6,066 Shares authorized for future issuance under 2019 Equity Incentive Plan 1,408,728 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 240,000 Total 2,640,000	11. Capital Stock The Company has 500,000,000 common shares authorized and 17,000,000 common shares issued and outstanding with a par value of $0.0001. Additional paid in capital is $68.5 million. The Company currently does not have any additional securities outstanding which could convert to common stock.

Statutory financial information

Statutory financial information	12 Months Ended
	Dec. 31, 2018
Statutory financial information
Statutory financial information	12. Statutory financial information U.S. U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices that differ from prescribed practices. Statutory accounting practices (SAP) prescribed or permitted by regulatory authorities for the Company’s insurance subsidiaries differ from U.S. GAAP. The principal differences between SAP and GAAP as they relate to the financial statements of the Company’s insurance subsidiaries are (a) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under GAAP, (b) certain assets are not admitted for purposes of determining surplus under SAP, (c) investments in fixed income securities are carried at fair value under GAAP whereas such securities are carried at amortized cost under SAP, and (d) the criteria for recognizing net DTAs and the methodologies used to determine such amounts are different under SAP and GAAP. Risk‑Based Capital (RBC) requirements promulgated by the NAIC require property/casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks of the insurance subsidiaries. PSIC’s statutory net income and statutory capital surplus as of December 31, 2018 and 2017 and for the years then ended are summarized as follows: December 31, 2018 2017 2016 (in thousands) Statutory net income (loss) $ 9,609 $ (4,128) $ (2,324) Statutory capital and surplus 63,731 61,338 67,894 As of December 31, 2018, the company’s capital and surplus exceeds its authorized control level. The authorized control level as determined by the RBC calculation was $19.7 million and $22.3 million at December 31, 2018 and 2017, respectively. Bermuda Under the Bermuda Insurance Act, 1978 and related regulations, PSRE is required to maintain certain solvency and liquidity levels. The minimum statutory solvency margin required at December 31, 2018 and 2017 was approximately $6.9 million and $1.2 million, respectively. Actual statutory capital and surplus at December 31, 2018 and 2017 was $19.6 million and $16.4 million, respectively. PSRE had statutory net income of $17.3 million and $4.8 million for 2018 and 2017, respectively. PSRE had shareholder’s equity of $23.5 million and $16.4 million on a GAAP basis at December 31, 2018 and 2017, respectively. The principal difference between statutory capital and surplus and shareholder’s equity presented in accordance with GAAP are prepaid expenses, which are non‑admitted assets for Bermuda statutory purposes. PSRE maintains a Class 3A license and thus must maintain a minimum liquidity ratio in which the value of its relevant assets is not less than 75.0% of the amount of its relevant liabilities for general business. Relevant assets include cash and cash equivalents, fixed maturity securities, accrued interest income, premiums receivable, losses recoverable from reinsurers, and funds withheld. The relevant liabilities include total general business insurance reserves and total other liabilities, less sundry liabilities. As of December 31, 2018 and 2017, the Company met the minimum liquidity ratio requirement.

Dividend Restrictions

Dividend Restrictions	12 Months Ended
	Dec. 31, 2018
Cash Distribution
Dividend Restrictions	13. Dividend Restrictions U.S. PSIC must receive the approval of the Oregon and California insurance commissioners prior to paying certain dividends. The maximum dividend or distribution amount that may be declared and paid by PSIC to its shareholder without prior approval is subject to restrictions relating to policyholder surplus and net income. A dividend or distribution that requires approval is any dividend or distribution, together with all other dividends or distributions paid in the preceding 12 months that exceeds the greater of (i) 10% of the combined statutory capital and surplus of the insurer as of the 31 st day of December of the preceding year or (ii) statutory net income (excluding realized investment gains or losses) for the 12‑month period ending the 31 st day of December preceding year. In addition, the Company may only declare a dividend from earned surplus, which does not include surplus arising from unrealized capital gains or revaluation of assets. The Company may declare a dividend from other than earned surplus with prior approval from the Commissioner. The maximum dividend or distribution which may be made in 2019 without the prior approval of the Oregon and California Insurance Commissioners is $5.0 million, which represents PSIC’s cumulative earned surplus at December 31, 2018. Any dividend or distribution in excess of $5.0 million made by the Company in 2019 will require the prior approval of the Oregon and California Insurance Commissioners. Bermuda Bermuda regulations limit the amount of dividends and return of capital paid by a regulated entity. A Class 3A insurer is prohibited from declaring or paying a dividend if it is in breach of its minimum solvency margin, its enhanced capital requirement, or its minimum liquidity ratio, or if the declaration or payment of such dividend would cause such a breach, or if there are reasonable grounds for believing there has been such a breach. Pursuant to Bermuda regulations, the maximum amount of dividends and return of capital available to be paid by a reinsurer is determined pursuant to a formula. Under this formula, the maximum amount of dividends and return of capital available to the Company from PSRE during 2019 is calculated to be approximately $2.9 million. However, this dividend amount is subject to annual enhanced solvency requirement calculations. During 2018, the Company received $13.7 million in dividends from its PSRE subsidiary, which were approved by the Bermuda Monetary Authority.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies Litigation The Company is subject to legal proceedings arising from the normal conduct of its business. In the opinion of management, any ultimate liability that may arise from these proceedings will not have a material effect on the Company’s financial position. Operating Leases The Company leases office space and office equipment under operating leases expiring at various dates through July 2024. The following is a schedule by year of the future minimum rental payments required under operating leases that have initial or remaining non‑cancelable lease terms exceeding one year as of December 31, 2018: Total (in thousands) Years ending December 31: 2019 $ 720 2020 741 2021 763 2022 786 2023 805 Thereafter 466 Total $ 4,281 Total rent expense for the years ended December 31, 2018, 2017 and 2016, was $0.6 million, $0.8 million, and $0.5 million, respectively. Letters of Credit As of December 31, 2018, the Company has four irrevocable standby letters of credit for the benefit of ceding insurance companies to secure the unearned premium assumed by PSIC. The bank letters of credit amount to $1.3 million, $0.4 million, $0.5 million and $0.4 million, all of which expire December 31, 2018 and all but the $0.5 million letter of credit auto renew for one year. As of December 31, 2017, the Company has two irrevocable standby letters of credit for the benefit of ceding insurance companies to secure the unearned premium assumed by PSIC. The bank letters of credit amount to $1.1 million and $0.3 million, both of which expire December 31, 2018 with no renewal terms. The collateral increases were a result of additional unearned premium assumed from the ceding insurance companies. The letters of credit were collateralized by $3.0 million and $1.7 million of U.S. Treasury bonds at December 31, 2018 and 2017, respectively. These securities are included in available‑for‑sale investments on the consolidated balance sheets.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	9. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (AOCI) are as follows: Nine Months Ended September 30, 2019 2018 (in thousands) Balance as of January 1 $ (563) $ 2,993 Effect of equity accounting guidance adoption — (3,215) Beginning Balance (563) (222) Other comprehensive income (loss) before reclassification 8,090 (1,544) Federal income tax (expense) benefit (1,666) 47 Other comprehensive income (loss) before reclassification, net of tax 6,424 (1,497) Amounts reclassified from AOCI 44 245 Federal income tax expense (9) (47) Amounts reclassified from AOCI, net of tax 35 198 Other comprehensive income (loss) 6,459 (1,299) Balance at end of period $ 5,896 $ (1,521)	15. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (AOCI) are as follows: December 31, 2018 2017 2016 (in thousands) Balance as of January 1 $ 2,993 $ 1,017 $ (459) Effect of equity accounting guidance adoption (3,215) — — Beginning Balance (222) 1,017 (459) Other comprehensive (loss) income before reclassification (740) 2,834 2,708 Federal income (taxes) benefit 76 (772) (899) Other comprehensive (loss) income before reclassification, net of tax (664) 2,062 1,809 Amounts reclassified from AOCI 399 (608) (499) Federal income (taxes) benefit (76) 68 166 Amounts reclassified from AOCI, net of tax 323 (540) (333) Other comprehensive (loss) income (341) 1,522 1,476 Effect of new tax rates from Tax Reform — 454 — Balance as of December 31 $ (563) $ 2,993 $ 1,017

Retirement and Post-Employment

Retirement and Post-Employment Retirement Plans	12 Months Ended
	Dec. 31, 2018
Retirement and Post-Employment Retirement Plans
Retirement and Post-Employment Retirement Plans	16. Retirement and Post‑Employment Retirement Plans For employees meeting certain eligibility requirements, the Company provides a defined contribution retirement plan under IRC Section 401(k). Under a safe‑harbor plan, the Company contributes 3% of each participant’s gross wages regardless of the employee’s contribution. For the years ended December 31, 2018, 2017, and 2016 the Company’s contributions to the plan were $0.2 million, $0.2 million, and $0.1 million, respectively.

Management Incentive Plan

Management Incentive Plan	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Stock-Based Compensation
Management Incentive Plan	8. Stock-Based Compensation The below table summarizes the Company’s stock-based compensation expense for each period presented: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Stock-Based Compensation $ 410 $ — $ 23,677 $ — Stock-based compensation expense is recognized on a straight-line basis over the vesting period of awards. The Company does not apply a forfeiture rate to unvested awards and accounts for forfeitures as they occur. All stock-based compensation is included in other underwriting expenses in the Company’s Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income. The Company recognized approximately $23.0 million of stock-based compensation expense in March 2019 relating to the modification of its 2014 Management Incentive Plan. The Company began recognizing stock-based compensation expense relating to its 2019 Equity Incentive Plan and the 2019 Employee Stock Purchase Plan upon their inception and initial stock grants in April 2019. All stock based compensation expense recognized during the three months ended September 30, 2019 relates to the 2019 Equity Incentive Plan and 2019 Employee Stock Purchase Plan. Management Incentive Plan prior to IPO The Company’s former parent, GC Palomar Investor LP, adopted a 2014 Management Incentive Plan (in the form of profits interests) on February 12, 2014 under which certain officers and employees of PSIC and its affiliates were entitled to Class P Units in GC Palomar Investor LP. Class P unit holders were expected to realize value only upon the occurrence of liquidity events meeting requisite financial thresholds after the Class A unit holders recovered their investment. The Class P unit holders had no voting rights. The Company did not record stock based compensation expense related to this plan prior to 2019 because no liquidity events were probable of occurring. On March 15, 2019, the Company modified its 2014 Management Incentive Plan by eliminating the requirement of a liquidity event to occur for the holders of its Class P units to realize value. The 12,552,825 Class P units outstanding were modified such that the vesting of each Class P unit holder’s awards was accelerated and their Class P distribution percentages were determined and distributed based on these percentages. This modification resulted in a stock compensation charge and corresponding increase to additional paid‑in capital of $23.0 million during the quarter ending March 31, 2019. The stock compensation charge is included in other underwriting expenses in the Company’s Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income. 2019 Equity Incentive Plan On April 16, 2019, the Company's 2019 Equity Incentive Plan (the 2019 Plan) became effective. The 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance shares and units, and other cash-based or share-based awards. In addition, the 2019 Plan contains a mechanism through which the Company may adopt a deferred compensation arrangement in the future. A total of 2,400,000 shares of common stock are initially authorized and reserved for issuance under the 2019 Plan. This reserve will automatically increase on January 1, 2020 and each subsequent anniversary through 2029, by an amount equal to the smaller of: 3% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or an amount determined by the board of directors. Stock Options Recipients of stock options can purchase shares of the Company’s common stock at a price equal to the stock's fair market value on the grant date, determined by the closing price of the Company's stock on the grant date. Stock options vest over a two or four year period with 25% or 50% vesting on the first anniversary of the grant date and the remainder vesting monthly over the remaining period, subject to continued employment. Stock options expire ten years after the grant date. The following table summarizes stock option transactions for the 2019 Plan for the nine months ended September 30, 2019: Number of shares Weighted-average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2018 — $ — Options granted 994,966 15.06 Options exercised — — Options canceled (9,760) 15.00 Outstanding at September 30, 2019 985,206 $ $ 24,002 Vested and Exercisable at September 30, 2019 — $ — — $ — As of September 30, 2019, the Company had approximately $2.9 million of total unrecognized stock-based compensation expense related to stock options expected to be recognized over a weighted-average period of 2.43 years. The fair value of each option granted was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: Risk free rate of return (1) 2.28% - 2.45% Expected share price volatility (2) 18.40% - 18.45% Expected life in years (3) 5.64 - 6.08 years Dividend yield (4) (1) Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options. (2) Determined based on analysis of the volatility of a peer group of publicly traded companies. (3) Determined using the “simplified method” for estimating the expected option life, which is the average of the weighted-average vesting period and contractual term of the option as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its common stock has been publicly traded. (4) Determined to be zero as the Company has not historically issued dividends. Restricted Stock Units Restricted stock units are valued on their date of grant and will vest on the first anniversary of the grant date. The fair value of restricted stock units is determined by the closing price of the Company's stock on the grant date. The following table summarizes restricted stock unit transactions for the 2019 Plan for the nine months ended September 30, 2019: Number of shares Weighted-average grant date fair value Non vested outstanding at December 31, 2018 — $ — Granted 6,066 $ 16.49 Vested — $ — Forfeited — $ — Non vested outstanding at September 30, 2019 6,066 $ 16.49 As of September 30, 2019, the Company had approximately $0.1 million of total unrecognized stock-based compensation expense related to restricted stock units expected to be recognized over a weighted-average period of 0.56 years. 2019 Employee Stock Purchase Plan On April 16, 2019, the Company's 2019 Employee Stock Purchase Plan (the 2019 ESPP) became effective. A total of 240,000 shares of common stock are initially authorized and reserved for issuance under the 2019 ESPP. In addition, the 2019 ESPP provides for annual increases in the number of shares available for issuance on January 1, 2020 and each subsequent anniversary through 2029, equal to the smaller of 240,000 shares of the Company’s common stock or such other amount as may be determined by the board of directors. Under the 2019 ESPP purchases of common stock occur through employee participation in discrete offering periods. In each discrete offering period, employee funds are withheld and stock purchases occur upon the conclusion of the offering period. The first discrete offering period has not concluded as of September 30, 2019 and the Company did not issue any shares of common stock pursuant to the 2019 ESPP during the nine months ended September 30, 2019.	17. Management Incentive Plan The Company’s former parent, GC Palomar Investor LP, adopted a 2014 Management Incentive Plan (in the form of profits interests) on February 12, 2014 under which certain officers and employees of PSIC and its affiliates are entitled to Class P Units in GC Palomar Investor LP. Class P unit holders are expected to realize value only upon the occurrence of liquidity events meeting requisite financial thresholds after the Class A unit holders have recovered their investment. The Class P unit holders have no voting rights. The Company did not record stock based compensation expense related to this plan for the years ended December 31, 2018, 2017 or 2016 because no liquidity events were probable of occurring. Class P units outstanding at December 31, 2018 and 2017 were 12,552,825 units and 12,432,825 units, respectively.

Net Income Per Share

Net Income Per Share	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Earnings Per Share
Net Income Per Share	10. Earnings Per Share The following table sets out earnings per share of common stock: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) $ 7,454 $ 1,566 $ (258) $ 14,092 Weighted average common shares outstanding: Basic 23,468,750 17,000,000 20,838,599 17,000,000 Common Share equivalents 416,387 — — — Diluted 23,885,137 17,000,000 20,838,599 17,000,000 Earnings per share: Basic $ 0.32 $ 0.09 $ (0.01) $ 0.83 Diluted $ 0.31 $ 0.09 $ (0.01) $ 0.83 Common share equivalents relate primarily to outstanding shares under the 2019 Plan and unpurchased shares under the 2019 ESPP. For the nine months ended September 30, 2019, there were 196,741 common share equivalents excluded from the calculation of diluted earnings per share as their effects were anti-dilutive.	18. Net Income Per Share The following table sets forth the computation of net income per share of common stock: Years Ended December 31, 2018 2017 2016 (in thousands, except shares and per share data) Net Income $ 18,219 $ 3,783 $ 6,614 Weighted average shares used in computing net income per share 17,000,000 17,000,000 17,000,000 Net Income per share, basic and diluted $ 1.07 $ 0.22 $ 0.39

Underwriting Information

Underwriting Information	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Underwriting Information
Underwriting Information	12. Underwriting information The Company has a single reportable segment and offers primarily earthquake, wind, and flood insurance products. Gross written premiums (GWP) by product are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Residential Earthquake $ 35,711 53.9 % $ 21,483 % $ 95,005 53.2 % $ 58,106 % Specialty Homeowners 8,572 12.9 % 7,116 % 24,994 14.0 % 21,331 % Commercial Earthquake 8,402 12.7 % 4,856 % 23,020 12.9 % 14,936 % Commercial All Risk 7,077 10.7 % 3,392 % 21,929 12.3 % 9,442 % Hawaii Hurricane 3,299 5.0 % 2,614 % 8,048 4.5 % 6,130 % Flood 1,450 2.2 % 533 % 3,494 2.0 % 1,403 % Other 1,731 2.6 % — — % 2,129 1.1 % — — % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 % Gross written premiums by state are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 36,789 55.5 % $ 20,785 % $ 99,543 55.7 % $ 58,211 % Texas 11,239 17.0 % 8,318 % 32,678 18.3 % 24,164 % Hawaii 3,675 5.5 % 2,614 % 8,688 4.9 % 6,130 % Washington 2,910 4.4 % 1,731 % 6,430 3.6 % 3,798 % Oregon 2,153 3.3 % 1,506 % 5,279 3.0 % 3,901 % Mississippi 1,315 2.0 % 629 % 3,383 1.9 % 1,766 % Illinois 1,269 1.9 % 1,104 % 3,524 2.0 % 3,285 % South Carolina 1,258 1.9 % 690 % 4,614 2.5 % 2,336 % Other 5,634 8.5 % 2,617 % 14,480 8.1 % 7,757 % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 %	19. Underwriting Information The Company has a single reportable segment and offers primarily earthquake, wind, and flood insurance products. Gross written premiums (GWP) by product are presented below: Years ended December 31, 2018 2017 2016 ($ in thousands) Amount % of GWP Amount % of GWP Amount % of GWP Product Residential Earthquake $ 81,679 52.7 % $ 57,328 47.7 % $ 32,662 39.7 % Specialty Homeowners 27,680 17.9 % 26,516 22.0 % 24,389 29.6 % Commercial Earthquake 20,946 13.5 % 23,079 19.2 % 20,580 25.0 % Commercial All Risk 14,338 9.3 % 7,321 6.1 % 1,784 2.2 % Hawaii Hurricane 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Flood 2,120 1.4 % 667 0.6 % — — Total Gross Written Premium $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % Gross Written premiums by state are as follows: Years ended December 31, 2018 2017 2016 Amount % of GWP Amount % of GWP Amount % GWP ($ in thousands) State California $ 82,119 53.0 % $ 64,231 53.4 % $ 44,999 54.7 % Texas 32,568 21.0 % 29,273 24.4 % 25,286 30.7 % Hawaii 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Illinois 4,403 2.8 % 4,854 4.0 % 332 0.4 % Oregon 5,286 3.4 % 4,250 3.6 % 3,278 4.0 % Washington 5,658 3.7 % 2,803 2.3 % 1,513 1.8 % South Carolina 3,208 2.1 % 1,706 1.4 % 674 0.8 % Oklahoma 1,261 0.8 % 1,302 1.1 % 1,030 1.3 % All Other States 12,260 8.0 % 6,492 5.4 % 2,303 2.8 % $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % The Company distributes a significant portion of its Residential Earthquake, Commercial Earthquake, Specialty Homeowners and Hawaii Hurricane products through longstanding relationships with two program administrators. Each of the four products managed by the program administrators operates as a separate program that is governed by an independent, separately negotiated agreement with unique terms and conditions, including geographic scope, key men provisions, economics and exclusivity. These programs also feature separate managerial oversight and leadership, policy administration systems and retail agents originating policies. In total, these four programs accounted for $104.9 million or 67.7% of the Company’s gross written premiums for the year ended December 31, 2018, $85.8 million or 71.3% of the Company’s gross written premiums for the year ended December 31, 2017, and $62.9 million or 76.5% of the Company’s gross written premiums for the year ended December 31, 2016.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events
Subsequent Events	20. Subsequent Events Cash Distribution In March 2019, the Company made a one‑time cash distribution totaling approximately $5.1 million to its then‑sole stockholder, GC Palomar Investor LP, enabling it to distribute funds to its partners, including Genstar Capital, in order to allow such partners to satisfy tax obligations incurred as a result of the domestication transactions. Domestication and forward stock split In March 2019, the following events occurred: (i) the Company implemented a domestication pursuant to Section 388 of the Delaware General Corporation Law and Section 206 of the Companies Law (2018 Revision), as amended, of the Cayman Islands pursuant to which it became a Delaware corporation and no longer subject to the laws of the Cayman Islands, (ii) the Class P units and Plan were modified as described below, (iii) the Company effected a 17,000,000 for one forward stock split and (iv) caused its then‑sole stockholder, GC Palomar Investor LP, to distribute all of the post‑split shares of its common stock to its various partners and other interest holders, including to Genstar Capital and its affiliates. Modification of Management Incentive Plan On March 15, 2019, the Company modified its 2014 Management Incentive Plan by eliminating the requirement of a liquidity event to occur for the holders of its Class P units to realize value. All Class P units were modified such that the vesting of each Class P unit holder’s awards was accelerated and their Class P distribution percentages were determined. Common shares were distributed based on these percentages as part of the domestication transactions as described above. This modification resulted in a stock compensation charge and corresponding increase to additional paid‑in capital of $23.0 million for the quarter ending March 31, 2019.

Schedule II

Schedule II	12 Months Ended
	Dec. 31, 2018
Schedule II
Schedule II	Schedule II Palomar Holdings, Inc. and Subsidiaries Balance Sheets (Parent Company) (In Thousands, except shares and par value data) December 31, December 31, 2018 2017 Assets Fixed maturity securities available for sale, at fair value (amortized cost: $11,668 in 2018) $ 11,581 $ — Equity Securities, at fair value: (cost: $1,656 in 2018) 1,658 — Total investments 13,239 — Cash and cash equivalents 540 — Accrued investment income 67 — Investment in subsidiaries 82,446 78,414 Total assets $ 96,292 $ 78,414 Liabilities Accrued distribution to shareholders — — Total liabilities — — Shareholder’s equity Common stock, $0.0001 par value, 500,000,000 shares authorized, 17,000,000 shares issued and outstanding at December 31, 2018 and 2017, respectively $ 2 $ — Additional paid‑in capital 68,498 68,500 Accumulated other comprehensive (loss) income (563) 2,993 Retained earnings 28,355 6,921 Total shareholder’s equity 96,292 78,414 Total liabilities and shareholder’s equity $ 96,292 $ 78,414 See accompanying notes. Schedule II Palomar Holdings, Inc. and Subsidiaries Statements of Income (Parent Company) (In Thousands) Year ended December 31, 2018 2017 2016 Net investment income $ 61 — — Net realized and unrealized losses on investments (2) — — Income before equity in net income of subsidiaries 59 — — Equity in net income of subsidiaries 18,160 3,783 6,614 Net income $ 18,219 3,783 6,614 Other comprehensive income: Net unrealized losses on securities available for sale (87) — — Equity in other comprehensive income of subsidiaries, net of taxes (254) 1,522 1,475 Total comprehensive income $ 17,878 $ 5,305 $ 8,089 See accompanying notes. Schedule II Palomar Holdings, Inc. and Subsidiaries Statements of Cash Flows (Parent Company) (In Thousands) Year Ended December 31, 2018 2017 2016 Operating activities Net income $ 18,219 $ 3,783 $ 6,614 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (18,160) (3,783) (6,614) Net realized and unrealized losses on investments 2 — — Other 546 — — Changes in operating assets and liabilities: Accrued investment income (67) — — Net cash provided by operating activities 540 — — Investing activities Net cash (used in) provided by investing activities — — — Financing activities Net cash (used in) provided by financing activities — — — Net increase in cash, cash equivalents, and restricted cash 540 — — Cash, cash equivalents and restricted cash at beginning of period — — — Cash, cash equivalents and restricted cash at end of period $ 540 $ — $ — Supplementary cash flow information: See accompanying notes. Schedule II 1. Organization Palomar Holdings, Inc. (the Company), is an insurance holding company that was incorporated in Delaware in March 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. Basis of Presentation The accompanying condensed financial statements have been prepared using the equity method. Under the equity method, the investment in consolidated subsidiaries is stated at cost plus equity in undistributed earnings of consolidated subsidiaries since the date of acquisition. These condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. Estimates and Assumptions Preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2018
Valuation and Qualifying Accounts
Valuation and Qualifying Accounts	Schedule V Palomar Holdings, Inc. and Subsidiaries Valuation and Qualifying Accounts Additions Deductions Balance at Amounts Amounts Balance at Beginning Charged to Written End of (in thousands) of Period Expense Off Period Year Ended December 31, 2018 Valuation Allowance for deferred tax assets $ 947 $ 730 $ — $ 1,677 Year Ended December 31, 2017 Valuation Allowance for deferred tax assets $ — $ 947 $ — $ 947

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Significant Accounting Policies
Summary of Operations	Summary of Operations Palomar Holdings, Inc. (the Company) is an insurance holding company that was incorporated in Delaware on March 14, 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Specialty Reinsurance Company (PSRE) and Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC) and Prospect General Insurance Agency, Inc. (PGIA).
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Stock Split	Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented.	Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented.
Initial Public Offering (IPO)	Initial Public Offering (IPO) On April 22, 2019, the Company completed its IPO with the sale of 6,468,750 shares of common stock at a price to the public of $15.00 per share, including 843,750 shares sold upon the exercise in full of the underwriter’s option to purchase additional shares. After underwriter discounts and commissions and offering expenses, net proceeds from the IPO were approximately $87.4 million.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.	Use of Estimates The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.
Cash and Cash Equivalents		Cash and Cash Equivalents Cash and cash equivalents include time deposits and marketable securities with original maturities of three months or less at acquisition and are stated at cost, which approximates fair value. The Company maintains cash balances in federally insured financial institutions.
Restricted Cash		Restricted Cash Restricted cash includes cash on deposit with reinsurance carriers. Restricted cash also includes cash held in a fiduciary capacity for the benefit of third party insurance carriers.
Deferred Offering Costs		Deferred Offering Costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees relating to the Company’s initial public offering (IPO), are capitalized as incurred. The deferred offering costs will be offset against the IPO proceeds upon the consummation of the offering. In the event the offering is terminated, deferred offering costs will be expensed. Deferred offering costs were $1.1 million at December 31, 2018 and are classified as Prepaid expenses and other assets on the Company’s consolidated balance sheet. There were no deferred offering costs at December 31, 2017.
Investments		Investments All of the Company’s investments in fixed maturity securities are classified as available‑for‑sale and are carried at fair value. Unrealized gains and losses related to fixed maturity securities are included in accumulated other comprehensive income as a separate component of shareholder’s equity. Equity securities are carried at fair value with unrealized gains and losses included as a component of net income on the Company’s consolidated statement of income. Prior to 2018, unrealized gains and losses on equity securities were included in accumulated other comprehensive income as a separate component of shareholder’s equity. Premiums and discounts on mortgage‑backed securities and asset‑backed securities are amortized or accrued using the prospective method which considers anticipated prepayments at the date of purchase. To the extent that the estimated lives of such securities change as a result of changes in estimated prepayment rates, the adjustments are included in net investment income using the prospective method. Investment income consists primarily of interest and dividends. Interest income is recognized on an accrual basis. Dividend income is recognized on the ex‑dividend date. Net investment income represents investment income, net of expenses. Other‑than‑temporary declines in fair value of fixed maturity securities are evaluated for amounts considered credit losses by comparing the expected present value of cash flows to be collected to the amortized cost. Once the amount of other‑than‑temporary impairment (OTTI) related to the credit loss is determined, the unrealized loss is then bifurcated into the credit‑related loss and the loss related to all other factors. The credit‑related OTTI loss is recognized as a realized loss in the statement of comprehensive income and the cost basis of the security is reduced. The OTTI related to other factors remain in accumulated other comprehensive income. Before 2018, other‑than‑temporary declines in the fair value of equity securities would have been recorded as realized losses in the consolidated statement of comprehensive income and the cost basis of the security would have been reduced (see Note 3). The Company uses the specific‑identification method to determine the cost of fixed maturity securities sold and the first‑in, first‑out method for lots of equity securities sold.
Fair Value		Fair Value Fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. The three‑tier hierarchy of inputs is summarized in the three broad levels listed below: Level 1—Unadjusted quoted prices are available in active markets for identical investments as of the reporting date. Level 2—Pricing inputs are quoted prices for similar investments in active markets; quoted prices for identical or similar investments in inactive markets; or valuations based on models where the significant inputs are observable or can be corroborated by observable market data. Level 3—Pricing inputs into models are unobservable for the investment. The unobservable inputs require significant management judgment or estimation. To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. The fair values obtained from the outside investment managers are reviewed for reasonableness and any discrepancies are investigated for final valuation. The fair value of the Company’s investments in fixed maturity securities is estimated using relevant inputs, including available market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. An Option Adjusted Spread model is also used to develop prepayment and interest rate scenarios. Industry standard models are used to analyze and value securities with embedded options or prepayment sensitivities. These fair value measurements are estimated based on observable, objectively verifiable market information rather than market quotes; therefore, these investments are classified and disclosed in Level 2 of the hierarchy. The fair value of the Company’s investments in equity securities is based on quoted prices available in active markets and classified and disclosed in Level 1 of the hierarchy.
Concentration of Credit Risk		Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, fixed maturity securities and reinsurance recoverables. The Company places its cash and cash equivalents with high credit quality financial institutions and its fixed maturity securities in securities of the U.S. government, U.S. government agencies, and high credit quality issuers of debt securities. The Company evaluates the financial condition of its reinsurers and reinsures its business with highly rated reinsurers and sometimes requires letters of credit or retains funds from reinsurers (see Note 8).
Premiums Receivable		Premiums Receivable Premiums receivable are carried at face value net of any allowance for doubtful accounts which approximates fair value. If necessary, the Company records an allowance for doubtful accounts in an amount approximating anticipated losses. Individual uncollectible accounts are written off against the allowance when collection of the individual accounts is not reasonably assured. No allowance for doubtful accounts was required at December 31, 2018 or 2017.
Deferred Policy Acquisition Costs		Deferred Policy Acquisition Costs The costs of successfully acquiring new business, principally commission expense and premium taxes, are deferred and amortized over the unexpired terms of the policies in force.
Premiums Earned		Premiums Earned Gross premiums written are recorded at policy inception and are earned as revenue ratably over the term of the respective policies. Premiums written not yet recognized as revenue are reflected as unearned premiums on the balance sheet, or as advanced premiums if received prior to the policy effective date. Premiums written but not yet received are recognized as premiums receivable. Premiums receivable are presented on the consolidated balance sheets net of estimated uncollectible amounts. Based on management’s review no allowance for bad debt was required at December 31, 2018 and 2017. A premium deficiency is recognized if the sum of expected losses and loss adjustment expenses, unamortized acquisition costs, and policy maintenance costs exceeds the remaining unearned premiums. A premium deficiency would first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency were greater than unamortized acquisition costs, a liability would be accrued for the excess deficiency. The Company does not consider anticipated investment income when determining if a premium deficiency exists. There was no premium deficiency at December 31, 2018 or 2017.
Commission and Other Income		Commission and Other Income Commission and other income is comprised of commissions earned on policies where the Company has no exposure to underlying risk and fees earned in conjunction with underwriting policies. Commission and fee income is earned at the time the policy is written.
Property and Equipment		Property and Equipment Property and equipment are capitalized and carried at cost less accumulated depreciation. Depreciation for property and equipment is calculated on a straight‑line basis using useful lives of 3 to 5 years. Leasehold improvements and other fixed assets are capitalized and depreciated over the useful lives of the properties and equipment. Expenditures for maintenance and repairs are charged to operations as incurred. Upon disposition, the asset cost and related depreciation are removed from the accounts and the resulting gain or loss is included in the Company’s results of operations.
Intangible Assets		Intangible Assets Upon acquisition, the entire PSIC purchase price was allocated to separately identifiable indefinite lived intangible assets. The Company acquired seven state licenses in the acquisition to which $0.7 million was allocated. Indefinite lived intangible assets are initially recognized and measured at fair value; intangible assets are subsequently evaluated for impairment annually or more frequently if circumstances warrant it. No impairments of intangible assets were recognized for the years ended December 31, 2018 and 2017.
Impairment of Long-Lived Assets		Impairment of Long‑Lived Assets Long‑lived assets with finite lives are tested for impairment whenever recognized events or changes in circumstances indicate the carrying value of these assets may not be recoverable. If indicators of impairment are present, the fair value is calculated using estimated future cash flows expected to be generated from the use of those assets. An impairment loss is recognized only if the carrying amount of a long‑lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long‑lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. This assessment is based on the carrying amount of the asset or asset group at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long‑lived asset or asset group exceeds its fair value. No impairments of long‑lived assets were recognized for the years ended December 31, 2018, 2017 and 2016.
Reserve for Losses and Loss Adjustment Expenses		Reserve for Losses and Loss Adjustment Expenses The reserve for unpaid losses and loss adjustment expenses includes estimates for unpaid claims and claim adjustment expenses on reported losses and estimates of losses incurred but not reported (IBNR), net of salvage and subrogation recoveries. The liability is based on individual claims, case reserves and other estimates reported by policyholders, as well as management estimates of ultimate losses and loss adjustment expenses. Inherent in the estimates of ultimate losses and loss adjustment expenses are expected trends in claims severity and frequency and other factors that could vary significantly as claims are settled. The Company’s estimates of ultimate losses and loss adjustment expenses are based in part upon the estimation of claims resulting from natural disasters such as hurricanes and earthquakes. Estimation by management of the ultimate losses and loss adjustment expenses resulting from catastrophic events is inherently difficult because of the potential severity of property catastrophe claims. Therefore, the Company uses both proprietary and commercially available models, as well as historic claims experience, for purposes of providing an estimate of ultimate losses and loss adjustment expenses. For other difficult estimates of ultimate losses and loss adjustment expenses, the Company utilizes historical severity data that may be immature and subject to significant variation, in addition to using loss development methods based on paid and reported losses. For these estimates, industry data may also be utilized. Ultimate losses and loss adjustment expenses may vary materially from the amounts provided in the consolidated financial statements. Estimates of unpaid losses and loss adjustment expenses are reviewed regularly and, as experience develops and new information becomes known, the liabilities are adjusted as necessary. Such adjustments, if any, are reflected in operations in the period in which they become known and are accounted for as changes in estimates. The Company does not discount its liability for unpaid losses and loss adjustment expenses. The Company does not write insurance policies covering toxic clean‑up, asbestos‑related illness or other environmental remediation exposures.
Reinsurance		Reinsurance The Company purchases excess of loss and quota share reinsurance to protect it against the impact of losses. Reinsurance premiums, commissions, ceded unearned premiums are accounted for on bases consistent with the underlying terms of the reinsurance contracts and in proportion to the amount of insurance protection provided. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are capitalized and amortized as a reduction of underwriting, acquisition and insurance expenses. Amounts applicable to prepaid reinsurance premiums are reported as assets in the accompanying consolidated balance sheets. Reinsurance recoverables represent paid losses and loss adjustment expenses and reserves for unpaid losses and loss adjustment expenses ceded to reinsurers that are subject to reimbursement under reinsurance treaties. Premiums earned and losses and loss adjustment expenses incurred are stated in the accompanying consolidated statements of income and comprehensive income net of amounts ceded to reinsurers.
Income Taxes		Income Taxes The Company is taxed as a property/casualty insurer for federal income tax purposes. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and the tax bases of assets and liabilities, using enacted tax rates expected to be in effect during the year in which the basis differences reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes the tax benefit of uncertain tax positions where the position is more likely than not to be sustained assuming examination by taxing authorities. Based on its evaluation for the tax years ended December 31, 2018 and 2017, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company recognizes interest and penalties related to uncertain tax positions, if any, as a component of income tax expense. The Company has not been assessed interest or penalties by any major tax jurisdictions for the respective tax years ended December 31, 2018, 2017, and 2016.
Earnings Per Share		Earnings Per Share Earnings per share is calculated by dividing net income by the weighted‑average number of common shares outstanding for the period. The Company currently does not have any additional securities which could convert to common stock and be dilutive to its earnings per share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligations. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard became effective for the Company January 1, 2019. However, the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company expects to adopt this standard using the modified retrospective method. The Company does not expect adoption to have a material impact on its consolidated financial statements, but will continue to assess the potential impact of adoption throughout 2019. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is currently effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. However, the FASB has recently voted to defer the effective date of this update by one year. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. In 2019, the FASB issued amendments to this guidance which provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance. This update and its amendments will be effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements.	Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently adopted accounting pronouncements In January 2016, the FASB issued “ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities .” Among other things, this new guidance requires the Company’s equity investments to be measured at fair value with changes in fair value recognized in net income. Under the current guidance, equity investments are measured at fair value with changes in fair value recognized in accumulated other comprehensive income as a component of shareholder’s equity. The Company adopted this guidance on January 1, 2018 and began recognizing changes in fair value of equity securities into net income. Upon adoption, the Company made a $3.2 million cumulative‑effect adjustment to increase retained earnings and decrease accumulated other comprehensive income. In the future, this guidance will impact the Company’s results of operations, as changes in fair value of equity investments will impact net income rather than other comprehensive income. The future impact will vary depending on the volatility of the overall equity market and the amount the Company decides to invest in equity securities. In August 2016, the FASB issued “ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” , in order to reduce diversity in the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This standard will be effective for annual and interim reporting periods beginning after December 15, 2018 and may be adopted earlier. Currently, provisions of this guidance may apply to the Company’s commissions and fee income, however, the Company does not expect adoption to have a material impact on its consolidated financial statements. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases that commenced before the effective date and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. This update will be effective for annual reporting periods beginning after December 15, 2020 and interim reporting periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this updated guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑15, Intangibles—Goodwill and Other—Internal‑Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018‑15 requires a customer in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal‑use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. Relevant implementation costs in the development stage are capitalized, while costs incurred during the preliminary project and post‑implementation stages are expensed as the activities are performed. Capitalized costs are expensed over the term of the hosting arrangement. This ASU is effective for annual and interim reporting periods beginning after December 15, 2020. Early adoption is permitted. This update can either be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company retrospectively adopted this guidance for the year ended December 31, 2018. As this guidance is in line with current accounting for fees paid in a cloud computing arrangement that is a service contract, the adoption of this update had no impact on the Company’s consolidated financial statements.

Investments (Tables)

Investments (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Schedule of available-for-sale investments	Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,085 $ 461 $ (7) $ 13,539 States, territories, and possessions 2,300 169 — 2,469 Political subdivisions 1,922 33 — 1,955 Special revenue excluding mortgage/asset-backed securities 17,762 614 (3) 18,373 Industrial and miscellaneous 123,835 5,051 (31) 128,855 Mortgage/asset-backed securities 57,719 1,090 (14) 58,795 Total available-for-sale investments $ 216,623 $ 7,418 $ (55) $ 223,986 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset-backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset-backed securities 27,284 133 (81) 27,336 Total available-for-sale investments $ 122,949 $ 536 $ (1,265) $ 122,220	Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset‑backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset‑backed securities 27,284 133 (81) 27,336 Total available‑for‑sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,393 $ — $ (108) $ 13,285 States, territories, and possessions 3,188 10 (1) 3,197 Political subdivisions 4,118 — (51) 4,067 Special revenue excluding mortgage/asset‑backed securities 24,039 42 (167) 23,914 Industrial and miscellaneous 44,582 150 (201) 44,531 Mortgage/asset‑backed securities 12,981 2 (64) 12,919 Total fixed maturities 102,301 204 (592) 101,913 Equity securities 19,569 4,126 (109) 23,586 Total available‑for‑sale investments $ 121,870 $ 4,330 $ (701) $ 125,499
Schedule of aggregate fair value and gross unrealized losses	Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments 1,485 — $ 1,824 $ (7) $ 3,309 $ (7) States, territories, and possessions — — — — — — Political subdivisions 546 — — — 546 — Special revenue excluding mortgage/asset-backed securities 569 (1) 997 (2) 1,566 (3) Industrial and miscellaneous 3,936 (22) 3,457 (9) 7,393 (31) Mortgage/asset-backed securities 5,261 (13) 263 (1) 5,524 (14) Total $ 11,797 $ (36) $ 6,541 $ (19) $ 18,338 $ (55) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset-backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset-backed securities 6,653 (39) 3,830 (42) 10,483 (81) Total $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265)	Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset‑backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset‑backed securities 6,653 (39) 3,830 (42) 10,483 (81) $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 11,426 $ (89) $ 1,858 $ (19) $ 13,284 $ (108) States, territories, and possessions 1,568 (1) — — 1,568 (1) Political subdivisions 2,996 (24) 1,071 (27) 4,067 (51) Special revenue excluding mortgage/asset‑backed securities 17,109 (129) 2,140 (38) 19,249 (167) Industrial and miscellaneous 23,914 (137) 4,463 (64) 28,377 (201) Mortgage/asset‑backed securities 7,588 (31) 3,298 (33) 10,886 (64) Total fixed maturity 64,601 (411) 12,830 (181) 77,431 (592) Equity securities 1,995 (57) 807 (52) 2,802 (109) $ 66,596 $ (468) $ 13,637 $ (233) $ 80,233 $ (701)
Schedule of contractual maturities of available-for-sale securities	Amortized Fair Cost Value (in thousands) Due within one year $ 7,098 $ 7,099 Due after one year through five years 68,726 69,853 Due after five years through ten years 55,711 59,609 Due after ten years 27,369 28,630 Mortgage and asset-backed securities 57,719 58,795 $ 216,623 $ 223,986	2018 Amortized Fair Cost Value (in thousands) Due within one year $ 2,621 $ 2,614 Due after one year through five years 50,677 49,802 Due after five years through ten years 32,471 32,518 Due after ten years 9,896 9,950 Mortgage and asset‑backed securities 27,284 27,336 $ 122,949 $ 122,220
Schedule of change in unrealized gains (losses) of investments		Years Ended December 31, 2018 2017 2016 (in thousands) Change in net unrealized gains (losses) Fixed maturities $ (341) $ (6) $ (60) Equity securities — 2,232 2,269 Net (decrease) increase $ (341) $ 2,226 $ 2,209
Schedule of net investment income	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest income $ 1,678 $ 816 $ 4,140 $ 2,083 Dividend income 132 118 299 365 Investment expense (81) (69) (267) (237) Net investment income $ 1,729 $ 865 $ 4,172 $ 2,211	Years Ended December 31, 2018 2017 2016 (in thousands) Interest income $ 3,036 $ 1,916 $ 1,425 Dividend income 514 514 472 Less: investment expense (312) (305) (282) Net investment income $ 3,238 $ 2,125 $ 1,615
Schedule of net realized and unrealized investment gains and losses	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 38 $ 11 $ 135 $ 20 Gains on sales of equity securities — 18 64 421 Total realized gains 38 29 199 441 Realized losses: Losses on sales of fixed maturity securities (1) (102) (70) (257) Losses on sales of equity securities (21) (229) (174) (4,287) Total realized losses (22) (331) (244) (4,544) Net realized investment gains (losses) 16 (302) (45) (4,103) Net unrealized gains on equity securities 345 1,638 3,310 5,072 Net realized and unrealized gains on investments $ 361 $ 1,336 $ 3,265 $ 969	Years Ended December 31, 2018 2017 2016 (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 19 $ 3 $ 56 Gains on sales of equity securities 4,287 802 592 Total realized gains 4,306 805 648 Realized losses: Losses on sales of fixed maturity securities (418) (48) — Losses on sales of equity securities (421) (149) (149) Total realized losses (839) (197) (149) Net realized investment gains 3,467 608 499 Net unrealized losses on equity securities (6,036) — — Net realized and unrealized (losses) gains on investments $ (2,569) $ 608 $ 499

Fair value measurements (Tables

Fair value measurements (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair value measurements
Schedule of fair value hierarchy for financial assets and liabilities	September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,539 $ — $ 13,539 States, territories, and possessions — 2,469 — 2,469 Political subdivisions — 1,955 — 1,955 Special revenue excluding mortgage/asset-backed securities — 18,373 — 18,373 Industrial and miscellaneous — 128,855 — 128,855 Mortgage/asset-backed securities — 58,795 — 58,795 Equity securities 22,326 — — 22,326 Cash, cash equivalents, and restricted cash 16,902 — — 16,902 Total assets $ 39,228 $ 223,986 $ — $ 263,214 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset-backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset-backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long-term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000	December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset‑backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset‑backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long‑term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,285 $ — $ 13,285 States, territories, and possessions — 3,197 — 3,197 Political subdivisions — 4,067 — 4,067 Special revenue excluding mortgage/asset‑backed securities — 23,914 — 23,914 Industrial and miscellaneous — 44,531 — 44,531 Mortgage/asset‑backed securities — 12,919 — 12,919 Equity securities 23,586 — — 23,586 Cash, cash equivalents, and restricted cash 10,932 — — 10,932 Total assets $ 34,518 $ 101,913 $ — $ 136,431 Liabilities: Long‑term notes payable $ — $ — $ 18,095 $ 18,095 Total liabilities $ — $ — $ 18,095 $ 18,095

Policy Acquisition Costs (Table

Policy Acquisition Costs (Tables)	12 Months Ended
	Dec. 31, 2018
Policy Acquisition Costs
Schedule of policy acquisition costs deferred and amortized	December 31, 2018 2017 2016 (in thousands) Deferred Policy Acquisition Costs: Balance, beginning of year $ 15,161 $ 10,654 $ 6,804 Additions to deferred balance: Direct commissions 36,934 27,976 21,453 Ceding commissions (15,218) (3,224) (3,648) Premium taxes 3,362 2,625 1,807 Total net additions 25,078 27,377 19,612 Amortization of net policy acquisition costs (26,187) (22,870) (15,762) Balance, end of year $ 14,052 $ 15,161 $ 10,654 Acquisition expenses: Amortization of net policy acquisition costs $ 26,187 $ 22,870 $ 15,762 Period costs 2,037 2,652 1,578 Total Acquisition expenses $ 28,224 $ 25,522 $ 17,340

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property and Equipment
Schedule of Property and Equipment	Accumulated Net December 31, 2018 Cost Depreciation Book Value (in thousands) Leasehold improvements $ 879 $ (225) $ 654 Computer hardware 108 (51) 57 Office equipment and furniture 454 (218) 236 Total $ 1,441 $ (494) $ 947 Accumulated Net December 31, 2017 Cost Depreciation Book Value (in thousands) Leasehold improvements $ 652 $ (115) $ 537 Computer hardware 83 (35) 48 Office equipment and furniture 374 (132) 242 Total $ 1,109 $ (282) $ 827

Reserve for Losses and Loss A_2

Reserve for Losses and Loss Adjustment Expenses (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Claims Development
Schedule of reconciliation of the beginning and ending reserve balances for losses and LAE on a net of reinsurance basis to the gross amounts	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,428 $ 3,159 $ 4,165 $ 4,432 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 2,647 5,258 3,660 8,445 Prior years (208) 116 (262) (1,402) Total incurred 2,439 5,374 3,398 7,043 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 641 392 1,044 1,656 Prior years 312 459 3,605 2,137 Total payments 953 851 4,649 3,793 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 2,914 7,682 2,914 7,682 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 14,052 10,950 14,052 10,950 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,966 $ 18,632 $ 16,966 $ 18,632	December 31, 2018 2017 2016 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 4,432 $ 3,336 $ 1,562 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 8,165 12,257 7,472 Prior year (1,891) (132) (180) Total incurred 6,274 12,125 7,292 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 4,409 8,986 4,824 Prior year 2,132 2,043 694 Total payments 6,541 11,029 5,518 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 4,165 4,432 3,336 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 11,896 13,352 1,442 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,061 $ 17,784 $ 4,778
Reconciliation of Liability for Claims and Claim Adjustment Expenses		2018 (in thousands) Net outstanding liabilities: Homeowners’ insurance $ 843 Special property 3,322 Reserve for losses and loss adjustment expense, net of reinsurance 4,165 Reinsurance recoverable on unpaid claims: Homeowners’ insurance $ 5,650 Special property 6,246 Total reinsurance recoverable on unpaid claims 11,896 Total reserve for losses and loss adjustment expenses $ 16,061
Homeowners' Insurance
Claims Development
Schedule of Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance		Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 2,048 $ 1,785 $ 1,658 $ 1,636 $ 3 379 2016 6,069 5,878 5,721 4 1,080 2017 9,534 7,418 83 2,944 2018 2,193 249 668 Total $ 16,968 $ 339 5,071 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 860 $ 1,379 $ 1,523 $ 1,615 2016 4,120 5,356 5,585 2017 7,135 7,375 2018 1,550 Total $ 16,125 Reserve for losses and loss adjustment expense, net of reinsurance $ 843 (1) Data presented for these calendar years is required supplementary information, which is unaudited.
Schedule of Average Annual Percentage Payout of Incurred Claims by Age		Year 1 Year 2 Year 3 Year 4 Payout percentage 72.85 % 18.86 % 6.41 % 5.61 %
Special Property Insurance
Claims Development
Schedule of Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance		Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 630 $ 719 $ 671 $ 671 $ 3 8 2016 1,381 1,249 1,251 2 50 2017 3,071 3,475 120 255 2018 5,970 158 336 Total $ 11,367 $ 283 649 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 265 $ 438 $ 586 $ 626 2016 703 1,064 1,216 2017 1,967 3,344 2018 2,859 Total 8,045 Reserve for losses and loss adjustment expense, net of reinsurance 3,322 (1) Data presented for these calendar years is required supplementary information, which is unaudited.
Schedule of Average Annual Percentage Payout of Incurred Claims by Age		Year 1 Year 2 Year 3 Year 4 Payout percentage 50.05 % 31.42 % 17.10 % 5.96 %

Reinsurance (Tables)

Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2018
Reinsurance
Schedule of effect of reinsurance on premiums written and earned and on losses and LAE incurred	2018 2017 2016 Written Earned Written Earned Written Earned (in thousands) Premiums Written and Earned: Direct $ 144,821 $ 129,071 $ 112,974 $ 94,799 $ 79,492 $ 66,765 Assumed 10,070 8,688 7,260 6,162 2,795 2,551 Ceded (82,949) (67,862) (46,951) (45,416) (29,636) (28,994) Net $ 71,942 $ 69,897 $ 73,283 $ 55,545 $ 52,651 $ 40,322 2018 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 12,153 $ 2,113 $ 14,266 Assumed 46 6 52 Ceded (6,580) (1,464) (8,044) Net $ 5,619 $ 655 $ 6,274 2017 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 24,266 $ 6,608 $ 30,874 Assumed 2 — 2 Ceded (14,651) (4,100) (18,751) Net $ 9,617 $ 2,508 $ 12,125 2016 Losses LAE Total (in thousands) Losses and LAE Incurred: Direct $ 6,914 $ 2,300 $ 9,214 Assumed — 3 3 Ceded (1,388) (537) (1,925) Net $ 5,526 $ 1,766 $ 7,292

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Schedule of federal income tax expense (benefit)	Years Ended December 31, 2018 2017 2016 (in thousands) Current $ (6) $ 11 $ — Deferred — 1,134 (337) Income tax expense (benefit) $ (6) $ 1,145 $ (337)
Schedule of deferred tax assets and liabilities	December 31, 2018 2017 (in thousands) Deferred tax assets: Losses and LAE reserve discount $ 22 $ 22 Net operating losses 702 1,476 Investment amortization 119 119 Unearned premiums 1,914 2,469 Capitalized organizational costs 304 334 Unrealized losses on investments 505 — Other 306 457 Total deferred tax assets $ 3,872 $ 4,877 Deferred tax liabilities: Deferred acquisition costs $ (2,127) $ (3,184) Unrealized gains on investments — (734) Other (68) (12) Total deferred tax liabilities (2,195) (3,930) Net deferred tax asset before valuation allowance 1,677 947 Valuation allowance (1,677) (947) Total net deferred tax assets $ — $ —
Schedule of effective tax rate	Years Ended December 31, 2018 2017 2016 ($ in thousands) Expense computed at federal tax rate $ 3,825 21.00 % $ 1,675 34.00 % $ 2,135 34.00 % Non‑U.S. group member income (4,409) (24.21) % (1,632) (33.12) % (2,093) (33.34) % Dividend received deduction and tax‑exempt interest (144) (0.79) % (467) (9.47) % (415) (6.61) % Impact of tax reform — — 580 11.76 % — — Valuation allowance 678 3.72 % 947 19.23 % — — Other 44 0.24 % 42 0.83 % 36 0.58 % Income tax expense (benefit) $ (6) (0.03) % $ 1,145 23.23 % $ (337) (5.37) %

Statutory financial informati_2

Statutory financial information (Tables)	12 Months Ended
	Dec. 31, 2018
Statutory financial information
Summary of statutory net income and statutory capital surplus	December 31, 2018 2017 2016 (in thousands) Statutory net income (loss) $ 9,609 $ (4,128) $ (2,324) Statutory capital and surplus 63,731 61,338 67,894

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (AOCI)	Nine Months Ended September 30, 2019 2018 (in thousands) Balance as of January 1 $ (563) $ 2,993 Effect of equity accounting guidance adoption — (3,215) Beginning Balance (563) (222) Other comprehensive income (loss) before reclassification 8,090 (1,544) Federal income tax (expense) benefit (1,666) 47 Other comprehensive income (loss) before reclassification, net of tax 6,424 (1,497) Amounts reclassified from AOCI 44 245 Federal income tax expense (9) (47) Amounts reclassified from AOCI, net of tax 35 198 Other comprehensive income (loss) 6,459 (1,299) Balance at end of period $ 5,896 $ (1,521)	December 31, 2018 2017 2016 (in thousands) Balance as of January 1 $ 2,993 $ 1,017 $ (459) Effect of equity accounting guidance adoption (3,215) — — Beginning Balance (222) 1,017 (459) Other comprehensive (loss) income before reclassification (740) 2,834 2,708 Federal income (taxes) benefit 76 (772) (899) Other comprehensive (loss) income before reclassification, net of tax (664) 2,062 1,809 Amounts reclassified from AOCI 399 (608) (499) Federal income (taxes) benefit (76) 68 166 Amounts reclassified from AOCI, net of tax 323 (540) (333) Other comprehensive (loss) income (341) 1,522 1,476 Effect of new tax rates from Tax Reform — 454 — Balance as of December 31 $ (563) $ 2,993 $ 1,017

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Earnings Per Share
Schedule of net income per share of common stock	Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) $ 7,454 $ 1,566 $ (258) $ 14,092 Weighted average common shares outstanding: Basic 23,468,750 17,000,000 20,838,599 17,000,000 Common Share equivalents 416,387 — — — Diluted 23,885,137 17,000,000 20,838,599 17,000,000 Earnings per share: Basic $ 0.32 $ 0.09 $ (0.01) $ 0.83 Diluted $ 0.31 $ 0.09 $ (0.01) $ 0.83	Years Ended December 31, 2018 2017 2016 (in thousands, except shares and per share data) Net Income $ 18,219 $ 3,783 $ 6,614 Weighted average shares used in computing net income per share 17,000,000 17,000,000 17,000,000 Net Income per share, basic and diluted $ 1.07 $ 0.22 $ 0.39

Underwriting Information (Table

Underwriting Information (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Underwriting Information
Schedule of gross written premiums	Gross written premiums (GWP) by product are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Residential Earthquake $ 35,711 53.9 % $ 21,483 % $ 95,005 53.2 % $ 58,106 % Specialty Homeowners 8,572 12.9 % 7,116 % 24,994 14.0 % 21,331 % Commercial Earthquake 8,402 12.7 % 4,856 % 23,020 12.9 % 14,936 % Commercial All Risk 7,077 10.7 % 3,392 % 21,929 12.3 % 9,442 % Hawaii Hurricane 3,299 5.0 % 2,614 % 8,048 4.5 % 6,130 % Flood 1,450 2.2 % 533 % 3,494 2.0 % 1,403 % Other 1,731 2.6 % — — % 2,129 1.1 % — — % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 % Gross written premiums by state are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 36,789 55.5 % $ 20,785 % $ 99,543 55.7 % $ 58,211 % Texas 11,239 17.0 % 8,318 % 32,678 18.3 % 24,164 % Hawaii 3,675 5.5 % 2,614 % 8,688 4.9 % 6,130 % Washington 2,910 4.4 % 1,731 % 6,430 3.6 % 3,798 % Oregon 2,153 3.3 % 1,506 % 5,279 3.0 % 3,901 % Mississippi 1,315 2.0 % 629 % 3,383 1.9 % 1,766 % Illinois 1,269 1.9 % 1,104 % 3,524 2.0 % 3,285 % South Carolina 1,258 1.9 % 690 % 4,614 2.5 % 2,336 % Other 5,634 8.5 % 2,617 % 14,480 8.1 % 7,757 % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 %	Gross written premiums (GWP) by product are presented below: Years ended December 31, 2018 2017 2016 ($ in thousands) Amount % of GWP Amount % of GWP Amount % of GWP Product Residential Earthquake $ 81,679 52.7 % $ 57,328 47.7 % $ 32,662 39.7 % Specialty Homeowners 27,680 17.9 % 26,516 22.0 % 24,389 29.6 % Commercial Earthquake 20,946 13.5 % 23,079 19.2 % 20,580 25.0 % Commercial All Risk 14,338 9.3 % 7,321 6.1 % 1,784 2.2 % Hawaii Hurricane 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Flood 2,120 1.4 % 667 0.6 % — — Total Gross Written Premium $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % Gross Written premiums by state are as follows: Years ended December 31, 2018 2017 2016 Amount % of GWP Amount % of GWP Amount % GWP ($ in thousands) State California $ 82,119 53.0 % $ 64,231 53.4 % $ 44,999 54.7 % Texas 32,568 21.0 % 29,273 24.4 % 25,286 30.7 % Hawaii 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Illinois 4,403 2.8 % 4,854 4.0 % 332 0.4 % Oregon 5,286 3.4 % 4,250 3.6 % 3,278 4.0 % Washington 5,658 3.7 % 2,803 2.3 % 1,513 1.8 % South Carolina 3,208 2.1 % 1,706 1.4 % 674 0.8 % Oklahoma 1,261 0.8 % 1,302 1.1 % 1,030 1.3 % All Other States 12,260 8.0 % 6,492 5.4 % 2,303 2.8 % $ 154,891 100 % $ 120,234 100 % $ 82,287 100 %

Summary of Operations and Bas_2

Summary of Operations and Basis of Presentation (Details) $ / shares in Units, $ in Thousands	Apr. 22, 2019USD ($)$ / sharesshares	Mar. 15, 2019	Sep. 30, 2019USD ($)	Dec. 31, 2018state
Number states Company underwrites catastrophe insurance on an admitted basis | state				24
Forward stock split		17,000,000
Proceeds from Issuance Initial Public Offering | $			$ 87,412
Subsequent Event
Forward stock split		17,000,000
IPO
Shares of common issued | shares	6,468,750
Share price (in dollars per share) | $ / shares	$ 15
Proceeds from Issuance Initial Public Offering | $	$ 87,400
Underwriter's option
Shares of common issued | shares	843,750

Significant Accounting Polici_3

Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Sep. 30, 2019USD ($)	Jan. 01, 2018USD ($)
Premiums Receivable
Allowance for doubtful accounts	$ 0	$ 0
Property and Equipment
Number of state licenses acquired | item	7
Allocated amount of acquired state licenses	$ 700
Impairments of intangible assets	0	0
Impairments of long lived assets	0	0
Retained earnings	28,355	6,921	$ 22,977	$ 3,200
Accumulated other comprehensive (loss) income	(563)	2,993	$ 5,896	$ 3,200
Prepaid Expenses and Other Current Assets
Deferred offering costs	$ 1,100	$ 0
Minimum
Property and Equipment
Useful life	3 years
Maximum
Property and Equipment
Useful life	5 years

Investments - Available for Sal

Investments - Available for Sale Investments (Details) $ in Thousands	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Available for sale investments
Number of unrealized loss positions | security	39	173	125
Available for sale investments
Amortized Cost	$ 216,623	$ 122,949	$ 102,301
Gross Unrealized Gains	7,418	536
Gross Unrealized Losses	(55)	(1,265)
Fair Value	223,986	122,220	101,913
Amortized Cost	21,213	27,188	19,569
Equity securities at fair value	22,326	25,171	23,586
Amortized Cost			121,870
Gross Unrealized Gains			4,330
Gross Unrealized Losses			(701)
Marketable Securities			125,499
Fixed maturity securities
Available for sale investments
Amortized Cost			102,301
Gross Unrealized Gains			204
Gross Unrealized Losses			(592)
Fair Value			101,913
U.S. Governments
Available for sale investments
Amortized Cost	13,085	15,299	13,393
Gross Unrealized Gains	461	96
Gross Unrealized Losses	(7)	(126)	(108)
Fair Value	13,539	15,269	13,285
States, territories, and possession
Available for sale investments
Amortized Cost	2,300	1,227	3,188
Gross Unrealized Gains	169		10
Gross Unrealized Losses		(6)	(1)
Fair Value	2,469	1,221	3,197
Political subdivisions
Available for sale investments
Amortized Cost	1,922	825	4,118
Gross Unrealized Gains	33
Gross Unrealized Losses		(10)	(51)
Fair Value	1,955	815	4,067
Special revenue excluding mortgage/asset-backed securities
Available for sale investments
Amortized Cost	17,762	12,429	24,039
Gross Unrealized Gains	614	115	42
Gross Unrealized Losses	(3)	(91)	(167)
Fair Value	18,373	12,453	23,914
Industrial and miscellaneous
Available for sale investments
Amortized Cost	123,835	65,885	44,582
Gross Unrealized Gains	5,051	192	150
Gross Unrealized Losses	(31)	(951)	(201)
Fair Value	128,855	65,126	44,531
Mortgage/asset-backed securities
Available for sale investments
Amortized Cost	57,719	27,284	12,981
Gross Unrealized Gains	1,090	133	2
Gross Unrealized Losses	(14)	(81)	(64)
Fair Value	$ 58,795	$ 27,336	$ 12,919
Equity securities
Available for sale investments
Number of unrealized loss positions | security			16
Available for sale investments
Amortized Cost			$ 19,569
Gross Unrealized Gains			4,126
Gross Unrealized Losses			(109)
Equity securities at fair value			$ 23,586

Investments - Security Holdings

Investments - Security Holdings in an Unrealized Loss Position - General Information (Details) $ in Thousands	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Number of positions:
Number of unrealized loss positions | security	39	173	125
Fair Value
Fair Value	$ 18,338	$ 73,763	$ 80,233
Unrealized Losses
Unrealized Losses	$ 55	$ 1,265	$ 701
Equity securities
Number of positions:
Number of unrealized loss positions | security			16
Fair Value
Fair Value			$ 2,802
Unrealized Losses
Unrealized Losses			$ 109

Investments - Security Holdin_2

Investments - Security Holdings in an Unrealized Loss Position - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value
Fair Value - Less Than 12 Months	$ 11,797	$ 41,856	$ 66,596
Fair Value - More Than 12 Months	6,541	31,907	13,637
Fair Value - Total	18,338	73,763	80,233
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(36)	(640)	(468)
Unrealized Losses - More Than 12 Months	(19)	(625)	(233)
Unrealized Losses - Total	(55)	(1,265)	(701)
Fixed maturity securities
Fair Value
Fair Value - Less Than 12 Months			64,601
Fair Value - More Than 12 Months			12,830
Fair Value - Total			77,431
Unrealized Losses
Unrealized Losses - Less Than 12 Months			(411)
Unrealized Losses - More Than 12 Months			(181)
Unrealized Losses - Total			(592)
U.S. Governments
Fair Value
Fair Value - Less Than 12 Months	1,485	1,970	11,426
Fair Value - More Than 12 Months	1,824	6,197	1,858
Fair Value - Total	3,309	8,167	13,284
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(25)	(89)
Unrealized Losses - More Than 12 Months	(7)	(101)	(19)
Unrealized Losses - Total	(7)	(126)	(108)
States, territories, and possession
Fair Value
Fair Value - Less Than 12 Months		719	1,568
Fair Value - More Than 12 Months		501
Fair Value - Total		1,220	1,568
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(5)	(1)
Unrealized Losses - More Than 12 Months		(1)
Unrealized Losses - Total		(6)	(1)
Political subdivisions
Fair Value
Fair Value - Less Than 12 Months	546	264	2,996
Fair Value - More Than 12 Months		550	1,071
Fair Value - Total	546	814	4,067
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(1)	(24)
Unrealized Losses - More Than 12 Months		(9)	(27)
Unrealized Losses - Total		(10)	(51)
Special revenue excluding mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	569	1,706	17,109
Fair Value - More Than 12 Months	997	5,916	2,140
Fair Value - Total	1,566	7,622	19,249
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(1)	(14)	(129)
Unrealized Losses - More Than 12 Months	(2)	(77)	(38)
Unrealized Losses - Total	(3)	(91)	(167)
Industrial and miscellaneous
Fair Value
Fair Value - Less Than 12 Months	3,936	30,544	23,914
Fair Value - More Than 12 Months	3,457	14,913	4,463
Fair Value - Total	7,393	45,457	28,377
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(22)	(556)	(137)
Unrealized Losses - More Than 12 Months	(9)	(395)	(64)
Unrealized Losses - Total	(31)	(951)	(201)
Mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	5,261	6,653	7,588
Fair Value - More Than 12 Months	263	3,830	3,298
Fair Value - Total	5,524	10,483	10,886
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(13)	(39)	(31)
Unrealized Losses - More Than 12 Months	(1)	(42)	(33)
Unrealized Losses - Total	$ (14)	$ (81)	(64)
Equity securities
Fair Value
Fair Value - Less Than 12 Months			1,995
Fair Value - More Than 12 Months			807
Fair Value - Total			2,802
Unrealized Losses
Unrealized Losses - Less Than 12 Months			(57)
Unrealized Losses - More Than 12 Months			(52)
Unrealized Losses - Total			$ (109)

Investments - Other-than-tempor

Investments - Other-than-temporarily Impaired (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments
Other-than-temporarily impaired	$ 0	$ 0	$ 0

Investments - Contractual Matur

Investments - Contractual Maturities of Available for Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Amortized Cost
Due within one year	$ 7,098	$ 2,621
Due after one year through five years	68,726	50,677
Due after five years through ten years	55,711	32,471
Due after ten years	27,369	9,896
Mortgage and asset-backed securities	57,719	27,284
Amortized Cost	216,623	122,949	$ 102,301
Fair Value
Due within one year	7,099	2,614
Due after one year through five years	69,853	49,802
Due after five years through ten years	59,609	32,518
Due after ten years	28,630	9,950
Mortgage and asset-backed securities	58,795	27,336
Total	$ 223,986	$ 122,220	$ 101,913

Investments - Change in Unreali

Investments - Change in Unrealized Gains (Losses) of Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Line Items]
Equity securities	$ 345	$ 1,638	$ 3,310	$ 5,072	$ (6,036)
Net (decrease) increase					(341)	$ 2,226	$ 2,209
Fixed maturity securities
Debt Securities, Available-for-sale [Line Items]
Fixed maturities					$ (341)	(6)	(60)
Equity securities
Debt Securities, Available-for-sale [Line Items]
Equity securities						$ 2,232	$ 2,269

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net investment income
Interest income	$ 1,678	$ 816	$ 4,140	$ 2,083	$ 3,036	$ 1,916	$ 1,425
Dividend income	132	118	299	365	514	514	472
Less: investment expense	(81)	(69)	(267)	(237)	(312)	(305)	(282)
Net investment income	$ 1,729	$ 865	$ 4,172	$ 2,211	$ 3,238	$ 2,125	$ 1,615

Investments - Net Realized and

Investments - Net Realized and Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net realized and unrealized investment gains and losses
Gains on sales of fixed maturity securities	$ 38	$ 11	$ 135	$ 20	$ 19	$ 3	$ 56
Gains on sales of equity securities		18	64	421	4,287	802	592
Total realized gains	38	29	199	441	4,306	805	648
Losses on sales of fixed maturity securities	(1)	(102)	(70)	(257)	(418)	(48)
Losses on sales of equity securities	(21)	(229)	(174)	(4,287)	(421)	(149)	(149)
Total realized losses	(22)	(331)	(244)	(4,544)	(839)	(197)	(149)
Net realized investment losses	16	(302)	(45)	(4,103)	3,467	608	499
Net unrealized gains (losses) on equity securities	345	1,638	3,310	5,072	(6,036)
Net realized and unrealized gains (losses) on investments	361	1,336	3,265	969	(2,569)	608	499
Proceeds from sales of fixed maturity securities
Proceeds from the sale of fixed maturity securities	$ 28,800	$ 32,400	$ 87,541	$ 61,871	$ 81,215	$ 28,628	$ 18,984

Investments - Securities on Dep

Investments - Securities on Deposit (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments
Fair Value	$ 223,986	$ 122,220	$ 101,913
Securities on deposit with state regulatory authorities
Investments
Fair Value	$ 5,100	5,100	$ 5,000
Fair Value		$ 5,000

Fair value measurements - Finan

Fair value measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets:
Equity securities at fair value	$ 22,326	$ 25,171	$ 23,586
Fair Value, Measurements, Recurring
Assets:
Equity securities at fair value	22,326	25,171	23,586
Cash, cash equivalents, and restricted cash	16,902	9,924	10,932
Total assets	263,214	157,315	136,431
Liabilities:
Long-term notes payable		20,000	18,095
Total liabilities		20,000	18,095
Fair Value, Measurements, Recurring | U.S. Governments
Assets:
Fair Value Assets	13,539	15,269	13,285
Fair Value, Measurements, Recurring | States, territories, and possession
Assets:
Fair Value Assets	2,469	1,221	3,197
Fair Value, Measurements, Recurring | Political subdivisions
Assets:
Fair Value Assets	1,955	815	4,067
Fair Value, Measurements, Recurring | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value Assets	18,373	12,453	23,914
Fair Value, Measurements, Recurring | Industrial and miscellaneous
Assets:
Fair Value Assets	128,855	65,126	44,531
Fair Value, Measurements, Recurring | Mortgage/asset-backed securities
Assets:
Fair Value Assets	58,795	27,336	12,919
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Assets:
Equity securities at fair value	22,326	25,171	23,586
Cash, cash equivalents, and restricted cash	16,902	9,924	10,932
Total assets	39,228	35,095	34,518
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Assets:
Total assets	223,986	122,220	101,913
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Governments
Assets:
Fair Value Assets	13,539	15,269	13,285
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States, territories, and possession
Assets:
Fair Value Assets	2,469	1,221	3,197
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Political subdivisions
Assets:
Fair Value Assets	1,955	815	4,067
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value Assets	18,373	12,453	23,914
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Industrial and miscellaneous
Assets:
Fair Value Assets	128,855	65,126	44,531
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage/asset-backed securities
Assets:
Fair Value Assets	$ 58,795	27,336	12,919
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Liabilities:
Long-term notes payable		20,000	18,095
Total liabilities		$ 20,000	$ 18,095

Fair value measurements - Trans

Fair value measurements - Transfers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Fair value measurements
Fair value, assets, Level 1 to Level 2	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Fair value, assets, Level 2 to Level 1	0	0	0	0	0	0
Fair value, liabilities, Level 1 to Level 2	0	0	0	0	0	0
Fair value, liabilities, Level 2 to Level 1	0	0	0	0	0	0
Fair value, assets, transfers into Level 3	0	0	0	0	0	0
Fair value, assets, transfers out of Level 3	0	0	0	0	0	0
Fair value, liabilities, transfers into Level 3	0	0	0	0	0	0
Fair value, liabilities, transfers out of Level 3	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Policy Acquisition Costs (Detai

Policy Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Policy Acquisition Costs:
Balance, beginning of year			$ 14,052	$ 15,161	$ 15,161	$ 10,654	$ 6,804
Direct commissions					36,934	27,976	21,453
Ceding commissions					(15,218)	(3,224)	(3,648)
Premium taxes					3,362	2,625	1,807
Total net additions					25,078	27,377	19,612
Amortization of net policy acquisition costs					(26,187)	(22,870)	(15,762)
Balance, end of year	$ 21,653		21,653		14,052	15,161	10,654
Acquisition expenses:
Amortization of net policy acquisition costs					26,187	22,870	15,762
Period costs					2,037	2,652	1,578
Total Acquisition expenses	$ 10,243	$ 6,392	$ 26,189	$ 21,632	$ 28,224	$ 25,522	$ 17,340

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2019
Property, Plant and Equipment
Cost	$ 1,441	$ 1,109
Accumulated Depreciation	(494)	(282)
Net Book Value	947	827		$ 860
Depreciation	212	160	$ 88
Leasehold improvements
Property, Plant and Equipment
Cost	879	652
Accumulated Depreciation	(225)	(115)
Net Book Value	654	537
Computer hardware
Property, Plant and Equipment
Cost	108	83
Accumulated Depreciation	(51)	(35)
Net Book Value	57	48
Office equipment and furniture
Property, Plant and Equipment
Cost	454	374
Accumulated Depreciation	(218)	(132)
Net Book Value	$ 236	$ 242

Reserve for Losses and Loss A_3

Reserve for Losses and Loss Adjustment Expenses - Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reserve for Losses and Loss Adjustment Expenses
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period	$ 1,428	$ 3,159	$ 4,165	$ 4,432	$ 4,432	$ 3,336	$ 1,562
Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to:
Current year	2,647	5,258	3,660	8,445	8,165	12,257	7,472
Prior years	(208)	116	(262)	(1,402)	(1,891)	(132)	(180)
Total incurred	2,439	5,374	3,398	7,043	6,274	12,125	7,292
Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to:
Current year	641	392	1,044	1,656	4,409	8,986	4,824
Prior years	312	459	3,605	2,137	2,132	2,043	694
Total payments	953	851	4,649	3,793	6,541	11,029	5,518
Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period	$ 2,914	$ 7,682	$ 2,914	$ 7,682	$ 4,165	$ 4,432	$ 3,336

Reserve for Losses and Loss A_4

Reserve for Losses and Loss Adjustment Expenses - Total (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reserve for Losses and Loss Adjustment Expenses
Total reserve for losses and loss adjustment expenses	$ 2,914	$ 1,428	$ 4,165	$ 7,682	$ 3,159	$ 4,432	$ 3,336	$ 1,562
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	14,052		11,896	10,950		13,352	1,442
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	$ 16,966		$ 16,061	$ 18,632		$ 17,784	$ 4,778

Reserve for Losses and Loss A_5

Reserve for Losses and Loss Adjustment Expenses - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reserve for Losses and Loss Adjustment Expenses
Loss and loss adjustment expense reserve redundancy	$ 1.9	$ 0.1	$ 0.2

Reserve for Losses and Loss A_6

Reserve for Losses and Loss Adjustment Expenses - Incurred and Paid Accident Year Claims Development (Details)	Dec. 31, 2018USD ($)claim	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Homeowners' Insurance
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 16,968,000
Incurred but Not Reported Liabilities	$ 339,000
Cumulative Number of Claims	5,071
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 16,125,000
Reserve for losses and loss adjustment expense, net of reinsurance	843,000
Homeowners' Insurance | 2015
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	1,636,000	$ 1,658,000	$ 1,785,000	$ 2,048,000
Incurred but Not Reported Liabilities	$ 3,000
Cumulative Number of Claims	379
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 1,615,000	1,523,000	1,379,000	860,000
Homeowners' Insurance | 2016
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	5,721,000	5,878,000	6,069,000
Incurred but Not Reported Liabilities	$ 4,000
Cumulative Number of Claims	1,080
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 5,585,000	5,356,000	4,120,000
Homeowners' Insurance | 2017
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	7,418,000	9,534,000
Incurred but Not Reported Liabilities	$ 83,000
Cumulative Number of Claims	2,944
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 7,375,000	7,135,000
Homeowners' Insurance | 2018
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	2,193,000
Incurred but Not Reported Liabilities	$ 249,000
Cumulative Number of Claims	668
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 1,550,000
Special Property Insurance
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	11,367,000
Incurred but Not Reported Liabilities	$ 283,000
Cumulative Number of Claims | claim	649
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 8,045,000
Reserve for losses and loss adjustment expense, net of reinsurance	3,322,000
Special Property Insurance | 2015
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	671,000	671,000	719,000	630,000
Incurred but Not Reported Liabilities	$ 3,000
Cumulative Number of Claims | claim	8
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 626,000	586,000	438,000	$ 265,000
Special Property Insurance | 2016
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	1,251,000	1,249,000	1,381,000
Incurred but Not Reported Liabilities	$ 2,000
Cumulative Number of Claims | claim	50
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 1,216,000	1,064,000	$ 703,000
Special Property Insurance | 2017
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	3,475,000	3,071,000
Incurred but Not Reported Liabilities	$ 120,000
Cumulative Number of Claims | claim	255
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 3,344,000	$ 1,967,000
Special Property Insurance | 2018
Claims Development
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	5,970,000
Incurred but Not Reported Liabilities	$ 158,000
Cumulative Number of Claims | claim	336
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance	$ 2,859,000

Reserve for Losses and Loss A_7

Reserve for Losses and Loss Adjustment Expenses - Average Annual Percentage Payout of Incurred Claims by Age (Details)	Dec. 31, 2018
Homeowners' Insurance
Short-duration Insurance Contracts, Historical Claims Duration
Payout percentage, Year 1	72.85%
Payout percentage, Year 2	18.86%
Payout percentage, Year 3	6.41%
Payout percentage, Year 4	5.61%
Special Property Insurance
Short-duration Insurance Contracts, Historical Claims Duration
Payout percentage, Year 1	50.05%
Payout percentage, Year 2	31.42%
Payout percentage, Year 3	17.10%
Payout percentage, Year 4	5.96%

Reserve for Losses and Loss A_8

Reserve for Losses and Loss Adjustment Expenses - Reconciliation of Liability for Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Short-duration Insurance Contracts, Historical Claims Duration
Reserve for losses and loss adjustment expense net of reinsurance	$ 2,914	$ 1,428	$ 4,165	$ 7,682	$ 3,159	$ 4,432	$ 3,336	$ 1,562
Total reinsurance recoverable on unpaid claims			11,896
Reserve for losses and loss adjustment expenses	$ 16,966		16,061	$ 18,632		$ 17,784	$ 4,778
Homeowners' Insurance
Short-duration Insurance Contracts, Historical Claims Duration
Reserve for losses and loss adjustment expense net of reinsurance			843
Total reinsurance recoverable on unpaid claims			5,650
Special Property Insurance
Short-duration Insurance Contracts, Historical Claims Duration
Reserve for losses and loss adjustment expense net of reinsurance			3,322
Total reinsurance recoverable on unpaid claims			$ 6,246

Reinsurance (Details)

Reinsurance (Details) $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended			46 Months Ended
	Jun. 30, 2017USD ($)	Feb. 28, 2015USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)Counterparty	Dec. 31, 2017USD ($)Counterparty	Dec. 31, 2016USD ($)Counterparty	Dec. 31, 2018USD ($)
Reinsurance Retention Policy
Retention amount							$ 700	$ 1,500
Ceded written premiums			$ 28,060	$ 20,764	$ 78,797	$ 61,200	82,949	46,951	$ 29,636
Prepaid reinsurance premium			$ 24,711		$ 24,711		$ 18,284	$ 3,175		$ 18,284
Number of Company's largest reinsurers | Counterparty							3	3	3
Reinsurance premiums ceded							$ 67,862	$ 45,416	$ 28,994
Percentage of reinsurance premiums ceded on total premium							24.00%	20.80%	19.50%
Percentage of reinsurance recoverable on paid and unpaid losses on total balance							23.00%	26.70%
Non-earthquake events
Reinsurance Retention Policy
Retention amount		$ 15,000								$ 5,000
Non-earthquake events | Losses between $230 million and $351 million
Reinsurance Retention Policy
Percentage of losses retains							54.55%			54.55%
Non-earthquake events | Losses between $351 million and $501 million
Reinsurance Retention Policy
Percentage of losses retains							30.00%			30.00%
Non-earthquake events | Maximum
Reinsurance Retention Policy
XOL coverage							$ 625,000	$ 550,000		$ 625,000
Earthquake events
Reinsurance Retention Policy
Retention amount							5,000	15,000
Earthquake events | Maximum
Reinsurance Retention Policy
XOL coverage							825,000	750,000		825,000
Texas Homeowners
Reinsurance Retention Policy
Ceded written premiums							24,900	2,400	$ 2,300
Torrey Pines Re Ltd. ("TPRe") | Catastrophe
Reinsurance Retention Policy
Notes issued for reinsurance coverage	$ 166,000
Reinsurance premiums ceded							7,500
Duration of reinsurance coverage	3 years
First largest insurer
Reinsurance Retention Policy
Reinsurance premiums ceded							7,500	4,000	2,300
Reinsurance recoverables on paid and unpaid losses							1,800	1,900		1,800
Second largest insurer
Reinsurance Retention Policy
Reinsurance premiums ceded							7,200	3,400	1,800
Reinsurance recoverables on paid and unpaid losses							800	1,100		800
Third largest insurer
Reinsurance Retention Policy
Reinsurance premiums ceded							5,200	2,400	$ 1,700
Reinsurance recoverables on paid and unpaid losses							$ 800	$ 800		$ 800

Reinsurance- effect of reinsura

Reinsurance- effect of reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Premiums Written:
Direct					$ 144,821	$ 112,974	$ 79,492
Assumed					10,070	7,260	2,795
Ceded	$ (28,060)	$ (20,764)	$ (78,797)	$ (61,200)	(82,949)	(46,951)	(29,636)
Net written premiums	38,182	19,230	99,822	50,148	71,942	73,283	52,651
Premiums Earned:
Direct					129,071	94,799	66,765
Assumed					8,688	6,162	2,551
Ceded					(67,862)	(45,416)	(28,994)
Net earned premiums	27,662	16,036	69,220	52,280	69,897	55,545	40,322
Losses Incurred:
Direct					12,153	24,266	6,914
Assumed					46	2
Ceded					(6,580)	(14,651)	(1,388)
Net losses incurred					5,619	9,617	5,526
LAE Incurred:
Direct					2,113	6,608	2,300
Assumed					6		3
Ceded					(1,464)	(4,100)	(537)
Total LAE incurred					655	2,508	1,766
Total losses and LAE incurred:
Direct					14,266	30,874	9,214
Assumed					52	2	3
Ceded					(8,044)	(18,751)	(1,925)
Net total	$ 2,439	$ 5,374	$ 3,398	$ 7,043	$ 6,274	$ 12,125	$ 7,292

Long-term debt - Surplus Notes

Long-term debt - Surplus Notes (Details) - USD ($) $ in Millions	May 23, 2019	Feb. 03, 2015	Sep. 30, 2018	Sep. 30, 2018	Aug. 31, 2018
Long-term debt
Outstanding surplus notes					$ 17.5
Notes Payable, Other Payables | Surplus Notes
Long-term debt
Outstanding surplus notes					$ 17.5
Term		7 years
Pay down of surplus notes			$ 17.5
Pre-payment, penalty			0.1	$ 0.1
Write-off of unamortized debt issuance costs			0.4
Unamortized debt issuance costs			0.4	0.4
Notes Payable, Other Payables | Surplus Notes | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest rate spread (as a percent)		8.00%
Senior Notes | 2018 Floating Rate Notes
Long-term debt
Debt instrument, face amount			$ 20	$ 20
Write-off of unamortized debt issuance costs	$ 0.9

Long-term debt - Floating Rate

Long-term debt - Floating Rate Notes (Details) - Senior Notes - 2018 Floating Rate Notes - USD ($) $ in Millions	May 23, 2019	Sep. 30, 2018	Sep. 30, 2019
Long-term debt
Debt instrument, redemption price, percentage (as a percent)	102.00%	100.00%
Redemption price	$ 20.4
Accrued interest and unpaid interest	0.3
Redemption charge	1.3
Redemption Premium	0.4		$ 0.4
Write-off of unamortized debt issuance costs	0.9
Interest Expense.
Long-term debt
Redemption Premium	0.4
Other Underwriting Expense
Long-term debt
Write-off of unamortized debt issuance costs	$ 0.9
Three-month Treasury Rate
Long-term debt
Interest rate spread (as a percent)		6.50%

Long-term debt - Interest (Deta

Long-term debt - Interest (Details) - USD ($) $ in Millions	Sep. 06, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Long-term debt
Interest accrued						$ 0.1
Unapproved and unpaid interest	$ 0						$ 0	$ 0
Surplus Notes
Long-term debt
Interest expense	$ 5.7
Interest paid						1.2	$ 1.6	$ 1.5
Senior Notes | 2018 Floating Rate Notes
Long-term debt
Interest expense				$ 1.1		0.6
Interest paid						$ 0.5
Notes Payable, Other Payables | Surplus Notes
Long-term debt
Interest expense			$ 0.6		$ 1.4
Pre-payment, penalty		$ 0.1	0.1
Interest paid			$ 0.3	$ 1.2	$ 1.2

Income Taxes - Excise Tax (Deta

Income Taxes - Excise Tax (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Income Taxes
Federal excise tax rate (as a percent)		1.00%
Decrease in valuation allowance on federal deferred tax assets	$ (1.7)	$ 0.7

Income Taxes - Federal income t

Income Taxes - Federal income tax expense (benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Current					$ (6)	$ 11
Deferred						1,134	$ (337)
Income tax expense (benefit)	$ 1,995	$ 3	$ 3,929	$ (1)	$ (6)	$ 1,145	$ (337)

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Losses and LAE reserve discount		$ 22	$ 22
Net operating losses		702	1,476
Investment amortization		119	119
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Unearned Premiums Reserve		1,914	2,469
Capitalized organizational costs		304	334
Unrealized losses on investments		505
Other		306	457
Total deferred tax assets		3,872	4,877
Deferred tax liabilities:
Deferred acquisition costs		(2,127)	(3,184)
Unrealized gains on investments			(734)
Other		(68)	(12)
Total deferred tax liabilities		(2,195)	(3,930)
Net deferred tax asset before valuation allowance		1,677	947
Valuation allowance		(1,677)	$ (947)
Increase in valuation allowance	$ (1,700)	$ 700

Income Taxes - Effective tax ra

Income Taxes - Effective tax rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, Amount
Expense computed at federal tax rate					$ 3,825	$ 1,675	$ 2,135
NonU.S. group member income					(4,409)	(1,632)	(2,093)
Dividend received deduction and taxexempt interest					(144)	(467)	(415)
Impact of tax reform						580
Valuation allowance			$ (1,700)		678	947
Other					44	42	36
Income tax expense (benefit)	$ 1,995	$ 3	$ 3,929	$ (1)	$ (6)	$ 1,145	$ (337)
Effective Income Tax Rate Reconciliation, Percent
Expense computed at federal tax rate	21.00%		21.00%		21.00%	34.00%	34.00%
NonU.S. group member income					(24.21%)	(33.12%)	(33.34%)
Dividend received deduction and taxexempt interest					(0.79%)	(9.47%)	(6.61%)
Impact of tax reform						11.76%
Valuation allowance					3.72%	19.23%
Other					0.24%	0.83%	0.58%
Income tax expense (benefit)					(0.03%)	23.23%	(5.37%)
Net operating loss carryforward					$ 3,300
Unrecognized tax benefits					$ 0	$ 0
Addback related to stock compensation not deductible for tax purposes			$ 4,800
Maximum
Effective Income Tax Rate Reconciliation, Percent
Expense computed at federal tax rate						35.00%

Capital Stock - Shares issued a

Capital Stock - Shares issued and outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Capital Stock
Preferred stock, shares authorized	5,000,000	0
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	500,000,000	500,000,000	500,000,000
Common stock, shares issued	23,468,750	17,000,000	17,000,000
Common stock, shares outstanding	23,468,750	17,000,000	17,000,000
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Additional paid in capital	$ 179,587	$ 68,498	$ 68,498

Statutory financial informati_3

Statutory financial information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2015
Statutory Accounting Practices [Line Items]
Shareholder's equity	$ 96,292	$ 78,414	$ 73,109	$ 208,462	$ 91,207	$ 65,020
UNITED STATES
Statutory Accounting Practices [Line Items]
Statutory net income (loss)	9,609	(4,128)	(2,324)
Statutory capital and surplus	63,731	61,338	$ 67,894
Risk Based Capital	19,700	22,300
BERMUDA
Statutory Accounting Practices [Line Items]
Statutory net income (loss)	17,300	4,800
Statutory capital and surplus	19,600	16,400
Minimum statutory solvency margin	6,900	1,200
Shareholder's equity	$ 23,500	$ 16,400
BERMUDA | Minimum
Statutory Accounting Practices [Line Items]
Liquidity ratio	75.00%

Dividend Restrictions (Details)

Dividend Restrictions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Dividend Restrictions [Line items]
Threshold dividend or distribution without the prior approval	$ 5
Dividends receivable	5
Palomar Specialty Reinsurance Company Bermuda Ltd
Dividend Restrictions [Line items]
Dividends receivable	2.9
Dividends received	$ 13.7

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Years ending December 31:
2019	$ 720
2020	741
2021	763
2022	786
2023	805
Thereafter	466
Total	4,281
Total rent expense	$ 600	$ 800	$ 500

Commitments and Contingencies -

Commitments and Contingencies - Letters of Credit (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)LetterOfCredit	Dec. 31, 2017USD ($)LetterOfCredit
Letters of Credit
Number of standby letters of credit | LetterOfCredit	4	2
Amount outstanding	$ 0.5
Letter of credit renewal term	1 year	0 years
Letters of credit were collateralized	$ 3	$ 1.7
First letter of credit
Letters of Credit
Amount outstanding	1.3	1.1
Second letter of credit
Letters of Credit
Amount outstanding	0.4	$ 0.3
Third letter of credit
Letters of Credit
Amount outstanding	0.5
Fourth letter of credit
Letters of Credit
Amount outstanding	$ 0.4

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income - Roll Forward (Details) - Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in accumulated other comprehensive income
Beginning balance	$ (563)	$ 2,993	$ 2,993	$ 1,017	$ (459)
Effect of equity accounting guidance adoption			(3,215)	(3,215)
Beginning Balance			(563)	(222)	1,017	$ (459)
Other comprehensive income (loss) before reclassification	8,090	(1,544)	(740)	2,834	2,708
Federal income tax (expense) benefit	(1,666)	47	76	(772)	(899)
Other comprehensive income (loss) before reclassification, net of tax	6,424	(1,497)	(664)	2,062	1,809
Amounts reclassified from AOCI	44	245	399	(608)	(499)
Federal income (taxes) benefit	(9)	(47)	(76)	68	166
Amounts reclassified from AOCI, net of tax	35	198	323	(540)	(333)
Other comprehensive income (loss)	6,459	(1,299)	(341)	1,522	1,476
Effect of new tax rates from Tax Reform				454
Ending balance	$ 5,896	$ (1,521)	$ (563)	$ 2,993	$ 1,017

Retirement and Post-Employmen_2

Retirement and Post-Employment Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement and Post-Employment Retirement Plans
Employer matching participants gross wages (as a percent)	3.00%
Contributions to plan	$ 0.2	$ 0.2	$ 0.1

Management Incentive Plan (Deta

Management Incentive Plan (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 15, 2019	Dec. 31, 2018	Dec. 31, 2017
Management Incentive Plan
Stock compensation charge		$ 410		$ 0	$ 23,677	$ 0
Increase in additional paid in capital					$ 23,677
2014 Management Incentive Plan
Management Incentive Plan
Units outstanding							12,552,825	12,552,825	12,432,825
Stock compensation charge	$ 23,000		$ 23,000
Increase in additional paid in capital			$ 23,000

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share
Net income (loss)	$ 7,454	$ 1,566	$ (258)	$ 14,092	$ 18,219	$ 3,783	$ 6,614
Weighted-average common shares outstanding, basic	23,468,750	17,000,000	20,838,599	17,000,000
Common Share equivalents	416,387
Diluted	23,885,137	17,000,000	20,838,599	17,000,000
Weighted average shares used in computing net income per share					17,000,000	17,000,000	17,000,000
Net Income per share, basic and diluted					$ 1.07	$ 0.22	$ 0.39
Earnings per share, basic	$ 0.32	$ 0.09	$ (0.01)	$ 0.83
Diluted earnings per share	$ 0.31	$ 0.09	$ (0.01)	$ 0.83
Common share equivalents excluded from calculation of diluted earnings per share as effect was anti-dilutive			196,741

Underwriting Information - Repo

Underwriting Information - Reportable Segments (Details) - segment	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reportable segment
Number of reportable segments	1	1

Underwriting Information - Gros

Underwriting Information - Gross Written Premiums by Product (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross written premiums
Amount	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
% of GWP	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Residential Earthquake
Gross written premiums
Amount	$ 35,711	$ 21,483	$ 95,005	$ 58,106	$ 81,679	$ 57,328	$ 32,662
% of GWP	53.90%	53.70%	53.20%	52.20%	52.70%	47.70%	39.70%
Specialty Homeowners
Gross written premiums
Amount	$ 8,572	$ 7,116	$ 24,994	$ 21,331	$ 27,680	$ 26,516	$ 24,389
% of GWP	12.90%	17.80%	14.00%	13.40%	17.90%	22.00%	29.60%
Commercial Earthquake
Gross written premiums
Amount	$ 7,077	$ 3,392	$ 21,929	$ 9,442	$ 20,946	$ 23,079	$ 20,580
% of GWP	10.70%	8.50%	12.30%	8.50%	13.50%	19.20%	25.00%
Commercial All Risk
Gross written premiums
Amount	$ 8,402	$ 4,856	$ 23,020	$ 14,936	$ 14,338	$ 7,321	$ 1,784
% of GWP	12.70%	12.10%	12.90%	19.10%	9.30%	6.10%	2.20%
Hawaii Hurricane
Gross written premiums
Amount	$ 3,299	$ 2,614	$ 8,048	$ 6,130	$ 8,128	$ 5,323	$ 2,872
% of GWP	5.00%	6.50%	4.50%	5.50%	5.20%	4.40%	3.50%
Flood
Gross written premiums
Amount	$ 1,450	$ 533	$ 3,494	$ 1,403	$ 2,120	$ 667
% of GWP	2.20%	1.40%	2.00%	1.30%	1.40%	0.60%
Other
Gross written premiums
Amount	$ 1,731		$ 2,129
% of GWP	2.60%		1.10%

Underwriting Information - Gr_2

Underwriting Information - Gross Written Premiums by State (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross written premiums
Amount	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
% of GWP	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
California
Gross written premiums
Amount	$ 36,789	$ 20,785	$ 99,543	$ 58,211	$ 82,119	$ 64,231	$ 44,999
% of GWP	55.50%	52.00%	55.70%	52.20%	53.00%	53.40%	54.70%
Texas
Gross written premiums
Amount	$ 11,239	$ 8,318	$ 32,678	$ 24,164	$ 32,568	$ 29,273	$ 25,286
% of GWP	17.00%	20.80%	18.30%	21.70%	21.00%	24.40%	30.70%
Hawaii
Gross written premiums
Amount	$ 3,675	$ 2,614	$ 8,688	$ 6,130	$ 8,128	$ 5,323	$ 2,872
% of GWP	5.50%	6.50%	4.90%	5.50%	5.20%	4.40%	3.50%
Washington
Gross written premiums
Amount	$ 2,910	$ 1,731	$ 6,430	$ 3,798	$ 5,658	$ 2,803	$ 1,513
% of GWP	4.40%	4.30%	3.60%	3.40%	3.70%	2.30%	1.80%
Oregon
Gross written premiums
Amount	$ 2,153	$ 1,506	$ 5,279	$ 3,901	$ 5,286	$ 4,250	$ 3,278
% of GWP	3.30%	3.80%	3.00%	3.50%	3.40%	3.60%	4.00%
Mississippi
Gross written premiums
Amount	$ 1,315	$ 629	$ 3,383	$ 1,766
% of GWP	2.00%	1.60%	1.90%	1.60%
Illinois
Gross written premiums
Amount	$ 1,269	$ 1,104	$ 3,524	$ 3,285	$ 4,403	$ 4,854	$ 332
% of GWP	1.90%	2.80%	2.00%	3.00%	2.80%	4.00%	0.40%
South Carolina
Gross written premiums
Amount	$ 1,258	$ 690	$ 4,614	$ 2,336	$ 3,208	$ 1,706	$ 674
% of GWP	1.90%	1.70%	2.50%	2.10%	2.10%	1.40%	0.80%
Oklahoma
Gross written premiums
Amount					$ 1,261	$ 1,302	$ 1,030
% of GWP					0.80%	1.10%	1.30%
Other
Gross written premiums
Amount	$ 5,634	$ 2,617	$ 14,480	$ 7,757	$ 12,260	$ 6,492	$ 2,303
% of GWP	8.50%	6.50%	8.10%	7.00%	8.00%	5.40%	2.80%

Underwriting Information (Detai

Underwriting Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Disaggregation of Revenue
Number of program administrators | item					2
Number of products					$ 4
Amount	$ 66,242,000	$ 39,994,000	$ 178,619,000	$ 111,348,000	$ 154,891,000	$ 120,234,000	$ 82,287,000
% of GWP	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Sales Revenue | Product Concentration Risk
Disaggregation of Revenue
Amount					$ 104,900,000	$ 85,800,000	$ 62,900,000
% of GWP					67.70%	71.30%	76.50%

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Mar. 15, 2019	Mar. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Subsequent Events
One-time cash distribution		$ 5.1
Forward stock split	17,000,000
Subsequent Event
Subsequent Events
One-time cash distribution		$ 5.1
Forward stock split	17,000,000
2014 Management Incentive Plan | Subsequent Event
Subsequent Events
Increase in additional paid-in capital			$ 23

Schedule II - Balance Sheets (D

Schedule II - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $216,623 in 2019; $122,949 in 2018)	$ 223,986	$ 122,220			$ 101,913
Equity securities at fair value	22,326	25,171			23,586
Total investments	246,312	147,391			125,499
Cash and cash equivalents	16,477	9,525			10,780
Accrued investment income	1,363	734			788
Total assets	372,833	231,134			188,355
Liabilities
Total liabilities	164,371	134,842			109,941
Shareholder's equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 17,000,000 shares issued and outstanding at December 31, 2018 and 2017, respectively	2	2			2
Additional paid in capital	179,587	68,498			68,498
Accumulated other comprehensive (loss) income	5,896	(563)		$ 3,200	2,993
Retained earnings	22,977	28,355		$ 3,200	6,921
Total shareholder's equity	208,462	96,292	$ 91,207		78,414	$ 73,109	$ 65,020
Total liabilities and shareholder's equity	372,833	231,134			188,355
Fixed maturity securities available for sale, amortized cost	216,623	122,949			102,301
Equity securities, cost	$ 21,213	$ 27,188			$ 19,569
Common stock, par value	$ 0.0001	$ 0.0001			$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000			500,000,000
Common stock, shares issued	23,468,750	17,000,000			17,000,000
Common stock, shares outstanding	23,468,750	17,000,000			17,000,000
Palomar Holdings, Inc.
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $216,623 in 2019; $122,949 in 2018)		$ 11,581
Equity securities at fair value		1,658
Total investments		13,239
Cash and cash equivalents		540
Accrued investment income		67
Investment in subsidiaries		82,446			$ 78,414
Total assets		96,292			78,414
Shareholder's equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 17,000,000 shares issued and outstanding at December 31, 2018 and 2017, respectively		2
Additional paid in capital		68,498			68,500
Accumulated other comprehensive (loss) income		(563)			2,993
Retained earnings		28,355			6,921
Total shareholder's equity		96,292			78,414
Total liabilities and shareholder's equity		96,292			$ 78,414
Fixed maturity securities available for sale, amortized cost		11,668
Equity securities, cost		$ 1,656
Common stock, par value		$ 0.0001			$ 0.0001
Common stock, shares authorized		500,000,000			500,000,000
Common stock, shares issued		17,000,000			17,000,000
Common stock, shares outstanding		17,000,000			17,000,000

Schedule II - Statements of Inc

Schedule II - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net investment income	$ 1,729	$ 865	$ 4,172	$ 2,211	$ 3,238	$ 2,125	$ 1,615
Net realized and unrealized losses on investments	361	1,336	3,265	969	(2,569)	608	499
Income before income taxes	9,449	1,569	3,671	14,091	18,213	4,928	6,277
Net income (loss)	7,454	1,566	(258)	14,092	18,219	3,783	6,614
Change in net unrealized loss (gain) on investments			6,459	(1,299)	(341)	1,522	1,475
Net comprehensive income	$ 8,428	$ 1,257	$ 6,201	$ 12,793	17,878	5,305	8,089
Palomar Holdings, Inc.
Net investment income					61
Net realized and unrealized losses on investments					(2)
Income before income taxes					59
Equity in net income of subsidiaries					18,160	3,783	6,614
Net income (loss)					18,219	3,783	6,614
Change in net unrealized loss (gain) on investments					(87)
Equity in other comprehensive income of subsidiaries, net of taxes					(254)	1,522	1,475
Net comprehensive income					$ 17,878	$ 5,305	$ 8,089

Schedule II - Statements of Cas

Schedule II - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net income					$ 18,219	$ 3,783	$ 6,614
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized and unrealized losses on investments	$ (361)	$ (1,336)	$ (3,265)	$ (969)	2,569	(608)	(499)
Changes in operating assets and liabilities:
Accrued investment income					54	(137)	(61)
Net cash provided by operating activities			35,659	15,813	22,808	20,248	15,825
Investing activities
Net cash used in investing activities			(90,973)	(18,758)	(25,365)	(19,128)	(11,531)
Financing activities
Net cash provided by financing activities			62,292	1,549	1,549
Net increase (decrease) in cash, cash equivalents, and restricted cash			6,978	(1,396)	(1,008)	1,120	4,294
Cash, cash equivalents and restricted cash at beginning of period			9,924	10,932	10,932	9,812	5,518
Cash, cash equivalents and restricted cash at end of period	$ 16,902	$ 9,536	16,902	$ 9,536	9,924	10,932	9,812
Palomar Holdings, Inc.
Operating activities
Net income					18,219	3,783	6,614
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries					(18,160)	$ (3,783)	$ (6,614)
Net realized and unrealized losses on investments					2
Other					546
Changes in operating assets and liabilities:
Accrued investment income					(67)
Net cash provided by operating activities					540
Financing activities
Net increase (decrease) in cash, cash equivalents, and restricted cash					540
Cash, cash equivalents and restricted cash at beginning of period			$ 540
Cash, cash equivalents and restricted cash at end of period					$ 540

Valuation and Qualifying Acco_2

Valuation and Qualifying Accounts (Details) - Valuation Allowance for deferred tax assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 947
Amount Charged to Expense	730	$ 947
Balance at End of Period	$ 1,677	$ 947

Consolidated Balance Sheets_2

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $216,623 in 2019; $122,949 in 2018)	$ 223,986	$ 122,220
Equity securities, at fair value (cost: $21,213 in 2019; $27,188 in 2018)	22,326	25,171
Total investments	246,312	147,391
Cash and cash equivalents	16,477	9,525
Restricted cash	425	399
Accrued investment income	1,363	734
Premium receivable	32,171	18,633
Deferred policy acquisition costs	21,653	14,052
Reinsurance recoverable on unpaid losses and loss adjustment expenses	14,052	11,896
Reinsurance recoverable on paid losses and loss adjustment expenses	3,700	2,666
Prepaid reinsurance premium	24,711	18,284
Prepaid expenses and other assets	10,365	5,863
Property and equipment, net	860	947
Intangible assets	744	744
Total assets	372,833	231,134
Liabilities:
Accounts payable and other accrued liabilities	15,530	9,245
Reserve for losses and loss adjustment expenses	16,966	16,061
Unearned premiums	116,159	79,130
Ceded premium payable	11,970	10,607
Funds held under reinsurance treaty	1,801	720
Income and excise taxes payable	133
Deferred tax liabilities, net	1,812
Long-term notes payable		19,079
Total liabilities	164,371	134,842
Shareholder's equity:
Preferred stock, $0.0001 par value, 5,000,000 and 0 shares authorized as of September 30, 2019 and December 31, 2018, respectively, 0 shares issued and outstanding as of September 30, 2019 and December 31, 2018
Common stock, $0.0001 par value, 500,000,000 shares authorized, 23,468,750 and 17,000,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	2	2
Additional paid in capital	179,587	68,498
Accumulated other comprehensive income (loss)	5,896	(563)
Retained earnings	22,977	28,355
Total shareholder's equity	208,462	96,292
Total liabilities and shareholder's equity	$ 372,833	$ 231,134

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Fixed maturity securities available for sale, amortized cost	$ 216,623	$ 122,949	$ 102,301
Equity securities, cost	$ 21,213	$ 27,188	$ 19,569
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000	500,000,000
Common stock, shares issued	23,468,750	17,000,000	17,000,000
Common stock, shares outstanding	23,468,750	17,000,000	17,000,000

Consolidated Statements of In_3

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Gross written premiums	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
Ceded written premiums	(28,060)	(20,764)	(78,797)	(61,200)	(82,949)	(46,951)	(29,636)
Net written premiums	38,182	19,230	99,822	50,148	71,942	73,283	52,651
Change in unearned premiums	(10,520)	(3,194)	(30,602)	2,132	(2,045)	(17,738)	(12,329)
Net earned premiums	27,662	16,036	69,220	52,280	69,897	55,545	40,322
Net investment income	1,729	865	4,172	2,211	3,238	2,125	1,615
Net realized and unrealized gains on investments	361	1,336	3,265	969	(2,569)	608	499
Commission and other income	709	679	2,017	1,869	2,405	1,188	260
Total revenues	30,461	18,916	78,674	57,329	72,971	59,466	42,696
Expenses:
Losses and loss adjustment expenses	2,439	5,374	3,398	7,043	6,274	12,125	7,292
Acquisition expenses	10,243	6,392	26,189	21,632	28,224	25,522	17,340
Other underwriting expenses (includes stock-based compensation of $410 and $0 for the three months ended September 30, 2019 and 2018, respectively and $23,677 and $0 for the nine months ended September 30, 2019 and 2018, respectively)	8,330	4,976	44,348	13,119	17,957	15,146	10,153
Interest expense		605	1,068	1,444	2,303	1,745	1,634
Total expenses	21,012	17,347	75,003	43,238	54,758	54,538	36,419
Income before income taxes	9,449	1,569	3,671	14,091	18,213	4,928	6,277
Income tax expense (benefit)	1,995	3	3,929	(1)	(6)	1,145	(337)
Net income (loss)	7,454	1,566	(258)	14,092	18,219	3,783	6,614
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale for the three and nine months ended September 30, 2019 and 2018, respectively	974	(309)	6,459	(1,299)	(341)	1,522	1,475
Net comprehensive income	$ 8,428	$ 1,257	$ 6,201	$ 12,793	$ 17,878	$ 5,305	$ 8,089
Per Share Data:
Basic earnings per share	$ 0.32	$ 0.09	$ (0.01)	$ 0.83
Diluted earnings per share	$ 0.31	$ 0.09	$ (0.01)	$ 0.83
Weighted-average common shares outstanding:
Weighted-average common shares outstanding, basic	23,468,750	17,000,000	20,838,599	17,000,000
Weighted-average common shares outstanding, diluted	23,885,137	17,000,000	20,838,599	17,000,000

Consolidated Statements of In_4

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Income and Comprehensive Income
Stock compensation charge	$ 410	$ 0	$ 23,677	$ 0

Consolidated Statements of Sh_2

Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Beginning balance at Dec. 31, 2015	$ 2	$ 68,498	$ (458)	$ (3,022)	$ 65,020
Beginning balance (in shares) at Dec. 31, 2015	17,000,000
Changes in Stockholders' Equity
Change in net unrealized loss (gain) on investments			1,475		1,475
Net income (loss)				6,614	6,614
Ending balance at Dec. 31, 2016	$ 2	68,498	1,017	3,592	73,109
Ending balance (in shares) at Dec. 31, 2016	17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			454	(454)
Change in net unrealized loss (gain) on investments			1,522		1,522
Net income (loss)				3,783	3,783
Ending balance at Dec. 31, 2017	$ 2	68,498	2,993	6,921	$ 78,414
Ending balance (in shares) at Dec. 31, 2017	17,000,000				17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			(3,215)	3,215
Change in net unrealized loss (gain) on investments			(1,299)		$ (1,299)
Net income (loss)				14,092	14,092
Ending balance at Sep. 30, 2018	$ 2	68,498	(1,521)	24,228	91,207
Ending balance (in shares) at Sep. 30, 2018	17,000,000
Beginning balance at Dec. 31, 2017	$ 2	68,498	2,993	6,921	$ 78,414
Beginning balance (in shares) at Dec. 31, 2017	17,000,000				17,000,000
Changes in Stockholders' Equity
Impact of equity accounting guidance adoption			(3,215)	3,215
Change in net unrealized loss (gain) on investments			(341)		$ (341)
Net income (loss)				18,219	18,219
Ending balance at Dec. 31, 2018	$ 2	68,498	(563)	28,355	$ 96,292
Ending balance (in shares) at Dec. 31, 2018	17,000,000				17,000,000
Changes in Stockholders' Equity
Change in net unrealized loss (gain) on investments			6,459		$ 6,459
Distribution to stockholder				(5,120)	(5,120)
Stock-based compensation		23,677			23,677
Proceeds from common stock sold in initial public offering, net of offering costs		87,412			87,412
Proceeds from common stock sold in initial public offering, net of offering costs (in shares)	6,468,750
Net income (loss)				(258)	(258)
Ending balance at Sep. 30, 2019	$ 2	$ 179,587	$ 5,896	$ 22,977	$ 208,462
Ending balance (in shares) at Sep. 30, 2019	23,468,750				23,468,750

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Operating activities
Net cash provided by operating activities	$ 35,659
Investing activities
Purchases of property and equipment	(72)
Purchases of fixed maturity securities	(181,446)
Purchases of equity securities	(58,735)
Sales and maturities of fixed maturity securities	87,541
Sales of equity securities	64,820
Securities receivable or payable, net	(3,081)
Net cash used in investing activities	(90,973)
Financing activities
Proceeds from initial public offering, net of issuance costs	87,412
Distribution to stockholder	(5,120)
Redemption of Floating Rate Notes	(20,000)
Net cash provided by financing activities	62,292
Net increase (decrease) in cash, cash equivalents, and restricted cash	6,978
Cash, cash equivalents and restricted cash at beginning of period	9,924
Cash, cash equivalents and restricted cash at end of period	16,902
Supplementary cash flow information:
Cash paid for interest	$ 1,162

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash and cash equivalents and restricted cash and cash equivalents
Cash and cash equivalents	$ 16,477	$ 9,525		$ 10,780
Restricted cash	425	399		152
Cash and cash equivalents and restricted cash	$ 16,902	$ 9,924	$ 9,536	$ 10,932	$ 9,812	$ 5,518

Summary of Operations and Bas_3

Summary of Operations and Basis of Presentation	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Summary of Operations and Basis of Presentation
Summary of Operations and Basis of Presentation	1. Summary of Operations and Basis of Presentation Summary of Operations Palomar Holdings, Inc. (the Company) is an insurance holding company that was incorporated in Delaware on March 14, 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Specialty Reinsurance Company (PSRE) and Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC) and Prospect General Insurance Agency, Inc. (PGIA). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented. Initial Public Offering (IPO) On April 22, 2019, the Company completed its IPO with the sale of 6,468,750 shares of common stock at a price to the public of $15.00 per share, including 843,750 shares sold upon the exercise in full of the underwriter’s option to purchase additional shares. After underwriter discounts and commissions and offering expenses, net proceeds from the IPO were approximately $87.4 million. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments. Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligations. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard became effective for the Company January 1, 2019. However, the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company expects to adopt this standard using the modified retrospective method. The Company does not expect adoption to have a material impact on its consolidated financial statements, but will continue to assess the potential impact of adoption throughout 2019. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is currently effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. However, the FASB has recently voted to defer the effective date of this update by one year. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. In 2019, the FASB issued amendments to this guidance which provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance. This update and its amendments will be effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements.	1. Summary of Operations and Basis of Presentation Summary of Operations Palomar Holdings, Inc. (the Company), is an insurance holding company that was incorporated in Delaware in March 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC), Prospect General Insurance Agency, Inc. (PGIA), and Palomar Specialty Reinsurance Company Bermuda Ltd. (PSRE). On February 12, 2014, GCPH through PIH acquired PSIC from Pacific Indemnity Company in a stock purchase transaction. PSIC is a property and casualty insurance company domiciled in the state of Oregon. The Company’s core focus is on the residential and commercial earthquake markets in earthquake‑exposed states such as California, Oregon, Washington, and states with exposure to the New Madrid Seismic Zone. In 2015, PSIC expanded into broader geographic regions and perils, to include Hawaii residential hurricane and Texas specialty homeowners products. In 2016, PSIC began a commercial all risk insurance program which covers commercial property primarily in southeastern wind‑exposed states. PSIC underwrites catastrophe insurance on an admitted basis in 24 states in the United States, as of December 31, 2018, mainly through managing general insurance agencies, wholesale brokers, and independent agents. PGIA is a property and casualty general insurance agency for PSIC and unaffiliated insurance carriers. As a general insurance agency, PGIA assists in developing insurance products, underwriting insurance policies, and receiving and disbursing funds from premium and loss transactions under contracts on behalf of insurance companies. PGIA earns commissions from the product development, marketing, and servicing of the insurance companies’ programs. PGIA also earns fee income from policyholder transactions. PSRE is a Bermuda captive reinsurance company that reinsures earthquake and Hawaii Hurricane premium on a quota share basis exclusively for PSIC. The Company operates as an insurance holding company system and is subject to the insurance holding company laws of the State of Oregon, the state in which PSIC is domiciled. The Company is also commercially domiciled in California and, as a result, subject to the insurance holding company laws of that state. These statutes require that each insurance company in the system register with the insurance department of its state of domicile and furnish information concerning the operations of companies within the holding company system that may materially affect the operations, management or financial condition of the insurers within the system and domiciled in that state. The Company’s chief operating decision‑maker is the Chief Executive Officer. While the chief decision‑maker monitors the revenue streams of the various products and services, operations are managed, resources are allocated, and financial performance is evaluated on a Company‑wide basis. The Company has a single operating segment, the property and casualty insurance business. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented. Use of Estimates The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.

Investments_2

Investments	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Investments	2. Investments The Company’s available‑for‑sale investments are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,085 $ 461 $ (7) $ 13,539 States, territories, and possessions 2,300 169 — 2,469 Political subdivisions 1,922 33 — 1,955 Special revenue excluding mortgage/asset-backed securities 17,762 614 (3) 18,373 Industrial and miscellaneous 123,835 5,051 (31) 128,855 Mortgage/asset-backed securities 57,719 1,090 (14) 58,795 Total available-for-sale investments $ 216,623 $ 7,418 $ (55) $ 223,986 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset-backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset-backed securities 27,284 133 (81) 27,336 Total available-for-sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Security holdings in an unrealized loss position As of September 30, 2019, the Company held 39 fixed maturity securities in an unrealized loss position with a total estimated fair value of $18.3 million and total gross unrealized losses of $0.1 million. As of December 31, 2018, the Company held 173 fixed maturity securities in an unrealized loss position with a total estimated fair value of $73.8 million and total gross unrealized losses of $1.3 million. The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018, are as follows: Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments 1,485 — $ 1,824 $ (7) $ 3,309 $ (7) States, territories, and possessions — — — — — — Political subdivisions 546 — — — 546 — Special revenue excluding mortgage/asset-backed securities 569 (1) 997 (2) 1,566 (3) Industrial and miscellaneous 3,936 (22) 3,457 (9) 7,393 (31) Mortgage/asset-backed securities 5,261 (13) 263 (1) 5,524 (14) Total $ 11,797 $ (36) $ 6,541 $ (19) $ 18,338 $ (55) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset-backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset-backed securities 6,653 (39) 3,830 (42) 10,483 (81) Total $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) The Company considers the following factors in determining whether declines in the fair value of investments are other‑than‑temporary: · The significance of the decline in fair value compared to the cost basis, · The time period during which there has been a significant decline in fair value, · Whether the unrealized loss is credit‑driven or a result of changes in market interest rates, · A fundamental analysis of the business prospects and financial condition of the issuer, · The Company’s intent to sell the securities as of each reporting date, and · If the Company does not expect to recover the entire amortized cost basis or cost of the investment. Based on the Company’s reviews as of September 30, 2019 and December 31, 2018, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. None of the fixed maturity securities were determined to be other‑than‑temporarily impaired. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of their amortized cost basis. Therefore, none of the fixed maturity securities were written down during the respective periods. Contractual maturities of available‑for‑sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at September 30, 2019, by contractual maturity, are shown below. Amortized Fair Cost Value (in thousands) Due within one year $ 7,098 $ 7,099 Due after one year through five years 68,726 69,853 Due after five years through ten years 55,711 59,609 Due after ten years 27,369 28,630 Mortgage and asset-backed securities 57,719 58,795 $ 216,623 $ 223,986 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Net investment income summary Net investment income is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest income $ 1,678 $ 816 $ 4,140 $ 2,083 Dividend income 132 118 299 365 Investment expense (81) (69) (267) (237) Net investment income $ 1,729 $ 865 $ 4,172 $ 2,211 Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 38 $ 11 $ 135 $ 20 Gains on sales of equity securities — 18 64 421 Total realized gains 38 29 199 441 Realized losses: Losses on sales of fixed maturity securities (1) (102) (70) (257) Losses on sales of equity securities (21) (229) (174) (4,287) Total realized losses (22) (331) (244) (4,544) Net realized investment gains (losses) 16 (302) (45) (4,103) Net unrealized gains on equity securities 345 1,638 3,310 5,072 Net realized and unrealized gains on investments $ 361 $ 1,336 $ 3,265 $ 969 Proceeds from the sale of fixed maturity securities were $28.8 million and $32.4 million for the three months ended September 30, 2019 and September 30, 2018, respectively. Proceeds from the sale of fixed maturity securities were $88.1 million and $62.3 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. At September 30, 2019 and December 31, 2018, the carrying value of securities on deposit with state regulatory authorities was $5.1 million.	3. Investments The Company’s available‑for‑sale investments are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset‑backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset‑backed securities 27,284 133 (81) 27,336 Total available‑for‑sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,393 $ — $ (108) $ 13,285 States, territories, and possessions 3,188 10 (1) 3,197 Political subdivisions 4,118 — (51) 4,067 Special revenue excluding mortgage/asset‑backed securities 24,039 42 (167) 23,914 Industrial and miscellaneous 44,582 150 (201) 44,531 Mortgage/asset‑backed securities 12,981 2 (64) 12,919 Total fixed maturities 102,301 204 (592) 101,913 Equity securities 19,569 4,126 (109) 23,586 Total available‑for‑sale investments $ 121,870 $ 4,330 $ (701) $ 125,499 Security holdings in an unrealized loss position As of December 31, 2018, the Company held 173 fixed maturity securities in an unrealized loss position with a total estimated fair value of $73.8 million and total gross unrealized losses of $1.3 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. As of December 31, 2017, the Company held 125 fixed maturity securities in an unrealized loss position with a total estimated fair value of $80.2 million and total gross unrealized losses of $0.6 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. As of December 31, 2017, the Company held 16 equity securities in an unrealized loss position with a total estimated fair value of $2.8 million and total gross unrealized losses of $0.1 million. The aggregate fair value and gross unrealized losses of the Company’s investments aggregated by investment category and the length of time these individual securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017, are as follows: Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset‑backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset‑backed securities 6,653 (39) 3,830 (42) 10,483 (81) $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 11,426 $ (89) $ 1,858 $ (19) $ 13,284 $ (108) States, territories, and possessions 1,568 (1) — — 1,568 (1) Political subdivisions 2,996 (24) 1,071 (27) 4,067 (51) Special revenue excluding mortgage/asset‑backed securities 17,109 (129) 2,140 (38) 19,249 (167) Industrial and miscellaneous 23,914 (137) 4,463 (64) 28,377 (201) Mortgage/asset‑backed securities 7,588 (31) 3,298 (33) 10,886 (64) Total fixed maturity 64,601 (411) 12,830 (181) 77,431 (592) Equity securities 1,995 (57) 807 (52) 2,802 (109) $ 66,596 $ (468) $ 13,637 $ (233) $ 80,233 $ (701) The Company considers the following factors in determining whether declines in the fair value of investments are other‑than‑temporary: · The significance of the decline in fair value compared to the cost basis, · The time period during which there has been a significant decline in fair value, · Whether the unrealized loss is credit‑driven or a result of changes in market interest rates, · A fundamental analysis of the business prospects and financial condition of the issuer, · For fixed maturity securities, the Company’s intent to sell the securities as of each reporting date, · If the Company does not expect to recover the entire amortized cost basis or cost of the investment, · For equity securities, the general macro‑economic outlook for the underlying economy represented, and · For equity securities, the Company’s ability and intent to hold the investments for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s reviews as of December 31, 2018 and 2017, the Company determined that the fixed maturity securities’ unrealized losses were primarily the result of the interest rate environment and not the credit quality of the issuers. None of the fixed maturity securities were determined to be other‑than‑temporarily impaired. The company does not intend to sell the investments and it is not more likely than not that that the Company will be required to sell the investments before the recovery of their amortized cost basis. Therefore, none of the fixed maturity securities were written down during the respective years. Based on the Company’s reviews as of December 31, 2017, the Company determined that the unrealized losses of the equity securities lots were temporary due to the severity of the declines. The Company had the ability and intent to hold these investments until a recovery of fair value. Therefore, none of the equity securities were written down at December 31, 2017 and the remaining unrealized losses of equity securities at that time were recognized to retained earnings upon adoption of ASU 2016‑01 on January 1, 2018. See “Recent Accounting Pronouncements.” Contractual maturities of available‑for‑sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at December 31, 2018, by contractual maturity, are shown below. 2018 Amortized Fair Cost Value (in thousands) Due within one year $ 2,621 $ 2,614 Due after one year through five years 50,677 49,802 Due after five years through ten years 32,471 32,518 Due after ten years 9,896 9,950 Mortgage and asset‑backed securities 27,284 27,336 $ 122,949 $ 122,220 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Change in unrealized gains (losses) of investments The following table presents the change in available‑for‑sale gross unrealized gains or losses by investment type: Years Ended December 31, 2018 2017 2016 (in thousands) Change in net unrealized gains (losses) Fixed maturities $ (341) $ (6) $ (60) Equity securities — 2,232 2,269 Net (decrease) increase $ (341) $ 2,226 $ 2,209 Net investment income summary Net investment income is summarized as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Interest income $ 3,036 $ 1,916 $ 1,425 Dividend income 514 514 472 Less: investment expense (312) (305) (282) Net investment income $ 3,238 $ 2,125 $ 1,615 Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: Years Ended December 31, 2018 2017 2016 (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 19 $ 3 $ 56 Gains on sales of equity securities 4,287 802 592 Total realized gains 4,306 805 648 Realized losses: Losses on sales of fixed maturity securities (418) (48) — Losses on sales of equity securities (421) (149) (149) Total realized losses (839) (197) (149) Net realized investment gains 3,467 608 499 Net unrealized losses on equity securities (6,036) — — Net realized and unrealized (losses) gains on investments $ (2,569) $ 608 $ 499 The Company places securities on statutory deposit with certain state agencies to retain the right to do business in those states. These securities are included in available‑for‑sale investments on the balance sheet. At December 31, 2018 and 2017, the carrying value of securities on deposit with state regulatory authorities was $5.0 million and $5.0 million, respectively.

Fair value measurements_2

Fair value measurements	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair value measurements
Fair value measurements	3. Fair value measurements Fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. The three‑tier hierarchy of inputs is summarized in the three broad levels listed below: Level 1—Unadjusted quoted prices are available in active markets for identical investments as of the reporting date. Level 2—Pricing inputs are quoted prices for similar investments in active markets; quoted prices for identical or similar investments in inactive markets; or valuations based on models where the significant inputs are observable or can be corroborated by observable market data. Level 3—Pricing inputs into models are unobservable for the investment. The unobservable inputs require significant management judgment or estimation. To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. The fair values obtained from the outside investment managers are reviewed for reasonableness and any discrepancies are investigated for final valuation. The fair value of the Company’s investments in fixed maturity securities is estimated using relevant inputs, including available market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. An Option Adjusted Spread model is also used to develop prepayment and interest rate scenarios. Industry standard models are used to analyze and value securities with embedded options or prepayment sensitivities. These fair value measurements are estimated based on observable, objectively verifiable market information rather than market quotes; therefore, these investments are classified and disclosed in Level 2 of the hierarchy. The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,539 $ — $ 13,539 States, territories, and possessions — 2,469 — 2,469 Political subdivisions — 1,955 — 1,955 Special revenue excluding mortgage/asset-backed securities — 18,373 — 18,373 Industrial and miscellaneous — 128,855 — 128,855 Mortgage/asset-backed securities — 58,795 — 58,795 Equity securities 22,326 — — 22,326 Cash, cash equivalents, and restricted cash 16,902 — — 16,902 Total assets $ 39,228 $ 223,986 $ — $ 263,214 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset-backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset-backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long-term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 The carrying amounts of financial assets and liabilities reported in the accompanying condensed consolidated balance sheet including cash and cash equivalents, restricted cash, receivables, reinsurance recoverable, and accounts payable and other accrued liabilities approximate fair value due to their short term‑maturity. The fair value of the Company’s long‑term note payable was determined by calculating the present value of expected future cash flows under the terms of the note agreements discounted at an estimated market rate of interest at December 31, 2018. This is a level 3 measurement. The Company repaid its long term-notes payable in May 2019 and did not have any long-term debt at September 30, 2019. Transfers between levels result from changes in the availability of market observable inputs and are recorded at the beginning of the reporting period. There were no transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2019 or the three and nine months ended September 30, 2018 .	4. Fair value measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of December 31, 2018 and 2017: December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset‑backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset‑backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long‑term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,285 $ — $ 13,285 States, territories, and possessions — 3,197 — 3,197 Political subdivisions — 4,067 — 4,067 Special revenue excluding mortgage/asset‑backed securities — 23,914 — 23,914 Industrial and miscellaneous — 44,531 — 44,531 Mortgage/asset‑backed securities — 12,919 — 12,919 Equity securities 23,586 — — 23,586 Cash, cash equivalents, and restricted cash 10,932 — — 10,932 Total assets $ 34,518 $ 101,913 $ — $ 136,431 Liabilities: Long‑term notes payable $ — $ — $ 18,095 $ 18,095 Total liabilities $ — $ — $ 18,095 $ 18,095 The carrying amounts of financial assets and liabilities reported in the accompanying consolidated balance sheet including cash and cash equivalents, restricted cash, receivables, reinsurance recoverable, and accounts payable and other accrued liabilities approximate fair value due to their short term‑maturity. The fair value of the Company’s long‑term debt was determined by calculating the present value of expected future cash flows under the terms of the note agreements discounted at an estimated market rate of interest at December 31, 2018 and 2017, respectively. This is a level 3 measurement. Transfers between levels result from changes in the availability of market observable inputs and are recorded at the beginning of the reporting period. There were no transfers between Level 1, Level 2 or Level 3 during 2018 or 2017.

Reserve for Losses and Loss A_9

Reserve for Losses and Loss Adjustment Expenses	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reserve for Losses and Loss Adjustment Expenses
Reserve for Losses and Loss Adjustment Expenses	4. Reserve for Losses and Loss Adjustment Expenses 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, 2019 2018 2019 2018 (in thousands) (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,428 $ 3,159 $ 4,165 $ 4,432 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 2,647 5,258 3,660 8,445 Prior years (208) 116 (262) (1,402) Total incurred 2,439 5,374 3,398 7,043 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 641 392 1,044 1,656 Prior years 312 459 3,605 2,137 Total payments 953 851 4,649 3,793 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 2,914 7,682 2,914 7,682 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 14,052 10,950 14,052 10,950 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,966 $ 18,632 $ 16,966 $ 18,632 Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to stockholders’ equity. The Company experienced favorable development of $0.2 million in the three months ended September 30, 2019 and adverse development of $0.1 million in the three months ended September 30, 2018. Favorable development in the three months ended September 30, 2019 was primarily due to lower than anticipated frequency and severity of claims in the specialty homeowners line. Adverse development in the three months ended September 30, 2018 was primarily due to higher than anticipated frequency and severity of claims in the commercial all risk line related to the 2017 accident year. The Company experienced favorable development of $0.3 million and $1.4 million in the nine months ended September 30, 2019 and 2018, respectively. Favorable development for both periods was primarily due to lower than anticipated frequency and severity of claims in the specialty homeowners line.	7. Reserve for Losses and Loss Adjustment Expenses Loss and loss adjustment expenses reserves represent management’s best estimate of the ultimate cost of all reported and unreported losses incurred through December 31, 2018 and 2017. The Company does not discount loss and loss adjustment expense reserves. The reserves for unpaid losses and loss adjustment expenses are estimated using individual case‑basis valuations and statistical analyses. Those estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, management believes the reserves for losses and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any adjustments to estimates are recorded in the current period. The following table provides a reconciliation of the beginning and ending reserve balances for losses and LAE on a net of reinsurance basis to the gross amounts reported in the accompanying balance sheet: December 31, 2018 2017 2016 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 4,432 $ 3,336 $ 1,562 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 8,165 12,257 7,472 Prior year (1,891) (132) (180) Total incurred 6,274 12,125 7,292 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 4,409 8,986 4,824 Prior year 2,132 2,043 694 Total payments 6,541 11,029 5,518 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 4,165 4,432 3,336 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 11,896 13,352 1,442 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,061 $ 17,784 $ 4,778 Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to shareholder’s equity. The foregoing reconciliation shows loss and loss adjustment expense reserve redundancies of $1.9 million, $0.1 million, and $0.2 million developed in 2018, 2017 and 2016, respectively. This favorable reserve development was primarily in the Texas homeowners segment for all accident years presented. Expectations of ultimate losses from these periods have decreased due to lower than originally anticipated frequency and severity of claims. The Company compiles and aggregates its claims data by grouping the claims according to the year in which the claim occurred (Accident Year) when analyzing claim payment and emergence patterns and trends over time. For the purpose of defining claims frequency, the number of reported claims is by loss occurrence and includes claims that do not result in a liability or payment associated with them. The Company analyzed the usefulness of disaggregation of its results and determined the characteristics associated with the policies and the related unpaid loss reserves, incurred losses, and payment patterns are similar in nature. The Company separates its special property and other claim experience from its homeowner claim experience when analyzing losses and allocated loss adjustment expenses incurred and paid development and claim count triangles, as there are distinct differences in the development and claim count emergence patterns as well as methods of IBNR projection. The Special Property classification includes fire, allied lines, inland marine, and earthquake claims. As such, the following tables show the Company’s historical homeowner and special property incurred and cumulative paid losses and LAE development, net of reinsurance, as well as IBNR loss reserves and the number of reported claims on an aggregate basis as of December 31, 2018 for each of the previous two accident years. The information provided herein about incurred and paid accident year claims development for the years ended December 31, 2017 and prior is presented as unaudited supplementary information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 2,048 $ 1,785 $ 1,658 $ 1,636 $ 3 379 2016 6,069 5,878 5,721 4 1,080 2017 9,534 7,418 83 2,944 2018 2,193 249 668 Total $ 16,968 $ 339 5,071 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Homeowners’ Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 860 $ 1,379 $ 1,523 $ 1,615 2016 4,120 5,356 5,585 2017 7,135 7,375 2018 1,550 Total $ 16,125 Reserve for losses and loss adjustment expense, net of reinsurance $ 843 (1) Data presented for these calendar years is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Homeowners’ Insurance (unaudited) Year 1 Year 2 Year 3 Year 4 Payout percentage 72.85 % 18.86 % 6.41 % 5.61 % Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) As of December 31, 2018 Incurred but Cumulative Years Ended December 31, Not Reported Number of Accident Year 2015(1) 2016(1) 2017(1) 2018 Liabilities Claims 2015 $ 630 $ 719 $ 671 $ 671 $ 3 8 2016 1,381 1,249 1,251 2 50 2017 3,071 3,475 120 255 2018 5,970 158 336 Total $ 11,367 $ 283 649 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Special Property Insurance (in thousands) Years Ended December 31, Accident Year 2015(1) 2016(1) 2017(1) 2018 2015 $ 265 $ 438 $ 586 $ 626 2016 703 1,064 1,216 2017 1,967 3,344 2018 2,859 Total 8,045 Reserve for losses and loss adjustment expense, net of reinsurance 3,322 (1) Data presented for these calendar years is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Special Property Insurance (unaudited) Year 1 Year 2 Year 3 Year 4 Payout percentage 50.05 % 31.42 % 17.10 % 5.96 % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows: 2018 (in thousands) Net outstanding liabilities: Homeowners’ insurance $ 843 Special property 3,322 Reserve for losses and loss adjustment expense, net of reinsurance 4,165 Reinsurance recoverable on unpaid claims: Homeowners’ insurance $ 5,650 Special property 6,246 Total reinsurance recoverable on unpaid claims 11,896 Total reserve for losses and loss adjustment expenses $ 16,061

Long-term debt_2

Long-term debt	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Long-term debt
Long-term debt	5. Long-term debt Prior to September 2018, the Company had $17.5 million in outstanding surplus notes which had been issued by PSIC on February 3, 2015 for a term of seven years. The surplus notes bore interest at the rate of LIBOR plus 8.00% and had restrictions as to payments of interest and principal and any such payment required the prior approval of the Oregon Insurance Commissioners before such payment could be made. Such payments could only be made from surplus. In September 2018, the Company completed a private placement financing of $20.0 million floating rate senior secured notes (Floating Rate Notes). As part of the financing agreement, the Company immediately used surplus funds to pay down the existing $17.5 million in surplus notes. As part of this pre‑payment, the Company incurred a penalty of $0.1 million which, along with unamortized debt issuance costs of $0.4 million, was charged to income in September 2018. The Floating Rate Notes were redeemed pursuant to their terms on May 23, 2019, at a redemption price equal to 102% of the principal amount of the Floating Rate Notes, or $20.4 million (plus $0.3 million of accrued and unpaid interest thereon). The Company recognized a charge of $1.3 million upon redemption with $0.4 million due to the redemption premium and $0.9 million due to the write-off of unamortized debt issuance costs. The $0.4 million redemption premium was recognized as a component of interest expense and the $0.9 million issuance cost write-off was recognized as a component of other underwriting expenses in the Company's Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income (Loss). The Floating Rate Notes would have matured on September 6, 2028 and bore interest at the three‑month treasury rate plus 6.50% per annum. The Company incurred $0.6 million in interest expense related to the surplus notes for the three months ended September 30, 2018 (inclusive of a $0.1 million prepayment penalty) and paid $0.3 million. The Company incurred $1.1 million in interest expense related to the Floating Rate Notes for the nine months ended September 30, 2019 (inclusive of the $0.4 million redemption premium) and $1.4 million in interest expense related to the surplus notes for the nine months end September 30, 2018. The Company paid $1.2 million of interest for each period.	9. Long‑term debt Prior to September 2018, the Company had $17.5 million in outstanding surplus notes which had been issued by PSIC on February 3, 2015 for a term of seven years. The surplus notes bore interest at the rate of LIBOR plus 8.00% and had restrictions as to payments of interest and principal and any such payment required the prior approval of the Oregon Insurance Commissioners before such payment could be made. Such payments could only be made from surplus. In September 2018, the Company completed a private placement financing of $20.0 million floating rate senior secured notes (the “Floating Rate Notes”). As part of the financing agreement, the Company immediately used surplus funds to pay down the existing $17.5 million in surplus notes. As part of this pre‑payment, the Company incurred a penalty of $0.1 million which, along with unamortized debt issuance costs of $0.4 million, was charged to income in 2018. The Floating Rate Notes mature on September 6, 2028 and bear interest at the three‑month treasury rate plus 6.50% per annum. This rate resets quarterly and interest is payable quarterly in arrears on March 20, June 20, September 20 and December 20 of each year, commencing on December 20, 2018. Prior to September 6, 2019, Palomar Insurance Holdings, Inc. may redeem the Floating Rate Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Floating Rate Notes redeemed, plus a “make‑whole” premium and accrued and unpaid interest and additional interest, if any. After September 6, 2019, Palomar Insurance Holdings, Inc. may redeem the Floating Rate Notes at its option, in whole or in part, at certain redemption prices. If a change of control occurs, Palomar Insurance Holdings, Inc. must offer to purchase the Floating Rate Notes at 100% of their principal amount, plus accrued and unpaid interest. The Floating Rate Notes are fully and unconditionally guaranteed on a senior secured basis by a pledge of the capital stock owned by Palomar Holdings, Inc. of its equity interests in Palomar Insurance Holdings, Inc. Such security interest consists of a first‑priority lien with respect to the collateral. The Floating Rate Notes contain certain customary affirmative and negative covenants and events of default. The negative covenants limit Palomar Insurance Holdings, Inc.’s ability to, among other things, incur additional indebtedness, create liens on certain assets, pay dividends or prepay junior debt or make other restricted payments, make certain loans, acquisitions or investments, engage in transactions with affiliates, conduct asset sales, restrict dividends from subsidiaries or restrict liens, or merge, consolidate, sell or otherwise dispose of all or substantially all of Palomar Insurance Holdings, Inc.’s assets. The Company was in compliance with all debt covenants as of December 31, 2018. Approved interest incurred and paid through September 6, 2018 relating to the Surplus notes totaled $5.7 million of which $1.2 million, $1.6 million and $1.5 million was incurred and paid in each of 2018, 2017 and 2016, respectively. The Company had no unpaid and unapproved interest as of September 6, 2018, December 31, 2017 and 2016. The Company incurred $0.6 million in interest expense relating to the Floating Rate Notes for the year ended December 31, 2018 and paid $0.5 million in interest. The Company had $0.1 million of interest accrued at December 31, 2018

Income Taxes_2

Income Taxes	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Income Taxes
Income Taxes	6. Income Taxes Prior to March 2019, the Company was a Cayman Islands incorporated holding company with U.K. tax residency. On March 14, 2019, the Company implemented a domestication (the Domestication) pursuant to Section 388 of the Delaware General Corporation Law and Section 206 of the Companies Law (2018 Revision), as amended, of the Cayman Islands pursuant to which it became a Delaware corporation and no longer subject to the laws of the Cayman Islands. Historically, the Company’s Bermuda based subsidiary, PSRE, was not required to pay any taxes on its income or capital gains but was subject to a 1% U.S. federal excise tax on reinsurance premiums assumed. As a result of the Domestication, PSRE’s income is subject to U.S. federal income tax in 2019. Prior to 2019, the Company maintained a valuation allowance on the U.S. tax attributes due to significant negative evidence, including cumulative U.S. losses in the most recent three-year period and our assessment that the realization of the net deferred tax assets did not meet the "more likely than not" criteria under ASC 740, Income Taxes . Management assessed available positive and negative evidence to estimate whether sufficient future taxable income would be generated to permit use of the existing deferred tax assets. The projected reversal of temporary differences, the Domestication, and projected future operating income in the U.S. represents significant positive evidence, which outweighed the historical negative evidence. Based on this evidence, management determined it was more likely than not that the federal deferred tax assets are recoverable and therefore the associated valuation allowance was released as of March 31, 2019. State NOL carryforwards, due to the limited carryforward period, do not meet the “more likely than not” criteria and the Company will continue to maintain a valuation allowance on the associated deferred tax assets. The Company decreased the valuation allowance on the federal deferred tax assets by $1.7 million as a result of this analysis. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period change or if objective negative evidence in the form of cumulative losses is no longer present. The tax expense for the three months ended September 30, 2019 was in line with the expected tax computed at the statutory rate of 21%. For the nine months ended September 30, 2019 tax expense differs from the expected tax computed at the statutory tax rate of 21% primarily due to a U.S. tax benefit of $1.7 million for the reversal of a significant portion of our U.S. deferred tax valuation allowance offset by tax expense of $4.8 million from the addback related to the stock compensation charge recognized during the first quarter that is not deductible for tax purposes.	10. Income Taxes As of December 31, 2018 and 2017, the Company was a Cayman Islands incorporated holding company with U.K. tax residency. The Company’s Bermuda based subsidiary, PSRE, is not required to pay any taxes on its income or capital gains but is subject to a 1% U.S. federal excise tax on reinsurance premiums assumed. The Company’s U.S. domiciled affiliates (PIH, PSIC and PGIA) file a consolidated federal income tax return and combined or separate state returns as required by state law. The insurance company pays premium taxes on gross premiums written in lieu of some states’ income or franchise taxes. The components of the Company’s federal income tax expense (benefit) are as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Current $ (6) $ 11 $ — Deferred — 1,134 (337) Income tax expense (benefit) $ (6) $ 1,145 $ (337) As of December 31, 2018 and 2017, significant components of the Company’s deferred tax assets and liabilities were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Losses and LAE reserve discount $ 22 $ 22 Net operating losses 702 1,476 Investment amortization 119 119 Unearned premiums 1,914 2,469 Capitalized organizational costs 304 334 Unrealized losses on investments 505 — Other 306 457 Total deferred tax assets $ 3,872 $ 4,877 Deferred tax liabilities: Deferred acquisition costs $ (2,127) $ (3,184) Unrealized gains on investments — (734) Other (68) (12) Total deferred tax liabilities (2,195) (3,930) Net deferred tax asset before valuation allowance 1,677 947 Valuation allowance (1,677) (947) Total net deferred tax assets $ — $ — Management assessed available positive and negative evidence to estimate whether sufficient future taxable income would be generated to permit use of the existing deferred tax assets. The Company recorded a valuation allowance in 2017 due to a 3‑year cumulative loss and a large catastrophe event during 2017. The Company increased the valuation allowance by $0.7 million in 2018 due to an increase in net deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present. The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the tax years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 2016 ($ in thousands) Expense computed at federal tax rate $ 3,825 21.00 % $ 1,675 34.00 % $ 2,135 34.00 % Non‑U.S. group member income (4,409) (24.21) % (1,632) (33.12) % (2,093) (33.34) % Dividend received deduction and tax‑exempt interest (144) (0.79) % (467) (9.47) % (415) (6.61) % Impact of tax reform — — 580 11.76 % — — Valuation allowance 678 3.72 % 947 19.23 % — — Other 44 0.24 % 42 0.83 % 36 0.58 % Income tax expense (benefit) $ (6) (0.03) % $ 1,145 23.23 % $ (337) (5.37) % The Company has a federal net operating loss carryforward of $3.3 million at December 31, 2018. Unless utilized, the Company’s net operating loss carryforwards will begin to expire in 2034. On December 22, 2017, the President of the United States signed into law the Tax Act. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates from 35% to 21%, effective January 1, 2018. U.S. GAAP requires companies to recognize the effect of tax law changes in the period of enactment. We evaluated all available information and made reasonable estimates of the impact of tax reform to substantially all components of our net deferred tax assets as of December 31, 2017. We finalized our accounting for the Tax Act during 2018 with no significant impact to earnings or deferred taxes. As of December 31, 2018 and 2017, the Company had no uncertain tax positions that required either recognition or disclosure in the consolidated financial statements. This is not expected to change significantly during the next twelve months. The Company classifies interest and penalties, if any, related to the liability for unrecognized tax benefits as a component of the provision for income taxes. The Company’s income tax returns for 2014 through 2018 remain subject to examination by the tax authorities.

Capital Stock_2

Capital Stock	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Capital Stock
Capital Stock	7. Capital Stock As of September 30, 2019, the Company has 5,000,000 preferred shares authorized with a par value of $0.0001 and no preferred shares issued and outstanding. There were no preferred shares authorized as of December 31, 2018. As of September 30, 2019 and December 31, 2018, the Company has 500,000,000 common shares authorized and 23,468,750 and 17,000,000 common shares issued and outstanding, respectively, with a par value of $0.0001. Additional paid in capital is $179.6 million as of September 30, 2019 and $68.5 million as of December 31, 2018. Common stock reserved for future issuance consists of the following as of September 30, 2019: Stock options outstanding under 2019 Equity Incentive Plan 985,206 Restricted stock units outstanding under 2019 Equity Incentive Plan 6,066 Shares authorized for future issuance under 2019 Equity Incentive Plan 1,408,728 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 240,000 Total 2,640,000	11. Capital Stock The Company has 500,000,000 common shares authorized and 17,000,000 common shares issued and outstanding with a par value of $0.0001. Additional paid in capital is $68.5 million. The Company currently does not have any additional securities outstanding which could convert to common stock.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation The below table summarizes the Company’s stock-based compensation expense for each period presented: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Stock-Based Compensation $ 410 $ — $ 23,677 $ — Stock-based compensation expense is recognized on a straight-line basis over the vesting period of awards. The Company does not apply a forfeiture rate to unvested awards and accounts for forfeitures as they occur. All stock-based compensation is included in other underwriting expenses in the Company’s Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income. The Company recognized approximately $23.0 million of stock-based compensation expense in March 2019 relating to the modification of its 2014 Management Incentive Plan. The Company began recognizing stock-based compensation expense relating to its 2019 Equity Incentive Plan and the 2019 Employee Stock Purchase Plan upon their inception and initial stock grants in April 2019. All stock based compensation expense recognized during the three months ended September 30, 2019 relates to the 2019 Equity Incentive Plan and 2019 Employee Stock Purchase Plan. Management Incentive Plan prior to IPO The Company’s former parent, GC Palomar Investor LP, adopted a 2014 Management Incentive Plan (in the form of profits interests) on February 12, 2014 under which certain officers and employees of PSIC and its affiliates were entitled to Class P Units in GC Palomar Investor LP. Class P unit holders were expected to realize value only upon the occurrence of liquidity events meeting requisite financial thresholds after the Class A unit holders recovered their investment. The Class P unit holders had no voting rights. The Company did not record stock based compensation expense related to this plan prior to 2019 because no liquidity events were probable of occurring. On March 15, 2019, the Company modified its 2014 Management Incentive Plan by eliminating the requirement of a liquidity event to occur for the holders of its Class P units to realize value. The 12,552,825 Class P units outstanding were modified such that the vesting of each Class P unit holder’s awards was accelerated and their Class P distribution percentages were determined and distributed based on these percentages. This modification resulted in a stock compensation charge and corresponding increase to additional paid‑in capital of $23.0 million during the quarter ending March 31, 2019. The stock compensation charge is included in other underwriting expenses in the Company’s Unaudited Condensed Consolidated Statement of Income (Loss) and Comprehensive Income. 2019 Equity Incentive Plan On April 16, 2019, the Company's 2019 Equity Incentive Plan (the 2019 Plan) became effective. The 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance shares and units, and other cash-based or share-based awards. In addition, the 2019 Plan contains a mechanism through which the Company may adopt a deferred compensation arrangement in the future. A total of 2,400,000 shares of common stock are initially authorized and reserved for issuance under the 2019 Plan. This reserve will automatically increase on January 1, 2020 and each subsequent anniversary through 2029, by an amount equal to the smaller of: 3% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or an amount determined by the board of directors. Stock Options Recipients of stock options can purchase shares of the Company’s common stock at a price equal to the stock's fair market value on the grant date, determined by the closing price of the Company's stock on the grant date. Stock options vest over a two or four year period with 25% or 50% vesting on the first anniversary of the grant date and the remainder vesting monthly over the remaining period, subject to continued employment. Stock options expire ten years after the grant date. The following table summarizes stock option transactions for the 2019 Plan for the nine months ended September 30, 2019: Number of shares Weighted-average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2018 — $ — Options granted 994,966 15.06 Options exercised — — Options canceled (9,760) 15.00 Outstanding at September 30, 2019 985,206 $ $ 24,002 Vested and Exercisable at September 30, 2019 — $ — — $ — As of September 30, 2019, the Company had approximately $2.9 million of total unrecognized stock-based compensation expense related to stock options expected to be recognized over a weighted-average period of 2.43 years. The fair value of each option granted was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: Risk free rate of return (1) 2.28% - 2.45% Expected share price volatility (2) 18.40% - 18.45% Expected life in years (3) 5.64 - 6.08 years Dividend yield (4) (1) Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options. (2) Determined based on analysis of the volatility of a peer group of publicly traded companies. (3) Determined using the “simplified method” for estimating the expected option life, which is the average of the weighted-average vesting period and contractual term of the option as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its common stock has been publicly traded. (4) Determined to be zero as the Company has not historically issued dividends. Restricted Stock Units Restricted stock units are valued on their date of grant and will vest on the first anniversary of the grant date. The fair value of restricted stock units is determined by the closing price of the Company's stock on the grant date. The following table summarizes restricted stock unit transactions for the 2019 Plan for the nine months ended September 30, 2019: Number of shares Weighted-average grant date fair value Non vested outstanding at December 31, 2018 — $ — Granted 6,066 $ 16.49 Vested — $ — Forfeited — $ — Non vested outstanding at September 30, 2019 6,066 $ 16.49 As of September 30, 2019, the Company had approximately $0.1 million of total unrecognized stock-based compensation expense related to restricted stock units expected to be recognized over a weighted-average period of 0.56 years. 2019 Employee Stock Purchase Plan On April 16, 2019, the Company's 2019 Employee Stock Purchase Plan (the 2019 ESPP) became effective. A total of 240,000 shares of common stock are initially authorized and reserved for issuance under the 2019 ESPP. In addition, the 2019 ESPP provides for annual increases in the number of shares available for issuance on January 1, 2020 and each subsequent anniversary through 2029, equal to the smaller of 240,000 shares of the Company’s common stock or such other amount as may be determined by the board of directors. Under the 2019 ESPP purchases of common stock occur through employee participation in discrete offering periods. In each discrete offering period, employee funds are withheld and stock purchases occur upon the conclusion of the offering period. The first discrete offering period has not concluded as of September 30, 2019 and the Company did not issue any shares of common stock pursuant to the 2019 ESPP during the nine months ended September 30, 2019.	17. Management Incentive Plan The Company’s former parent, GC Palomar Investor LP, adopted a 2014 Management Incentive Plan (in the form of profits interests) on February 12, 2014 under which certain officers and employees of PSIC and its affiliates are entitled to Class P Units in GC Palomar Investor LP. Class P unit holders are expected to realize value only upon the occurrence of liquidity events meeting requisite financial thresholds after the Class A unit holders have recovered their investment. The Class P unit holders have no voting rights. The Company did not record stock based compensation expense related to this plan for the years ended December 31, 2018, 2017 or 2016 because no liquidity events were probable of occurring. Class P units outstanding at December 31, 2018 and 2017 were 12,552,825 units and 12,432,825 units, respectively.

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	9. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (AOCI) are as follows: Nine Months Ended September 30, 2019 2018 (in thousands) Balance as of January 1 $ (563) $ 2,993 Effect of equity accounting guidance adoption — (3,215) Beginning Balance (563) (222) Other comprehensive income (loss) before reclassification 8,090 (1,544) Federal income tax (expense) benefit (1,666) 47 Other comprehensive income (loss) before reclassification, net of tax 6,424 (1,497) Amounts reclassified from AOCI 44 245 Federal income tax expense (9) (47) Amounts reclassified from AOCI, net of tax 35 198 Other comprehensive income (loss) 6,459 (1,299) Balance at end of period $ 5,896 $ (1,521)	15. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (AOCI) are as follows: December 31, 2018 2017 2016 (in thousands) Balance as of January 1 $ 2,993 $ 1,017 $ (459) Effect of equity accounting guidance adoption (3,215) — — Beginning Balance (222) 1,017 (459) Other comprehensive (loss) income before reclassification (740) 2,834 2,708 Federal income (taxes) benefit 76 (772) (899) Other comprehensive (loss) income before reclassification, net of tax (664) 2,062 1,809 Amounts reclassified from AOCI 399 (608) (499) Federal income (taxes) benefit (76) 68 166 Amounts reclassified from AOCI, net of tax 323 (540) (333) Other comprehensive (loss) income (341) 1,522 1,476 Effect of new tax rates from Tax Reform — 454 — Balance as of December 31 $ (563) $ 2,993 $ 1,017

Earnings Per Share

Earnings Per Share	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Earnings Per Share
Earnings Per Share	10. Earnings Per Share The following table sets out earnings per share of common stock: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) $ 7,454 $ 1,566 $ (258) $ 14,092 Weighted average common shares outstanding: Basic 23,468,750 17,000,000 20,838,599 17,000,000 Common Share equivalents 416,387 — — — Diluted 23,885,137 17,000,000 20,838,599 17,000,000 Earnings per share: Basic $ 0.32 $ 0.09 $ (0.01) $ 0.83 Diluted $ 0.31 $ 0.09 $ (0.01) $ 0.83 Common share equivalents relate primarily to outstanding shares under the 2019 Plan and unpurchased shares under the 2019 ESPP. For the nine months ended September 30, 2019, there were 196,741 common share equivalents excluded from the calculation of diluted earnings per share as their effects were anti-dilutive.	18. Net Income Per Share The following table sets forth the computation of net income per share of common stock: Years Ended December 31, 2018 2017 2016 (in thousands, except shares and per share data) Net Income $ 18,219 $ 3,783 $ 6,614 Weighted average shares used in computing net income per share 17,000,000 17,000,000 17,000,000 Net Income per share, basic and diluted $ 1.07 $ 0.22 $ 0.39

Cash Distribution

Cash Distribution	9 Months Ended
	Sep. 30, 2019
Cash Distribution
Cash Distribution	11. Cash Distribution In March 2019, the Company made a one‑time cash distribution totaling approximately $5.1 million to its then‑sole stockholder, GC Palomar Investor LP, enabling it to distribute funds to its partners, including Genstar Capital, in order to allow such partners to satisfy tax obligations incurred as a result of the Domestication transactions.

Underwriting Information_2

Underwriting Information	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Underwriting Information
Underwriting Information	12. Underwriting information The Company has a single reportable segment and offers primarily earthquake, wind, and flood insurance products. Gross written premiums (GWP) by product are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Residential Earthquake $ 35,711 53.9 % $ 21,483 % $ 95,005 53.2 % $ 58,106 % Specialty Homeowners 8,572 12.9 % 7,116 % 24,994 14.0 % 21,331 % Commercial Earthquake 8,402 12.7 % 4,856 % 23,020 12.9 % 14,936 % Commercial All Risk 7,077 10.7 % 3,392 % 21,929 12.3 % 9,442 % Hawaii Hurricane 3,299 5.0 % 2,614 % 8,048 4.5 % 6,130 % Flood 1,450 2.2 % 533 % 3,494 2.0 % 1,403 % Other 1,731 2.6 % — — % 2,129 1.1 % — — % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 % Gross written premiums by state are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 36,789 55.5 % $ 20,785 % $ 99,543 55.7 % $ 58,211 % Texas 11,239 17.0 % 8,318 % 32,678 18.3 % 24,164 % Hawaii 3,675 5.5 % 2,614 % 8,688 4.9 % 6,130 % Washington 2,910 4.4 % 1,731 % 6,430 3.6 % 3,798 % Oregon 2,153 3.3 % 1,506 % 5,279 3.0 % 3,901 % Mississippi 1,315 2.0 % 629 % 3,383 1.9 % 1,766 % Illinois 1,269 1.9 % 1,104 % 3,524 2.0 % 3,285 % South Carolina 1,258 1.9 % 690 % 4,614 2.5 % 2,336 % Other 5,634 8.5 % 2,617 % 14,480 8.1 % 7,757 % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 %	19. Underwriting Information The Company has a single reportable segment and offers primarily earthquake, wind, and flood insurance products. Gross written premiums (GWP) by product are presented below: Years ended December 31, 2018 2017 2016 ($ in thousands) Amount % of GWP Amount % of GWP Amount % of GWP Product Residential Earthquake $ 81,679 52.7 % $ 57,328 47.7 % $ 32,662 39.7 % Specialty Homeowners 27,680 17.9 % 26,516 22.0 % 24,389 29.6 % Commercial Earthquake 20,946 13.5 % 23,079 19.2 % 20,580 25.0 % Commercial All Risk 14,338 9.3 % 7,321 6.1 % 1,784 2.2 % Hawaii Hurricane 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Flood 2,120 1.4 % 667 0.6 % — — Total Gross Written Premium $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % Gross Written premiums by state are as follows: Years ended December 31, 2018 2017 2016 Amount % of GWP Amount % of GWP Amount % GWP ($ in thousands) State California $ 82,119 53.0 % $ 64,231 53.4 % $ 44,999 54.7 % Texas 32,568 21.0 % 29,273 24.4 % 25,286 30.7 % Hawaii 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Illinois 4,403 2.8 % 4,854 4.0 % 332 0.4 % Oregon 5,286 3.4 % 4,250 3.6 % 3,278 4.0 % Washington 5,658 3.7 % 2,803 2.3 % 1,513 1.8 % South Carolina 3,208 2.1 % 1,706 1.4 % 674 0.8 % Oklahoma 1,261 0.8 % 1,302 1.1 % 1,030 1.3 % All Other States 12,260 8.0 % 6,492 5.4 % 2,303 2.8 % $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % The Company distributes a significant portion of its Residential Earthquake, Commercial Earthquake, Specialty Homeowners and Hawaii Hurricane products through longstanding relationships with two program administrators. Each of the four products managed by the program administrators operates as a separate program that is governed by an independent, separately negotiated agreement with unique terms and conditions, including geographic scope, key men provisions, economics and exclusivity. These programs also feature separate managerial oversight and leadership, policy administration systems and retail agents originating policies. In total, these four programs accounted for $104.9 million or 67.7% of the Company’s gross written premiums for the year ended December 31, 2018, $85.8 million or 71.3% of the Company’s gross written premiums for the year ended December 31, 2017, and $62.9 million or 76.5% of the Company’s gross written premiums for the year ended December 31, 2016.

Significant Accounting Polici_4

Significant Accounting Policies (Policies)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Significant Accounting Policies
Summary of Operations	Summary of Operations Palomar Holdings, Inc. (the Company) is an insurance holding company that was incorporated in Delaware on March 14, 2019. Prior to incorporation in Delaware, the Company was known as GC Palomar Holdings (GCPH), which was a Cayman Islands incorporated insurance holding company formed on October 4, 2013 when GC Palomar Investor LP (GCPI) acquired control of GCPH. The Company and its wholly owned subsidiaries include Palomar Specialty Reinsurance Company (PSRE) and Palomar Insurance Holdings, Inc. (PIH), which wholly owns Palomar Specialty Insurance Company (PSIC) and Prospect General Insurance Agency, Inc. (PGIA).
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of the Company and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Stock Split	Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented.	Stock Split On March 15, 2019, the Company effected a 17,000,000 for one forward stock split in conjunction with domestication in the United States. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the stock split for the Company’s common stock for all periods presented.
Initial Public Offering (IPO)	Initial Public Offering (IPO) On April 22, 2019, the Company completed its IPO with the sale of 6,468,750 shares of common stock at a price to the public of $15.00 per share, including 843,750 shares sold upon the exercise in full of the underwriter’s option to purchase additional shares. After underwriter discounts and commissions and offering expenses, net proceeds from the IPO were approximately $87.4 million.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.	Use of Estimates The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. All revisions to accounting estimates are recognized in the period in which the estimates are revised. Significant estimates reflected in the Company’s consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses, reinsurance recoverables on unpaid losses, and the fair values of investments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligations. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, and because the Company is filing as an emerging growth company, the standard became effective for the Company January 1, 2019. However, the Company is not required to present the impacts of the standard until it files its annual report on Form 10-K for the fiscal year ended December 31, 2019. The Company expects to adopt this standard using the modified retrospective method. The Company does not expect adoption to have a material impact on its consolidated financial statements, but will continue to assess the potential impact of adoption throughout 2019. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is currently effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. However, the FASB has recently voted to defer the effective date of this update by one year. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. In 2019, the FASB issued amendments to this guidance which provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance. This update and its amendments will be effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its condensed consolidated financial statements.	Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non‑emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. Recently adopted accounting pronouncements In January 2016, the FASB issued “ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities .” Among other things, this new guidance requires the Company’s equity investments to be measured at fair value with changes in fair value recognized in net income. Under the current guidance, equity investments are measured at fair value with changes in fair value recognized in accumulated other comprehensive income as a component of shareholder’s equity. The Company adopted this guidance on January 1, 2018 and began recognizing changes in fair value of equity securities into net income. Upon adoption, the Company made a $3.2 million cumulative‑effect adjustment to increase retained earnings and decrease accumulated other comprehensive income. In the future, this guidance will impact the Company’s results of operations, as changes in fair value of equity investments will impact net income rather than other comprehensive income. The future impact will vary depending on the volatility of the overall equity market and the amount the Company decides to invest in equity securities. In August 2016, the FASB issued “ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” , in order to reduce diversity in the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued new accounting guidance related to revenue recognition, “ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) .” The guidance applies to all companies that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards, such as insurance contracts. Under this guidance, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This standard will be effective for annual and interim reporting periods beginning after December 15, 2018 and may be adopted earlier. Currently, provisions of this guidance may apply to the Company’s commissions and fee income, however, the Company does not expect adoption to have a material impact on its consolidated financial statements. In February 2016, the FASB issued new guidance for accounting for leases, “ASU 2016‑02, Leases (Topic 842) .” Under current guidance, leases are only included on the balance sheet if the criteria to classify the agreement as a capital lease are met. This update will require the recognition of a right‑of‑use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. This guidance was subsequently amended multiple times and offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance requires a modified retrospective adoption, applying the new standard to all leases existing at the date of initial application, with early adoption permitted. An entity may choose to use the standard’s effective date, rather than the beginning of the earliest comparative period presented, as the date of initial application. An entity would record the effects of initially applying the new guidance as a cumulative‑effect adjustment to retained earnings. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with the current guidance, including the current disclosure requirements. To facilitate transition, the new guidance includes a package of practical expedients that entities may elect to apply on adoption. The package of practical expedients relates to the identification and classification of leases that commenced before the effective date and initial direct costs for leases that commenced before the effective date. The new guidance also includes a practical expedient permitting the use of hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. This update is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 31, 2020 with early adoption permitted. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In June 2016, the FASB issued “ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” Current guidance delays the recognition of credit losses until it is probable a loss has been incurred. This updated guidance will require financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available‑for‑sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which fair value is below amortized cost. This update will be effective for annual reporting periods beginning after December 15, 2020 and interim reporting periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, but not before annual reporting periods beginning on or after December 15, 2018. The Company is currently evaluating the impact that this updated guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . Among other things, this new guidance eliminates the need to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, changes the policy for timing of transfers and the valuation processes for Level 3 fair value measurements and includes requirements to disclose quantitative information about Level 3 measurements. This new guidance will be effective for annual and interim reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact that this new guidance will have on its consolidated financial statements. In August 2018, the FASB issued “ASU 2018‑15, Intangibles—Goodwill and Other—Internal‑Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018‑15 requires a customer in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal‑use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. Relevant implementation costs in the development stage are capitalized, while costs incurred during the preliminary project and post‑implementation stages are expensed as the activities are performed. Capitalized costs are expensed over the term of the hosting arrangement. This ASU is effective for annual and interim reporting periods beginning after December 15, 2020. Early adoption is permitted. This update can either be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company retrospectively adopted this guidance for the year ended December 31, 2018. As this guidance is in line with current accounting for fees paid in a cloud computing arrangement that is a service contract, the adoption of this update had no impact on the Company’s consolidated financial statements.

Investments (Tables)_2

Investments (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Schedule of available-for-sale investments	Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,085 $ 461 $ (7) $ 13,539 States, territories, and possessions 2,300 169 — 2,469 Political subdivisions 1,922 33 — 1,955 Special revenue excluding mortgage/asset-backed securities 17,762 614 (3) 18,373 Industrial and miscellaneous 123,835 5,051 (31) 128,855 Mortgage/asset-backed securities 57,719 1,090 (14) 58,795 Total available-for-sale investments $ 216,623 $ 7,418 $ (55) $ 223,986 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset-backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset-backed securities 27,284 133 (81) 27,336 Total available-for-sale investments $ 122,949 $ 536 $ (1,265) $ 122,220	Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 15,299 $ 96 $ (126) $ 15,269 States, territories, and possessions 1,227 — (6) 1,221 Political subdivisions 825 — (10) 815 Special revenue excluding mortgage/asset‑backed securities 12,429 115 (91) 12,453 Industrial and miscellaneous 65,885 192 (951) 65,126 Mortgage/asset‑backed securities 27,284 133 (81) 27,336 Total available‑for‑sale investments $ 122,949 $ 536 $ (1,265) $ 122,220 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost or Cost Gains Losses Value (in thousands) Fixed maturities: U.S. Governments $ 13,393 $ — $ (108) $ 13,285 States, territories, and possessions 3,188 10 (1) 3,197 Political subdivisions 4,118 — (51) 4,067 Special revenue excluding mortgage/asset‑backed securities 24,039 42 (167) 23,914 Industrial and miscellaneous 44,582 150 (201) 44,531 Mortgage/asset‑backed securities 12,981 2 (64) 12,919 Total fixed maturities 102,301 204 (592) 101,913 Equity securities 19,569 4,126 (109) 23,586 Total available‑for‑sale investments $ 121,870 $ 4,330 $ (701) $ 125,499
Schedule of aggregate fair value and gross unrealized losses	Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments 1,485 — $ 1,824 $ (7) $ 3,309 $ (7) States, territories, and possessions — — — — — — Political subdivisions 546 — — — 546 — Special revenue excluding mortgage/asset-backed securities 569 (1) 997 (2) 1,566 (3) Industrial and miscellaneous 3,936 (22) 3,457 (9) 7,393 (31) Mortgage/asset-backed securities 5,261 (13) 263 (1) 5,524 (14) Total $ 11,797 $ (36) $ 6,541 $ (19) $ 18,338 $ (55) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset-backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset-backed securities 6,653 (39) 3,830 (42) 10,483 (81) Total $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265)	Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2018 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 1,970 $ (25) $ 6,197 $ (101) $ 8,167 $ (126) States, territories, and possessions 719 (5) 501 (1) 1,220 (6) Political subdivisions 264 (1) 550 (9) 814 (10) Special revenue excluding mortgage/asset‑backed securities 1,706 (14) 5,916 (77) 7,622 (91) Industrial and miscellaneous 30,544 (556) 14,913 (395) 45,457 (951) Mortgage/asset‑backed securities 6,653 (39) 3,830 (42) 10,483 (81) $ 41,856 $ (640) $ 31,907 $ (625) $ 73,763 $ (1,265) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 11,426 $ (89) $ 1,858 $ (19) $ 13,284 $ (108) States, territories, and possessions 1,568 (1) — — 1,568 (1) Political subdivisions 2,996 (24) 1,071 (27) 4,067 (51) Special revenue excluding mortgage/asset‑backed securities 17,109 (129) 2,140 (38) 19,249 (167) Industrial and miscellaneous 23,914 (137) 4,463 (64) 28,377 (201) Mortgage/asset‑backed securities 7,588 (31) 3,298 (33) 10,886 (64) Total fixed maturity 64,601 (411) 12,830 (181) 77,431 (592) Equity securities 1,995 (57) 807 (52) 2,802 (109) $ 66,596 $ (468) $ 13,637 $ (233) $ 80,233 $ (701)
Schedule of contractual maturities of available-for-sale securities	Amortized Fair Cost Value (in thousands) Due within one year $ 7,098 $ 7,099 Due after one year through five years 68,726 69,853 Due after five years through ten years 55,711 59,609 Due after ten years 27,369 28,630 Mortgage and asset-backed securities 57,719 58,795 $ 216,623 $ 223,986	2018 Amortized Fair Cost Value (in thousands) Due within one year $ 2,621 $ 2,614 Due after one year through five years 50,677 49,802 Due after five years through ten years 32,471 32,518 Due after ten years 9,896 9,950 Mortgage and asset‑backed securities 27,284 27,336 $ 122,949 $ 122,220
Schedule of net investment income	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Interest income $ 1,678 $ 816 $ 4,140 $ 2,083 Dividend income 132 118 299 365 Investment expense (81) (69) (267) (237) Net investment income $ 1,729 $ 865 $ 4,172 $ 2,211	Years Ended December 31, 2018 2017 2016 (in thousands) Interest income $ 3,036 $ 1,916 $ 1,425 Dividend income 514 514 472 Less: investment expense (312) (305) (282) Net investment income $ 3,238 $ 2,125 $ 1,615
Schedule of net realized and unrealized investment gains and losses	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 38 $ 11 $ 135 $ 20 Gains on sales of equity securities — 18 64 421 Total realized gains 38 29 199 441 Realized losses: Losses on sales of fixed maturity securities (1) (102) (70) (257) Losses on sales of equity securities (21) (229) (174) (4,287) Total realized losses (22) (331) (244) (4,544) Net realized investment gains (losses) 16 (302) (45) (4,103) Net unrealized gains on equity securities 345 1,638 3,310 5,072 Net realized and unrealized gains on investments $ 361 $ 1,336 $ 3,265 $ 969	Years Ended December 31, 2018 2017 2016 (in thousands) Realized gains: Gains on sales of fixed maturity securities $ 19 $ 3 $ 56 Gains on sales of equity securities 4,287 802 592 Total realized gains 4,306 805 648 Realized losses: Losses on sales of fixed maturity securities (418) (48) — Losses on sales of equity securities (421) (149) (149) Total realized losses (839) (197) (149) Net realized investment gains 3,467 608 499 Net unrealized losses on equity securities (6,036) — — Net realized and unrealized (losses) gains on investments $ (2,569) $ 608 $ 499

Fair value measurements (Tabl_2

Fair value measurements (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair value measurements
Schedule of fair value hierarchy for financial assets and liabilities	September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,539 $ — $ 13,539 States, territories, and possessions — 2,469 — 2,469 Political subdivisions — 1,955 — 1,955 Special revenue excluding mortgage/asset-backed securities — 18,373 — 18,373 Industrial and miscellaneous — 128,855 — 128,855 Mortgage/asset-backed securities — 58,795 — 58,795 Equity securities 22,326 — — 22,326 Cash, cash equivalents, and restricted cash 16,902 — — 16,902 Total assets $ 39,228 $ 223,986 $ — $ 263,214 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset-backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset-backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long-term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000	December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 15,269 $ — $ 15,269 States, territories, and possessions — 1,221 — 1,221 Political subdivisions — 815 — 815 Special revenue excluding mortgage/asset‑backed securities — 12,453 — 12,453 Industrial and miscellaneous — 65,126 — 65,126 Mortgage/asset‑backed securities — 27,336 — 27,336 Equity securities 25,171 — — 25,171 Cash, cash equivalents, and restricted cash 9,924 — — 9,924 Total assets $ 35,095 $ 122,220 $ — $ 157,315 Liabilities: Long‑term notes payable $ — $ — $ 20,000 $ 20,000 Total liabilities $ — $ — $ 20,000 $ 20,000 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 13,285 $ — $ 13,285 States, territories, and possessions — 3,197 — 3,197 Political subdivisions — 4,067 — 4,067 Special revenue excluding mortgage/asset‑backed securities — 23,914 — 23,914 Industrial and miscellaneous — 44,531 — 44,531 Mortgage/asset‑backed securities — 12,919 — 12,919 Equity securities 23,586 — — 23,586 Cash, cash equivalents, and restricted cash 10,932 — — 10,932 Total assets $ 34,518 $ 101,913 $ — $ 136,431 Liabilities: Long‑term notes payable $ — $ — $ 18,095 $ 18,095 Total liabilities $ — $ — $ 18,095 $ 18,095

Reserve for Losses and Loss _10

Reserve for Losses and Loss Adjustment Expenses (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reserve for Losses and Loss Adjustment Expenses
Schedule of reconciliation of the beginning and ending reserve balances for losses and LAE on a net of reinsurance basis to the gross amounts	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,428 $ 3,159 $ 4,165 $ 4,432 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 2,647 5,258 3,660 8,445 Prior years (208) 116 (262) (1,402) Total incurred 2,439 5,374 3,398 7,043 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 641 392 1,044 1,656 Prior years 312 459 3,605 2,137 Total payments 953 851 4,649 3,793 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 2,914 7,682 2,914 7,682 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 14,052 10,950 14,052 10,950 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,966 $ 18,632 $ 16,966 $ 18,632	December 31, 2018 2017 2016 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 4,432 $ 3,336 $ 1,562 Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to: Current year 8,165 12,257 7,472 Prior year (1,891) (132) (180) Total incurred 6,274 12,125 7,292 Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to: Current year 4,409 8,986 4,824 Prior year 2,132 2,043 694 Total payments 6,541 11,029 5,518 Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period 4,165 4,432 3,336 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 11,896 13,352 1,442 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 16,061 $ 17,784 $ 4,778

Capital Stock (Tables)

Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2019
Capital Stock
Schedule of common stock reserved for future issuance	Stock options outstanding under 2019 Equity Incentive Plan 985,206 Restricted stock units outstanding under 2019 Equity Incentive Plan 6,066 Shares authorized for future issuance under 2019 Equity Incentive Plan 1,408,728 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 240,000 Total 2,640,000

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Stock-Based Compensation
Schedule of Company's stock-based compensation expense	Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Stock-Based Compensation $ 410 $ — $ 23,677 $ —
Schedule of stock option transactions	Number of shares Weighted-average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2018 — $ — Options granted 994,966 15.06 Options exercised — — Options canceled (9,760) 15.00 Outstanding at September 30, 2019 985,206 $ $ 24,002 Vested and Exercisable at September 30, 2019 — $ — — $ —
Schedule of fair value of each option granted was estimated on the grant date using the Black-Scholes option pricing model	Risk free rate of return (1) 2.28% - 2.45% Expected share price volatility (2) 18.40% - 18.45% Expected life in years (3) 5.64 - 6.08 years Dividend yield (4) (1) Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options. (2) Determined based on analysis of the volatility of a peer group of publicly traded companies. (3) Determined using the “simplified method” for estimating the expected option life, which is the average of the weighted-average vesting period and contractual term of the option as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its common stock has been publicly traded. (4) Determined to be zero as the Company has not historically issued dividends.
Schedule of restricted stock unit transactions	Number of shares Weighted-average grant date fair value Non vested outstanding at December 31, 2018 — $ — Granted 6,066 $ 16.49 Vested — $ — Forfeited — $ — Non vested outstanding at September 30, 2019 6,066 $ 16.49

Accumulated Other Comprehensi_5

Accumulated Other Comprehensive Income (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (AOCI)	Nine Months Ended September 30, 2019 2018 (in thousands) Balance as of January 1 $ (563) $ 2,993 Effect of equity accounting guidance adoption — (3,215) Beginning Balance (563) (222) Other comprehensive income (loss) before reclassification 8,090 (1,544) Federal income tax (expense) benefit (1,666) 47 Other comprehensive income (loss) before reclassification, net of tax 6,424 (1,497) Amounts reclassified from AOCI 44 245 Federal income tax expense (9) (47) Amounts reclassified from AOCI, net of tax 35 198 Other comprehensive income (loss) 6,459 (1,299) Balance at end of period $ 5,896 $ (1,521)	December 31, 2018 2017 2016 (in thousands) Balance as of January 1 $ 2,993 $ 1,017 $ (459) Effect of equity accounting guidance adoption (3,215) — — Beginning Balance (222) 1,017 (459) Other comprehensive (loss) income before reclassification (740) 2,834 2,708 Federal income (taxes) benefit 76 (772) (899) Other comprehensive (loss) income before reclassification, net of tax (664) 2,062 1,809 Amounts reclassified from AOCI 399 (608) (499) Federal income (taxes) benefit (76) 68 166 Amounts reclassified from AOCI, net of tax 323 (540) (333) Other comprehensive (loss) income (341) 1,522 1,476 Effect of new tax rates from Tax Reform — 454 — Balance as of December 31 $ (563) $ 2,993 $ 1,017

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Earnings Per Share
Schedule of net income per share of common stock	Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) $ 7,454 $ 1,566 $ (258) $ 14,092 Weighted average common shares outstanding: Basic 23,468,750 17,000,000 20,838,599 17,000,000 Common Share equivalents 416,387 — — — Diluted 23,885,137 17,000,000 20,838,599 17,000,000 Earnings per share: Basic $ 0.32 $ 0.09 $ (0.01) $ 0.83 Diluted $ 0.31 $ 0.09 $ (0.01) $ 0.83	Years Ended December 31, 2018 2017 2016 (in thousands, except shares and per share data) Net Income $ 18,219 $ 3,783 $ 6,614 Weighted average shares used in computing net income per share 17,000,000 17,000,000 17,000,000 Net Income per share, basic and diluted $ 1.07 $ 0.22 $ 0.39

Underwriting Information (Tab_2

Underwriting Information (Tables)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Underwriting Information
Schedule of gross written premiums	Gross written premiums (GWP) by product are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Residential Earthquake $ 35,711 53.9 % $ 21,483 % $ 95,005 53.2 % $ 58,106 % Specialty Homeowners 8,572 12.9 % 7,116 % 24,994 14.0 % 21,331 % Commercial Earthquake 8,402 12.7 % 4,856 % 23,020 12.9 % 14,936 % Commercial All Risk 7,077 10.7 % 3,392 % 21,929 12.3 % 9,442 % Hawaii Hurricane 3,299 5.0 % 2,614 % 8,048 4.5 % 6,130 % Flood 1,450 2.2 % 533 % 3,494 2.0 % 1,403 % Other 1,731 2.6 % — — % 2,129 1.1 % — — % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 % Gross written premiums by state are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 36,789 55.5 % $ 20,785 % $ 99,543 55.7 % $ 58,211 % Texas 11,239 17.0 % 8,318 % 32,678 18.3 % 24,164 % Hawaii 3,675 5.5 % 2,614 % 8,688 4.9 % 6,130 % Washington 2,910 4.4 % 1,731 % 6,430 3.6 % 3,798 % Oregon 2,153 3.3 % 1,506 % 5,279 3.0 % 3,901 % Mississippi 1,315 2.0 % 629 % 3,383 1.9 % 1,766 % Illinois 1,269 1.9 % 1,104 % 3,524 2.0 % 3,285 % South Carolina 1,258 1.9 % 690 % 4,614 2.5 % 2,336 % Other 5,634 8.5 % 2,617 % 14,480 8.1 % 7,757 % Total Gross Written Premiums $ 66,242 100.0 % $ 39,994 % $ 178,619 100.0 % $ 111,348 %	Gross written premiums (GWP) by product are presented below: Years ended December 31, 2018 2017 2016 ($ in thousands) Amount % of GWP Amount % of GWP Amount % of GWP Product Residential Earthquake $ 81,679 52.7 % $ 57,328 47.7 % $ 32,662 39.7 % Specialty Homeowners 27,680 17.9 % 26,516 22.0 % 24,389 29.6 % Commercial Earthquake 20,946 13.5 % 23,079 19.2 % 20,580 25.0 % Commercial All Risk 14,338 9.3 % 7,321 6.1 % 1,784 2.2 % Hawaii Hurricane 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Flood 2,120 1.4 % 667 0.6 % — — Total Gross Written Premium $ 154,891 100 % $ 120,234 100 % $ 82,287 100 % Gross Written premiums by state are as follows: Years ended December 31, 2018 2017 2016 Amount % of GWP Amount % of GWP Amount % GWP ($ in thousands) State California $ 82,119 53.0 % $ 64,231 53.4 % $ 44,999 54.7 % Texas 32,568 21.0 % 29,273 24.4 % 25,286 30.7 % Hawaii 8,128 5.2 % 5,323 4.4 % 2,872 3.5 % Illinois 4,403 2.8 % 4,854 4.0 % 332 0.4 % Oregon 5,286 3.4 % 4,250 3.6 % 3,278 4.0 % Washington 5,658 3.7 % 2,803 2.3 % 1,513 1.8 % South Carolina 3,208 2.1 % 1,706 1.4 % 674 0.8 % Oklahoma 1,261 0.8 % 1,302 1.1 % 1,030 1.3 % All Other States 12,260 8.0 % 6,492 5.4 % 2,303 2.8 % $ 154,891 100 % $ 120,234 100 % $ 82,287 100 %

Summary of Operations and Bas_4

Summary of Operations and Basis of Presentation (Details) $ / shares in Units, $ in Thousands	Apr. 22, 2019USD ($)$ / sharesshares	Mar. 15, 2019	Sep. 30, 2019USD ($)
Forward stock split		17,000,000
Proceeds from Issuance Initial Public Offering | $			$ 87,412
IPO
Shares of common issued | shares	6,468,750
Share price (in dollars per share) | $ / shares	$ 15
Proceeds from Issuance Initial Public Offering | $	$ 87,400
Underwriter's option
Shares of common issued | shares	843,750

Investments - Available for S_2

Investments - Available for Sale Investments (Details) $ in Thousands	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Available for sale investments
Number of unrealized loss positions | security	39	173	125
Available for sale investments
Amortized Cost	$ 216,623	$ 122,949	$ 102,301
Gross Unrealized Gains	7,418	536
Gross Unrealized Losses	(55)	(1,265)
Fair Value	223,986	122,220	101,913
Amortized Cost	21,213	27,188	19,569
Equity securities at fair value	22,326	25,171	23,586
Fixed maturity securities
Available for sale investments
Amortized Cost			102,301
Gross Unrealized Gains			204
Gross Unrealized Losses			(592)
Fair Value			101,913
U.S. Governments
Available for sale investments
Amortized Cost	13,085	15,299	13,393
Gross Unrealized Gains	461	96
Gross Unrealized Losses	(7)	(126)	(108)
Fair Value	13,539	15,269	13,285
States, territories, and possession
Available for sale investments
Amortized Cost	2,300	1,227	3,188
Gross Unrealized Gains	169		10
Gross Unrealized Losses		(6)	(1)
Fair Value	2,469	1,221	3,197
Political subdivisions
Available for sale investments
Amortized Cost	1,922	825	4,118
Gross Unrealized Gains	33
Gross Unrealized Losses		(10)	(51)
Fair Value	1,955	815	4,067
Special revenue excluding mortgage/asset-backed securities
Available for sale investments
Amortized Cost	17,762	12,429	24,039
Gross Unrealized Gains	614	115	42
Gross Unrealized Losses	(3)	(91)	(167)
Fair Value	18,373	12,453	23,914
Industrial and miscellaneous
Available for sale investments
Amortized Cost	123,835	65,885	44,582
Gross Unrealized Gains	5,051	192	150
Gross Unrealized Losses	(31)	(951)	(201)
Fair Value	128,855	65,126	44,531
Mortgage/asset-backed securities
Available for sale investments
Amortized Cost	57,719	27,284	12,981
Gross Unrealized Gains	1,090	133	2
Gross Unrealized Losses	(14)	(81)	(64)
Fair Value	$ 58,795	$ 27,336	$ 12,919

Investments - Security Holdin_3

Investments - Security Holdings in an Unrealized Loss Position - General Information (Details) $ in Thousands	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Number of positions:
Number of unrealized loss positions | security	39	173	125
Fair Value
Fair Value	$ 18,338	$ 73,763	$ 80,233
Unrealized Losses
Unrealized Losses	$ 55	$ 1,265	$ 701

Investments - Security Holdin_4

Investments - Security Holdings in an Unrealized Loss Position - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value
Fair Value - Less Than 12 Months	$ 11,797	$ 41,856	$ 66,596
Fair Value - More Than 12 Months	6,541	31,907	13,637
Fair Value - Total	18,338	73,763	80,233
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(36)	(640)	(468)
Unrealized Losses - More Than 12 Months	(19)	(625)	(233)
Unrealized Losses - Total	(55)	(1,265)	(701)
Fixed maturity securities
Fair Value
Fair Value - Less Than 12 Months			64,601
Fair Value - More Than 12 Months			12,830
Fair Value - Total			77,431
Unrealized Losses
Unrealized Losses - Less Than 12 Months			(411)
Unrealized Losses - More Than 12 Months			(181)
Unrealized Losses - Total			(592)
U.S. Governments
Fair Value
Fair Value - Less Than 12 Months	1,485	1,970	11,426
Fair Value - More Than 12 Months	1,824	6,197	1,858
Fair Value - Total	3,309	8,167	13,284
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(25)	(89)
Unrealized Losses - More Than 12 Months	(7)	(101)	(19)
Unrealized Losses - Total	(7)	(126)	(108)
States, territories, and possession
Fair Value
Fair Value - Less Than 12 Months		719	1,568
Fair Value - More Than 12 Months		501
Fair Value - Total		1,220	1,568
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(5)	(1)
Unrealized Losses - More Than 12 Months		(1)
Unrealized Losses - Total		(6)	(1)
Political subdivisions
Fair Value
Fair Value - Less Than 12 Months	546	264	2,996
Fair Value - More Than 12 Months		550	1,071
Fair Value - Total	546	814	4,067
Unrealized Losses
Unrealized Losses - Less Than 12 Months		(1)	(24)
Unrealized Losses - More Than 12 Months		(9)	(27)
Unrealized Losses - Total		(10)	(51)
Special revenue excluding mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	569	1,706	17,109
Fair Value - More Than 12 Months	997	5,916	2,140
Fair Value - Total	1,566	7,622	19,249
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(1)	(14)	(129)
Unrealized Losses - More Than 12 Months	(2)	(77)	(38)
Unrealized Losses - Total	(3)	(91)	(167)
Industrial and miscellaneous
Fair Value
Fair Value - Less Than 12 Months	3,936	30,544	23,914
Fair Value - More Than 12 Months	3,457	14,913	4,463
Fair Value - Total	7,393	45,457	28,377
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(22)	(556)	(137)
Unrealized Losses - More Than 12 Months	(9)	(395)	(64)
Unrealized Losses - Total	(31)	(951)	(201)
Mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	5,261	6,653	7,588
Fair Value - More Than 12 Months	263	3,830	3,298
Fair Value - Total	5,524	10,483	10,886
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(13)	(39)	(31)
Unrealized Losses - More Than 12 Months	(1)	(42)	(33)
Unrealized Losses - Total	$ (14)	$ (81)	$ (64)

Investments - Other-than-temp_2

Investments - Other-than-temporarily Impaired (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments
Other-than-temporarily impaired	$ 0	$ 0	$ 0

Investments - Contractual Mat_2

Investments - Contractual Maturities of Available for Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Amortized Cost
Due within one year	$ 7,098	$ 2,621
Due after one year through five years	68,726	50,677
Due after five years through ten years	55,711	32,471
Due after ten years	27,369	9,896
Mortgage and asset-backed securities	57,719	27,284
Amortized Cost	216,623	122,949	$ 102,301
Fair Value
Due within one year	7,099	2,614
Due after one year through five years	69,853	49,802
Due after five years through ten years	59,609	32,518
Due after ten years	28,630	9,950
Mortgage and asset-backed securities	58,795	27,336
Total	$ 223,986	$ 122,220	$ 101,913

Investments - Net Investment _2

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net investment income
Interest income	$ 1,678	$ 816	$ 4,140	$ 2,083	$ 3,036	$ 1,916	$ 1,425
Dividend income	132	118	299	365	514	514	472
Less: investment expense	(81)	(69)	(267)	(237)	(312)	(305)	(282)
Net investment income	$ 1,729	$ 865	$ 4,172	$ 2,211	$ 3,238	$ 2,125	$ 1,615

Investments - Net Realized an_2

Investments - Net Realized and Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net realized and unrealized investment gains and losses
Gains on sales of fixed maturity securities	$ 38	$ 11	$ 135	$ 20	$ 19	$ 3	$ 56
Gains on sales of equity securities		18	64	421	4,287	802	592
Total realized gains	38	29	199	441	4,306	805	648
Losses on sales of fixed maturity securities	(1)	(102)	(70)	(257)	(418)	(48)
Losses on sales of equity securities	(21)	(229)	(174)	(4,287)	(421)	(149)	(149)
Total realized losses	(22)	(331)	(244)	(4,544)	(839)	(197)	(149)
Net realized investment losses	16	(302)	(45)	(4,103)	3,467	608	499
Net unrealized gains (losses) on equity securities	345	1,638	3,310	5,072	(6,036)
Net realized and unrealized gains (losses) on investments	361	1,336	3,265	969	(2,569)	608	499
Proceeds from sales of fixed maturity securities
Proceeds from the sale of fixed maturity securities	$ 28,800	$ 32,400	$ 87,541	$ 61,871	$ 81,215	$ 28,628	$ 18,984

Investments - Securities on D_2

Investments - Securities on Deposit (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments
Fair Value	$ 223,986	$ 122,220	$ 101,913
Securities on deposit with state regulatory authorities
Investments
Fair Value	$ 5,100	$ 5,100	$ 5,000

Fair value measurements - Fin_2

Fair value measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets:
Equity securities at fair value	$ 22,326	$ 25,171	$ 23,586
Fair Value, Measurements, Recurring
Assets:
Equity securities at fair value	22,326	25,171	23,586
Cash, cash equivalents, and restricted cash	16,902	9,924	10,932
Total assets	263,214	157,315	136,431
Liabilities:
Long-term notes payable		20,000	18,095
Total liabilities		20,000	18,095
Fair Value, Measurements, Recurring | U.S. Governments
Assets:
Fair Value Assets	13,539	15,269	13,285
Fair Value, Measurements, Recurring | States, territories, and possession
Assets:
Fair Value Assets	2,469	1,221	3,197
Fair Value, Measurements, Recurring | Political subdivisions
Assets:
Fair Value Assets	1,955	815	4,067
Fair Value, Measurements, Recurring | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value Assets	18,373	12,453	23,914
Fair Value, Measurements, Recurring | Industrial and miscellaneous
Assets:
Fair Value Assets	128,855	65,126	44,531
Fair Value, Measurements, Recurring | Mortgage/asset-backed securities
Assets:
Fair Value Assets	58,795	27,336	12,919
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Assets:
Equity securities at fair value	22,326	25,171	23,586
Cash, cash equivalents, and restricted cash	16,902	9,924	10,932
Total assets	39,228	35,095	34,518
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Assets:
Total assets	223,986	122,220	101,913
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Governments
Assets:
Fair Value Assets	13,539	15,269	13,285
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States, territories, and possession
Assets:
Fair Value Assets	2,469	1,221	3,197
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Political subdivisions
Assets:
Fair Value Assets	1,955	815	4,067
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value Assets	18,373	12,453	23,914
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Industrial and miscellaneous
Assets:
Fair Value Assets	128,855	65,126	44,531
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage/asset-backed securities
Assets:
Fair Value Assets	$ 58,795	27,336	12,919
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Liabilities:
Long-term notes payable		20,000	18,095
Total liabilities		$ 20,000	$ 18,095

Fair value measurements - Tra_2

Fair value measurements - Transfers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Fair value measurements
Fair value, assets, Level 1 to Level 2	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Fair value, assets, Level 2 to Level 1	0	0	0	0	0	0
Fair value, liabilities, Level 1 to Level 2	0	0	0	0	0	0
Fair value, liabilities, Level 2 to Level 1	0	0	0	0	0	0
Fair value, assets, transfers into Level 3	0	0	0	0	0	0
Fair value, assets, transfers out of Level 3	0	0	0	0	0	0
Fair value, liabilities, transfers into Level 3	0	0	0	0	0	0
Fair value, liabilities, transfers out of Level 3	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Reserve for Losses and Loss _11

Reserve for Losses and Loss Adjustment Expenses - Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reserve for Losses and Loss Adjustment Expenses
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period	$ 1,428	$ 3,159	$ 4,165	$ 4,432	$ 4,432	$ 3,336	$ 1,562
Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to:
Current year	2,647	5,258	3,660	8,445	8,165	12,257	7,472
Prior years	(208)	116	(262)	(1,402)	(1,891)	(132)	(180)
Total incurred	2,439	5,374	3,398	7,043	6,274	12,125	7,292
Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to:
Current year	641	392	1,044	1,656	4,409	8,986	4,824
Prior years	312	459	3,605	2,137	2,132	2,043	694
Total payments	953	851	4,649	3,793	6,541	11,029	5,518
Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period	$ 2,914	$ 7,682	$ 2,914	$ 7,682	$ 4,165	$ 4,432	$ 3,336

Reserve for Losses and Loss _12

Reserve for Losses and Loss Adjustment Expenses - Total (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reserve for Losses and Loss Adjustment Expenses
Total reserve for losses and loss adjustment expenses	$ 2,914	$ 1,428	$ 4,165	$ 7,682	$ 3,159	$ 4,432	$ 3,336	$ 1,562
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	14,052		11,896	10,950		13,352	1,442
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	$ 16,966		$ 16,061	$ 18,632		$ 17,784	$ 4,778

Long-term debt - Surplus Note_2

Long-term debt - Surplus Notes (Details) - USD ($) $ in Millions	May 23, 2019	Feb. 03, 2015	Sep. 30, 2018	Sep. 30, 2018	Aug. 31, 2018
Long-term debt
Outstanding surplus notes					$ 17.5
Notes Payable, Other Payables | Surplus Notes
Long-term debt
Outstanding surplus notes					$ 17.5
Term		7 years
Pay down of surplus notes			$ 17.5
Pre-payment, penalty			0.1	$ 0.1
Write-off of unamortized debt issuance costs			0.4
Notes Payable, Other Payables | Surplus Notes | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest rate spread (as a percent)		8.00%
Senior Notes | 2018 Floating Rate Notes
Long-term debt
Debt instrument, face amount			$ 20	$ 20
Write-off of unamortized debt issuance costs	$ 0.9

Long-term debt - Floating Rat_2

Long-term debt - Floating Rate Notes (Details) - Senior Notes - 2018 Floating Rate Notes - USD ($) $ in Millions	May 23, 2019	Sep. 30, 2018	Sep. 30, 2019
Long-term debt
Debt instrument, redemption price, percentage (as a percent)	102.00%	100.00%
Redemption price	$ 20.4
Accrued interest and unpaid interest	0.3
Redemption charge	1.3
Redemption Premium	0.4		$ 0.4
Write-off of unamortized debt issuance costs	0.9
Interest Expense.
Long-term debt
Redemption Premium	0.4
Other Underwriting Expense
Long-term debt
Write-off of unamortized debt issuance costs	$ 0.9
Three-month Treasury Rate
Long-term debt
Interest rate spread (as a percent)		6.50%

Long-term debt - Interest (De_2

Long-term debt - Interest (Details) - USD ($) $ in Millions	Sep. 06, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Surplus Notes
Long-term debt
Interest expense	$ 5.7
Interest paid						$ 1.2	$ 1.6	$ 1.5
Senior Notes | 2018 Floating Rate Notes
Long-term debt
Interest expense				$ 1.1		0.6
Interest paid						$ 0.5
Notes Payable, Other Payables | Surplus Notes
Long-term debt
Interest expense			$ 0.6		$ 1.4
Pre-payment, penalty		$ 0.1	0.1
Interest paid			$ 0.3	$ 1.2	$ 1.2

Income Taxes - Excise Tax (De_2

Income Taxes - Excise Tax (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Income Taxes
Federal excise tax rate (as a percent)		1.00%
Decrease in valuation allowance on federal deferred tax assets	$ (1.7)	$ 0.7

Income Taxes - Effective Income

Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, Percent
Statutory tax rate (as a percent)	21.00%	21.00%	21.00%	34.00%	34.00%
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount
Reversal of a portion of the deferred tax valuation allowance		$ (1,700)	$ 678	$ 947
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount
Addback related to stock compensation not deductible for tax purposes		$ 4,800

Capital Stock - Shares issued_2

Capital Stock - Shares issued and outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Capital Stock
Preferred stock, shares authorized	5,000,000	0
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	500,000,000	500,000,000	500,000,000
Common stock, shares issued	23,468,750	17,000,000	17,000,000
Common stock, shares outstanding	23,468,750	17,000,000	17,000,000
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Additional paid in capital	$ 179,587	$ 68,498	$ 68,498

Capital Stock - Reserved for fu

Capital Stock - Reserved for future issuance (Details) - shares	Sep. 30, 2019	Apr. 16, 2019
Common stock reserved for future issuance
Total	2,640,000
2019 Equity Incentive Plan
Common stock reserved for future issuance
Shares authorized for future issuance	1,408,728	2,400,000
2019 Employee Stock Purchase Plan
Common stock reserved for future issuance
Shares authorized for future issuance	240,000	240,000
Stock Options
Common stock reserved for future issuance
Stock options outstanding	985,206
Stock Options | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock options outstanding	985,206
Restricted Stock Units | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Restricted stock units outstanding	6,066

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock based compensation expense (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock-based compensation expense
Stock compensation charge		$ 410		$ 0	$ 23,677	$ 0
2014 Management Incentive Plan
Stock-based compensation expense
Stock compensation charge	$ 23,000		$ 23,000

Stock-Based Compensation - Mana

Stock-Based Compensation - Management incentive plan prior to IPO (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 15, 2019	Dec. 31, 2018	Dec. 31, 2017
Management Incentive Plan
Stock compensation charge		$ 410		$ 0	$ 23,677	$ 0
Increase in additional paid in capital					$ 23,677
2014 Management Incentive Plan
Management Incentive Plan
Units outstanding							12,552,825	12,552,825	12,432,825
Stock compensation charge	$ 23,000		$ 23,000
Increase in additional paid in capital			$ 23,000

Stock-Based Compensation - 2019

Stock-Based Compensation - 2019 Equity Incentive Plan (Details) - 2019 Equity Incentive Plan - shares	Sep. 30, 2019	Apr. 16, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	1,408,728	2,400,000
Annual automatic increase to the number of shares of common stock reserved for issuance, as a percentage of common stock issued and outstanding as at the immediately preceding fiscal year end		3.00%

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock options activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	Apr. 16, 2019	Sep. 30, 2019
Common stock reserved for future issuance
Expiry period	10 years
Number of shares
Options granted (in shares)		994,966
Options canceled (in shares)		(9,760)
Outstanding at end of period (in shares)		985,206
Weighted-average exercise price
Options granted (per share)		$ 15.06
Options canceled (per share)		15
Outstanding price at ending (per share)		$ 15.06
Additional disclosures
Weighted average remaining contractual term for outstanding options (in years)		9 years 6 months 15 days
Aggregate intrinsic value		$ 24,002
Total unrecognized stock-based compensation expense		$ 2,900
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		2 years 5 months 5 days
Minimum
Common stock reserved for future issuance
Vesting period	2 years
Vesting percentage on the first anniversary of the grant date	25.00%
Maximum
Common stock reserved for future issuance
Vesting period	4 years
Vesting percentage on the first anniversary of the grant date	50.00%
2019 Equity Incentive Plan
Number of shares
Outstanding at end of period (in shares)		985,206

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair value assumptions (Details)	9 Months Ended
	Sep. 30, 2019
Fair value assumptions
Dividend yield	0.00%
Stock Options
Fair value assumptions
Risk free rate of return, Minimum	2.28%
Risk free rate of return, Maximum	2.45%
Expected share price volatility, Minimum	18.40%
Expected share price volatility, Maximum	18.45%
Stock Options | Minimum
Fair value assumptions
Expected life in years	5 years 7 months 21 days
Stock Options | Maximum
Fair value assumptions
Expected life in years	6 years 29 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted stock units activity (Details) - Restricted Stock Units $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Number of shares
Restricted stock units granted (in shares) | shares	6,066
Non vested at end of period | shares	6,066
Weighted-average grant date fair value
Restricted stock units granted (per share) | $ / shares	$ 16.49
Non vested outstanding at end of period (per share) | $ / shares	$ 16.49
Total unrecognized stock-based compensation expense | $	$ 0.1
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized	6 months 22 days

Stock-Based Compensation - 20_2

Stock-Based Compensation - 2019 Employee Stock Purchase Plan (Details) - 2019 Employee Stock Purchase Plan - shares	12 Months Ended
	Dec. 31, 2020	Sep. 30, 2019	Apr. 16, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)		240,000	240,000
Scenario, Forecast | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase (in shares)	240,000

Accumulated Other Comprehensi_6

Accumulated Other Comprehensive Income - Roll Forward (Details) - Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in accumulated other comprehensive income
Beginning balance	$ (563)	$ 2,993	$ 2,993	$ 1,017	$ (459)
Effect of equity accounting guidance adoption			(3,215)	(3,215)
Beginning Balance			(563)	(222)	1,017	$ (459)
Other comprehensive income (loss) before reclassification	8,090	(1,544)	(740)	2,834	2,708
Federal income tax (expense) benefit	(1,666)	47	76	(772)	(899)
Other comprehensive income (loss) before reclassification, net of tax	6,424	(1,497)	(664)	2,062	1,809
Amounts reclassified from AOCI	44	245	399	(608)	(499)
Federal income (taxes) benefit	(9)	(47)	(76)	68	166
Amounts reclassified from AOCI, net of tax	35	198	323	(540)	(333)
Other comprehensive income (loss)	6,459	(1,299)	(341)	1,522	1,476
Ending balance	$ 5,896	$ (1,521)	$ (563)	$ 2,993	$ 1,017

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share
Net income (loss)	$ 7,454	$ 1,566	$ (258)	$ 14,092	$ 18,219	$ 3,783	$ 6,614
Weighted-average common shares outstanding, basic	23,468,750	17,000,000	20,838,599	17,000,000
Common Share equivalents	416,387
Diluted	23,885,137	17,000,000	20,838,599	17,000,000
Earnings per share, basic	$ 0.32	$ 0.09	$ (0.01)	$ 0.83
Diluted earnings per share	$ 0.31	$ 0.09	$ (0.01)	$ 0.83
Common share equivalents excluded from calculation of diluted earnings per share as effect was anti-dilutive			196,741

Underwriting Information - Re_2

Underwriting Information - Reportable Segments (Details) - segment	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Reportable segment
Number of reportable segments	1	1

Underwriting Information - Gr_3

Underwriting Information - Gross Written Premiums by Product (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross written premiums
Amount	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
% of GWP	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Residential Earthquake
Gross written premiums
Amount	$ 35,711	$ 21,483	$ 95,005	$ 58,106	$ 81,679	$ 57,328	$ 32,662
% of GWP	53.90%	53.70%	53.20%	52.20%	52.70%	47.70%	39.70%
Specialty Homeowners
Gross written premiums
Amount	$ 8,572	$ 7,116	$ 24,994	$ 21,331	$ 27,680	$ 26,516	$ 24,389
% of GWP	12.90%	17.80%	14.00%	13.40%	17.90%	22.00%	29.60%
Commercial Earthquake
Gross written premiums
Amount	$ 7,077	$ 3,392	$ 21,929	$ 9,442	$ 20,946	$ 23,079	$ 20,580
% of GWP	10.70%	8.50%	12.30%	8.50%	13.50%	19.20%	25.00%
Commercial All Risk
Gross written premiums
Amount	$ 8,402	$ 4,856	$ 23,020	$ 14,936	$ 14,338	$ 7,321	$ 1,784
% of GWP	12.70%	12.10%	12.90%	19.10%	9.30%	6.10%	2.20%
Hawaii Hurricane
Gross written premiums
Amount	$ 3,299	$ 2,614	$ 8,048	$ 6,130	$ 8,128	$ 5,323	$ 2,872
% of GWP	5.00%	6.50%	4.50%	5.50%	5.20%	4.40%	3.50%
Flood
Gross written premiums
Amount	$ 1,450	$ 533	$ 3,494	$ 1,403	$ 2,120	$ 667
% of GWP	2.20%	1.40%	2.00%	1.30%	1.40%	0.60%
Other
Gross written premiums
Amount	$ 1,731		$ 2,129
% of GWP	2.60%		1.10%

Underwriting Information - Gr_4

Underwriting Information - Gross Written Premiums by State (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross written premiums
Amount	$ 66,242	$ 39,994	$ 178,619	$ 111,348	$ 154,891	$ 120,234	$ 82,287
% of GWP	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
California
Gross written premiums
Amount	$ 36,789	$ 20,785	$ 99,543	$ 58,211	$ 82,119	$ 64,231	$ 44,999
% of GWP	55.50%	52.00%	55.70%	52.20%	53.00%	53.40%	54.70%
Texas
Gross written premiums
Amount	$ 11,239	$ 8,318	$ 32,678	$ 24,164	$ 32,568	$ 29,273	$ 25,286
% of GWP	17.00%	20.80%	18.30%	21.70%	21.00%	24.40%	30.70%
Hawaii
Gross written premiums
Amount	$ 3,675	$ 2,614	$ 8,688	$ 6,130	$ 8,128	$ 5,323	$ 2,872
% of GWP	5.50%	6.50%	4.90%	5.50%	5.20%	4.40%	3.50%
Washington
Gross written premiums
Amount	$ 2,910	$ 1,731	$ 6,430	$ 3,798	$ 5,658	$ 2,803	$ 1,513
% of GWP	4.40%	4.30%	3.60%	3.40%	3.70%	2.30%	1.80%
Oregon
Gross written premiums
Amount	$ 2,153	$ 1,506	$ 5,279	$ 3,901	$ 5,286	$ 4,250	$ 3,278
% of GWP	3.30%	3.80%	3.00%	3.50%	3.40%	3.60%	4.00%
Mississippi
Gross written premiums
Amount	$ 1,315	$ 629	$ 3,383	$ 1,766
% of GWP	2.00%	1.60%	1.90%	1.60%
Illinois
Gross written premiums
Amount	$ 1,269	$ 1,104	$ 3,524	$ 3,285	$ 4,403	$ 4,854	$ 332
% of GWP	1.90%	2.80%	2.00%	3.00%	2.80%	4.00%	0.40%
South Carolina
Gross written premiums
Amount	$ 1,258	$ 690	$ 4,614	$ 2,336	$ 3,208	$ 1,706	$ 674
% of GWP	1.90%	1.70%	2.50%	2.10%	2.10%	1.40%	0.80%
Other
Gross written premiums
Amount	$ 5,634	$ 2,617	$ 14,480	$ 7,757	$ 12,260	$ 6,492	$ 2,303
% of GWP	8.50%	6.50%	8.10%	7.00%	8.00%	5.40%	2.80%