Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001761312 | |
Entity Registrant Name | Palomar Holdings, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38873 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-3972551 | |
Entity Address, Address Line One | 7979 Ivanhoe Avenue, Suite 500 | |
Entity Address, City or Town | La Jolla | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92037 | |
City Area Code | 619 | |
Local Phone Number | 567-5290 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | PLMR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,731,300 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturity securities available for sale, at fair value (amortized cost: $647,579 in 2023; $561,580 in 2022) | $ 591,907 | $ 515,064 |
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 39,835 | 38,576 |
Equity method investment | 2,923 | 0 |
Total investments | 634,665 | 553,640 |
Cash and cash equivalents | 53,026 | 68,108 |
Restricted cash | 262 | 56 |
Accrued investment income | 4,864 | 3,777 |
Premiums receivable | 242,082 | 162,858 |
Deferred policy acquisition costs, net of ceding commissions and fronting fees | 58,967 | 56,740 |
Reinsurance recoverable on paid losses and loss adjustment expenses | 48,004 | 39,718 |
Reinsurance recoverable on unpaid losses and loss adjustment expenses | 232,170 | 153,895 |
Ceded unearned premiums | 259,760 | 204,084 |
Prepaid expenses and other assets | 65,753 | 44,088 |
Deferred tax assets, net | 13,643 | 10,622 |
Property and equipment, net | 433 | 603 |
Goodwill and intangible assets, net | 12,705 | 8,261 |
Total assets | 1,626,334 | 1,306,450 |
Liabilities: | ||
Accounts payable and other accrued liabilities | 32,532 | 25,760 |
Reserve for losses and loss adjustment expenses | 324,348 | 231,415 |
Unearned premiums | 570,453 | 471,314 |
Ceded premium payable | 211,025 | 146,127 |
Funds held under reinsurance treaty | 14,042 | 10,680 |
Borrowings from credit agreements | 52,600 | 36,400 |
Total liabilities | 1,205,000 | 921,696 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value, 500,000,000 shares authorized, 24,730,885 and 25,027,467 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 3 | 3 |
Additional paid-in capital | 345,673 | 333,558 |
Accumulated other comprehensive loss | (43,221) | (36,515) |
Retained earnings | 118,879 | 87,708 |
Total stockholders' equity | 421,334 | 384,754 |
Total liabilities and stockholders' equity | $ 1,626,334 | $ 1,306,450 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-Sale, Amortized Cost | $ 647,579 | $ 561,580 |
Equity Securities, Cost | $ 43,002 | $ 42,352 |
Preferred Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued (in shares) | 24,730,885 | 25,027,467 |
Common Stock, Shares, Outstanding (in shares) | 24,730,885 | 25,027,467 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Gross written premiums | $ 313,998 | $ 253,128 | $ 838,406 | $ 642,751 |
Ceded written premiums | (203,336) | (161,930) | (542,789) | (374,109) |
Net written premiums | 110,662 | 91,198 | 295,617 | 268,642 |
Change in unearned premiums | (24,845) | (13,256) | (43,453) | (34,403) |
Net earned premiums | 85,817 | 77,942 | 252,164 | 234,239 |
Net investment income | 6,029 | 3,744 | 16,690 | 9,462 |
Net realized and unrealized losses on investments | (1,376) | (2,356) | (103) | (8,369) |
Commission and other income | 465 | 1,362 | 1,781 | 3,129 |
Total revenues | 90,935 | 80,692 | 270,532 | 238,461 |
Expenses: | ||||
Losses and loss adjustment expenses | 16,139 | 30,900 | 54,696 | 60,251 |
Acquisition expenses, net of ceding commissions and fronting fees | 27,004 | 27,210 | 78,740 | 83,928 |
Other underwriting expenses | 22,390 | 17,114 | 63,962 | 51,233 |
Interest expense | 867 | 270 | 2,952 | 475 |
Total expenses | 66,400 | 75,494 | 200,350 | 195,887 |
Income before income taxes | 24,535 | 5,198 | 70,182 | 42,574 |
Income tax expense | 6,103 | 912 | 16,877 | 9,163 |
Net income | 18,432 | 4,286 | 53,305 | 33,411 |
Other comprehensive income (loss), net: | ||||
Net unrealized losses on securities available for sale | (8,494) | (15,412) | (6,706) | (47,941) |
Net comprehensive income (loss) | $ 9,938 | $ (11,126) | $ 46,599 | $ (14,530) |
Per Share Data: | ||||
Basic earnings per share (in dollars per share) | $ 0.75 | $ 0.17 | $ 2.15 | $ 1.32 |
Diluted earnings per share (in dollars per share) | $ 0.73 | $ 0.17 | $ 2.1 | $ 1.29 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 24,740,455 | 25,209,368 | 24,847,164 | 25,258,333 |
Diluted (in shares) | 25,244,828 | 25,787,625 | 25,340,602 | 25,808,387 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 25,428,929 | ||||
Beginning Balance at Dec. 31, 2021 | $ 3 | $ 318,902 | $ 5,312 | $ 69,952 | $ 394,169 |
Other comprehensive loss, net of tax | 0 | 0 | (47,941) | 0 | (47,941) |
Stock-based compensation | $ 0 | 8,556 | 0 | 0 | 8,556 |
Issuance of common stock via employee stock purchase plan (in shares) | 13,990 | ||||
Issuance of common stock via employee stock purchase plan | $ 0 | 759 | 0 | 0 | 759 |
Issuance of common stock via equity incentive plan (in shares) | 185,765 | ||||
Issuance of common stock via equity incentive plan | $ 0 | 2,164 | 0 | 0 | 2,164 |
Repurchases of common stock (in shares) | (399,198) | ||||
Repurchases of common stock | $ 0 | 0 | 0 | (23,273) | (23,273) |
Net income | $ 0 | 0 | 0 | 33,411 | 33,411 |
Balance (in shares) at Sep. 30, 2022 | 25,229,486 | ||||
Balance at end of period at Sep. 30, 2022 | $ 3 | 330,381 | (42,629) | 80,090 | $ 367,845 |
Balance (in shares) at Dec. 31, 2022 | 25,027,467 | 25,027,467 | |||
Beginning Balance at Dec. 31, 2022 | $ 3 | 333,558 | (36,515) | 87,708 | $ 384,754 |
Other comprehensive loss, net of tax | 0 | 0 | (6,706) | 0 | (6,706) |
Stock-based compensation | $ 0 | 10,737 | 0 | 0 | $ 10,737 |
Issuance of common stock via employee stock purchase plan (in shares) | 17,080 | 17,080 | |||
Issuance of common stock via employee stock purchase plan | $ 0 | 799 | 0 | 0 | $ 799 |
Issuance of common stock via equity incentive plan (in shares) | 105,239 | ||||
Issuance of common stock via equity incentive plan | $ 0 | 579 | 0 | 0 | 579 |
Repurchases of common stock (in shares) | (418,901) | ||||
Repurchases of common stock | $ 0 | 0 | 0 | (22,134) | (22,134) |
Net income | $ 0 | 0 | 0 | 53,305 | $ 53,305 |
Balance (in shares) at Sep. 30, 2023 | 24,730,885 | 24,730,885 | |||
Balance at end of period at Sep. 30, 2023 | $ 3 | $ 345,673 | $ (43,221) | $ 118,879 | $ 421,334 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net cash provided by operating activities | $ 93,836 | $ 94,544 |
Investing activities | ||
Purchases of property and equipment | (15) | (307) |
Capitalized software costs | (5,324) | (4,138) |
Purchases of fixed maturity securities | (190,560) | (279,064) |
Purchases of equity securities | (945) | (10,277) |
Purchase of equity method investment | (3,000) | 0 |
Sales and maturities of fixed maturity securities | 104,505 | 172,380 |
Sales of equity securities | 295 | 0 |
Change in securities receivable or payable, net | (3,576) | 0 |
Acquisitions, net of cash acquired | (5,536) | (16) |
Net cash used in investing activities | (104,156) | (121,422) |
Financing activities | ||
Proceeds from line of credit, net of repayments | 16,200 | 26,400 |
Proceeds from common stock issued via employee stock purchase plan | 799 | 2,164 |
Proceeds from common stock issued via stock option exercises | 579 | 760 |
Repurchases of common stock | (22,134) | (23,273) |
Net cash (used in) provided by financing activities | (4,556) | 6,051 |
Net decrease in cash, cash equivalents and restricted cash | (14,876) | (20,827) |
Cash, cash equivalents and restricted cash at beginning of period | 68,164 | 50,371 |
Cash, cash equivalents and restricted cash at end of period | 53,288 | 29,544 |
Supplementary cash flow information: | ||
Cash paid for income taxes | 21,093 | 18,870 |
Cash paid for interest | 2,428 | 351 |
Cash and cash equivalents | 53,026 | |
Restricted cash | 262 | |
Cash and cash equivalents and restricted cash | $ 53,288 | $ 29,544 |
Note 1 - Summary of Operations
Note 1 - Summary of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. Summary of Operations Palomar Holdings, Inc. (the “Company”) is a Delaware incorporated insurance holding company that was founded in 2014. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and include the accounts of the Company and its wholly‑owned subsidiaries. The condensed consolidated financial statements also include the accounts of Laulima, as Laulima is a variable interest entity ("VIE") for which the Company is the primary beneficiary. Currently Laulima does not These condensed consolidated financial statements do not 10 December 31, 2022 March 1, 2023 ( “2022 10 not 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 Recent Accounting Pronouncements Recently adopted accounting pronouncements The Company has not nine September 30, 2023 Recently issued accounting pronouncements not There are not |
Note 2 - Investments
Note 2 - Investments | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 2. The Company’s available‑for‑sale investments are summarized as follows: Gross Gross Allowance Amortized Unrealized Unrealized for Fair September 30, 2023 Cost or Cost Gains Losses Credit Losses Value (in thousands) Fixed maturities: U.S. Governments $ 44,783 $ — $ (2,093 ) $ — $ 42,690 States, territories, and possessions 5,842 — (629 ) — 5,213 Political subdivisions 4,433 — (585 ) — 3,848 Special revenue excluding mortgage/asset-backed securities 33,236 — (5,368 ) — 27,868 Corporate and other 305,998 175 (28,336 ) (904 ) 276,933 Mortgage/asset-backed securities 253,287 316 (18,248 ) — 235,355 Total available-for-sale investments $ 647,579 $ 491 $ (55,259 ) $ (904 ) $ 591,907 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 Cost or Cost Gains Losses Credit Losses Value (in thousands) Fixed maturities: U.S. Governments $ 50,802 $ 2 $ (2,253 ) $ — $ 48,551 States, territories, and possessions 5,857 49 (552 ) — 5,354 Political subdivisions 4,919 — (621 ) — 4,298 Special revenue excluding mortgage/asset-backed securities 37,260 26 (4,487 ) — 32,799 Corporate and other 278,164 79 (23,912 ) (236 ) 254,095 Mortgage/asset-backed securities 184,578 251 (14,862 ) — 169,967 Total available-for-sale investments $ 561,580 $ 407 $ (46,687 ) $ (236 ) $ 515,064 Security holdings in an unrealized loss position As of September 30, 2023 December 31, 2022 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, 2023 December 31, 2022 Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2023 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 2,338 $ (12 ) $ 40,352 $ (2,081 ) $ 42,690 $ (2,093 ) States, territories, and possessions 2,041 (30 ) 3,172 (599 ) 5,213 (629 ) Political subdivisions — — 3,848 (585 ) 3,848 (585 ) Special revenue excluding mortgage/asset-backed securities 2,617 (148 ) 25,251 (5,220 ) 27,868 (5,368 ) Corporate and other 66,836 (3,296 ) 197,097 (25,040 ) 263,933 (28,336 ) Mortgage/asset-backed securities 88,543 (2,414 ) 117,318 (15,834 ) 205,861 (18,248 ) Total available-for-sale investments $ 162,375 $ (5,900 ) $ 387,038 $ (49,359 ) $ 549,413 $ (55,259 ) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 41,077 $ (1,523 ) $ 6,853 $ (730 ) $ 47,930 $ (2,253 ) States, territories, and possessions 3,227 (552 ) — — 3,227 (552 ) Political subdivisions 4,298 (621 ) — — 4,298 (621 ) Special revenue excluding mortgage/asset-backed securities 25,091 (3,287 ) 5,080 (1,200 ) 30,171 (4,487 ) Corporate and other 192,185 (15,667 ) 55,605 (8,481 ) 247,790 (24,148 ) Mortgage/asset-backed securities 118,815 (9,908 ) 32,448 (4,954 ) 151,263 (14,862 ) Total available-for-sale investments $ 384,693 $ (31,558 ) $ 99,986 $ (15,365 ) $ 484,679 $ (46,923 ) The Company reviews all securities with unrealized losses on a quarterly basis to assess whether the decline in the securities fair value necessitates the recognition of an allowance for credit losses. The Company considers numerous factors in its review as described in Footnote 1 2022 10 The Company has recorded an allowance for credit losses for two September 30, 2023 not not not not Contractual maturities of available for sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at September 30, 2023 Amortized Fair Cost Value (in thousands) Due within one year $ 42,127 $ 40,783 Due after one year through five years 183,123 170,789 Due after five years through ten years 131,751 114,833 Due after ten years 37,291 30,147 Mortgage and asset-backed securities 253,287 235,355 $ 647,579 $ 591,907 Expected maturities may may Net investment income summary Net investment income is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Interest income $ 5,952 $ 3,688 $ 16,468 $ 9,328 Dividend income 211 178 602 518 Investment expense (134 ) (122 ) (380 ) (384 ) Net investment income $ 6,029 $ 3,744 $ 16,690 $ 9,462 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, 2023 2022 2023 2022 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ — $ 2 $ 65 $ 10 Gains on sales of equity securities — — — — Total realized gains — 2 65 10 Realized losses: Losses on sales of fixed maturity securities — (195 ) (32 ) (309 ) Losses on sales of equity securities — — — — Total realized losses — (195 ) (32 ) (309 ) Net realized investment gains — (193 ) 33 (299 ) Change in allowance for credit losses — — (667 ) — Net unrealized (losses) gains on equity securities (1,299 ) (2,163 ) 608 (8,070 ) Net unrealized losses on equity method investment (77 ) — (77 ) — Net realized and unrealized gains (losses) on investments $ (1,376 ) $ (2,356 ) $ (103 ) $ (8,369 ) Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date. Proceeds from the sale of fixed maturity securities were insignificant for the three September 30, 2023 2022 Proceeds from the sale of fixed maturity securities were $9.8 million and $5.8 million for the nine September 30, 2023 2022 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. As of September 30, 2023 December 31, 2022 |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. 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 Level 1—Unadjusted Level 2—Pricing Level 3—Pricing 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 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 The following tables present the hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 December 31, 2022 September 30, 2023 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 42,690 $ — $ 42,690 States, territories, and possessions — 5,213 — 5,213 Political subdivisions — 3,848 — 3,848 Special revenue excluding mortgage/asset-backed securities — 27,868 — 27,868 Corporate and other — 276,933 — 276,933 Mortgage/asset-backed securities — 235,355 — 235,355 Equity securities 39,835 — — 39,835 Cash, cash equivalents, and restricted cash 53,288 — — 53,288 Total assets $ 93,123 $ 591,907 $ — $ 685,030 December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 48,551 $ — $ 48,551 States, territories, and possessions — 5,354 — 5,354 Political subdivisions — 4,298 — 4,298 Special revenue excluding mortgage/asset-backed securities — 32,799 — 32,799 Corporate and other — 254,095 — 254,095 Mortgage/asset-backed securities — 169,967 — 169,967 Equity securities 38,576 — — 38,576 Cash, cash equivalents, and restricted cash 68,164 — — 68,164 Total assets $ 106,740 $ 515,064 $ — $ 621,804 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 carrying amount of the Company’s borrowings under the Federal Home Loan Bank (“FHLB”) line of credit and U.S. Bank credit agreement (the “Credit Agreement”) approximate fair value as the Company is currently borrowing at a variable rate which frequently reprices at market rates. Transfers between Level 3 2 September 30, 2023 December 31, 2022 3. |
Note 4 - Reserve for Losses and
Note 4 - Reserve for Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Reserve for Losses and Loss Adjustment Expenses [Text Block] | 4. The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses (“LAE”): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period $ 81,300 $ 55,769 $ 77,520 $ 45,419 Add: Incurred losses and LAE, net of reinsurance, related to: Current year 15,116 30,904 50,954 58,703 Prior years 1,023 (4 ) 3,742 1,548 Total incurred 16,139 30,900 54,696 60,251 Deduct: Loss and LAE payments, net of reinsurance, related to: Current year 6,646 7,873 14,215 13,762 Prior years (1,385 ) 4,548 25,823 17,660 Total payments 5,261 12,421 40,038 31,422 Reserve for losses and LAE net of reinsurance recoverables at end of period 92,178 74,248 92,178 74,248 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 232,170 131,575 232,170 131,575 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period $ 324,348 $ 205,823 $ 324,348 $ 205,823 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 The Company experienced adverse prior year development of $1.0 million and insignificant prior year development during the three September 30, 2023 2022 The Company experienced adverse prior year development of $3.7 million and adverse prior year development of $1.5 million during the nine September 30, 2023 2022 Adverse prior year development during the three September 30, 2023 Adverse prior year development during the nine September 30, 2023 nine September 30, 2022 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 5. Equity Common stock reserved for future issuance Common stock reserved for future issuance consists of the following as of September 30, 2023 Stock options outstanding under 2019 Equity Incentive Plan 838,706 Restricted stock units outstanding under 2019 Equity Incentive Plan 339,505 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 424,393 Shares authorized for future issuance under 2019 Equity Incentive Plan 3,134,739 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 1,130,770 Total 5,868,113 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, 2023 2022 2023 2022 (in thousands) (in thousands) Stock-Based Compensation $ 3,589 $ 3,092 $ 10,737 $ 8,556 Stock-based compensation expense is recognized on a straight-line basis over the vesting period of equity-based awards. For performance stock units (“PSUs”), any changes to expense resulting from differences in actual performance versus target are recognized over the remaining vesting period of the awards. The Company does not 2019 On April 16, 2019, 2019 “2019 2019 2019 may A total of 2,400,000 shares of common stock were initially authorized and reserved for issuance under the 2019 January 1 2029 December 31, 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 common stock on the grant date. Stock options vest over a two four first ten The following table summarizes stock option transactions for the nine September 30, 2023 Number of shares Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2023 882,892 $ 33.85 — $ — Options granted — — Options exercised (32,882 ) 17.61 Options canceled (11,304 ) 66.08 Outstanding at September 30, 2023 838,706 $ 34.05 6.0 $ 19,368 Vested and Exercisable at September 30, 2023 753,678 $ 30.74 5.8 $ 19,308 As of September 30, 2023 Restricted Stock Units RSUs are valued using the closing price of the Company’s common stock on their grant date. The Company has issued RSUs with vesting periods of one five The following table summarizes RSU transactions for the nine September 30, 2023 Number of shares Weighted-average grant date fair value Outstanding at January 1, 2023 271,951 $ 68.90 Granted 157,972 51.34 Released (72,357 ) 66.37 Forfeited (18,061 ) 52.27 Non-vested outstanding at September 30, 2023 339,505 $ 62.15 As of September 30, 2023 Performance Stock Units The Company issues PSUs with a combination of service, performance, and market conditions. The majority of PSUs were issued via grants made to certain executives during 2021. five September 30, 2023 For other PSUs outstanding, vesting of PSUs requires a period of future service and the number of shares that vest depends on performance relative to predetermined targets of the Company’s Gross Written Premiums and Adjusted Return on Equity as set by the Compensation Committee. Prior to 2023, 2023, three three The following table summarizes PSU transactions for the three September 30, 2023 Number of shares Weighted-average grant date fair value Outstanding at January 1, 2023 383,103 $ 37.62 Granted 46,029 51.36 Vested — — Forfeited (4,739 ) 54.30 Non-vested outstanding at September 30, 2023 424,393 $ 38.93 The PSU grants above represent the number of shares that would vest based on achievement of all stock price milestones in the 2021 September 30, 2023 2019 On April 16, 2019, 2019 “2019 2019 2019 January 1 2029, may Under the 2019 2019 nine September 30, 2023 Share repurchases In January 2022, March 31, 2024. The Company purchased 418,901 shares for $22.1 million at an average price of $54.4 per share under this program during the nine September 30, 2023 |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 6. Changes in accumulated other comprehensive income (loss) (“AOCI”) are as follows: Nine Months Ended September 30, 2023 2022 (in thousands) Beginning Balance $ (36,515 ) $ 5,312 Other comprehensive (loss) before reclassification (8,453 ) (60,983 ) Federal income tax (benefit) expense 1,775 12,806 Other comprehensive (loss) before reclassification, net of tax (6,678 ) (48,177 ) Amounts reclassified from AOCI (36 ) 299 Federal income tax expense (benefit) 8 (63 ) Amounts reclassified from AOCI, net of tax (28 ) 236 Other comprehensive (loss) (6,706 ) (47,941 ) Balance at end of period $ (43,221 ) $ (42,629 ) |
Note 7 - Underwriting Informati
Note 7 - Underwriting Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. The Company has a single reportable segment and offers primarily property and casualty insurance products. The Company also writes premiums under fronting agreements where it cedes the majority of the premium and risk in exchange for a fronting fee. Gross written premiums (“GWP”) by product are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Fronting Premiums $ 106,581 33.9 % $ 82,232 32.5 % $ 278,548 33.2 % $ 154,232 24.0 % Residential Earthquake 69,220 22.0 % 59,569 23.5 % 190,048 22.7 % 159,995 24.9 % Commercial Earthquake 44,166 14.1 % 32,647 12.9 % 124,763 14.9 % 90,894 14.1 % Inland Marine 37,252 11.9 % 30,842 12.2 % 103,841 12.4 % 72,214 11.2 % Casualty 20,165 6.4 % 12,888 5.1 % 50,144 6.0 % 25,697 4.0 % Hawaii Hurricane 11,051 3.5 % 9,425 3.7 % 28,718 3.4 % 24,579 3.8 % Commercial All Risk 6,624 2.1 % 9,224 3.6 % 26,769 3.2 % 41,647 6.5 % Residential Flood 5,259 1.7 % 3,871 1.5 % 14,964 1.8 % 10,448 1.6 % Specialty Homeowners (2 ) (0.0 )% (94 ) (0.0 )% (99 ) (0.0 )% 30,082 4.7 % Other 13,682 4.4 % 12,524 5.0 % 20,710 2.4 % 32,963 5.2 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % Gross written premiums by state are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 163,806 52.2 % $ 131,016 51.8 % $ 450,752 53.8 % $ 292,865 45.6 % Texas 24,336 7.7 % 26,234 10.4 % 72,777 8.7 % 71,499 11.1 % Washington 17,792 5.7 % 13,573 5.4 % 43,409 5.2 % 29,391 4.6 % Hawaii 13,490 4.3 % 10,998 4.3 % 35,824 4.3 % 29,729 4.6 % Florida 11,549 3.7 % 7,445 2.9 % 36,309 4.3 % 27,216 4.2 % Oregon 8,536 2.7 % 7,738 3.1 % 21,223 2.5 % 16,483 2.6 % Illinois 6,502 2.1 % 4,204 1.7 % 15,675 1.9 % 13,153 2.0 % Tennessee 5,562 1.8 % 1,810 0.7 % 9,233 1.1 % 4,247 0.7 % Other 62,425 19.8 % 50,110 19.8 % 153,204 18.2 % 158,168 24.6 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % Gross written premiums by insurance subsidiary are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Subsidiary PSIC $ 186,693 59.5 % $ 136,814 54.0 % $ 497,216 59.3 % $ 357,156 55.6 % PESIC 127,305 40.5 % 116,314 46.0 % 341,190 40.7 % 285,595 44.4 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. The Company calculates its tax provision in interim periods using its best estimate of the effective tax rate expected for the full year. During the three September 30, 2023 three September 30, 2022 For the nine September 30, 2023 nine September 30, 2022 |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. The following table sets out earnings per share of common stock: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income $ 18,432 $ 4,286 $ 53,305 $ 33,411 Weighted average common shares outstanding: Basic 24,740,455 25,209,368 24,847,164 25,258,333 Common Share equivalents 504,373 578,257 493,438 550,054 Diluted 25,244,828 25,787,625 25,340,602 25,808,387 Earnings per share: Basic $ 0.75 $ 0.17 $ 2.15 $ 1.32 Diluted $ 0.73 $ 0.17 $ 2.10 $ 1.29 Common share equivalents relate primarily to outstanding stock options, RSUs and PSUs under the 2019 2019 |
Note 10 - Reinsurance
Note 10 - Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | 10. 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. As of September 30, 2023 In addition to reinsurance purchased from traditional reinsurers, the Company has historically incorporated collateralized protection from the insurance linked securities market via catastrophe bonds. During the first 2021, 144A June 1, 2021. June 1, 2024. second 2022, 144A June 1, 2022. June 1, 2025. second 2023, 144A June 1, 2023. June 1, 2026. |
Note 11 - Credit Agreements
Note 11 - Credit Agreements | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. U.S. Bank Credit Agreement In December 2021, December 8, 2026. may may may not The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among other things, financial covenants, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of other indebtedness and dividends and other distributions. The financial covenants include requirements to maintain a permissible debt to capital ratio, a minimum consolidated net worth, a minimum risk based capital ratio and minimum A.M. Best financial strength rating. The Credit Agreement also contains customary events of default, such as non-compliance with financial covenants. If an event of default occurs, any debt may September 30, 2023 As of September 30, 2023 December 31, 2022 FHLB Line of Credit The Company’s PSIC subsidiary is a member of the Federal Home Loan Bank of San Francisco (“FHLB”). Membership in the FHLB provides PSIC access to collateralized advances, which can be drawn for general corporate purposes and used to enhance liquidity management. All borrowings are fully secured by a pledge of specific investment securities of PSIC and the borrowing capacity is equal to 10% of PSIC’s statutory admitted assets. All advances have a predetermined term and the interest rate varies based on the term of the advance. As of September 30, 2023 three nine September 30, 2023 As of December 31, 2022 three nine September 30, 2022. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 5. Rule 10b5 1 During the quarter ended September 30, 2023, none 16a 1 1934 10b5 1 10b5 1 408 |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Operations [Policy Text Block] | Summary of Operations Palomar Holdings, Inc. (the “Company”) is a Delaware incorporated insurance holding company that was founded in 2014. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and include the accounts of the Company and its wholly‑owned subsidiaries. The condensed consolidated financial statements also include the accounts of Laulima, as Laulima is a variable interest entity ("VIE") for which the Company is the primary beneficiary. Currently Laulima does not These condensed consolidated financial statements do not 10 December 31, 2022 March 1, 2023 ( “2022 10 not |
Use of Estimates, Policy [Policy Text Block] | 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 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently adopted accounting pronouncements The Company has not nine September 30, 2023 Recently issued accounting pronouncements not There are not |
Note 2 - Investments (Tables)
Note 2 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | Gross Gross Allowance Amortized Unrealized Unrealized for Fair September 30, 2023 Cost or Cost Gains Losses Credit Losses Value (in thousands) Fixed maturities: U.S. Governments $ 44,783 $ — $ (2,093 ) $ — $ 42,690 States, territories, and possessions 5,842 — (629 ) — 5,213 Political subdivisions 4,433 — (585 ) — 3,848 Special revenue excluding mortgage/asset-backed securities 33,236 — (5,368 ) — 27,868 Corporate and other 305,998 175 (28,336 ) (904 ) 276,933 Mortgage/asset-backed securities 253,287 316 (18,248 ) — 235,355 Total available-for-sale investments $ 647,579 $ 491 $ (55,259 ) $ (904 ) $ 591,907 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 Cost or Cost Gains Losses Credit Losses Value (in thousands) Fixed maturities: U.S. Governments $ 50,802 $ 2 $ (2,253 ) $ — $ 48,551 States, territories, and possessions 5,857 49 (552 ) — 5,354 Political subdivisions 4,919 — (621 ) — 4,298 Special revenue excluding mortgage/asset-backed securities 37,260 26 (4,487 ) — 32,799 Corporate and other 278,164 79 (23,912 ) (236 ) 254,095 Mortgage/asset-backed securities 184,578 251 (14,862 ) — 169,967 Total available-for-sale investments $ 561,580 $ 407 $ (46,687 ) $ (236 ) $ 515,064 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block] | Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2023 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 2,338 $ (12 ) $ 40,352 $ (2,081 ) $ 42,690 $ (2,093 ) States, territories, and possessions 2,041 (30 ) 3,172 (599 ) 5,213 (629 ) Political subdivisions — — 3,848 (585 ) 3,848 (585 ) Special revenue excluding mortgage/asset-backed securities 2,617 (148 ) 25,251 (5,220 ) 27,868 (5,368 ) Corporate and other 66,836 (3,296 ) 197,097 (25,040 ) 263,933 (28,336 ) Mortgage/asset-backed securities 88,543 (2,414 ) 117,318 (15,834 ) 205,861 (18,248 ) Total available-for-sale investments $ 162,375 $ (5,900 ) $ 387,038 $ (49,359 ) $ 549,413 $ (55,259 ) Less Than 12 Months More Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Value Losses Value Losses Value Losses (in thousands) Fixed maturity securities: U.S. Governments $ 41,077 $ (1,523 ) $ 6,853 $ (730 ) $ 47,930 $ (2,253 ) States, territories, and possessions 3,227 (552 ) — — 3,227 (552 ) Political subdivisions 4,298 (621 ) — — 4,298 (621 ) Special revenue excluding mortgage/asset-backed securities 25,091 (3,287 ) 5,080 (1,200 ) 30,171 (4,487 ) Corporate and other 192,185 (15,667 ) 55,605 (8,481 ) 247,790 (24,148 ) Mortgage/asset-backed securities 118,815 (9,908 ) 32,448 (4,954 ) 151,263 (14,862 ) Total available-for-sale investments $ 384,693 $ (31,558 ) $ 99,986 $ (15,365 ) $ 484,679 $ (46,923 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Fair Cost Value (in thousands) Due within one year $ 42,127 $ 40,783 Due after one year through five years 183,123 170,789 Due after five years through ten years 131,751 114,833 Due after ten years 37,291 30,147 Mortgage and asset-backed securities 253,287 235,355 $ 647,579 $ 591,907 |
Investment Income [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Interest income $ 5,952 $ 3,688 $ 16,468 $ 9,328 Dividend income 211 178 602 518 Investment expense (134 ) (122 ) (380 ) (384 ) Net investment income $ 6,029 $ 3,744 $ 16,690 $ 9,462 |
Gain (Loss) on Securities [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Realized gains: Gains on sales of fixed maturity securities $ — $ 2 $ 65 $ 10 Gains on sales of equity securities — — — — Total realized gains — 2 65 10 Realized losses: Losses on sales of fixed maturity securities — (195 ) (32 ) (309 ) Losses on sales of equity securities — — — — Total realized losses — (195 ) (32 ) (309 ) Net realized investment gains — (193 ) 33 (299 ) Change in allowance for credit losses — — (667 ) — Net unrealized (losses) gains on equity securities (1,299 ) (2,163 ) 608 (8,070 ) Net unrealized losses on equity method investment (77 ) — (77 ) — Net realized and unrealized gains (losses) on investments $ (1,376 ) $ (2,356 ) $ (103 ) $ (8,369 ) |
Note 3 - Fair Value Measureme_2
Note 3 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2023 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 42,690 $ — $ 42,690 States, territories, and possessions — 5,213 — 5,213 Political subdivisions — 3,848 — 3,848 Special revenue excluding mortgage/asset-backed securities — 27,868 — 27,868 Corporate and other — 276,933 — 276,933 Mortgage/asset-backed securities — 235,355 — 235,355 Equity securities 39,835 — — 39,835 Cash, cash equivalents, and restricted cash 53,288 — — 53,288 Total assets $ 93,123 $ 591,907 $ — $ 685,030 December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Assets: Fixed maturity securities U.S. Governments $ — $ 48,551 $ — $ 48,551 States, territories, and possessions — 5,354 — 5,354 Political subdivisions — 4,298 — 4,298 Special revenue excluding mortgage/asset-backed securities — 32,799 — 32,799 Corporate and other — 254,095 — 254,095 Mortgage/asset-backed securities — 169,967 — 169,967 Equity securities 38,576 — — 38,576 Cash, cash equivalents, and restricted cash 68,164 — — 68,164 Total assets $ 106,740 $ 515,064 $ — $ 621,804 |
Note 4 - Reserve for Losses a_2
Note 4 - Reserve for Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period $ 81,300 $ 55,769 $ 77,520 $ 45,419 Add: Incurred losses and LAE, net of reinsurance, related to: Current year 15,116 30,904 50,954 58,703 Prior years 1,023 (4 ) 3,742 1,548 Total incurred 16,139 30,900 54,696 60,251 Deduct: Loss and LAE payments, net of reinsurance, related to: Current year 6,646 7,873 14,215 13,762 Prior years (1,385 ) 4,548 25,823 17,660 Total payments 5,261 12,421 40,038 31,422 Reserve for losses and LAE net of reinsurance recoverables at end of period 92,178 74,248 92,178 74,248 Add: Reinsurance recoverables on unpaid losses and LAE at end of period 232,170 131,575 232,170 131,575 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period $ 324,348 $ 205,823 $ 324,348 $ 205,823 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Capital Reserved for Future Issuance [Table Text Block] | Stock options outstanding under 2019 Equity Incentive Plan 838,706 Restricted stock units outstanding under 2019 Equity Incentive Plan 339,505 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 424,393 Shares authorized for future issuance under 2019 Equity Incentive Plan 3,134,739 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 1,130,770 Total 5,868,113 |
Share-Based Payment Arrangement, Cost by Plan [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Stock-Based Compensation $ 3,589 $ 3,092 $ 10,737 $ 8,556 |
Share-Based Payment Arrangement, Activity [Table Text Block] | Number of shares Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2023 882,892 $ 33.85 — $ — Options granted — — Options exercised (32,882 ) 17.61 Options canceled (11,304 ) 66.08 Outstanding at September 30, 2023 838,706 $ 34.05 6.0 $ 19,368 Vested and Exercisable at September 30, 2023 753,678 $ 30.74 5.8 $ 19,308 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of shares Weighted-average grant date fair value Outstanding at January 1, 2023 271,951 $ 68.90 Granted 157,972 51.34 Released (72,357 ) 66.37 Forfeited (18,061 ) 52.27 Non-vested outstanding at September 30, 2023 339,505 $ 62.15 |
Schedule of Nonvested Performance-Based Units Activity [Table Text Block] | Number of shares Weighted-average grant date fair value Outstanding at January 1, 2023 383,103 $ 37.62 Granted 46,029 51.36 Vested — — Forfeited (4,739 ) 54.30 Non-vested outstanding at September 30, 2023 424,393 $ 38.93 |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Nine Months Ended September 30, 2023 2022 (in thousands) Beginning Balance $ (36,515 ) $ 5,312 Other comprehensive (loss) before reclassification (8,453 ) (60,983 ) Federal income tax (benefit) expense 1,775 12,806 Other comprehensive (loss) before reclassification, net of tax (6,678 ) (48,177 ) Amounts reclassified from AOCI (36 ) 299 Federal income tax expense (benefit) 8 (63 ) Amounts reclassified from AOCI, net of tax (28 ) 236 Other comprehensive (loss) (6,706 ) (47,941 ) Balance at end of period $ (43,221 ) $ (42,629 ) |
Note 7 - Underwriting Informa_2
Note 7 - Underwriting Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Product Fronting Premiums $ 106,581 33.9 % $ 82,232 32.5 % $ 278,548 33.2 % $ 154,232 24.0 % Residential Earthquake 69,220 22.0 % 59,569 23.5 % 190,048 22.7 % 159,995 24.9 % Commercial Earthquake 44,166 14.1 % 32,647 12.9 % 124,763 14.9 % 90,894 14.1 % Inland Marine 37,252 11.9 % 30,842 12.2 % 103,841 12.4 % 72,214 11.2 % Casualty 20,165 6.4 % 12,888 5.1 % 50,144 6.0 % 25,697 4.0 % Hawaii Hurricane 11,051 3.5 % 9,425 3.7 % 28,718 3.4 % 24,579 3.8 % Commercial All Risk 6,624 2.1 % 9,224 3.6 % 26,769 3.2 % 41,647 6.5 % Residential Flood 5,259 1.7 % 3,871 1.5 % 14,964 1.8 % 10,448 1.6 % Specialty Homeowners (2 ) (0.0 )% (94 ) (0.0 )% (99 ) (0.0 )% 30,082 4.7 % Other 13,682 4.4 % 12,524 5.0 % 20,710 2.4 % 32,963 5.2 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP State California $ 163,806 52.2 % $ 131,016 51.8 % $ 450,752 53.8 % $ 292,865 45.6 % Texas 24,336 7.7 % 26,234 10.4 % 72,777 8.7 % 71,499 11.1 % Washington 17,792 5.7 % 13,573 5.4 % 43,409 5.2 % 29,391 4.6 % Hawaii 13,490 4.3 % 10,998 4.3 % 35,824 4.3 % 29,729 4.6 % Florida 11,549 3.7 % 7,445 2.9 % 36,309 4.3 % 27,216 4.2 % Oregon 8,536 2.7 % 7,738 3.1 % 21,223 2.5 % 16,483 2.6 % Illinois 6,502 2.1 % 4,204 1.7 % 15,675 1.9 % 13,153 2.0 % Tennessee 5,562 1.8 % 1,810 0.7 % 9,233 1.1 % 4,247 0.7 % Other 62,425 19.8 % 50,110 19.8 % 153,204 18.2 % 158,168 24.6 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) % of % of % of % of Amount GWP Amount GWP Amount GWP Amount GWP Subsidiary PSIC $ 186,693 59.5 % $ 136,814 54.0 % $ 497,216 59.3 % $ 357,156 55.6 % PESIC 127,305 40.5 % 116,314 46.0 % 341,190 40.7 % 285,595 44.4 % Total Gross Written Premiums $ 313,998 100.0 % $ 253,128 100.0 % $ 838,406 100.0 % $ 642,751 100.0 % |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income $ 18,432 $ 4,286 $ 53,305 $ 33,411 Weighted average common shares outstanding: Basic 24,740,455 25,209,368 24,847,164 25,258,333 Common Share equivalents 504,373 578,257 493,438 550,054 Diluted 25,244,828 25,787,625 25,340,602 25,808,387 Earnings per share: Basic $ 0.75 $ 0.17 $ 2.15 $ 1.32 Diluted $ 0.73 $ 0.17 $ 2.10 $ 1.29 |
Note 2 - Investments (Details T
Note 2 - Investments (Details Textual) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 578 | 543 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position | $ 549,413 | $ 484,679 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss | $ 55,259 | 46,923 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss, Number of Securities | 2 | ||
Proceeds from Sale of Debt Securities, Available-for-Sale | $ 9,800 | $ 5,800 | |
Debt Securities, Available-for-Sale | 591,907 | 515,064 | |
Securities on Deposit With State Regulatory Authorities [Member] | |||
Debt Securities, Available-for-Sale | $ 8,600 | $ 8,500 |
Note 2 - Investments - Summary
Note 2 - Investments - Summary of Available for Sale Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-Sale, Amortized Cost | $ 647,579 | $ 561,580 |
Available-for-sale, Accumulated Gross Unrealized Gain | 491 | 407 |
Available-for-sale, Accumulated Gross Unrealized Loss | (55,259) | (46,687) |
Available-for-Sale, Allowance for Credit Loss | (904) | (236) |
Debt Securities, Available-for-sale | 591,907 | 515,064 |
US Government Agencies Debt Securities [Member] | ||
Available-for-Sale, Amortized Cost | 44,783 | 50,802 |
Available-for-sale, Accumulated Gross Unrealized Gain | 0 | 2 |
Available-for-sale, Accumulated Gross Unrealized Loss | (2,093) | (2,253) |
Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale | 42,690 | 48,551 |
States Territories Possessions Debt Securities [Member] | ||
Available-for-Sale, Amortized Cost | 5,842 | 5,857 |
Available-for-sale, Accumulated Gross Unrealized Gain | 0 | 49 |
Available-for-sale, Accumulated Gross Unrealized Loss | (629) | (552) |
Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale | 5,213 | 5,354 |
Political Subdivisions Debt Securities [Member] | ||
Available-for-Sale, Amortized Cost | 4,433 | 4,919 |
Available-for-sale, Accumulated Gross Unrealized Gain | 0 | 0 |
Available-for-sale, Accumulated Gross Unrealized Loss | (585) | (621) |
Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale | 3,848 | 4,298 |
Special Revenue Excluding Asset Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | 33,236 | 37,260 |
Available-for-sale, Accumulated Gross Unrealized Gain | 0 | 26 |
Available-for-sale, Accumulated Gross Unrealized Loss | (5,368) | (4,487) |
Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale | 27,868 | 32,799 |
Corporate Debt Securities and Other Debt Obligations [Member] | ||
Available-for-Sale, Amortized Cost | 305,998 | 278,164 |
Available-for-sale, Accumulated Gross Unrealized Gain | 175 | 79 |
Available-for-sale, Accumulated Gross Unrealized Loss | (28,336) | (23,912) |
Available-for-Sale, Allowance for Credit Loss | (904) | (236) |
Debt Securities, Available-for-sale | 276,933 | 254,095 |
Asset-Backed Securities [Member] | ||
Available-for-Sale, Amortized Cost | 253,287 | 184,578 |
Available-for-sale, Accumulated Gross Unrealized Gain | 316 | 251 |
Available-for-sale, Accumulated Gross Unrealized Loss | (18,248) | (14,862) |
Available-for-Sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale | $ 235,355 | $ 169,967 |
Note 2 - Investments - Security
Note 2 - Investments - Security Holdings in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Less than 12 Months, fair value | $ 162,375 | $ 384,693 |
Less than 12 Months, Accumulated Loss | (5,900) | (31,558) |
12 Months or Longer, fair value | 387,038 | 99,986 |
12 Months or Longer, Accumulated Loss | (49,359) | (15,365) |
Fair value | 549,413 | 484,679 |
Accumulated Loss | (55,259) | (46,923) |
US Government Agencies Debt Securities [Member] | ||
Less than 12 Months, fair value | 2,338 | 41,077 |
Less than 12 Months, Accumulated Loss | (12) | (1,523) |
12 Months or Longer, fair value | 40,352 | 6,853 |
12 Months or Longer, Accumulated Loss | (2,081) | (730) |
Fair value | 42,690 | 47,930 |
Accumulated Loss | (2,093) | (2,253) |
States Territories Possessions Debt Securities [Member] | ||
Less than 12 Months, fair value | 2,041 | 3,227 |
Less than 12 Months, Accumulated Loss | (30) | (552) |
12 Months or Longer, fair value | 3,172 | 0 |
12 Months or Longer, Accumulated Loss | (599) | 0 |
Fair value | 5,213 | 3,227 |
Accumulated Loss | (629) | (552) |
Political Subdivisions Debt Securities [Member] | ||
Less than 12 Months, fair value | 0 | 4,298 |
Less than 12 Months, Accumulated Loss | 0 | (621) |
12 Months or Longer, fair value | 3,848 | 0 |
12 Months or Longer, Accumulated Loss | (585) | 0 |
Fair value | 3,848 | 4,298 |
Accumulated Loss | (585) | (621) |
Special Revenue Excluding Asset Backed Securities [Member] | ||
Less than 12 Months, fair value | 2,617 | 25,091 |
Less than 12 Months, Accumulated Loss | (148) | (3,287) |
12 Months or Longer, fair value | 25,251 | 5,080 |
12 Months or Longer, Accumulated Loss | (5,220) | (1,200) |
Fair value | 27,868 | 30,171 |
Accumulated Loss | (5,368) | (4,487) |
Corporate Debt Securities and Other Debt Obligations [Member] | ||
Less than 12 Months, fair value | 66,836 | 192,185 |
Less than 12 Months, Accumulated Loss | (3,296) | (15,667) |
12 Months or Longer, fair value | 197,097 | 55,605 |
12 Months or Longer, Accumulated Loss | (25,040) | (8,481) |
Fair value | 263,933 | 247,790 |
Accumulated Loss | (28,336) | (24,148) |
Asset-Backed Securities [Member] | ||
Less than 12 Months, fair value | 88,543 | 118,815 |
Less than 12 Months, Accumulated Loss | (2,414) | (9,908) |
12 Months or Longer, fair value | 117,318 | 32,448 |
12 Months or Longer, Accumulated Loss | (15,834) | (4,954) |
Fair value | 205,861 | 151,263 |
Accumulated Loss | $ (18,248) | $ (14,862) |
Note 2 - Investments - The Amor
Note 2 - Investments - The Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Due within one year, Amortized Cost | $ 42,127 | |
Due within one year, Fair Value | 40,783 | |
Due after one year through five years, Amortized Cost | 183,123 | |
Due after one year through five years, Fair Value | 170,789 | |
Due after five years through ten years, Amortized Cost | 131,751 | |
Due after five years through ten years, Fair Value | 114,833 | |
Due after ten years, Amortized Cost | 37,291 | |
Due after ten years, Fair Value | 30,147 | |
Mortgage and asset-backed securities, Amortized Cost | 253,287 | |
Mortgage and asset-backed securities, Fair Value | 235,355 | |
Amortized Cost | 647,579 | $ 561,580 |
Total, Fair Value | $ 591,907 | $ 515,064 |
Note 2 - Investments - Summar_2
Note 2 - Investments - Summary of Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | $ 5,952 | $ 3,688 | $ 16,468 | $ 9,328 |
Dividend income | 211 | 178 | 602 | 518 |
Investment expense | (134) | (122) | (380) | (384) |
Net investment income | $ 6,029 | $ 3,744 | $ 16,690 | $ 9,462 |
Note 2 - Investments - Net Real
Note 2 - Investments - Net Realized and Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gains on sales of fixed maturity securities | $ 0 | $ 2 | $ 65 | $ 10 |
Gains on sales of equity securities | 0 | 0 | 0 | 0 |
Total realized gains | 0 | 2 | 65 | 10 |
Losses on sales of fixed maturity securities | 0 | (195) | (32) | (309) |
Losses on sales of equity securities | 0 | 0 | 0 | 0 |
Total realized losses | 0 | (195) | (32) | (309) |
Net realized investment gains | 0 | (193) | 33 | (299) |
Change in allowance for credit losses | 0 | 0 | (667) | 0 |
Net unrealized (losses) gains on equity securities | (1,299) | (2,163) | 608 | (8,070) |
Net unrealized losses on equity method investment | (77) | 0 | (77) | 0 |
Net realized and unrealized gains (losses) on investments | $ (1,376) | $ (2,356) | $ (103) | $ (8,369) |
Note 3 - Fair Value Measureme_3
Note 3 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 0 | $ 0 |
Note 3 - Fair Value Measureme_4
Note 3 - Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale | $ 591,907 | $ 515,064 |
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 39,835 | 38,576 |
Fair Value, Recurring [Member] | ||
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 39,835 | 38,576 |
Cash, cash equivalents, and restricted cash | 53,288 | 68,164 |
Total assets | 685,030 | 621,804 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 39,835 | 38,576 |
Cash, cash equivalents, and restricted cash | 53,288 | 68,164 |
Total assets | 93,123 | 106,740 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 0 | 0 |
Cash, cash equivalents, and restricted cash | 0 | 0 |
Total assets | 591,907 | 515,064 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Equity securities, at fair value (cost: $43,002 in 2023; $42,352 in 2022) | 0 | 0 |
Cash, cash equivalents, and restricted cash | 0 | 0 |
Total assets | 0 | 0 |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Available-for-sale | 42,690 | 48,551 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 42,690 | 48,551 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 42,690 | 48,551 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
States Territories Possessions Debt Securities [Member] | ||
Debt Securities, Available-for-sale | 5,213 | 5,354 |
States Territories Possessions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 5,213 | 5,354 |
States Territories Possessions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
States Territories Possessions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 5,213 | 5,354 |
States Territories Possessions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale | 3,848 | 4,298 |
Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 3,848 | 4,298 |
Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 3,848 | 4,298 |
Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Special Revenue Excluding Asset Backed Securities [Member] | ||
Debt Securities, Available-for-sale | 27,868 | 32,799 |
Special Revenue Excluding Asset Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 27,868 | 32,799 |
Special Revenue Excluding Asset Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Special Revenue Excluding Asset Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 27,868 | 32,799 |
Special Revenue Excluding Asset Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities and Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale | 276,933 | 254,095 |
Corporate Debt Securities and Other Debt Obligations [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 276,933 | 254,095 |
Corporate Debt Securities and Other Debt Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities and Other Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 276,933 | 254,095 |
Corporate Debt Securities and Other Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale | 235,355 | 169,967 |
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 235,355 | 169,967 |
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | 235,355 | 169,967 |
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Debt Securities, Available-for-sale | $ 0 | $ 0 |
Note 4 - Reserve for Losses a_3
Note 4 - Reserve for Losses and Loss Adjustment Expenses (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Prior Year Claims and Claims Adjustment Expense | $ 1,023 | $ (4) | $ 3,742 | $ 1,548 |
Note 4 - Reserve for Losses a_4
Note 4 - Reserve for Losses and Loss Adjustment Expenses - Reconciliation of Changes in Reserve Balance for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Reserve for losses and LAE net of reinsurance recoverables at beginning of period | $ 81,300 | $ 55,769 | $ 77,520 | $ 45,419 | |
Current year | 15,116 | 30,904 | 50,954 | 58,703 | |
Prior years | 1,023 | (4) | 3,742 | 1,548 | |
Total incurred | 16,139 | 30,900 | 54,696 | 60,251 | |
Current year | 6,646 | 7,873 | 14,215 | 13,762 | |
Prior years | (1,385) | 4,548 | 25,823 | 17,660 | |
Total payments | 5,261 | 12,421 | 40,038 | 31,422 | |
Reserve for losses and LAE net of reinsurance recoverables at end of period | 92,178 | 74,248 | 92,178 | 74,248 | |
Add: Reinsurance recoverables on unpaid losses and LAE at end of period | 232,170 | 131,575 | 232,170 | 131,575 | $ 153,895 |
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period | $ 324,348 | $ 205,823 | $ 324,348 | $ 205,823 | $ 231,415 |
Note 5 - Stockholders' Equity_2
Note 5 - Stockholders' Equity (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jul. 15, 2021 | Sep. 30, 2023 USD ($) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2023 USD ($) $ / shares shares | Jan. 31, 2022 USD ($) | Apr. 16, 2019 shares | |
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ | $ 1.8 | $ 1.8 | $ 1.8 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 17,080 | |||||
Stock Repurchase Program, Authorized Amount | $ | $ 100 | |||||
Treasury Stock, Shares, Acquired (in shares) | 418,901 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 22.1 | |||||
Shares Acquired, Average Cost Per Share (in dollars per share) | $ / shares | $ 54.4 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 43,500,000 | 43,500,000 | 43,500,000 | |||
Share-Based Payment Arrangement, Option [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 2 months 12 days | |||||
Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 2 years | |||||
Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Share-Based Payment Arrangement, Option [Member] | Share Based Payment Arrangement Tranche One First Anniversary [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Share-Based Payment Arrangement, Option [Member] | Share Based Payment Arrangement Tranche Two First Anniversary [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | |||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 16.8 | $ 16.8 | $ 16.8 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Performance Shares [Member] | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 8 months 12 days | |||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 10.2 | $ 10.2 | $ 10.2 | |||
Number of Stock Price Milestones Achieved | 0 | 0 | 0 | |||
Predetermined Performance Achievement, Percentage | 100% | |||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Number of Days, Achievement of Milestone Stock Price | 30 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Service Period (Year) | 5 years | |||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Service Period (Year) | 3 years | |||||
Employee Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 240,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Available for Issuance, Authorized Annual Increase, Maximum (in shares) | 240,000 | 240,000 | 240,000 | |||
Equity Incentive Plan 2019 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 3,134,739 | 3,134,739 | 3,134,739 | 2,400,000 | ||
Share Based Compensation Arrangement By Share Based Payment Award Percentage, Number of Additional Shares Available for Grant | 3% |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 | Apr. 16, 2019 |
Options, Outstanding, Number (in shares) | 838,706 | 882,892 | |
Total (in shares) | 5,868,113 | ||
Restricted Stock Units (RSUs) [Member] | |||
Equity Instruments Other than Options, Nonvested, Number (in shares) | 339,505 | 271,951 | |
Performance Shares [Member] | |||
Equity Instruments Other than Options, Nonvested, Number (in shares) | 424,393 | 383,103 | |
Equity Incentive Plan 2019 [Member] | |||
Options, Outstanding, Number (in shares) | 838,706 | ||
Number of Shares Authorized (in shares) | 3,134,739 | 2,400,000 | |
Equity Incentive Plan 2019 [Member] | Restricted Stock Units (RSUs) [Member] | |||
Equity Instruments Other than Options, Nonvested, Number (in shares) | 339,505 | ||
Equity Incentive Plan 2019 [Member] | Performance Shares [Member] | |||
Equity Instruments Other than Options, Nonvested, Number (in shares) | 424,393 | ||
Employee Stock Purchase Plan 2019 [Member] | |||
Number of Shares Authorized (in shares) | 1,130,770 |
Note 5 - Stockholders' Equity_3
Note 5 - Stockholders' Equity - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-Based Compensation | $ 3,589 | $ 3,092 | $ 10,737 | $ 8,556 |
Note 5 - Stockholders' Equity_4
Note 5 - Stockholders' Equity - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Outstanding, options (in shares) | shares | 882,892 |
Outstanding, options, weighted average exercise price (in dollars per share) | $ / shares | $ 33.85 |
Options exercised, options (in shares) | shares | (32,882) |
Options exercised, options, weighted average exercise price (in dollars per share) | $ / shares | $ 17.61 |
Options canceled, options (in shares) | shares | (11,304) |
Options canceled, options, weighted average exercise price (in dollars per share) | $ / shares | $ 66.08 |
Outstanding, options (in shares) | shares | 838,706 |
Outstanding, options, weighted average exercise price (in dollars per share) | $ / shares | $ 34.05 |
Outstanding, options, weighted average remaining contractual term (Year) | 6 years |
Outstanding, options, aggregate intrinsic value | $ | $ 19,368 |
Vested and Exercisable, options (in shares) | shares | 753,678 |
Vested and Exercisable, options, weighted average exercise price (in dollars per share) | $ / shares | $ 30.74 |
Vested and Exercisable, options, weighted average remaining contractual term (Year) | 5 years 9 months 18 days |
Vested and Exercisable, options, aggregate intrinsic value | $ | $ 19,308 |
Note 5 - Stockholders' Equity_5
Note 5 - Stockholders' Equity - Summary of RSU Transactions (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Outstanding, shares (in shares) | shares | 271,951 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 68.9 |
Granted, shares (in shares) | shares | 157,972 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 51.34 |
Released, shares (in shares) | shares | (72,357) |
Released, weighted average grant date fair value (in dollars per share) | $ / shares | $ 66.37 |
Forfeited, shares (in shares) | shares | (18,061) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 52.27 |
Non-vested, shares (in shares) | shares | 339,505 |
Non-vested outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 62.15 |
Note 5 - Stockholders' Equity_6
Note 5 - Stockholders' Equity - Summary of PSU Transactions (Details) - Performance Shares [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Outstanding, shares (in shares) | shares | 383,103 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 37.62 |
Granted, shares (in shares) | shares | 46,029 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 51.36 |
Forfeited, shares (in shares) | shares | (4,739) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 54.3 |
Non-vested, shares (in shares) | shares | 424,393 |
Non-vested outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 38.93 |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Beginning Balance | $ 384,754 | $ 394,169 |
Other comprehensive (loss) | (6,706) | (47,941) |
Balance at end of period | 421,334 | 367,845 |
AOCI Attributable to Parent [Member] | ||
Beginning Balance | (36,515) | 5,312 |
Other comprehensive (loss) before reclassification | (8,453) | (60,983) |
Federal income tax (benefit) expense | 1,775 | 12,806 |
Other comprehensive (loss) before reclassification, net of tax | (6,678) | (48,177) |
Amounts reclassified from AOCI | (36) | 299 |
Federal income tax expense (benefit) | 8 | (63) |
Amounts reclassified from AOCI, net of tax | (28) | 236 |
Other comprehensive (loss) | (6,706) | (47,941) |
Balance at end of period | $ (43,221) | $ (42,629) |
Note 7 - Underwriting Informa_3
Note 7 - Underwriting Information - Schedule of Gross Written Premiums (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gross written premiums | $ 313,998 | $ 253,128 | $ 838,406 | $ 642,751 |
Percentage of Gross Written Premiums | 100% | 100% | 100% | 100% |
Palomar Specialty Insurance Company [Member] | ||||
Gross written premiums | $ 186,693 | $ 136,814 | $ 497,216 | $ 357,156 |
Percentage of Gross Written Premiums | 59.50% | 54% | 59.30% | 55.60% |
Palomar Excess And Surplus Insurance Company [Member] | ||||
Gross written premiums | $ 127,305 | $ 116,314 | $ 341,190 | $ 285,595 |
Percentage of Gross Written Premiums | 40.50% | 46% | 40.70% | 44.40% |
CALIFORNIA | ||||
Gross written premiums | $ 163,806 | $ 131,016 | $ 450,752 | $ 292,865 |
Percentage of Gross Written Premiums | 52.20% | 51.80% | 53.80% | 45.60% |
TEXAS | ||||
Gross written premiums | $ 24,336 | $ 26,234 | $ 72,777 | $ 71,499 |
Percentage of Gross Written Premiums | 7.70% | 10.40% | 8.70% | 11.10% |
WASHINGTON | ||||
Gross written premiums | $ 17,792 | $ 13,573 | $ 43,409 | $ 29,391 |
Percentage of Gross Written Premiums | 5.70% | 5.40% | 5.20% | 4.60% |
HAWAII | ||||
Gross written premiums | $ 13,490 | $ 10,998 | $ 35,824 | $ 29,729 |
Percentage of Gross Written Premiums | 4.30% | 4.30% | 4.30% | 4.60% |
FLORIDA | ||||
Gross written premiums | $ 11,549 | $ 7,445 | $ 36,309 | $ 27,216 |
Percentage of Gross Written Premiums | 3.70% | 2.90% | 4.30% | 4.20% |
OREGON | ||||
Gross written premiums | $ 8,536 | $ 7,738 | $ 21,223 | $ 16,483 |
Percentage of Gross Written Premiums | 2.70% | 3.10% | 2.50% | 2.60% |
ILLINOIS | ||||
Gross written premiums | $ 6,502 | $ 4,204 | $ 15,675 | $ 13,153 |
Percentage of Gross Written Premiums | 2.10% | 1.70% | 1.90% | 2% |
TENNESSEE | ||||
Gross written premiums | $ 5,562 | $ 1,810 | $ 9,233 | $ 4,247 |
Percentage of Gross Written Premiums | 1.80% | 0.70% | 1.10% | 0.70% |
Other States [Member] | ||||
Gross written premiums | $ 62,425 | $ 50,110 | $ 153,204 | $ 158,168 |
Percentage of Gross Written Premiums | 19.80% | 19.80% | 18.20% | 24.60% |
Fronting Premium [Member] | ||||
Gross written premiums | $ 106,581 | $ 82,232 | $ 278,548 | $ 154,232 |
Percentage of Gross Written Premiums | 33.90% | 32.50% | 33.20% | 24% |
Residential Earthquake [Member] | ||||
Gross written premiums | $ 69,220 | $ 59,569 | $ 190,048 | $ 159,995 |
Percentage of Gross Written Premiums | 22% | 23.50% | 22.70% | 24.90% |
Commercial Earthquake [Member] | ||||
Gross written premiums | $ 44,166 | $ 32,647 | $ 124,763 | $ 90,894 |
Percentage of Gross Written Premiums | 14.10% | 12.90% | 14.90% | 14.10% |
Inland Marine [Member] | ||||
Gross written premiums | $ 37,252 | $ 30,842 | $ 103,841 | $ 72,214 |
Percentage of Gross Written Premiums | 11.90% | 12.20% | 12.40% | 11.20% |
Casualty [Member] | ||||
Gross written premiums | $ 20,165 | $ 12,888 | $ 50,144 | $ 25,697 |
Percentage of Gross Written Premiums | 6.40% | 5.10% | 6% | 4% |
Hawaii Hurricane [Member] | ||||
Gross written premiums | $ 11,051 | $ 9,425 | $ 28,718 | $ 24,579 |
Percentage of Gross Written Premiums | 3.50% | 3.70% | 3.40% | 3.80% |
Commercial All Risk [Member] | ||||
Gross written premiums | $ 6,624 | $ 9,224 | $ 26,769 | $ 41,647 |
Percentage of Gross Written Premiums | 2.10% | 3.60% | 3.20% | 6.50% |
Flood Insurance Product [Member] | ||||
Gross written premiums | $ 5,259 | $ 3,871 | $ 14,964 | $ 10,448 |
Percentage of Gross Written Premiums | 1.70% | 1.50% | 1.80% | 1.60% |
Specialty Homeowners [Member] | ||||
Gross written premiums | $ (94) | $ (99) | $ 30,082 | |
Percentage of Gross Written Premiums | (0.00%) | (0.00%) | (0.00%) | 4.70% |
Specialty Homeowners | $ (2) | |||
Service, Other [Member] | ||||
Gross written premiums | $ 13,682 | $ 12,524 | $ 20,710 | $ 32,963 |
Percentage of Gross Written Premiums | 4.40% | 5% | 2.40% | 5.20% |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 24.90% | 17.50% | 24% | 21.50% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Note 9 - Earnings Per Share - E
Note 9 - Earnings Per Share - Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 18,432 | $ 4,286 | $ 53,305 | $ 33,411 |
Basic (in shares) | 24,740,455 | 25,209,368 | 24,847,164 | 25,258,333 |
Common Share equivalents (in shares) | 504,373 | 578,257 | 493,438 | 550,054 |
Diluted (in shares) | 25,244,828 | 25,787,625 | 25,340,602 | 25,808,387 |
Basic earnings per share (in dollars per share) | $ 0.75 | $ 0.17 | $ 2.15 | $ 1.32 |
Diluted earnings per share (in dollars per share) | $ 0.73 | $ 0.17 | $ 2.1 | $ 1.29 |
Note 10 - Reinsurance (Details
Note 10 - Reinsurance (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2021 | |
Catastrophe Bond, Face Value | $ 200 | $ 275 | $ 400 | |
Catastrophe [Member] | ||||
Reinsurance, Amount Retained, Per Event | $ 17.5 | |||
Earthquake [Member] | ||||
Reinsurance Policy, Excess of Loss Protection Amount | 2,680 | |||
Hawaii Hurricane [Member] | ||||
Reinsurance Policy, Excess of Loss Protection Amount | 900 | |||
U.S. Hurricane [Member] | ||||
Reinsurance Policy, Excess of Loss Protection Amount | $ 100 |
Note 11 - Credit Agreements (De
Note 11 - Credit Agreements (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available as Percentage of Statutory Admitted Assets | 10% | 10% | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 52,600 | $ 52,600 | $ 36,400 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 5.69% | 5.69% | 4.65% | ||
Interest Expense, Loans from Other Federal Home Loan Banks | $ 800 | $ 200 | $ 2,100 | ||
Revolving Credit Facility [Member] | |||||
Line of Credit, Prepayment Premium | $ 0 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 0 | ||||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Revolving Credit Facility [Member] | Alternate Base Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
Revolving Credit Facility [Member] | U.S. Bank Credit Agreement [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 |