Palomar (PLMR) 10-Q 5 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Cover [Abstract]
Entity Central Index Key	0001761312
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-38873
Entity Registrant Name	Palomar Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-3972551
Entity Address, Address Line One	7979 Ivanhoe Avenue
Entity Address, Address Line Two	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
Entity Listing, Par Value Per Share	$ 0.0001
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		25,415,299
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $397,955 in 2021; $381,279 in 2020)	$ 408,046	$ 397,987
Equity securities, at fair value (cost: $17,829 in 2021; $22,291 in 2020)	17,358	24,322
Total investments	425,404	422,309
Cash and cash equivalents	41,405	33,538
Restricted cash	229	248
Accrued investment income	2,506	2,545
Premium receivable	75,543	48,842
Deferred policy acquisition costs	53,995	35,481
Reinsurance recoverable on unpaid losses and loss adjustment expenses	129,044	94,566
Reinsurance recoverable on paid losses and loss adjustment expenses	54,431	10,162
Ceded unearned premiums	42,949	35,031
Prepaid expenses and other assets	40,212	34,119
Property and equipment, net	578	739
Intangible assets, net	10,512	11,512
Total assets	876,808	729,092
Liabilities:
Accounts payable and other accrued liabilities	21,551	20,730
Reserve for losses and loss adjustment expenses	175,687	129,036
Unearned premiums	257,667	183,489
Ceded premium payable	32,426	22,233
Funds held under reinsurance treaty	7,282	4,515
Deferred tax liabilities, net	4,418	5,376
Total liabilities	499,031	365,379
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020
Common stock, $0.0001 par value, 500,000,000 shares authorized, 25,415,299 and 25,525,796 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	3	3
Additional paid-in capital	316,352	310,507
Accumulated other comprehensive income	8,102	13,246
Retained earnings	53,320	39,957
Total stockholders' equity	377,777	363,713
Total liabilities and stockholders' equity	$ 876,808	$ 729,092

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets
Fixed maturity securities available for sale, amortized cost	$ 397,955	$ 381,279
Equity securities, cost	$ 17,829	$ 22,291
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)	25,415,299	25,525,796
Common stock, shares outstanding (in shares)	25,415,299	25,525,796

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Gross written premiums	$ 152,332	$ 102,967	$ 385,267	$ 258,268
Ceded written premiums	(58,073)	(41,570)	(153,005)	(101,264)
Net written premiums	94,259	61,397	232,262	157,004
Change in unearned premiums	(29,539)	(19,377)	(66,274)	(40,859)
Net earned premiums	64,720	42,020	165,988	116,145
Net investment income	2,236	2,138	6,649	6,287
Net realized and unrealized gains (losses) on investments	(313)	24	(752)	1,243
Commission and other income	1,018	816	2,735	2,492
Total revenues	67,661	44,998	174,620	126,167
Expenses:
Losses and loss adjustment expenses	28,475	41,060	31,288	46,901
Acquisition expenses	26,412	17,976	68,150	45,909
Other underwriting expenses	12,652	7,805	39,438	24,732
Total expenses	67,539	66,841	138,876	117,542
Income (loss) before income taxes	122	(21,843)	35,744	8,625
Income tax expense	(124)	(6,158)	6,529	523
Net income (loss)	246	(15,685)	29,215	8,102
Other comprehensive income, net:
Net unrealized gains (losses) on securities available for sale for the three and nine months ended September 30, 2021 and 2020, respectively	(1,655)	909	(5,144)	5,752
Net comprehensive income (loss)	$ (1,409)	$ (14,776)	$ 24,071	$ 13,854
Per Share Data:
Basic earnings per share	$ 0.01	$ (0.62)	$ 1.15	$ 0.33
Diluted earnings per share	$ 0.01	$ (0.62)	$ 1.12	$ 0.32
Weighted-average common shares outstanding:
Basic	25,388,630	25,492,274	25,473,006	24,654,722
Diluted	26,043,680	25,492,274	26,133,664	25,384,518

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Beginning balance at Dec. 31, 2019	$ 2	$ 180,012	$ 4,686	$ 33,856	$ 218,556
Beginning balance (in shares) at Dec. 31, 2019	23,468,750
Changes in Stockholders' Equity
Other comprehensive income (loss), net of tax			5,752		5,752
Stock-based compensation		1,457			1,457
Issuance of common stock in stock offerings, net of offering costs	$ 1	125,546			125,547
Issuance of common stock in stock offerings, net of offering costs (in shares)	1,900,000
Issuance of common stock via employee stock purchase plan		741			741
Issuance of common stock via employee stock purchase plan (in shares)	28,367
Issuance of common stock via equity incentive plan		1,740			1,740
Issuance of common stock via equity incentive plan (in shares)	121,840
Net income				8,102	8,102
Ending balance at Sep. 30, 2020	$ 3	309,496	10,438	41,958	361,895
Ending balance (in shares) at Sep. 30, 2020	25,518,957
Beginning balance at Dec. 31, 2020	$ 3	310,507	13,246	39,957	$ 363,713
Beginning balance (in shares) at Dec. 31, 2020	25,525,796				25,525,796
Changes in Stockholders' Equity
Other comprehensive income (loss), net of tax			(5,144)		$ (5,144)
Stock-based compensation		3,370			3,370
Issuance of common stock via employee stock purchase plan		719			$ 719
Issuance of common stock via employee stock purchase plan (in shares)	9,793				9,793
Issuance of common stock via equity incentive plan		1,756			$ 1,756
Issuance of common stock via equity incentive plan (in shares)	118,806
Repurchases of common stock				(15,852)	(15,852)
Repurchases of common stock (in shares)	(239,096)
Net income				29,215	29,215
Ending balance at Sep. 30, 2021	$ 3	$ 316,352	$ 8,102	$ 53,320	$ 377,777
Ending balance (in shares) at Sep. 30, 2021	25,415,299				25,415,299

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net cash provided by (used in) operating activities	$ 33,418	$ 44,170
Investing activities
Purchases of property and equipment	(18)	(84)
Purchases of fixed maturity securities	(88,755)	(251,504)
Purchases of equity securities	(35,675)	(46,340)
Sales and maturities of fixed maturity securities	70,696	84,663
Sales of equity securities	41,553	24,662
Securities receivable or payable, net	17	(2,748)
Payment of additional costs associated with purchase of policy renewal rights	(11)
Net cash provided by (used in) investing activities	(12,193)	(191,351)
Financing activities
Proceeds from stock offerings, net of offering costs		125,547
Proceeds from common stock issued via employee stock purchase plan	719	741
Proceeds from common stock issued via stock option exercises	1,756	1,740
Repurchases of common stock	(15,852)
Net cash provided by (used in) financing activities	(13,377)	128,028
Net increase (decrease) in cash, cash equivalents and restricted cash	7,848	(19,153)
Cash, cash equivalents and restricted cash at beginning of period	33,786	33,349
Cash, cash equivalents and restricted cash at end of period	41,634	14,196
Supplementary cash flow information:
Cash paid for income taxes	$ 2,104	$ 7,053

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Cash and cash equivalents and restricted cash and cash equivalents
Cash and cash equivalents	$ 41,405	$ 33,538
Restricted cash	229	248
Cash and cash equivalents and restricted cash	$ 41,634	$ 33,786	$ 14,196	$ 33,349

Summary of Operations and Basis

Summary of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2021
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 a Delaware incorporated insurance holding company that was founded in 2014. The Company has several wholly owned subsidiaries including an Oregon domiciled insurance company, Palomar Specialty Insurance Company (“PSIC”), a Bermuda based reinsurance company, Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), an Arizona domiciled surplus lines insurance company, Palomar Excess and Surplus Insurance Company (“PESIC”), and a California domiciled property and casualty insurance agency, Palomar Insurance Agency, DBA Palomar General Insurance Agency (“PGIA”). 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. These condensed consolidated financial statements do not contain all information and footnotes required by U.S. GAAP for complete consolidated financial statements. For a more complete description of the Company’s business and accounting policies, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 9, 2021 (the “2020 Annual Report on Form 10-K”) In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. 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 Recently adopted accounting pronouncements Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. 2020. The Company adopted this guidance on January 1, 2021 and adoption did not have a material impact on the consolidated financial statements. ​ ​

Investments

Investments	9 Months Ended
	Sep. 30, 2021
Investments
Investments	2. Investments The Company’s available-for-sale investments are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair September 30, 2021 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ ​ U.S. Governments ​ $ 18,965 ​ $ 461 ​ $ (115) ​ $ 19,311 States, territories, and possessions ​ 6,171 ​ 348 ​ (118) ​ 6,401 Political subdivisions ​ 1,494 ​ 94 ​ — ​ 1,588 Special revenue excluding mortgage/asset-backed securities ​ 43,376 ​ 1,228 ​ (174) ​ 44,430 Corporate and other ​ 248,480 ​ 7,751 ​ (1,131) ​ 255,100 Mortgage/asset-backed securities ​ 79,469 ​ 1,849 ​ (102) ​ 81,216 Total available-for-sale investments ​ $ 397,955 ​ $ 11,731 ​ $ (1,640) ​ $ 408,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair December 31, 2020 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ U.S. Governments ​ $ 16,308 ​ $ 756 ​ $ (5) ​ $ 17,059 States, territories, and possessions ​ 6,208 ​ 428 ​ — ​ 6,636 Political subdivisions ​ 2,027 ​ 125 ​ — ​ 2,152 Special revenue excluding mortgage/asset-backed securities ​ 39,704 ​ 1,525 ​ (2) ​ 41,227 Corporate and other ​ 234,049 ​ 11,602 ​ (291) ​ 245,360 Mortgage/asset-backed securities ​ 82,983 ​ 2,785 ​ (215) ​ 85,553 Total available-for-sale investments ​ $ 381,279 ​ $ 17,221 ​ $ (513) ​ $ 397,987 ​ Security holdings in an unrealized loss position As of September 30, 2021, the Company held 153 fixed maturity securities in an unrealized loss position with a total estimated fair value of $112.3 million and total gross unrealized losses of $1.6 million. As of December 31, 2020, the Company held 90 fixed maturity securities in an unrealized loss position with a total estimated fair value of $41.5 million and total gross unrealized losses of $0.5 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, 2021 and December 31, 2020, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments $ 7,018 ​ $ (105) ​ $ 490 ​ $ (10) ​ $ 7,508 ​ $ (115) States, territories, and possessions ​ 3,236 ​ ​ (118) ​ — ​ — ​ 3,236 ​ (118) Political subdivisions ​ — ​ ​ — ​ — ​ — ​ — ​ — Special revenue excluding mortgage/asset-backed securities ​ 13,593 ​ ​ (174) ​ — ​ — ​ 13,593 ​ (174) Corporate and other ​ 70,182 ​ ​ (799) ​ 5,688 ​ (332) ​ 75,870 ​ (1,131) Mortgage/asset-backed securities ​ 9,628 ​ ​ (79) ​ 2,443 ​ (23) ​ 12,071 ​ (102) Total ​ $ 103,657 ​ $ (1,275) ​ $ 8,621 ​ $ (365) ​ $ 112,278 ​ $ (1,640) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments ​ $ 1,496 ​ $ (5) ​ $ — ​ $ — ​ $ 1,496 ​ $ (5) States, territories, and possessions ​ — ​ — ​ — ​ — ​ — ​ — Political subdivisions ​ — ​ — ​ — ​ — ​ — ​ — Special revenue excluding mortgage/asset-backed securities ​ 520 ​ (2) ​ — ​ — ​ 520 ​ (2) Corporate and other ​ 22,718 ​ (234) ​ 203 ​ (57) ​ 22,921 ​ (291) Mortgage/asset-backed securities ​ 16,092 ​ (211) ​ 496 ​ (4) ​ 16,588 ​ (215) Total ​ $ 40,826 ​ $ (452) ​ $ 699 ​ $ (61) ​ $ 41,525 ​ $ (513) ​ 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 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report on Form 10-K. ​ Contractual maturities of available-for-sale fixed maturity securities The amortized cost and fair value of fixed maturity securities at September 30, 2021, by contractual maturity, are shown below. ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value ​ (in thousands) Due within one year ​ $ 27,733 ​ $ 27,927 Due after one year through five years ​ 134,550 ​ 137,757 Due after five years through ten years ​ 112,259 ​ 116,275 Due after ten years ​ 43,944 ​ 44,871 Mortgage and asset-backed securities ​ 79,469 ​ 81,216 ​ ​ $ 397,955 ​ $ 408,046 ​ 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, ​ 2021 2020 2021 2020 ​ (in thousands) (in thousands) Interest income ​ $ 2,254 ​ $ 2,149 ​ $ 6,755 ​ $ 6,242 Dividend income ​ 104 ​ 109 ​ 261 ​ 354 Investment expense ​ (122) ​ (120) ​ (367) ​ (309) Net investment income ​ $ 2,236 ​ $ 2,138 ​ $ 6,649 ​ $ 6,287 ​ 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, ​ 2021 2020 2021 2020 ​ ​ (in thousands) ​ (in thousands) Realized gains: ​ ​ ​ ​ Gains on sales of fixed maturity securities ​ $ 117 ​ $ 66 ​ $ 335 ​ $ 256 Gains on sales of equity securities ​ 188 ​ 59 ​ 1,416 ​ 57 Total realized gains ​ 305 ​ 125 ​ 1,751 ​ 313 Realized losses: ​ ​ ​ ​ Losses on sales of fixed maturity securities ​ — ​ — ​ (1) ​ ​ (44) Losses on sales of equity securities ​ — ​ — ​ — ​ ​ — Total realized losses ​ — ​ — ​ (1) ​ (44) Net realized investment gains ​ 305 ​ 125 ​ 1,750 ​ 269 Net unrealized gains (losses) on equity securities ​ (618) ​ (101) ​ (2,502) ​ 974 Net realized and unrealized gains (losses) on investments ​ $ (313) ​ $ 24 ​ $ (752) ​ $ 1,243 ​ 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 $12.1 million and $29.2 million for the nine months ended September 30, 2021 and 2020, 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 both September 30, 2021 and December 31, 2020, the carrying value of securities on deposit with state regulatory authorities was $7.5 million.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
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 hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 19,311 ​ $ — ​ $ 19,311 States, territories, and possessions ​ — ​ 6,401 ​ — ​ 6,401 Political subdivisions ​ — ​ 1,588 ​ — ​ 1,588 Special revenue excluding mortgage/asset-backed securities ​ — ​ 44,430 ​ — ​ 44,430 Corporate and other ​ — ​ 255,100 ​ — ​ 255,100 Mortgage/asset-backed securities ​ — ​ 81,216 ​ — ​ 81,216 Equity securities ​ 17,358 ​ — ​ — ​ 17,358 Cash, cash equivalents, and restricted cash ​ 41,634 ​ — ​ — ​ 41,634 Total assets ​ $ 58,992 ​ $ 408,046 ​ $ — ​ $ 467,038 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 17,059 ​ $ — ​ $ 17,059 States, territories, and possessions ​ — ​ 6,636 ​ — ​ 6,636 Political subdivisions ​ — ​ 2,152 ​ — ​ 2,152 Special revenue excluding mortgage/asset-backed securities ​ — ​ 41,227 ​ — ​ 41,227 Corporate and other ​ — ​ 245,360 ​ — ​ 245,360 Mortgage/asset-backed securities ​ — ​ 85,553 ​ — ​ 85,553 Equity securities ​ 24,322 ​ — ​ — ​ 24,322 Cash, cash equivalents, and restricted cash ​ 33,786 ​ — ​ — ​ 33,786 Total assets ​ $ 58,108 ​ $ 397,987 ​ $ — ​ $ 456,095 ​ ​ ​ ​ ​ ​ 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. Transfers between Level 3 and Level 2 securities result from changes in the availability of market observable inputs and are recorded at the beginning of the reporting period. As of September 30, 2021 and December 31, 2020, the Company had no fixed income securities classified as Level 3.

Reserve for Losses and Loss Adj

Reserve for Losses and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 2021
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 (“LAE”): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Nine Months Ended September 30, ​ 2021 2020 2021 2020 ​ ​ ​ (in thousands) ​ (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period ​ $ 23,633 ​ $ 7,087 ​ $ 34,470 ​ $ 3,869 Add: Incurred losses and LAE, net of reinsurance, related to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current year ​ 28,286 ​ 40,803 ​ 34,202 ​ ​ 46,867 Prior years ​ 189 ​ 257 ​ (2,914) ​ ​ 34 Total incurred ​ 28,475 ​ 41,060 ​ 31,288 ​ 46,901 Deduct: Loss and LAE payments, net of reinsurance, related to: ​ ​ ​ ​ Current year ​ 2,787 ​ ​ 8,232 ​ ​ 3,407 ​ ​ 9,754 Prior years ​ 2,678 ​ ​ 375 ​ ​ 15,708 ​ ​ 1,476 Total payments ​ 5,465 ​ 8,607 ​ 19,115 ​ 11,230 Reserve for losses and LAE net of reinsurance recoverables at end of period ​ 46,643 ​ 39,540 ​ 46,643 ​ 39,540 Add: Reinsurance recoverables on unpaid losses and LAE at end of period ​ 129,044 ​ ​ 92,537 ​ ​ 129,044 ​ ​ 92,537 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period ​ $ 175,687 ​ $ 132,077 ​ $ 175,687 ​ $ 132,077 ​ 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 adverse prior year development of $0.2 million during the three months ended September 30, 2021 and adverse prior year development of $0.3 million in the three months ended September 30, 2020. Adverse prior year development during the three months ended September 30, 2021 was primarily due to higher than anticipated severity of attritional losses, partially offset by favorable development on catastrophe losses associated with certain hurricanes which occurred during the second half of 2020 in the Company’s Commercial All Risk and Specialty Homeowners line of business. ​ The Company experienced favorable prior year development of $2.9 million during the nine months ended September 30, 2021 and adverse development of $0.03 million in the nine months ended September 30, 2020. Favorable prior year development during the nine months ended 30, 2021 associated with certain hurricanes which occurred during the second half of 2020 in the Company’s Commercial All Risk and Specialty Homeowners line of business.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2021
Stockholders' Equity
Stockholders' Equity	5. Stockholders’ Equity Common stock reserved for future issuance Common stock reserved for future issuance consists of the following as of September 30, 2021: ​ ​ ​ Stock options outstanding under 2019 Equity Incentive Plan 952,526 Restricted stock units outstanding under 2019 Equity Incentive Plan 168,195 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 233,452 Shares authorized for future issuance under 2019 Equity Incentive Plan 2,259,725 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 681,840 Total 4,295,738 ​ 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, ​ 2021 2020 2021 2020 ​ (in thousands) (in thousands) Stock-Based Compensation ​ $ 1,525 ​ $ 551 ​ $ 3,370 ​ $ 1,457 ​ 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 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 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 were initially authorized and reserved for issuance under the 2019 Plan. This reserve increases on January 1 of each year 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 common stock on the grant date. Stock options vest over a two vesting first grant vesting period service The following table summarizes stock option transactions for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average exercise price ​ Weighted average remaining contractual term (in years) ​ ​ Aggregate intrinsic value (in thousands) Outstanding at January 1, 2021 1,008,648 ​ $ 23.92 ​ 8.43 ​ $ 66,028 Options granted 72,063 ​ ​ 94.76 ​ ​ ​ ​ ​ Options exercised (112,819) ​ ​ 16.38 ​ ​ ​ ​ ​ Options canceled (15,366) ​ ​ 84.78 ​ ​ ​ ​ ​ Outstanding at September 30, 2021 952,526 ​ $ 29.19 ​ 7.80 ​ $ 50,981 Vested and Exercisable at September 30, 2021 610,568 ​ $ 18.58 ​ 7.59 ​ $ 38,171 ​ As of September 30, 2021, the Company had approximately $3.8 million of total unrecognized stock-based compensation expense related to stock options expected to be recognized over a weighted-average period of 2.04 years. The fair value of each option granted during the nine months ended September 30, 2021 was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: ​ ​ ​ Risk free rate of return (1) 0.57% - 1.15% Expected share price volatility (2) 26.06% - 38.72% Expected life in years (3) 5.89 years Dividend yield (4) 0% (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 a blend of the Company’s historic stock price volatility and the historic 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. ​ July 2021 CEO stock grant ​ On July 15, 2021, the Company granted its CEO 125,000 RSUs and 225,000 PSUs (the “July 2021 grant”) in connection with entrance into an employment agreement lasting through December 31, 2025. ​ The RSUs vest as follows: 25,000 of the shares will vest on each of the first, second third anniversary of the date of grant and the remainder shall vest in equal quarterly installments thereafter over a two-year period, subject to continued service. ​ The PSUs are earned based on the achievement of stock price milestones. If the Company’s stock price reaches and remains at certain milestones for days, the PSUs shall become earned units and will vest upon continued service as an employee through December 31, 2025 and as an employee and/or director through the fifth anniversary of the grant date. As of September 30, 2021, ​ The RSUs were valued based on the closing price of the Company’s stock on the grant date. The PSUs were valued using a Monte Carlo simulation to account for the market condition within the award. The Company expects to recognize ​ 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 to five years . All vesting is subject to continued service. The following table summarizes RSU transactions for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2021 14,734 ​ $ 95.86 Granted 160,729 ​ ​ 75.75 Released (5,987) ​ ​ 91.35 Forfeited (1,281) ​ ​ 96.90 Non vested outstanding at September 30, 2021 168,195 ​ $ 76.80 ​ As of September 30, 2021, the Company had approximately $11.8 million of total unrecognized stock-based compensation expense related to RSUs expected to be recognized over a weighted-average period of 4.09 years. Performance Stock Units During the nine months ended September 30, 2021, the Company began issuing PSUs to certain employees. The Company issues PSUs with a combination of service, performance, and market conditions. The majority of PSUs were issued pursuant to the July 2021 grant, as described above. For other PSU grants, 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. The PSU’s performance period is the fiscal year of the grant. At the end of the performance period, the actual results will be measured against the predetermined targets to determine the number of PSUs to be earned as compensation. The earned PSUs are then subject to a required service period of approximately three years from the grant date before vesting and being issued as common stock. The following table summarizes PSU transactions for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2021 — ​ $ — Granted 233,658 ​ ​ 34.45 Vested — ​ ​ — Forfeited (206) ​ ​ 97.87 Non vested outstanding at September 30, 2021 233,452 ​ $ 34.40 ​ The PSU grants above represent the number of shares that would vest based on achievement of all stock price milestones in the July 2021 grant and the 100% achievement of the predetermined performance and market conditions for the other PSU grants. The actual number of PSUs which will vest is subject to adjustment based on the Company’s actual stock price performance and financial performance relative to the predetermined targets. As of September 30, 2021, the Company had approximately $7.5 million of total unrecognized stock-based compensation expense related to PSUs expected to be recognized over a weighted-average period of 4.70 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 of each year 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, employees can purchase Company stock at a discount via payroll withholdings. The 2019 ESPP is administered through employee participation in discrete offering periods. During each discrete offering period employee funds are withheld, and the stock purchase occurs upon the conclusion of the offering period. The Company issued 9,793 shares pursuant to the ESPP during the nine months ended September 30, 2021. Share repurchases On March 29, 2021, the Company’s Board of Directors approved the adoption of a share repurchase program which became effective March 31, 2021. The program authorizes the repurchase by the Company of up to $40 million of its outstanding shares of common stock through the period ending on March 31, 2023. Under the share repurchase program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. The Company purchased 239,096 shares for $15.8 million under this program during the nine months ended September 30, 2021. The Company accounts for share repurchases by charging the excess of repurchase price over the common stock’s par value entirely to retained earnings. All repurchased shares are retired and become authorized but unissued shares.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2021
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	6. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (“AOCI”) are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2021 2020 ​ ​ ​ (in thousands) Beginning Balance ​ $ 13,246 ​ $ 4,686 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before reclassification ​ (6,177) ​ ​ 7,494 Federal income tax expense ​ 1,297 ​ ​ (1,573) Other comprehensive income before reclassification, net of tax ​ (4,880) ​ 5,921 ​ ​ ​ ​ ​ ​ ​ Amounts reclassified from AOCI ​ (334) ​ ​ (214) Federal income tax expense ​ 70 ​ ​ 45 Amounts reclassified from AOCI, net of tax ​ (264) ​ (169) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income ​ (5,144) ​ 5,752 Balance at end of period ​ $ 8,102 ​ $ 10,438 ​

Underwriting Information

Underwriting Information	9 Months Ended
	Sep. 30, 2021
Underwriting Information
Underwriting Information	7. Underwriting Information The Company has a single reportable segment and offers primarily earthquake, wind, inland marine, and flood insurance products. Gross written premiums (“GWP”) by product are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP Product ​ ​ ​ ​ ​ ​ Residential Earthquake ​ $ 50,075 ​ 32.9 % $ 40,507 ​ 39.3 % ​ $ 128,165 ​ 33.3 % $ 103,503 ​ 40.1 % Commercial Earthquake ​ 27,433 ​ 18.0 % 18,061 ​ 17.5 % ​ 66,052 ​ 17.1 % 40,727 ​ 15.8 % Specialty Homeowners ​ 19,881 ​ 13.1 % 17,048 ​ 16.6 % ​ 53,018 ​ 13.8 % 38,461 ​ 14.9 % Inland Marine ​ ​ 19,532 ​ 12.8 % ​ 4,406 ​ 4.3 % ​ ​ 39,047 ​ 10.1 % ​ 9,747 ​ 3.8 % Hawaii Hurricane ​ 8,996 ​ 5.9 % 4,360 ​ 4.2 % ​ 22,921 ​ 5.9 % 10,296 ​ 4.0 % Commercial All Risk ​ ​ 6,867 ​ 4.5 % ​ 12,467 ​ 12.1 % ​ ​ 30,032 ​ 7.8 % ​ 39,765 ​ 15.4 % Residential Flood ​ 3,228 ​ 2.1 % 2,170 ​ 2.1 % ​ 8,377 ​ 2.2 % 5,728 ​ 2.2 % Other ​ 16,320 ​ 10.7 % ​ 3,948 ​ 3.9 % ​ ​ 37,655 ​ 9.8 % ​ 10,041 ​ 3.8 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP State ​ ​ ​ ​ ​ ​ California ​ $ 72,505 ​ 47.6 % $ 52,960 ​ 51.4 % ​ $ 180,142 ​ 46.8 % $ 124,131 ​ 48.1 % Texas ​ ​ 19,715 ​ 13.0 % ​ 20,460 ​ 19.9 % ​ ​ 48,142 ​ 12.5 % ​ 55,047 ​ 21.3 % Hawaii ​ ​ 10,342 ​ 6.8 % ​ 5,097 ​ 5.0 % ​ ​ 26,312 ​ 6.8 % ​ 11,990 ​ 4.6 % Florida ​ ​ 7,203 ​ 4.7 % ​ 685 ​ 0.7 % ​ ​ 24,958 ​ 6.5 % ​ 685 ​ 0.3 % Washington ​ 7,180 ​ 4.7 % 4,340 ​ 4.2 % ​ 15,931 ​ 4.1 % 10,002 ​ 3.9 % Oregon ​ ​ 3,964 ​ 2.6 % ​ 2,912 ​ 2.8 % ​ ​ 9,686 ​ 2.5 % ​ 7,298 ​ 2.8 % North Carolina ​ ​ 3,719 ​ 2.4 % ​ 2,839 ​ 2.8 % ​ ​ 11,871 ​ 3.1 % ​ 7,131 ​ 2.8 % Illinois ​ 2,893 ​ 1.9 % 1,575 ​ 1.5 % ​ 8,668 ​ 2.2 % 4,416 ​ 1.7 % Other ​ 24,811 ​ 16.3 % 12,099 ​ 11.7 % ​ 59,557 ​ 15.5 % 37,568 ​ 14.5 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​ ​ Gross written premiums by insurance subsidiary are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP Subsidiary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PSIC ​ $ 110,875 ​ 72.8 % $ 93,987 ​ 91.3 % ​ $ 285,991 ​ 74.2 % $ 249,288 ​ 96.5 % PESIC ​ ​ 41,457 ​ 27.2 % ​ 8,980 ​ 8.7 % ​ ​ 99,276 ​ 25.8 % ​ 8,980 ​ 3.5 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​ ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Taxes
Income Taxes	8. Income Taxes The Company calculates its tax provision in interim periods using its best estimate of the effective tax rate expected for the full year. The tax rate for the three and nine months ended September 30, 2021 and 2020 differs from the statutory rate of 21% due primarily to the tax impact of the permanent component of employee stock option exercises.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share
Earnings Per Share	9. Earnings Per Share The following table sets out earnings per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2021 2020 2021 2020 ​ (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) ​ $ 246 ​ $ (15,685) ​ $ 29,215 ​ $ 8,102 Weighted average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 25,388,630 ​ 25,492,274 ​ 25,473,006 ​ 24,654,722 Common Share equivalents ​ ​ 655,050 ​ ​ — ​ ​ 660,658 ​ ​ 729,796 Diluted ​ ​ 26,043,680 ​ ​ 25,492,274 ​ ​ 26,133,664 ​ ​ 25,384,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.01 ​ $ (0.62) ​ $ 1.15 ​ $ 0.33 Diluted ​ $ 0.01 ​ $ (0.62) ​ $ 1.12 ​ $ 0.32 ​ Common share equivalents relate primarily to outstanding stock options, RSUs and PSUs under the 2019 Plan and unpurchased shares under the 2019 ESPP and are calculated using the treasury stock method. For the three months ended September 30, 2020, there were 761,337 common share equivalents excluded from the calculation of diluted earnings per share as their effects were anti-dilutive due to the net loss reported in this period.

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2021
Reinsurance
Reinsurance	10. 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. As of September 30, 2021, the Company’s catastrophe event retention is $12.5 million for all perils. As of September 30, 2021, the Company’s XOL reinsurance structure provides protection up to $1.68 billion for earthquake events and $700 million for hurricane events. In addition to reinsurance purchased from traditional reinsurers, the Company has historically incorporated collateralized protection from the insurance linked securities market (e.g. catastrophe bonds). During the first quarter of 2021, the Company closed a $400 million 144A catastrophe bond which became effective June 1, 2021. The catastrophe bond was completed through Torrey Pines Re Pte. Ltd. (“Torrey Pines Re”). Torrey Pines Re. is a special purpose insurer established in Singapore whereby Torrey Pines Re provides Palomar with indemnity-based reinsurance covering earthquake events. ​

Summary of Operations and Bas_2

Summary of Operations and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2021
Summary of Operations and Basis of Presentation
Summary of Operations	Summary of Operations Palomar Holdings, Inc. (the “Company”) is a Delaware incorporated insurance holding company that was founded in 2014. The Company has several wholly owned subsidiaries including an Oregon domiciled insurance company, Palomar Specialty Insurance Company (“PSIC”), a Bermuda based reinsurance company, Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), an Arizona domiciled surplus lines insurance company, Palomar Excess and Surplus Insurance Company (“PESIC”), and a California domiciled property and casualty insurance agency, Palomar Insurance Agency, DBA Palomar General Insurance Agency (“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”) for interim financial information and include the accounts of the Company and its wholly-owned subsidiaries. These condensed consolidated financial statements do not contain all information and footnotes required by U.S. GAAP for complete consolidated financial statements. For a more complete description of the Company’s business and accounting policies, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 9, 2021 (the “2020 Annual Report on Form 10-K”) In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year.
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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently adopted accounting pronouncements Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. 2020. The Company adopted this guidance on January 1, 2021 and adoption did not have a material impact on the consolidated financial statements. ​

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2021
Investments
Schedule of available-for-sale investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair September 30, 2021 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ ​ U.S. Governments ​ $ 18,965 ​ $ 461 ​ $ (115) ​ $ 19,311 States, territories, and possessions ​ 6,171 ​ 348 ​ (118) ​ 6,401 Political subdivisions ​ 1,494 ​ 94 ​ — ​ 1,588 Special revenue excluding mortgage/asset-backed securities ​ 43,376 ​ 1,228 ​ (174) ​ 44,430 Corporate and other ​ 248,480 ​ 7,751 ​ (1,131) ​ 255,100 Mortgage/asset-backed securities ​ 79,469 ​ 1,849 ​ (102) ​ 81,216 Total available-for-sale investments ​ $ 397,955 ​ $ 11,731 ​ $ (1,640) ​ $ 408,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair December 31, 2020 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ U.S. Governments ​ $ 16,308 ​ $ 756 ​ $ (5) ​ $ 17,059 States, territories, and possessions ​ 6,208 ​ 428 ​ — ​ 6,636 Political subdivisions ​ 2,027 ​ 125 ​ — ​ 2,152 Special revenue excluding mortgage/asset-backed securities ​ 39,704 ​ 1,525 ​ (2) ​ 41,227 Corporate and other ​ 234,049 ​ 11,602 ​ (291) ​ 245,360 Mortgage/asset-backed securities ​ 82,983 ​ 2,785 ​ (215) ​ 85,553 Total available-for-sale investments ​ $ 381,279 ​ $ 17,221 ​ $ (513) ​ $ 397,987
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, 2021 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments $ 7,018 ​ $ (105) ​ $ 490 ​ $ (10) ​ $ 7,508 ​ $ (115) States, territories, and possessions ​ 3,236 ​ ​ (118) ​ — ​ — ​ 3,236 ​ (118) Political subdivisions ​ — ​ ​ — ​ — ​ — ​ — ​ — Special revenue excluding mortgage/asset-backed securities ​ 13,593 ​ ​ (174) ​ — ​ — ​ 13,593 ​ (174) Corporate and other ​ 70,182 ​ ​ (799) ​ 5,688 ​ (332) ​ 75,870 ​ (1,131) Mortgage/asset-backed securities ​ 9,628 ​ ​ (79) ​ 2,443 ​ (23) ​ 12,071 ​ (102) Total ​ $ 103,657 ​ $ (1,275) ​ $ 8,621 ​ $ (365) ​ $ 112,278 ​ $ (1,640) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments ​ $ 1,496 ​ $ (5) ​ $ — ​ $ — ​ $ 1,496 ​ $ (5) States, territories, and possessions ​ — ​ — ​ — ​ — ​ — ​ — Political subdivisions ​ — ​ — ​ — ​ — ​ — ​ — Special revenue excluding mortgage/asset-backed securities ​ 520 ​ (2) ​ — ​ — ​ 520 ​ (2) Corporate and other ​ 22,718 ​ (234) ​ 203 ​ (57) ​ 22,921 ​ (291) Mortgage/asset-backed securities ​ 16,092 ​ (211) ​ 496 ​ (4) ​ 16,588 ​ (215) Total ​ $ 40,826 ​ $ (452) ​ $ 699 ​ $ (61) ​ $ 41,525 ​ $ (513)
Schedule of contractual maturities of available-for-sale securities	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value ​ (in thousands) Due within one year ​ $ 27,733 ​ $ 27,927 Due after one year through five years ​ 134,550 ​ 137,757 Due after five years through ten years ​ 112,259 ​ 116,275 Due after ten years ​ 43,944 ​ 44,871 Mortgage and asset-backed securities ​ 79,469 ​ 81,216 ​ ​ $ 397,955 ​ $ 408,046
Schedule of net investment income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 ​ (in thousands) (in thousands) Interest income ​ $ 2,254 ​ $ 2,149 ​ $ 6,755 ​ $ 6,242 Dividend income ​ 104 ​ 109 ​ 261 ​ 354 Investment expense ​ (122) ​ (120) ​ (367) ​ (309) Net investment income ​ $ 2,236 ​ $ 2,138 ​ $ 6,649 ​ $ 6,287
Schedule of net realized and unrealized investment gains and losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, September 30, ​ 2021 2020 2021 2020 ​ ​ (in thousands) ​ (in thousands) Realized gains: ​ ​ ​ ​ Gains on sales of fixed maturity securities ​ $ 117 ​ $ 66 ​ $ 335 ​ $ 256 Gains on sales of equity securities ​ 188 ​ 59 ​ 1,416 ​ 57 Total realized gains ​ 305 ​ 125 ​ 1,751 ​ 313 Realized losses: ​ ​ ​ ​ Losses on sales of fixed maturity securities ​ — ​ — ​ (1) ​ ​ (44) Losses on sales of equity securities ​ — ​ — ​ — ​ ​ — Total realized losses ​ — ​ — ​ (1) ​ (44) Net realized investment gains ​ 305 ​ 125 ​ 1,750 ​ 269 Net unrealized gains (losses) on equity securities ​ (618) ​ (101) ​ (2,502) ​ 974 Net realized and unrealized gains (losses) on investments ​ $ (313) ​ $ 24 ​ $ (752) ​ $ 1,243

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Measurements
Schedule of hierarchy for financial assets and liabilities measured at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 19,311 ​ $ — ​ $ 19,311 States, territories, and possessions ​ — ​ 6,401 ​ — ​ 6,401 Political subdivisions ​ — ​ 1,588 ​ — ​ 1,588 Special revenue excluding mortgage/asset-backed securities ​ — ​ 44,430 ​ — ​ 44,430 Corporate and other ​ — ​ 255,100 ​ — ​ 255,100 Mortgage/asset-backed securities ​ — ​ 81,216 ​ — ​ 81,216 Equity securities ​ 17,358 ​ — ​ — ​ 17,358 Cash, cash equivalents, and restricted cash ​ 41,634 ​ — ​ — ​ 41,634 Total assets ​ $ 58,992 ​ $ 408,046 ​ $ — ​ $ 467,038 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 17,059 ​ $ — ​ $ 17,059 States, territories, and possessions ​ — ​ 6,636 ​ — ​ 6,636 Political subdivisions ​ — ​ 2,152 ​ — ​ 2,152 Special revenue excluding mortgage/asset-backed securities ​ — ​ 41,227 ​ — ​ 41,227 Corporate and other ​ — ​ 245,360 ​ — ​ 245,360 Mortgage/asset-backed securities ​ — ​ 85,553 ​ — ​ 85,553 Equity securities ​ 24,322 ​ — ​ — ​ 24,322 Cash, cash equivalents, and restricted cash ​ 33,786 ​ — ​ — ​ 33,786 Total assets ​ $ 58,108 ​ $ 397,987 ​ $ — ​ $ 456,095 ​ ​ ​ ​ ​ ​

Reserve for Losses and Loss A_2

Reserve for Losses and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 2021
Reserve for Losses and Loss Adjustment Expenses
Schedule of 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, ​ 2021 2020 2021 2020 ​ ​ ​ (in thousands) ​ (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period ​ $ 23,633 ​ $ 7,087 ​ $ 34,470 ​ $ 3,869 Add: Incurred losses and LAE, net of reinsurance, related to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current year ​ 28,286 ​ 40,803 ​ 34,202 ​ ​ 46,867 Prior years ​ 189 ​ 257 ​ (2,914) ​ ​ 34 Total incurred ​ 28,475 ​ 41,060 ​ 31,288 ​ 46,901 Deduct: Loss and LAE payments, net of reinsurance, related to: ​ ​ ​ ​ Current year ​ 2,787 ​ ​ 8,232 ​ ​ 3,407 ​ ​ 9,754 Prior years ​ 2,678 ​ ​ 375 ​ ​ 15,708 ​ ​ 1,476 Total payments ​ 5,465 ​ 8,607 ​ 19,115 ​ 11,230 Reserve for losses and LAE net of reinsurance recoverables at end of period ​ 46,643 ​ 39,540 ​ 46,643 ​ 39,540 Add: Reinsurance recoverables on unpaid losses and LAE at end of period ​ 129,044 ​ ​ 92,537 ​ ​ 129,044 ​ ​ 92,537 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period ​ $ 175,687 ​ $ 132,077 ​ $ 175,687 ​ $ 132,077

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2021
Stockholders' Equity
Schedule of common stock reserved for future issuance	​ ​ ​ Stock options outstanding under 2019 Equity Incentive Plan 952,526 Restricted stock units outstanding under 2019 Equity Incentive Plan 168,195 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 233,452 Shares authorized for future issuance under 2019 Equity Incentive Plan 2,259,725 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 681,840 Total 4,295,738
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2021 2020 2021 2020 ​ (in thousands) (in thousands) Stock-Based Compensation ​ $ 1,525 ​ $ 551 ​ $ 3,370 ​ $ 1,457
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 January 1, 2021 1,008,648 ​ $ 23.92 ​ 8.43 ​ $ 66,028 Options granted 72,063 ​ ​ 94.76 ​ ​ ​ ​ ​ Options exercised (112,819) ​ ​ 16.38 ​ ​ ​ ​ ​ Options canceled (15,366) ​ ​ 84.78 ​ ​ ​ ​ ​ Outstanding at September 30, 2021 952,526 ​ $ 29.19 ​ 7.80 ​ $ 50,981 Vested and Exercisable at September 30, 2021 610,568 ​ $ 18.58 ​ 7.59 ​ $ 38,171
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) 0.57% - 1.15% Expected share price volatility (2) 26.06% - 38.72% Expected life in years (3) 5.89 years Dividend yield (4) 0% (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 a blend of the Company’s historic stock price volatility and the historic 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 RSU transactions	​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2021 14,734 ​ $ 95.86 Granted 160,729 ​ ​ 75.75 Released (5,987) ​ ​ 91.35 Forfeited (1,281) ​ ​ 96.90 Non vested outstanding at September 30, 2021 168,195 ​ $ 76.80
Schedule of Performance stock unit transactions	​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2021 — ​ $ — Granted 233,658 ​ ​ 34.45 Vested — ​ ​ — Forfeited (206) ​ ​ 97.87 Non vested outstanding at September 30, 2021 233,452 ​ $ 34.40

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2021
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (AOCI)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2021 2020 ​ ​ ​ (in thousands) Beginning Balance ​ $ 13,246 ​ $ 4,686 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before reclassification ​ (6,177) ​ ​ 7,494 Federal income tax expense ​ 1,297 ​ ​ (1,573) Other comprehensive income before reclassification, net of tax ​ (4,880) ​ 5,921 ​ ​ ​ ​ ​ ​ ​ Amounts reclassified from AOCI ​ (334) ​ ​ (214) Federal income tax expense ​ 70 ​ ​ 45 Amounts reclassified from AOCI, net of tax ​ (264) ​ (169) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income ​ (5,144) ​ 5,752 Balance at end of period ​ $ 8,102 ​ $ 10,438

Underwriting Information (Table

Underwriting Information (Tables)	9 Months Ended
	Sep. 30, 2021
Underwriting Information
Schedule of gross written premiums	The Company has a single reportable segment and offers primarily earthquake, wind, inland marine, and flood insurance products. Gross written premiums (“GWP”) by product are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP Product ​ ​ ​ ​ ​ ​ Residential Earthquake ​ $ 50,075 ​ 32.9 % $ 40,507 ​ 39.3 % ​ $ 128,165 ​ 33.3 % $ 103,503 ​ 40.1 % Commercial Earthquake ​ 27,433 ​ 18.0 % 18,061 ​ 17.5 % ​ 66,052 ​ 17.1 % 40,727 ​ 15.8 % Specialty Homeowners ​ 19,881 ​ 13.1 % 17,048 ​ 16.6 % ​ 53,018 ​ 13.8 % 38,461 ​ 14.9 % Inland Marine ​ ​ 19,532 ​ 12.8 % ​ 4,406 ​ 4.3 % ​ ​ 39,047 ​ 10.1 % ​ 9,747 ​ 3.8 % Hawaii Hurricane ​ 8,996 ​ 5.9 % 4,360 ​ 4.2 % ​ 22,921 ​ 5.9 % 10,296 ​ 4.0 % Commercial All Risk ​ ​ 6,867 ​ 4.5 % ​ 12,467 ​ 12.1 % ​ ​ 30,032 ​ 7.8 % ​ 39,765 ​ 15.4 % Residential Flood ​ 3,228 ​ 2.1 % 2,170 ​ 2.1 % ​ 8,377 ​ 2.2 % 5,728 ​ 2.2 % Other ​ 16,320 ​ 10.7 % ​ 3,948 ​ 3.9 % ​ ​ 37,655 ​ 9.8 % ​ 10,041 ​ 3.8 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP State ​ ​ ​ ​ ​ ​ California ​ $ 72,505 ​ 47.6 % $ 52,960 ​ 51.4 % ​ $ 180,142 ​ 46.8 % $ 124,131 ​ 48.1 % Texas ​ ​ 19,715 ​ 13.0 % ​ 20,460 ​ 19.9 % ​ ​ 48,142 ​ 12.5 % ​ 55,047 ​ 21.3 % Hawaii ​ ​ 10,342 ​ 6.8 % ​ 5,097 ​ 5.0 % ​ ​ 26,312 ​ 6.8 % ​ 11,990 ​ 4.6 % Florida ​ ​ 7,203 ​ 4.7 % ​ 685 ​ 0.7 % ​ ​ 24,958 ​ 6.5 % ​ 685 ​ 0.3 % Washington ​ 7,180 ​ 4.7 % 4,340 ​ 4.2 % ​ 15,931 ​ 4.1 % 10,002 ​ 3.9 % Oregon ​ ​ 3,964 ​ 2.6 % ​ 2,912 ​ 2.8 % ​ ​ 9,686 ​ 2.5 % ​ 7,298 ​ 2.8 % North Carolina ​ ​ 3,719 ​ 2.4 % ​ 2,839 ​ 2.8 % ​ ​ 11,871 ​ 3.1 % ​ 7,131 ​ 2.8 % Illinois ​ 2,893 ​ 1.9 % 1,575 ​ 1.5 % ​ 8,668 ​ 2.2 % 4,416 ​ 1.7 % Other ​ 24,811 ​ 16.3 % 12,099 ​ 11.7 % ​ 59,557 ​ 15.5 % 37,568 ​ 14.5 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​ ​ Gross written premiums by insurance subsidiary are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 ​ ​ ($ in thousands) ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP ​ Amount ​ GWP Subsidiary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PSIC ​ $ 110,875 ​ 72.8 % $ 93,987 ​ 91.3 % ​ $ 285,991 ​ 74.2 % $ 249,288 ​ 96.5 % PESIC ​ ​ 41,457 ​ 27.2 % ​ 8,980 ​ 8.7 % ​ ​ 99,276 ​ 25.8 % ​ 8,980 ​ 3.5 % Total Gross Written Premiums ​ $ 152,332 100.0 % $ 102,967 100.0 % ​ $ 385,267 100.0 % $ 258,268 100.0 % ​

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share
Schedule of earnings per share of common stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2021 2020 2021 2020 ​ (in thousands, except shares and per share data) (in thousands, except shares and per share data) Net income (loss) ​ $ 246 ​ $ (15,685) ​ $ 29,215 ​ $ 8,102 Weighted average common shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 25,388,630 ​ 25,492,274 ​ 25,473,006 ​ 24,654,722 Common Share equivalents ​ ​ 655,050 ​ ​ — ​ ​ 660,658 ​ ​ 729,796 Diluted ​ ​ 26,043,680 ​ ​ 25,492,274 ​ ​ 26,133,664 ​ ​ 25,384,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.01 ​ $ (0.62) ​ $ 1.15 ​ $ 0.33 Diluted ​ $ 0.01 ​ $ (0.62) ​ $ 1.12 ​ $ 0.32

Investments - Available for Sal

Investments - Available for Sale Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Available for sale investments
Amortized Cost	$ 397,955	$ 381,279
Gross Unrealized Gains	11,731	17,221
Gross Unrealized Losses	(1,640)	(513)
Fair Value	408,046	397,987
U.S. Governments
Available for sale investments
Amortized Cost	18,965	16,308
Gross Unrealized Gains	461	756
Gross Unrealized Losses	(115)	(5)
Fair Value	19,311	17,059
States, territories, and possessions
Available for sale investments
Amortized Cost	6,171	6,208
Gross Unrealized Gains	348	428
Gross Unrealized Losses	(118)
Fair Value	6,401	6,636
Political subdivisions
Available for sale investments
Amortized Cost	1,494	2,027
Gross Unrealized Gains	94	125
Fair Value	1,588	2,152
Special revenue excluding mortgage/asset-backed securities
Available for sale investments
Amortized Cost	43,376	39,704
Gross Unrealized Gains	1,228	1,525
Gross Unrealized Losses	(174)	(2)
Fair Value	44,430	41,227
Corporate and other
Available for sale investments
Amortized Cost	248,480	234,049
Gross Unrealized Gains	7,751	11,602
Gross Unrealized Losses	(1,131)	(291)
Fair Value	255,100	245,360
Mortgage/asset-backed securities
Available for sale investments
Amortized Cost	79,469	82,983
Gross Unrealized Gains	1,849	2,785
Gross Unrealized Losses	(102)	(215)
Fair Value	$ 81,216	$ 85,553

Investments - Security Holdings

Investments - Security Holdings in an Unrealized Loss Position - General Information (Details) $ in Thousands	Sep. 30, 2021USD ($)security	Dec. 31, 2020USD ($)security
Number of positions:
Number of unrealized loss positions | security	153	90
Fair Value
Fair Value	$ 112,278	$ 41,525
Unrealized Losses
Unrealized Losses	$ 1,640	$ 513

Investments - Security Holdin_2

Investments - Security Holdings in an Unrealized Loss Position - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value
Fair Value - Less Than 12 Months	$ 103,657	$ 40,826
Fair Value - More Than 12 Months	8,621	699
Fair Value - Total	112,278	41,525
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(1,275)	(452)
Unrealized Losses - More Than 12 Months	(365)	(61)
Unrealized Losses - Total	(1,640)	(513)
U.S. Governments
Fair Value
Fair Value - Less Than 12 Months	7,018	1,496
Fair Value - More Than 12 Months	490
Fair Value - Total	7,508	1,496
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(105)	(5)
Unrealized Losses - More Than 12 Months	(10)
Unrealized Losses - Total	(115)	(5)
States, territories, and possessions
Fair Value
Fair Value - Less Than 12 Months	3,236
Fair Value - Total	3,236
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(118)
Unrealized Losses - Total	(118)
Special revenue excluding mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	13,593	520
Fair Value - Total	13,593	520
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(174)	(2)
Unrealized Losses - Total	(174)	(2)
Corporate and other
Fair Value
Fair Value - Less Than 12 Months	70,182	22,718
Fair Value - More Than 12 Months	5,688	203
Fair Value - Total	75,870	22,921
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(799)	(234)
Unrealized Losses - More Than 12 Months	(332)	(57)
Unrealized Losses - Total	(1,131)	(291)
Mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	9,628	16,092
Fair Value - More Than 12 Months	2,443	496
Fair Value - Total	12,071	16,588
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(79)	(211)
Unrealized Losses - More Than 12 Months	(23)	(4)
Unrealized Losses - Total	$ (102)	$ (215)

Investments - Contractual Matur

Investments - Contractual Maturities of Available for Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Amortized Cost
Due within one year	$ 27,733
Due after one year through five years	134,550
Due after five years through ten years	112,259
Due after ten years	43,944
Mortgage and asset-backed securities	79,469
Amortized Cost	397,955	$ 381,279
Fair Value
Due within one year	27,927
Due after one year through five years	137,757
Due after five years through ten years	116,275
Due after ten years	44,871
Mortgage and asset-backed securities	81,216
Fair Value	$ 408,046	$ 397,987

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net investment income
Interest income	$ 2,254	$ 2,149	$ 6,755	$ 6,242
Dividend income	104	109	261	354
Investment expense	(122)	(120)	(367)	(309)
Net investment income	$ 2,236	$ 2,138	$ 6,649	$ 6,287

Investments - Net Realized and

Investments - Net Realized and Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net realized and unrealized investment gains and losses
Gains on sales of fixed maturity securities	$ 117	$ 66	$ 335	$ 256
Gains on sales of equity securities	188	59	1,416	57
Total realized gains	305	125	1,751	313
Losses on sales of fixed maturity securities			(1)	(44)
Total realized losses			(1)	(44)
Net realized investment gains	305	125	1,750	269
Net unrealized gains (losses) on equity securities	(618)	(101)	(2,502)	974
Net realized and unrealized gains (losses) on investments	$ (313)	$ 24	(752)	1,243
Proceeds from sales of fixed maturity securities
Proceeds from the sale of fixed maturity securities			$ 12,100	$ 29,200

Investments - Securities on Dep

Investments - Securities on Deposit (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments
Fair Value	$ 408,046	$ 397,987
Securities on deposit with state regulatory authorities
Investments
Fair Value	$ 7,500	$ 7,500

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets:
Fair Value	$ 408,046	$ 397,987
Equity securities at fair value	17,358	24,322
U.S. Governments
Assets:
Fair Value	19,311	17,059
States, territories, and possessions
Assets:
Fair Value	6,401	6,636
Political subdivisions
Assets:
Fair Value	1,588	2,152
Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	44,430	41,227
Corporate and other
Assets:
Fair Value	255,100	245,360
Mortgage/asset-backed securities
Assets:
Fair Value	81,216	85,553
Fair Value, Measurements, Recurring
Assets:
Equity securities at fair value	17,358	24,322
Cash, cash equivalents, and restricted cash	41,634	33,786
Total assets	467,038	456,095
Fair Value, Measurements, Recurring | U.S. Governments
Assets:
Fair Value	19,311	17,059
Fair Value, Measurements, Recurring | States, territories, and possessions
Assets:
Fair Value	6,401	6,636
Fair Value, Measurements, Recurring | Political subdivisions
Assets:
Fair Value	1,588	2,152
Fair Value, Measurements, Recurring | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	44,430	41,227
Fair Value, Measurements, Recurring | Corporate and other
Assets:
Fair Value	255,100	245,360
Fair Value, Measurements, Recurring | Mortgage/asset-backed securities
Assets:
Fair Value	81,216	85,553
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Assets:
Equity securities at fair value	17,358	24,322
Cash, cash equivalents, and restricted cash	41,634	33,786
Total assets	58,992	58,108
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Assets:
Total assets	408,046	397,987
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Governments
Assets:
Fair Value	19,311	17,059
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States, territories, and possessions
Assets:
Fair Value	6,401	6,636
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Political subdivisions
Assets:
Fair Value	1,588	2,152
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	44,430	41,227
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate and other
Assets:
Fair Value	255,100	245,360
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage/asset-backed securities
Assets:
Fair Value	$ 81,216	$ 85,553

Fair Value Measurements - Trans

Fair Value Measurements - Transfers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurements
Fair value, assets, transfers out of Level 3	$ 0	$ 0

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
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reserve for Losses and Loss Adjustment Expenses
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$ 23,633	$ 7,087	$ 34,470	$ 3,869
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year	28,286	40,803	34,202	46,867
Prior years	189	257	(2,914)	34
Total incurred	28,475	41,060	31,288	46,901
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year, net	2,787
Current year		8,232	3,407	9,754
Prior years	2,678	375	15,708	1,476
Total payments	5,465	8,607	19,115	11,230
Reserve for losses and LAE net of reinsurance recoverables at end of period	$ 46,643	$ 39,540	$ 46,643	$ 39,540

Reserve for Losses and Loss A_4

Reserve for Losses and Loss Adjustment Expenses - Total (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Reserve for Losses and Loss Adjustment Expenses
Total reserve for losses and LAE	$ 46,643	$ 23,633	$ 34,470	$ 39,540	$ 7,087	$ 3,869
Add: Reinsurance recoverables on unpaid losses and LAE at end of period	129,044		94,566	92,537
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$ 175,687		$ 129,036	$ 132,077

Reserve for Losses and Loss A_5

Reserve for Losses and Loss Adjustment Expenses - Adverse (Favorable) Development (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Adverse (Favorable) Development
Adverse (favorable) prior year development	$ 189	$ 257	$ (2,914)	$ 34

Stockholders' Equity - Reserved

Stockholders' Equity - Reserved for Future Issuance (Details) - shares	Sep. 30, 2021	Dec. 31, 2020	Apr. 16, 2019
Common stock reserved for future issuance
Stock options outstanding (in shares)	952,526	1,008,648
Total (in shares)	4,295,738
2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock options outstanding (in shares)	952,526
Shares authorized for future issuance (in shares)	2,259,725		2,400,000
2019 Employee Stock Purchase Plan
Common stock reserved for future issuance
Shares authorized for future issuance (in shares)	681,840
Restricted Stock Units
Common stock reserved for future issuance
Stock units outstanding (in shares)	168,195	14,734
Restricted Stock Units | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock units outstanding (in shares)	168,195
Performance Stock Units
Common stock reserved for future issuance
Stock units outstanding (in shares)	233,452
Performance Stock Units | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock units outstanding (in shares)	233,452

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stockholders' Equity
Stock-based compensation expense	$ 1,525	$ 551	$ 3,370	$ 1,457

Stockholders' Equity - 2019 Equ

Stockholders' Equity - 2019 Equity Incentive Plan (Details) - 2019 Equity Incentive Plan - shares	Sep. 30, 2021	Apr. 16, 2019
Stock-Based Compensation
Shares authorized (in shares)	2,259,725	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 (as a percent)		3.00%

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options -Vesting (Details)	9 Months Ended
	Sep. 30, 2021
Stock Options
Stock-Based Compensation
Expiry period	10 years
Stock Options | Share-based Payment Arrangement, Tranche One
Stock-Based Compensation
Vesting period	2 years
Stock Options | Share-based Payment Arrangement, Tranche One, First Anniversary
Stock-Based Compensation
Vesting period	1 year
Stock Options | Share-based Payment Arrangement, Tranche One, First Anniversary | Minimum
Stock-Based Compensation
Vesting percentage (as a percent)	25.00%
Stock Options | Share-based Payment Arrangement, Tranche One, First Anniversary | Maximum
Stock-Based Compensation
Vesting percentage (as a percent)	50.00%
Stock Options | Share-based Payment Arrangement, Tranche Two
Stock-Based Compensation
Vesting period	4 years
Stock Options | Share-based Payment Arrangement, Tranche Two, First Anniversary
Stock-Based Compensation
Vesting period	1 year
Stock Options | Share-based Payment Arrangement, Tranche Two, First Anniversary | Minimum
Stock-Based Compensation
Vesting percentage (as a percent)	25.00%
Stock Options | Share-based Payment Arrangement, Tranche Two, First Anniversary | Maximum
Stock-Based Compensation
Vesting percentage (as a percent)	50.00%
Restricted Stock Units | Minimum
Stock-Based Compensation
Vesting period	1 year
Restricted Stock Units | Maximum
Stock-Based Compensation
Vesting period	5 years

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock Options - Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Number of shares
Outstanding at beginning of period (in shares)	1,008,648
Granted (in shares)	72,063
Exercised (in shares)	(112,819)
Canceled (in shares)	(15,366)
Outstanding at end of period (in shares)	952,526	1,008,648
Weighted-average exercise price
Outstanding at beginning of period (in dollars per share)	$ 23.92
Granted (in dollars per share)	94.76
Exercised (in dollars per share)	16.38
Canceled (in dollars per share)	84.78
Outstanding at end of period (in dollars per share)	$ 29.19	$ 23.92
Additional disclosures
Weighted average remaining contractual term	7 years 9 months 18 days	8 years 5 months 4 days
Aggregate intrinsic value	$ 50,981	$ 66,028
Vested and Exercisable
Vested and exercisable, number (in shares)	610,568
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 18.58
Vested and exercisable, weighted average remaining contractual term	7 years 7 months 2 days
Vested and exercisable, aggregate intrinsic value	$ 38,171

Stockholders' Equity - Stock _3

Stockholders' Equity - Stock Options - Fair Value Assumptions (Details) - Stock Options	9 Months Ended
	Sep. 30, 2021
Fair value assumptions
Risk free rate of return, minimum (as a percent)	0.57%
Risk free rate of return, maximum (as a percent)	1.15%
Expected share price volatility, minimum (as a percent)	26.06%
Expected share price volatility, maximum (as a percent)	38.72%
Expected life in years	5 years 10 months 20 days
Dividend yield (as a percent)	0.00%

Stockholders' Equity - Unrecogn

Stockholders' Equity - Unrecognized Compensation Expense and July 2021 CEO Stock Grant (Details) $ in Millions	Jul. 15, 2021USD ($)Dshares	Sep. 30, 2021USD ($)Milestoneshares
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, options | $		$ 3.8
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized	5 years
Award service period	5 years
Stock Options
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, options | $		$ 3.8
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		2 years 14 days
Restricted Stock Units
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, restricted stock units | $	$ 8.9	$ 11.8
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		4 years 1 month 2 days
Granted (in shares)		160,729
Restricted stock units vested (in shares)		5,987
Restricted Stock Units | Share-based Payment Arrangement, Tranche One
Unrecognized stock-based compensation expense
Restricted stock units vested (in shares)	25,000
Restricted Stock Units | Share-based Payment Arrangement, Tranche Two
Unrecognized stock-based compensation expense
Restricted stock units vested (in shares)	25,000
Restricted Stock Units | Share-based Payment Arrangement, Tranche Three
Unrecognized stock-based compensation expense
Restricted stock units vested (in shares)	25,000
Restricted Stock Units | CEO
Unrecognized stock-based compensation expense
Granted (in shares)	125,000
Performance Stock Units
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, restricted stock units | $	$ 7.2	$ 7.5
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		4 years 8 months 12 days
Granted (in shares)		233,658
Number of days, achievement of milestone stock price | D	30
Stock price milestones | Milestone		0
Percentage of predetermined performance achievement	100.00%
Award service period		3 years
Performance Stock Units | CEO
Unrecognized stock-based compensation expense
Granted (in shares)	225,000

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of shares
Outstanding at beginning of period (in shares) | shares	14,734
Granted (in shares) | shares	160,729
Vested (in shares) | shares	(5,987)
Forfeited (in shares) | shares	(1,281)
Non vested at end of period (in shares) | shares	168,195
Weighted-average grant date fair value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 95.86
Granted (in dollars per share) | $ / shares	75.75
Vested (in dollars per share) | $ / shares	91.35
Forfeited (in dollars per share) | $ / shares	96.90
Non vested outstanding at end of period (in dollars per share) | $ / shares	$ 76.80

Stockholders' Equity - Performa

Stockholders' Equity - Performance Stock Units (Details) - Performance Stock Units	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of shares
Granted (in shares) | shares	233,658
Forfeited (in shares) | shares	(206)
Non vested at end of period (in shares) | shares	233,452
Weighted-average grant date fair value
Granted (in dollars per share) | $ / shares	$ 34.45
Forfeited (in dollars per share) | $ / shares	97.87
Non vested outstanding at end of period (in dollars per share) | $ / shares	$ 34.40

Stockholders' Equity - 2019 Emp

Stockholders' Equity - 2019 Employee Stock Purchase Plan (Details) - shares	9 Months Ended
	Sep. 30, 2021	Apr. 16, 2019
Stock-Based Compensation
Issuance of common stock via employee stock purchase plan (in shares)	9,793
Employee Stock
Stock-Based Compensation
Shares authorized (in shares)		240,000
Annual increase (in shares)	240,000

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchases (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Mar. 29, 2021
Stockholders' Equity
Amount of authorizes repurchase		$ 40
Amount of repurchase of shares	$ 15.8
Repurchase of shares (in shares)	239,096

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Changes in accumulated other comprehensive income
Beginning balance	$ 363,713	$ 218,556
Other comprehensive income	(5,144)	5,752
Ending balance	377,777	361,895
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income
Beginning balance	13,246	4,686
Other comprehensive income before reclassification	(6,177)	7,494
Federal income tax expense	1,297	(1,573)
Other comprehensive income before reclassification, net of tax	(4,880)	5,921
Amounts reclassified from AOCI	(334)	(214)
Federal income tax expense	70	45
Amounts reclassified from AOCI, net of tax	(264)	(169)
Other comprehensive income	(5,144)	5,752
Ending balance	$ 8,102	$ 10,438

Underwriting Information - Repo

Underwriting Information - Reportable Segments (Details) - segment	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reportable segment
Number of reportable segments	1	1	1	1

Underwriting Information - Gros

Underwriting Information - Gross Written Premiums by Product (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Gross written premiums
Amount	$ 152,332	$ 102,967	$ 385,267	$ 258,268
% of GWP	100.00%	100.00%	100.00%	100.00%
Residential Earthquake
Gross written premiums
Amount	$ 50,075	$ 40,507	$ 128,165	$ 103,503
% of GWP	32.90%	39.30%	33.30%	40.10%
Commercial Earthquake
Gross written premiums
Amount	$ 27,433	$ 18,061	$ 66,052	$ 40,727
% of GWP	18.00%	17.50%	17.10%	15.80%
Specialty Homeowners
Gross written premiums
Amount	$ 19,881	$ 17,048	$ 53,018	$ 38,461
% of GWP	13.10%	16.60%	13.80%	14.90%
Inland Marine
Gross written premiums
Amount	$ 19,532	$ 4,406	$ 39,047	$ 9,747
% of GWP	12.80%	4.30%	10.10%	3.80%
Hawaii Hurricane
Gross written premiums
Amount	$ 8,996	$ 4,360	$ 22,921	$ 10,296
% of GWP	5.90%	4.20%	5.90%	4.00%
Commercial All Risk
Gross written premiums
Amount	$ 6,867	$ 12,467	$ 30,032	$ 39,765
% of GWP	4.50%	12.10%	7.80%	15.40%
Residential Flood
Gross written premiums
Amount	$ 3,228	$ 2,170	$ 8,377	$ 5,728
% of GWP	2.10%	2.10%	2.20%	2.20%
Other
Gross written premiums
Amount	$ 16,320	$ 3,948	$ 37,655	$ 10,041
% of GWP	10.70%	3.90%	9.80%	3.80%

Underwriting Information - Gr_2

Underwriting Information - Gross Written Premiums by State (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Gross written premiums
Amount	$ 152,332	$ 102,967	$ 385,267	$ 258,268
% of GWP	100.00%	100.00%	100.00%	100.00%
California
Gross written premiums
Amount	$ 72,505	$ 52,960	$ 180,142	$ 124,131
% of GWP	47.60%	51.40%	46.80%	48.10%
Texas
Gross written premiums
Amount	$ 19,715	$ 20,460	$ 48,142	$ 55,047
% of GWP	13.00%	19.90%	12.50%	21.30%
Hawaii
Gross written premiums
Amount	$ 10,342	$ 5,097	$ 26,312	$ 11,990
% of GWP	6.80%	5.00%	6.80%	4.60%
Florida
Gross written premiums
Amount	$ 7,203	$ 685	$ 24,958	$ 685
% of GWP	4.70%	0.70%	6.50%	0.30%
Washington
Gross written premiums
Amount	$ 7,180	$ 4,340	$ 15,931	$ 10,002
% of GWP	4.70%	4.20%	4.10%	3.90%
Oregon
Gross written premiums
Amount	$ 3,964	$ 2,912	$ 9,686	$ 7,298
% of GWP	2.60%	2.80%	2.50%	2.80%
North Carolina
Gross written premiums
Amount	$ 3,719	$ 2,839	$ 11,871	$ 7,131
% of GWP	2.40%	2.80%	3.10%	2.80%
Illinois
Gross written premiums
Amount	$ 2,893	$ 1,575	$ 8,668	$ 4,416
% of GWP	1.90%	1.50%	2.20%	1.70%
Other States
Gross written premiums
Amount	$ 24,811	$ 12,099	$ 59,557	$ 37,568
% of GWP	16.30%	11.70%	15.50%	14.50%

Underwriting Information - Gr_3

Underwriting Information - Gross Written Premiums by Insurance Subsidiary (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Gross written premiums
Amount	$ 152,332	$ 102,967	$ 385,267	$ 258,268
% of GWP	100.00%	100.00%	100.00%	100.00%
PSIC
Gross written premiums
Amount	$ 110,875	$ 93,987	$ 285,991	$ 249,288
% of GWP	72.80%	91.30%	74.20%	96.50%
PESIC
Gross written premiums
Amount	$ 41,457	$ 8,980	$ 99,276	$ 8,980
% of GWP	27.20%	8.70%	25.80%	3.50%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Effective Income Tax Rate Reconciliation, Percent
Statutory tax rate (as a percent)	21.00%	21.00%	21.00%	21.00%

Earnings Per Share - Tabular Di

Earnings Per Share - Tabular Disclosure (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share
Net income (loss)	$ 246	$ (15,685)	$ 29,215	$ 8,102
Net income (loss) - basic	246	(15,685)	29,215	8,102
Net income (loss) - diluted	$ 246	$ (15,685)	$ 29,215	$ 8,102
Weighted average common shares outstanding:
Basic	25,388,630	25,492,274	25,473,006	24,654,722
Common Share equivalents (in shares)	655,050		660,658	729,796
Diluted (in shares)	26,043,680	25,492,274	26,133,664	25,384,518
Earnings per share:
Basic (in dollars per share)	$ 0.01	$ (0.62)	$ 1.15	$ 0.33
Earnings per share:
Diluted (in dollars per share)	$ 0.01	$ (0.62)	$ 1.12	$ 0.32

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive Securities (Details)	3 Months Ended
	Sep. 30, 2020shares
Earnings Per Share
Common share equivalents excluded from the calculation of diluted earnings per share (in shares)	761,337

Reinsurance (Details)

Reinsurance (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021
Reinsurance Retention Policy
Catastrophe bond, face value		$ 400
Catastrophe
Reinsurance Retention Policy
Retention amount	$ 12.5
Earthquake events
Reinsurance Retention Policy
XOL reinsurance, protection	1,680
Hurricane Events
Reinsurance Retention Policy
XOL reinsurance, protection	$ 700