Palomar (PLMR) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	3 Months Ended
	Mar. 31, 2022	May 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		25,179,959
Entity Central Index Key	0001761312
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: $461,206 in 2022; $426,122 in 2021)	$ 444,320	$ 432,682
Equity securities, at fair value (cost: $41,836 in 2022; $31,834 in 2021)	41,983	33,261
Total investments	486,303	465,943
Cash and cash equivalents	46,876	50,284
Restricted cash	63	87
Accrued investment income	2,648	2,725
Premium receivable	94,615	88,012
Deferred policy acquisition costs	54,977	55,953
Reinsurance recoverable on unpaid losses and loss adjustment expenses	113,726	127,947
Reinsurance recoverable on paid losses and loss adjustment expenses	32,082	29,368
Ceded unearned premiums	84,975	58,315
Prepaid expenses and other assets	31,479	37,072
Property and equipment, net	483	527
Intangible assets, net	9,201	9,501
Total assets	957,428	925,734
Liabilities:
Accounts payable and other accrued liabilities	26,561	21,284
Reserve for losses and loss adjustment expenses	165,112	173,366
Unearned premiums	316,675	284,665
Ceded premium payable	47,318	37,460
Funds held under reinsurance treaty	6,362	10,882
Deferred tax liabilities, net		3,908
Borrowings from credit agreements	15,000
Total liabilities	577,028	531,565
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2022 and December 31, 2021
Common stock, $0.0001 par value, 500,000,000 shares authorized, 25,231,571 and 25,428,929 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	3	3
Additional paid-in capital	322,048	318,902
Accumulated other comprehensive income (loss)	(13,151)	5,312
Retained earnings	71,500	69,952
Total stockholders' equity	380,400	394,169
Total liabilities and stockholders' equity	$ 957,428	$ 925,734

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fixed maturity securities available for sale, amortized cost
Fixed maturity securities available for sale, amortized cost	$ 461,206	$ 426,122
Equity securities, cost
Equity securities, cost	$ 41,836	$ 31,834
Preferred stock
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
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)	25,231,571	25,428,929
Common stock, shares outstanding (in shares)	25,231,571	25,428,929

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Gross written premiums	$ 170,934	$ 103,577
Ceded written premiums	(89,552)	(43,364)
Net written premiums	81,382	60,213
Change in unearned premiums	(5,350)	(13,160)
Net earned premiums	76,032	47,053
Net investment income	2,579	2,219
Net realized and unrealized losses on investments	(1,278)	(739)
Commission and other income	777	711
Total revenues	78,110	49,244
Expenses:
Losses and loss adjustment expenses	14,954	(4,423)
Acquisition expenses	28,054	19,313
Other underwriting expenses	15,925	14,248
Interest expense	93
Total expenses	59,026	29,138
Income before income taxes	19,084	20,106
Income tax expense	4,547	3,476
Net income	14,537	16,630
Other comprehensive income, net:
Net unrealized losses on securities available for sale for the three months ended March 31, 2022 and 2021, respectively	(18,463)	(6,199)
Net comprehensive income (loss)	$ (3,926)	$ 10,431
Per Share Data:
Basic earnings per share	$ 0.57	$ 0.65
Diluted earnings per share	$ 0.56	$ 0.63
Weighted-average common shares outstanding:
Basic	25,362,179	25,552,629
Diluted	25,899,290	26,256,281

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, 2020	$ 3	$ 310,507	$ 13,246	$ 39,957	$ 363,713
Beginning balance (in shares) at Dec. 31, 2020	25,525,796
Changes in Stockholders' Equity
Other comprehensive loss, net of tax			(6,199)		(6,199)
Stock-based compensation		938			938
Issuance of common stock via employee stock purchase plan		333			333
Issuance of common stock via employee stock purchase plan (in shares)	4,596
Issuance of common stock via equity incentive plan		967			967
Issuance of common stock via equity incentive plan (in shares)	59,358
Net income				16,630	16,630
Ending balance at Mar. 31, 2021	$ 3	312,745	7,047	56,587	376,382
Ending balance (in shares) at Mar. 31, 2021	25,589,750
Beginning balance at Dec. 31, 2021	$ 3	318,902	5,312	69,952	$ 394,169
Beginning balance (in shares) at Dec. 31, 2021	25,428,929				25,428,929
Changes in Stockholders' Equity
Other comprehensive loss, net of tax			(18,463)		$ (18,463)
Stock-based compensation		2,760			2,760
Issuance of common stock via employee stock purchase plan		333			$ 333
Issuance of common stock via employee stock purchase plan (in shares)	6,078				6,078
Issuance of common stock via equity incentive plan		53			$ 53
Issuance of common stock via equity incentive plan (in shares)	15,625
Repurchases of common stock				(12,989)	(12,989)
Repurchases of common stock (in shares)	(219,061)
Net income				14,537	14,537
Ending balance at Mar. 31, 2022	$ 3	$ 322,048	$ (13,151)	$ 71,500	$ 380,400
Ending balance (in shares) at Mar. 31, 2022	25,231,571				25,231,571

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net cash provided by (used in) operating activities	$ 47,801	$ (13,054)
Investing activities
Purchases of property and equipment	(7)
Purchases of fixed maturity securities	(73,921)	(43,768)
Purchases of equity securities	(10,002)	(96)
Sales and maturities of fixed maturity securities	38,159	31,099
Sales of equity securities		13,092
Change in securities receivable or payable, net	(7,843)	1,500
Payment of additional costs associated with purchase of policy renewal rights	(15)	(11)
Net cash provided by (used in) investing activities	(53,630)	1,816
Financing activities
Proceeds from line of credit	15,000
Proceeds from common stock issued via employee stock purchase plan	333	333
Proceeds from common stock issued via stock option exercises	53	967
Repurchases of common stock	(12,989)
Net cash provided by (used in) financing activities	2,397	1,300
Net increase (decrease) in cash, cash equivalents and restricted cash	(3,432)	(9,938)
Cash, cash equivalents and restricted cash at beginning of period	50,371	33,786
Cash, cash equivalents and restricted cash at end of period	$ 46,939	$ 23,848

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Cash and cash equivalents and restricted cash and cash equivalents
Cash and cash equivalents	$ 46,876	$ 50,284
Restricted cash	63	87
Cash and cash equivalents and restricted cash	$ 46,939	$ 50,371	$ 23,848	$ 33,786

Summary of Operations and Basis

Summary of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
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, 2021, filed with the SEC on February 24, 2022 (the “2021 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 The Company has not adopted any new accounting guidance during the three months ended March 31, 2022. Recently issued accounting pronouncements not yet adopted There are not currently any recent accounting pronouncements or pending accounting guidance that have significance, or potential significance, to the Company’s consolidated financial statements. ​ ​ ​

Investments

Investments	3 Months Ended
	Mar. 31, 2022
Investments
Investments	2. Investments The Company’s available-for-sale investments are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair March 31, 2022 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ ​ U.S. Governments ​ $ 34,100 ​ $ 72 ​ $ (736) ​ $ 33,436 States, territories, and possessions ​ 3,786 ​ 86 ​ (244) ​ 3,628 Political subdivisions ​ 6,282 ​ — ​ (391) ​ 5,891 Special revenue excluding mortgage/asset-backed securities ​ 44,412 ​ 84 ​ (2,290) ​ 42,206 Industrial and miscellaneous ​ 246,481 ​ 988 ​ (10,333) ​ 237,136 Mortgage/asset-backed securities ​ 126,145 ​ 217 ​ (4,339) ​ 122,023 Total available-for-sale investments ​ $ 461,206 ​ $ 1,447 ​ $ (18,333) ​ $ 444,320 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair December 31, 2021 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ U.S. Governments ​ $ 16,713 ​ $ 347 ​ $ (190) ​ $ 16,870 States, territories, and possessions ​ 3,789 ​ 288 ​ (63) ​ 4,014 Political subdivisions ​ 6,295 ​ 107 ​ (22) ​ 6,380 Special revenue excluding mortgage/asset-backed securities ​ 43,301 ​ 1,273 ​ (76) ​ 44,498 Industrial and miscellaneous ​ 245,064 ​ 5,873 ​ ​ (1,891) ​ 249,046 Mortgage/asset-backed securities ​ 110,960 ​ 1,377 ​ (463) ​ 111,874 Total available-for-sale investments ​ $ 426,122 ​ $ 9,265 ​ $ (2,705) ​ $ 432,682 ​ Security holdings in an unrealized loss position As of March 31, 2022, the Company held 534 fixed maturity securities in an unrealized loss position with a total estimated fair value of $346.7 million and total gross unrealized losses of $18.3 million. As of December 31, 2021, the Company held 231 fixed maturity securities in an unrealized loss position with a total estimated fair value of $170.1 million and total gross unrealized losses of $2.7 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 March 31, 2022 and December 31, 2021, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2022 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments $ 20,842 ​ $ (339) ​ $ 5,667 ​ $ (397) ​ $ 26,509 ​ $ (736) States, territories, and possessions ​ 1,786 ​ ​ (244) ​ — ​ — ​ 1,786 ​ (244) Political subdivisions ​ 4,224 ​ ​ (230) ​ 1,667 ​ (161) ​ 5,891 ​ (391) Special revenue excluding mortgage/asset-backed securities ​ 36,289 ​ ​ (2,290) ​ — ​ — ​ 36,289 ​ (2,290) Industrial and miscellaneous ​ 149,315 ​ ​ (7,826) ​ 23,089 ​ (2,507) ​ 172,404 ​ (10,333) Mortgage/asset-backed securities ​ 97,596 ​ ​ (3,804) ​ 6,204 ​ (535) ​ 103,800 ​ (4,339) Total ​ $ 310,052 ​ $ (14,733) ​ $ 36,627 ​ $ (3,600) ​ $ 346,679 ​ $ (18,333) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments ​ $ 5,968 ​ $ (147) ​ $ 1,457 ​ $ (43) ​ $ 7,425 ​ $ (190) States, territories, and possessions ​ 1,444 ​ ​ (63) ​ — ​ — ​ 1,444 ​ (63) Political subdivisions ​ 1,815 ​ ​ (22) ​ — ​ — ​ 1,815 ​ (22) Special revenue excluding mortgage/asset-backed securities ​ 6,280 ​ ​ (76) ​ — ​ — ​ 6,280 ​ (76) Industrial and miscellaneous ​ 94,020 ​ ​ (1,468) ​ 5,570 ​ (423) ​ 99,590 ​ (1,891) Mortgage/asset-backed securities ​ 51,246 ​ ​ (412) ​ 2,319 ​ (51) ​ 53,565 ​ (463) Total ​ $ 160,773 ​ $ (2,188) ​ $ 9,346 ​ $ (517) ​ $ 170,119 ​ $ (2,705) ​ 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 2021 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 March 31, 2022, by contractual maturity, are shown below. ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value ​ (in thousands) Due within one year ​ $ 21,245 ​ $ 21,261 Due after one year through five years ​ 146,073 ​ 142,553 Due after five years through ten years ​ 118,053 ​ 111,966 Due after ten years ​ 49,690 ​ 46,517 Mortgage and asset-backed securities ​ 126,145 ​ 122,023 ​ ​ $ 461,206 ​ $ 444,320 ​ 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 ​ ​ March 31, ​ 2022 2021 ​ (in thousands) Interest income ​ $ 2,558 ​ $ 2,238 Dividend income ​ 155 ​ 99 Investment expense ​ (134) ​ (118) Net investment income ​ $ 2,579 ​ $ 2,219 ​ Net realized and unrealized investment gains and losses The following table presents net realized and unrealized investment gains and losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ ​ (in thousands) Realized gains: ​ ​ ​ Gains on sales of fixed maturity securities ​ ​ $ 2 ​ $ 52 Gains on sales of equity securities ​ ​ — ​ 809 Total realized gains ​ ​ 2 ​ 861 Realized losses: ​ ​ ​ Losses on sales of fixed maturity securities ​ ​ — ​ ​ (2) Losses on sales of equity securities ​ ​ — ​ ​ — Total realized losses ​ ​ — ​ (2) Net realized investment gains ​ ​ 2 ​ 859 Net unrealized gains (losses) on equity securities ​ ​ (1,280) ​ (1,598) Net realized and unrealized gains (losses) on investments ​ ​ $ (1,278) ​ $ (739) ​ 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 $4.8 ​ 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 March 31, 2022, the carrying value of securities on deposit with state regulatory authorities was $8.2 million. As of December 31, 2021, the carrying value of securities on deposit with state regulatory authorities was $7.5 million.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 and December 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 33,436 ​ $ — ​ $ 33,436 States, territories, and possessions ​ — ​ 3,628 ​ — ​ 3,628 Political subdivisions ​ — ​ 5,891 ​ — ​ 5,891 Special revenue excluding mortgage/asset-backed securities ​ — ​ 42,206 ​ — ​ 42,206 Corporate and other ​ — ​ 237,136 ​ — ​ 237,136 Mortgage/asset-backed securities ​ — ​ 122,023 ​ — ​ 122,023 Equity securities ​ 41,983 ​ — ​ — ​ 41,983 Cash, cash equivalents, and restricted cash ​ 46,939 ​ — ​ — ​ 46,939 Total assets ​ $ 88,922 ​ $ 444,320 ​ $ — ​ $ 533,242 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 16,870 ​ $ — ​ $ 16,870 States, territories, and possessions ​ — ​ 4,014 ​ — ​ 4,014 Political subdivisions ​ — ​ 6,380 ​ — ​ 6,380 Special revenue excluding mortgage/asset-backed securities ​ — ​ 44,498 ​ — ​ 44,498 Industrial and miscellaneous ​ — ​ 249,046 ​ — ​ 249,046 Mortgage/asset-backed securities ​ — ​ 110,374 ​ 1,500 ​ 111,874 Equity securities ​ 33,261 ​ — ​ — ​ 33,261 Cash, cash equivalents, and restricted cash ​ 50,371 ​ — ​ — ​ 50,371 Total assets ​ $ 83,632 ​ $ 431,182 ​ $ 1,500 ​ $ 516,314 ​ ​ ​ ​ ​ ​ 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 approximates fair value as the Company is currently borrowing at the overnight rate. Transfers between Level 3 and Level 2 securities result from changes in the availability of observable market inputs and are recorded at the beginning of the reporting period. As of March 31, 2022, the Company had no fixed income securities classified as Level 3. As of December 31, 2021, the Company had $1.5 million of fixed income securities classified as Level 3 due to the availability of observable market inputs for recently purchased securities.

Reserve for Losses and Loss Adj

Reserve for Losses and Loss Adjustment Expenses	3 Months Ended
	Mar. 31, 2022
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 March 31, ​ 2022 2021 ​ ​ (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period ​ $ 45,419 ​ $ 34,470 Add: Incurred losses and LAE, net of reinsurance, related to: ​ ​ ​ ​ ​ ​ Current year ​ 13,449 ​ ​ (1,696) Prior years ​ 1,505 ​ ​ (2,727) Total incurred ​ 14,954 ​ (4,423) Deduct: Loss and LAE payments, net of reinsurance, related to: ​ ​ Current year ​ ​ 1,490 ​ ​ 1,680 Prior years ​ ​ 7,497 ​ ​ 9,351 Total payments ​ 8,987 ​ 11,031 Reserve for losses and LAE net of reinsurance recoverables at end of period ​ 51,386 ​ 19,016 Add: Reinsurance recoverables on unpaid losses and LAE at end of period ​ ​ 113,726 ​ ​ 188,448 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period ​ $ 165,112 ​ $ 207,464 ​ 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 $1.5 million during the three months ended March 31, 2022 and favorable prior year development of $2.7 million in the three months ended March 31, 2021. Adverse prior year development during the three months ended March 31, 2022 was primarily due to higher than anticipated severity of attritional losses from prior years. Favorable prior year development during the three months ended March 31, 2021 was primarily due to lower than anticipated severity of catastrophe losses associated with certain hurricanes which occurred during the second half of 2020 primarily in the Company’s Specialty Homeowners line of business.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022: ​ ​ ​ Stock options outstanding under 2019 Equity Incentive Plan 1,032,960 Restricted stock units outstanding under 2019 Equity Incentive Plan 313,009 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 383,379 Shares authorized for future issuance under 2019 Equity Incentive Plan 2,593,247 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 915,762 Total 5,238,357 ​ Stock based compensation The below table summarizes the Company’s stock-based compensation expense for each period presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2022 2021 ​ (in thousands) Stock-Based Compensation ​ $ 2,760 ​ $ 938 ​ 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 period The following table summarizes stock option transactions for the three months ended March 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average exercise price ​ Weighted average remaining contractual term (in years) ​ ​ Aggregate intrinsic value (in thousands) Outstanding at January 1, 2022 933,051 ​ $ 29.41 ​ 7.59 ​ $ 36,679 Options granted 111,918 ​ ​ 50.27 ​ ​ ​ ​ ​ Options exercised (7,054) ​ ​ 15.00 ​ ​ ​ ​ ​ Options canceled (4,955) ​ ​ 46.08 ​ ​ ​ ​ ​ Outstanding at March 31, 2022 1,032,960 ​ $ 31.69 ​ 6.88 ​ $ 37,135 Vested and Exercisable at March 31, 2022 681,784 ​ $ 22.14 ​ 6.14 ​ $ 29,771 ​ As of March 31, 2022, the Company had approximately $5.1 million of total unrecognized stock-based compensation expense related to stock options expected to be recognized over a weighted-average period of 1.98 years. The fair value of each option granted during the three months ended March 31, 2022 was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: ​ ​ ​ Risk free rate of return (1) 1.69% - 2.41% Expected share price volatility (2) 39.79% - 40.53% 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. ​ 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 The following table summarizes RSU transactions for the three months ended March 31, 2022: ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2022 235,696 ​ $ 79.33 Granted 87,120 ​ ​ 49.82 Released (8,571) ​ ​ 97.87 Forfeited (1,236) ​ ​ 56.31 Non vested outstanding at March 31, 2022 313,009 ​ $ 70.70 ​ As of March 31, 2022, the Company had approximately $19.4 million of total unrecognized stock-based compensation expense related to RSUs expected to be recognized over a weighted-average period of 3.58 years. 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. These PSUs are earned based on the achievement of stock price milestones. If the Company’s stock price reaches and remains at certain milestones for 30 days, the PSUs shall become earned units and will vest upon completion of a requisite service period of approximately five years from the date of grant. As of March 31, 2022, none of the stock price milestones have been achieved. 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 are 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 three months ended March 31, 2022: ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2022 358,401 ​ $ 36.87 Granted 25,314 ​ ​ 49.69 Vested — ​ ​ — Forfeited (336) ​ ​ 57.87 Non vested outstanding at March 31, 2022 383,379 ​ $ 37.70 ​ The PSU grants above represent the number of shares that would vest based on achievement of all stock price milestones in the 2021 executive stock grants 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 March 31, 2022, the Company had approximately $13.0 million of total unrecognized stock-based compensation expense related to PSUs expected to be recognized over a weighted-average period of 4.28 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 6,078 shares pursuant to the ESPP during the three months ended March 31, 2022. Share repurchases During the year ended December 31, 2021, the Company’s Board of Directors authorized a $40 million share repurchase program and the Company repurchased $15.9 million of shares under this program in 2021. Subsequent to December 31, 2021, the Board of Directors approved a new share repurchase program, replacing the existing program and authorizing the repurchase by the Company of up to $100 million of its outstanding shares of common stock over the period ending on March 31, 2024. The Company purchased 219,061 shares for $13.0 million during the three months ended March 31, 2022. 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	3 Months Ended
	Mar. 31, 2022
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	6. Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (“AOCI”) are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 ​ ​ ​ (in thousands) Beginning Balance ​ $ 5,312 ​ $ 13,246 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before reclassification ​ (23,368) ​ ​ (7,796) Federal income tax expense ​ 4,907 ​ ​ 1,637 Other comprehensive income before reclassification, net of tax ​ (18,461) ​ (6,159) ​ ​ ​ ​ ​ ​ ​ Amounts reclassified from AOCI ​ (2) ​ ​ (51) Federal income tax expense ​ — ​ ​ 11 Amounts reclassified from AOCI, net of tax ​ (2) ​ (40) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income ​ (18,463) ​ (6,199) Balance at end of period ​ $ (13,151) ​ $ 7,047 ​

Underwriting Information

Underwriting Information	3 Months Ended
	Mar. 31, 2022
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 March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP Product ​ ​ ​ Residential Earthquake ​ $ 46,336 ​ 27.1 % $ 35,898 ​ 34.7 % Fronting Premiums ​ ​ 29,845 ​ 17.5 % ​ — ​ 0.0 % Commercial Earthquake ​ 25,144 ​ 14.7 % 21,277 ​ 20.5 % Inland Marine ​ ​ 18,237 ​ 10.7 % ​ 7,834 ​ 7.6 % Specialty Homeowners ​ 16,284 ​ 9.5 % 14,002 ​ 13.5 % Commercial All Risk ​ ​ 11,210 ​ 6.6 % ​ 8,190 ​ 7.9 % Hawaii Hurricane ​ 6,914 ​ 4.0 % 6,137 ​ 5.9 % Residential Flood ​ 2,993 ​ 1.8 % 2,283 ​ 2.2 % Other ​ ​ 13,971 ​ 8.1 % ​ 7,956 ​ 7.7 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP State ​ ​ ​ California ​ $ 68,718 ​ 40.2 % $ 50,502 ​ 48.8 % Texas ​ ​ 18,979 ​ 11.1 % ​ 11,054 ​ 10.7 % Hawaii ​ ​ 8,540 ​ 5.0 % ​ 6,920 ​ 6.7 % Washington ​ 6,881 ​ 4.0 % 4,088 ​ 3.9 % Florida ​ ​ 4,962 ​ 2.9 % ​ 6,058 ​ 5.8 % Oregon ​ ​ 4,373 ​ 2.6 % ​ 2,904 ​ 2.8 % Illinois ​ 4,273 ​ 2.5 % 2,522 ​ 2.4 % North Carolina ​ ​ 4,078 ​ 2.4 % ​ 3,888 ​ 3.8 % Other ​ 50,130 ​ 29.3 % 15,641 ​ 15.1 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 % ​ ​ Gross written premiums by insurance subsidiary are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP Subsidiary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PSIC ​ $ 104,004 ​ 60.8 % $ 79,845 ​ 77.1 % PESIC ​ ​ 66,930 ​ 39.2 % ​ 23,732 ​ 22.9 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 % ​

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
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. During the three months ended March 31, 2022, the Company’s income tax rate of 23.8% was higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense. For the three months ended March 31, 2021 the income tax rate of 17.3% was lower than the statutory rate due primarily to the tax impact of the permanent component of employee stock option exercises.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share
Earnings Per Share	9. Earnings Per Share The following table sets out earnings per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2022 2021 ​ (in thousands, except shares and per share data) Net income ​ $ 14,537 ​ $ 16,630 Weighted average common shares outstanding: ​ ​ ​ ​ ​ ​ Basic ​ 25,362,179 ​ 25,552,629 Common Share equivalents ​ ​ 537,111 ​ ​ 703,652 Diluted ​ ​ 25,899,290 ​ ​ 26,256,281 ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ Basic ​ $ 0.57 ​ $ 0.65 Diluted ​ $ 0.56 ​ $ 0.63 ​ 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.

Reinsurance

Reinsurance	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022, the Company’s catastrophe event retention is $12.5 million for all perils. As of March 31, 2022, the Company’s XOL reinsurance structure provides protection up to $1.71 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 (“ILS”) market via 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. ​

Credit Agreements

Credit Agreements	3 Months Ended
	Mar. 31, 2022
Credit Agreements
Credit Agreements	​ 11. Credit Agreements ​ U.S. Bank Credit Agreement ​ In December 2021, the Company entered into a Credit Agreement (the “Credit Agreement”) with U.S. Bank National Association which provides a revolving credit facility of up to $100 million through December 8, 2026. Interest on the credit facility accrues on each SOFR rate loan at the applicable SOFR (as defined in the Credit Agreement) plus 1.75% and on each base rate loan at the applicable Alternate Base Rate (as defined in the Credit Agreement) plus 0.75%. A loan may be either a SOFR rate loan or a base rate loan, at the Company’s discretion. Outstanding amounts under the Credit Agreement may be prepaid in full or in part at any time with no prepayment premium and may be reduced in full or in part at any time upon prior notice. In addition to interest on funds borrowed, the Company must pay an unused line fee of 0.25% on any amounts not borrowed. ​ 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 be declared immediately due and payable. As of March 31, 2022, the Company was in compliance with all debt covenants. ​ As of March 31, 2022 and December 31, 2021, the Company did not have any outstanding borrowings under the Credit Agreement. ​ 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 5% 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 March 31, 2022, the Company had $15 million of borrowings outstanding through the FHLB at the current overnight rate of 0.35%. There were no borrowings outstanding at December 31, 2021. ​

Summary of Operations and Bas_2

Summary of Operations and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2022
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, 2021, filed with the SEC on February 24, 2022 (the “2021 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.
Recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted	Recent Accounting Pronouncements Recently adopted accounting pronouncements The Company has not adopted any new accounting guidance during the three months ended March 31, 2022. Recently issued accounting pronouncements not yet adopted There are not currently any recent accounting pronouncements or pending accounting guidance that have significance, or potential significance, to the Company’s consolidated financial statements. ​ ​

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2022
Investments
Schedule of available-for-sale investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair March 31, 2022 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ ​ U.S. Governments ​ $ 34,100 ​ $ 72 ​ $ (736) ​ $ 33,436 States, territories, and possessions ​ 3,786 ​ 86 ​ (244) ​ 3,628 Political subdivisions ​ 6,282 ​ — ​ (391) ​ 5,891 Special revenue excluding mortgage/asset-backed securities ​ 44,412 ​ 84 ​ (2,290) ​ 42,206 Industrial and miscellaneous ​ 246,481 ​ 988 ​ (10,333) ​ 237,136 Mortgage/asset-backed securities ​ 126,145 ​ 217 ​ (4,339) ​ 122,023 Total available-for-sale investments ​ $ 461,206 ​ $ 1,447 ​ $ (18,333) ​ $ 444,320 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair December 31, 2021 ​ Cost or Cost ​ Gains ​ Losses ​ Value ​ (in thousands) Fixed maturities: ​ ​ ​ ​ U.S. Governments ​ $ 16,713 ​ $ 347 ​ $ (190) ​ $ 16,870 States, territories, and possessions ​ 3,789 ​ 288 ​ (63) ​ 4,014 Political subdivisions ​ 6,295 ​ 107 ​ (22) ​ 6,380 Special revenue excluding mortgage/asset-backed securities ​ 43,301 ​ 1,273 ​ (76) ​ 44,498 Industrial and miscellaneous ​ 245,064 ​ 5,873 ​ ​ (1,891) ​ 249,046 Mortgage/asset-backed securities ​ 110,960 ​ 1,377 ​ (463) ​ 111,874 Total available-for-sale investments ​ $ 426,122 ​ $ 9,265 ​ $ (2,705) ​ $ 432,682
Schedule of aggregate fair value and gross unrealized losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2022 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments $ 20,842 ​ $ (339) ​ $ 5,667 ​ $ (397) ​ $ 26,509 ​ $ (736) States, territories, and possessions ​ 1,786 ​ ​ (244) ​ — ​ — ​ 1,786 ​ (244) Political subdivisions ​ 4,224 ​ ​ (230) ​ 1,667 ​ (161) ​ 5,891 ​ (391) Special revenue excluding mortgage/asset-backed securities ​ 36,289 ​ ​ (2,290) ​ — ​ — ​ 36,289 ​ (2,290) Industrial and miscellaneous ​ 149,315 ​ ​ (7,826) ​ 23,089 ​ (2,507) ​ 172,404 ​ (10,333) Mortgage/asset-backed securities ​ 97,596 ​ ​ (3,804) ​ 6,204 ​ (535) ​ 103,800 ​ (4,339) Total ​ $ 310,052 ​ $ (14,733) ​ $ 36,627 ​ $ (3,600) ​ $ 346,679 ​ $ (18,333) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less Than 12 Months ​ More Than 12 Months ​ Total ​ Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2021 ​ Value ​ Losses ​ Value ​ Losses ​ Value ​ Losses ​ ​ (in thousands) Fixed maturity securities: ​ ​ ​ ​ ​ ​ U.S. Governments ​ $ 5,968 ​ $ (147) ​ $ 1,457 ​ $ (43) ​ $ 7,425 ​ $ (190) States, territories, and possessions ​ 1,444 ​ ​ (63) ​ — ​ — ​ 1,444 ​ (63) Political subdivisions ​ 1,815 ​ ​ (22) ​ — ​ — ​ 1,815 ​ (22) Special revenue excluding mortgage/asset-backed securities ​ 6,280 ​ ​ (76) ​ — ​ — ​ 6,280 ​ (76) Industrial and miscellaneous ​ 94,020 ​ ​ (1,468) ​ 5,570 ​ (423) ​ 99,590 ​ (1,891) Mortgage/asset-backed securities ​ 51,246 ​ ​ (412) ​ 2,319 ​ (51) ​ 53,565 ​ (463) Total ​ $ 160,773 ​ $ (2,188) ​ $ 9,346 ​ $ (517) ​ $ 170,119 ​ $ (2,705)
Schedule of contractual maturities of available-for-sale securities	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Fair ​ ​ Cost ​ Value ​ (in thousands) Due within one year ​ $ 21,245 ​ $ 21,261 Due after one year through five years ​ 146,073 ​ 142,553 Due after five years through ten years ​ 118,053 ​ 111,966 Due after ten years ​ 49,690 ​ 46,517 Mortgage and asset-backed securities ​ 126,145 ​ 122,023 ​ ​ $ 461,206 ​ $ 444,320
Schedule of net investment income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ (in thousands) Interest income ​ $ 2,558 ​ $ 2,238 Dividend income ​ 155 ​ 99 Investment expense ​ (134) ​ (118) Net investment income ​ $ 2,579 ​ $ 2,219
Schedule of net realized and unrealized investment gains and losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ ​ (in thousands) Realized gains: ​ ​ ​ Gains on sales of fixed maturity securities ​ ​ $ 2 ​ $ 52 Gains on sales of equity securities ​ ​ — ​ 809 Total realized gains ​ ​ 2 ​ 861 Realized losses: ​ ​ ​ Losses on sales of fixed maturity securities ​ ​ — ​ ​ (2) Losses on sales of equity securities ​ ​ — ​ ​ — Total realized losses ​ ​ — ​ (2) Net realized investment gains ​ ​ 2 ​ 859 Net unrealized gains (losses) on equity securities ​ ​ (1,280) ​ (1,598) Net realized and unrealized gains (losses) on investments ​ ​ $ (1,278) ​ $ (739)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Measurements
Schedule of hierarchy for financial assets and liabilities measured at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 33,436 ​ $ — ​ $ 33,436 States, territories, and possessions ​ — ​ 3,628 ​ — ​ 3,628 Political subdivisions ​ — ​ 5,891 ​ — ​ 5,891 Special revenue excluding mortgage/asset-backed securities ​ — ​ 42,206 ​ — ​ 42,206 Corporate and other ​ — ​ 237,136 ​ — ​ 237,136 Mortgage/asset-backed securities ​ — ​ 122,023 ​ — ​ 122,023 Equity securities ​ 41,983 ​ — ​ — ​ 41,983 Cash, cash equivalents, and restricted cash ​ 46,939 ​ — ​ — ​ 46,939 Total assets ​ $ 88,922 ​ $ 444,320 ​ $ — ​ $ 533,242 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 Level 1 Level 2 Level 3 Total ​ (in thousands) Assets: ​ ​ ​ ​ Fixed maturity securities ​ ​ ​ ​ U.S. Governments ​ $ — ​ $ 16,870 ​ $ — ​ $ 16,870 States, territories, and possessions ​ — ​ 4,014 ​ — ​ 4,014 Political subdivisions ​ — ​ 6,380 ​ — ​ 6,380 Special revenue excluding mortgage/asset-backed securities ​ — ​ 44,498 ​ — ​ 44,498 Industrial and miscellaneous ​ — ​ 249,046 ​ — ​ 249,046 Mortgage/asset-backed securities ​ — ​ 110,374 ​ 1,500 ​ 111,874 Equity securities ​ 33,261 ​ — ​ — ​ 33,261 Cash, cash equivalents, and restricted cash ​ 50,371 ​ — ​ — ​ 50,371 Total assets ​ $ 83,632 ​ $ 431,182 ​ $ 1,500 ​ $ 516,314 ​ ​ ​ ​ ​ ​

Reserve for Losses and Loss A_2

Reserve for Losses and Loss Adjustment Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, ​ 2022 2021 ​ ​ (in thousands) Reserve for losses and LAE net of reinsurance recoverables at beginning of period ​ $ 45,419 ​ $ 34,470 Add: Incurred losses and LAE, net of reinsurance, related to: ​ ​ ​ ​ ​ ​ Current year ​ 13,449 ​ ​ (1,696) Prior years ​ 1,505 ​ ​ (2,727) Total incurred ​ 14,954 ​ (4,423) Deduct: Loss and LAE payments, net of reinsurance, related to: ​ ​ Current year ​ ​ 1,490 ​ ​ 1,680 Prior years ​ ​ 7,497 ​ ​ 9,351 Total payments ​ 8,987 ​ 11,031 Reserve for losses and LAE net of reinsurance recoverables at end of period ​ 51,386 ​ 19,016 Add: Reinsurance recoverables on unpaid losses and LAE at end of period ​ ​ 113,726 ​ ​ 188,448 Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period ​ $ 165,112 ​ $ 207,464

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity
Schedule of common stock reserved for future issuance	​ ​ ​ Stock options outstanding under 2019 Equity Incentive Plan 1,032,960 Restricted stock units outstanding under 2019 Equity Incentive Plan 313,009 Performance stock units outstanding under 2019 Equity Incentive Plan, at target 383,379 Shares authorized for future issuance under 2019 Equity Incentive Plan 2,593,247 Shares authorized for future issuance under 2019 Employee Stock Purchase Plan 915,762 Total 5,238,357
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2022 2021 ​ (in thousands) Stock-Based Compensation ​ $ 2,760 ​ $ 938
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, 2022 933,051 ​ $ 29.41 ​ 7.59 ​ $ 36,679 Options granted 111,918 ​ ​ 50.27 ​ ​ ​ ​ ​ Options exercised (7,054) ​ ​ 15.00 ​ ​ ​ ​ ​ Options canceled (4,955) ​ ​ 46.08 ​ ​ ​ ​ ​ Outstanding at March 31, 2022 1,032,960 ​ $ 31.69 ​ 6.88 ​ $ 37,135 Vested and Exercisable at March 31, 2022 681,784 ​ $ 22.14 ​ 6.14 ​ $ 29,771
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) 1.69% - 2.41% Expected share price volatility (2) 39.79% - 40.53% 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, 2022 235,696 ​ $ 79.33 Granted 87,120 ​ ​ 49.82 Released (8,571) ​ ​ 97.87 Forfeited (1,236) ​ ​ 56.31 Non vested outstanding at March 31, 2022 313,009 ​ $ 70.70
Schedule of Performance stock unit transactions	​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ Weighted-average grant date fair value Outstanding at January 1, 2022 358,401 ​ $ 36.87 Granted 25,314 ​ ​ 49.69 Vested — ​ ​ — Forfeited (336) ​ ​ 57.87 Non vested outstanding at March 31, 2022 383,379 ​ $ 37.70

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2022
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (AOCI)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2022 2021 ​ ​ ​ (in thousands) Beginning Balance ​ $ 5,312 ​ $ 13,246 ​ ​ ​ ​ ​ ​ ​ Other comprehensive income before reclassification ​ (23,368) ​ ​ (7,796) Federal income tax expense ​ 4,907 ​ ​ 1,637 Other comprehensive income before reclassification, net of tax ​ (18,461) ​ (6,159) ​ ​ ​ ​ ​ ​ ​ Amounts reclassified from AOCI ​ (2) ​ ​ (51) Federal income tax expense ​ — ​ ​ 11 Amounts reclassified from AOCI, net of tax ​ (2) ​ (40) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income ​ (18,463) ​ (6,199) Balance at end of period ​ $ (13,151) ​ $ 7,047

Underwriting Information (Table

Underwriting Information (Tables)	3 Months Ended
	Mar. 31, 2022
Underwriting Information
Schedule of gross written premiums	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP Product ​ ​ ​ Residential Earthquake ​ $ 46,336 ​ 27.1 % $ 35,898 ​ 34.7 % Fronting Premiums ​ ​ 29,845 ​ 17.5 % ​ — ​ 0.0 % Commercial Earthquake ​ 25,144 ​ 14.7 % 21,277 ​ 20.5 % Inland Marine ​ ​ 18,237 ​ 10.7 % ​ 7,834 ​ 7.6 % Specialty Homeowners ​ 16,284 ​ 9.5 % 14,002 ​ 13.5 % Commercial All Risk ​ ​ 11,210 ​ 6.6 % ​ 8,190 ​ 7.9 % Hawaii Hurricane ​ 6,914 ​ 4.0 % 6,137 ​ 5.9 % Residential Flood ​ 2,993 ​ 1.8 % 2,283 ​ 2.2 % Other ​ ​ 13,971 ​ 8.1 % ​ 7,956 ​ 7.7 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP State ​ ​ ​ California ​ $ 68,718 ​ 40.2 % $ 50,502 ​ 48.8 % Texas ​ ​ 18,979 ​ 11.1 % ​ 11,054 ​ 10.7 % Hawaii ​ ​ 8,540 ​ 5.0 % ​ 6,920 ​ 6.7 % Washington ​ 6,881 ​ 4.0 % 4,088 ​ 3.9 % Florida ​ ​ 4,962 ​ 2.9 % ​ 6,058 ​ 5.8 % Oregon ​ ​ 4,373 ​ 2.6 % ​ 2,904 ​ 2.8 % Illinois ​ 4,273 ​ 2.5 % 2,522 ​ 2.4 % North Carolina ​ ​ 4,078 ​ 2.4 % ​ 3,888 ​ 3.8 % Other ​ 50,130 ​ 29.3 % 15,641 ​ 15.1 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 % ​ ​ Gross written premiums by insurance subsidiary are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2022 ​ 2021 ​ ​ ($ in thousands) ​ ​ ​ ​ ​ % of ​ ​ ​ ​ % of ​ ​ Amount ​ GWP ​ Amount ​ GWP Subsidiary ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PSIC ​ $ 104,004 ​ 60.8 % $ 79,845 ​ 77.1 % PESIC ​ ​ 66,930 ​ 39.2 % ​ 23,732 ​ 22.9 % Total Gross Written Premiums ​ $ 170,934 100.0 % $ 103,577 100.0 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share
Schedule of earnings per share of common stock	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ 2022 2021 ​ (in thousands, except shares and per share data) Net income ​ $ 14,537 ​ $ 16,630 Weighted average common shares outstanding: ​ ​ ​ ​ ​ ​ Basic ​ 25,362,179 ​ 25,552,629 Common Share equivalents ​ ​ 537,111 ​ ​ 703,652 Diluted ​ ​ 25,899,290 ​ ​ 26,256,281 ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ Basic ​ $ 0.57 ​ $ 0.65 Diluted ​ $ 0.56 ​ $ 0.63

Investments - Available for Sal

Investments - Available for Sale Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available for sale investments
Amortized Cost	$ 461,206	$ 426,122
Gross Unrealized Gains	1,447	9,265
Gross Unrealized Losses	(18,333)	(2,705)
Fair Value	444,320	432,682
U.S. Governments
Available for sale investments
Amortized Cost	34,100	16,713
Gross Unrealized Gains	72	347
Gross Unrealized Losses	(736)	(190)
Fair Value	33,436	16,870
States, territories, and possessions
Available for sale investments
Amortized Cost	3,786	3,789
Gross Unrealized Gains	86	288
Gross Unrealized Losses	(244)	(63)
Fair Value	3,628	4,014
Political subdivisions
Available for sale investments
Amortized Cost	6,282	6,295
Gross Unrealized Gains		107
Gross Unrealized Losses	(391)	(22)
Fair Value	5,891	6,380
Special revenue excluding mortgage/asset-backed securities
Available for sale investments
Amortized Cost	44,412	43,301
Gross Unrealized Gains	84	1,273
Gross Unrealized Losses	(2,290)	(76)
Fair Value	42,206	44,498
Industrial and miscellaneous
Available for sale investments
Amortized Cost	246,481	245,064
Gross Unrealized Gains	988	5,873
Gross Unrealized Losses	(10,333)	(1,891)
Fair Value	237,136	249,046
Mortgage/asset-backed securities
Available for sale investments
Amortized Cost	126,145	110,960
Gross Unrealized Gains	217	1,377
Gross Unrealized Losses	(4,339)	(463)
Fair Value	$ 122,023	$ 111,874

Investments - Security Holdings

Investments - Security Holdings in an Unrealized Loss Position - General Information (Details) $ in Thousands	Mar. 31, 2022USD ($)security	Dec. 31, 2021USD ($)security
Number of positions:
Number of unrealized loss positions | security	534	231
Fair Value
Fair Value	$ 346,679	$ 170,119
Unrealized Losses
Unrealized Losses	$ 18,333	$ 2,705

Investments - Security Holdin_2

Investments - Security Holdings in an Unrealized Loss Position - Tabular Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value
Fair Value - Less Than 12 Months	$ 310,052	$ 160,773
Fair Value - More Than 12 Months	36,627	9,346
Fair Value - Total	346,679	170,119
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(14,733)	(2,188)
Unrealized Losses - More Than 12 Months	(3,600)	(517)
Unrealized Losses - Total	(18,333)	(2,705)
U.S. Governments
Fair Value
Fair Value - Less Than 12 Months	20,842	5,968
Fair Value - More Than 12 Months	5,667	1,457
Fair Value - Total	26,509	7,425
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(339)	(147)
Unrealized Losses - More Than 12 Months	(397)	(43)
Unrealized Losses - Total	(736)	(190)
States, territories, and possessions
Fair Value
Fair Value - Less Than 12 Months	1,786	1,444
Fair Value - Total	1,786	1,444
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(244)	(63)
Unrealized Losses - Total	(244)	(63)
Political subdivisions
Fair Value
Fair Value - Less Than 12 Months	4,224	1,815
Fair Value - More Than 12 Months	1,667
Fair Value - Total	5,891	1,815
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(230)	(22)
Unrealized Losses - More Than 12 Months	(161)
Unrealized Losses - Total	(391)	(22)
Special revenue excluding mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	36,289	6,280
Fair Value - Total	36,289	6,280
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(2,290)	(76)
Unrealized Losses - Total	(2,290)	(76)
Industrial and miscellaneous
Fair Value
Fair Value - Less Than 12 Months	149,315	94,020
Fair Value - More Than 12 Months	23,089	5,570
Fair Value - Total	172,404	99,590
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(7,826)	(1,468)
Unrealized Losses - More Than 12 Months	(2,507)	(423)
Unrealized Losses - Total	(10,333)	(1,891)
Mortgage/asset-backed securities
Fair Value
Fair Value - Less Than 12 Months	97,596	51,246
Fair Value - More Than 12 Months	6,204	2,319
Fair Value - Total	103,800	53,565
Unrealized Losses
Unrealized Losses - Less Than 12 Months	(3,804)	(412)
Unrealized Losses - More Than 12 Months	(535)	(51)
Unrealized Losses - Total	$ (4,339)	$ (463)

Investments - Contractual Matur

Investments - Contractual Maturities of Available for Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Due within one year	$ 21,245
Due after one year through five years	146,073
Due after five years through ten years	118,053
Due after ten years	49,690
Mortgage and asset-backed securities	126,145
Amortized Cost	461,206	$ 426,122
Fair Value
Due within one year	21,261
Due after one year through five years	142,553
Due after five years through ten years	111,966
Due after ten years	46,517
Mortgage and asset-backed securities	122,023
Fair Value	$ 444,320	$ 432,682

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net investment income
Interest income	$ 2,558	$ 2,238
Dividend income	155	99
Investment expenses	(134)	(118)
Net investment income	$ 2,579	$ 2,219

Investments - Net Realized and

Investments - Net Realized and Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net realized and unrealized investment gains and losses
Gains on sales of fixed maturity securities	$ 2	$ 52
Gains on sales of equity securities		809
Total realized gains	2	861
Losses on sales of fixed maturity securities		(2)
Total realized losses		(2)
Net realized investment gains	2	859
Net unrealized gains (losses) on equity securities	(1,280)	(1,598)
Net realized and unrealized gains (losses) on investments	(1,278)	(739)
Proceeds from sales of fixed maturity securities
Proceeds from the sale of fixed maturity securities	$ 4,800	$ 6,200

Investments - Securities on Dep

Investments - Securities on Deposit (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments
Fair Value	$ 444,320	$ 432,682
Securities on deposit with state regulatory authorities
Investments
Fair Value	$ 8,200	$ 7,500

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Fair Value	$ 444,320	$ 432,682
Equity securities at fair value	41,983	33,261
U.S. Governments
Assets:
Fair Value	33,436	16,870
States, territories, and possessions
Assets:
Fair Value	3,628	4,014
Political subdivisions
Assets:
Fair Value	5,891	6,380
Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	42,206	44,498
Industrial and miscellaneous
Assets:
Fair Value	237,136	249,046
Mortgage/asset-backed securities
Assets:
Fair Value	122,023	111,874
Fair Value, Measurements, Recurring
Assets:
Equity securities at fair value	41,983	33,261
Cash, cash equivalents, and restricted cash	46,939	50,371
Total assets	533,242	516,314
Fair Value, Measurements, Recurring | U.S. Governments
Assets:
Fair Value	33,436	16,870
Fair Value, Measurements, Recurring | States, territories, and possessions
Assets:
Fair Value	3,628	4,014
Fair Value, Measurements, Recurring | Political subdivisions
Assets:
Fair Value	5,891	6,380
Fair Value, Measurements, Recurring | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	42,206	44,498
Fair Value, Measurements, Recurring | Industrial and miscellaneous
Assets:
Fair Value		249,046
Fair Value, Measurements, Recurring | Corporate and other
Assets:
Fair Value	237,136
Fair Value, Measurements, Recurring | Mortgage/asset-backed securities
Assets:
Fair Value	122,023	111,874
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Assets:
Equity securities at fair value	41,983	33,261
Cash, cash equivalents, and restricted cash	46,939	50,371
Total assets	88,922	83,632
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Assets:
Total assets	444,320	431,182
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Governments
Assets:
Fair Value	33,436	16,870
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States, territories, and possessions
Assets:
Fair Value	3,628	4,014
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Political subdivisions
Assets:
Fair Value	5,891	6,380
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Special revenue excluding mortgage/asset-backed securities
Assets:
Fair Value	42,206	44,498
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Industrial and miscellaneous
Assets:
Fair Value		249,046
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate and other
Assets:
Fair Value	237,136
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage/asset-backed securities
Assets:
Fair Value	$ 122,023	110,374
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Assets:
Total assets		1,500
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage/asset-backed securities
Assets:
Fair Value		$ 1,500

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Measurements
Fixed income securities classified as Level 3	$ 0	$ 1,500

Reserve for Losses and Loss A_3

Reserve for Losses and Loss Adjustment Expenses - Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Reserve for Losses and Loss Adjustment Expenses
Reserve for losses and LAE net of reinsurance recoverables at beginning of period	$ 45,419	$ 34,470
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year	13,449	(1,696)
Prior years	1,505	(2,727)
Total incurred	14,954	(4,423)
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year	1,490	1,680
Prior years	7,497	9,351
Total payments	8,987	11,031
Reserve for losses and LAE net of reinsurance recoverables at end of period	51,386	19,016
Add: Reinsurance recoverables on unpaid losses and LAE at end of period	113,726	188,448	$ 127,947
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period	$ 165,112	$ 207,464	$ 173,366

Reserve for Losses and Loss A_4

Reserve for Losses and Loss Adjustment Expenses - Adverse (Favorable) Development (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Adverse (Favorable) Development
Adverse (favorable) prior year development	$ 1,505	$ (2,727)

Stockholders' Equity - Reserved

Stockholders' Equity - Reserved for Future Issuance (Details) - shares	Mar. 31, 2022	Dec. 31, 2021	Apr. 16, 2019
Common stock reserved for future issuance
Stock options outstanding (in shares)	1,032,960	933,051
Total (in shares)	5,238,357
2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock options outstanding (in shares)	1,032,960
Shares authorized for future issuance (in shares)	2,593,247		2,400,000
2019 Employee Stock Purchase Plan
Common stock reserved for future issuance
Shares authorized for future issuance (in shares)	915,762
Restricted Stock Units
Common stock reserved for future issuance
Stock units outstanding (in shares)	313,009	235,696
Restricted Stock Units | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock units outstanding (in shares)	313,009
Performance Stock Units
Common stock reserved for future issuance
Stock units outstanding (in shares)	383,379	358,401
Performance Stock Units | 2019 Equity Incentive Plan
Common stock reserved for future issuance
Stock units outstanding (in shares)	383,379

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stockholders' Equity
Stock-based compensation expense	$ 2,760	$ 938

Stockholders' Equity - 2019 Equ

Stockholders' Equity - 2019 Equity Incentive Plan (Details) - 2019 Equity Incentive Plan - shares	Mar. 31, 2022	Apr. 16, 2019
Stock-Based Compensation
Shares authorized (in shares)	2,593,247	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)	3 Months Ended
	Mar. 31, 2022
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 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
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	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of shares
Outstanding at beginning of period (in shares)	933,051
Granted (in shares)	111,918
Exercised (in shares)	(7,054)
Canceled (in shares)	(4,955)
Outstanding at end of period (in shares)	1,032,960	933,051
Weighted-average exercise price
Outstanding at beginning of period (in dollars per share)	$ 29.41
Granted (in dollars per share)	50.27
Exercised (in dollars per share)	15
Canceled (in dollars per share)	46.08
Outstanding at end of period (in dollars per share)	$ 31.69	$ 29.41
Additional disclosures
Weighted average remaining contractual term	6 years 10 months 17 days	7 years 7 months 2 days
Aggregate intrinsic value	$ 37,135	$ 36,679
Vested and Exercisable
Vested and exercisable, number (in shares)	681,784
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 22.14
Vested and exercisable, weighted average remaining contractual term	6 years 1 month 20 days
Vested and exercisable, aggregate intrinsic value	$ 29,771

Stockholders' Equity - Stock _3

Stockholders' Equity - Stock Options - Fair Value Assumptions (Details) - Stock Options	3 Months Ended
	Mar. 31, 2022
Fair value assumptions
Risk free rate of return, minimum (as a percent)	1.69%
Risk free rate of return, maximum (as a percent)	2.41%
Expected share price volatility, minimum (as a percent)	39.79%
Expected share price volatility, maximum (as a percent)	40.53%
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 (Details) - USD ($) $ in Millions	Jul. 15, 2021	Mar. 31, 2022
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, options		$ 5.1
Stock Options
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, options		$ 5.1
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		1 year 11 months 23 days
Restricted Stock Units
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, restricted stock units and performance stock units		$ 19.4
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		3 years 6 months 29 days
Performance Stock Units
Unrecognized stock-based compensation expense
Total unrecognized stock-based compensation expense, restricted stock units and performance stock units		$ 13
Weighted-average period over which unrecognized stock-based compensation expense is expected to be recognized		4 years 3 months 10 days
Percentage of predetermined performance achievement	100.00%
Award service period		3 years

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of shares
Outstanding at beginning of period (in shares) | shares	235,696
Granted (in shares) | shares	87,120
Vested (in shares) | shares	(8,571)
Forfeited (in shares) | shares	(1,236)
Non vested at end of period (in shares) | shares	313,009
Weighted-average grant date fair value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 79.33
Granted (in dollars per share) | $ / shares	49.82
Vested (in dollars per share) | $ / shares	97.87
Forfeited (in dollars per share) | $ / shares	56.31
Non vested outstanding at end of period (in dollars per share) | $ / shares	$ 70.70

Stockholders' Equity - Performa

Stockholders' Equity - Performance Stock Units (Details) - Performance Stock Units	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of shares
Outstanding at beginning of period (in shares) | shares	358,401
Granted (in shares) | shares	25,314
Forfeited (in shares) | shares	(336)
Non vested at end of period (in shares) | shares	383,379
Weighted-average grant date fair value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 36.87
Granted (in dollars per share) | $ / shares	49.69
Forfeited (in dollars per share) | $ / shares	57.87
Non vested outstanding at end of period (in dollars per share) | $ / shares	$ 37.70

Stockholders' Equity - 2019 Emp

Stockholders' Equity - 2019 Employee Stock Purchase Plan (Details) - shares	3 Months Ended
	Mar. 31, 2022	Apr. 16, 2019
Stock-Based Compensation
Issuance of common stock via employee stock purchase plan (in shares)	6,078
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	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Stockholders' Equity
Amount of authorizes repurchase	$ 100	$ 40
Amount of repurchase of shares	$ 13	$ 15.9
Repurchase of shares (in shares)	219,061

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in accumulated other comprehensive income
Beginning balance	$ 394,169	$ 363,713
Other comprehensive income	(18,463)	(6,199)
Ending balance	380,400	376,382
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income
Beginning balance	5,312	13,246
Other comprehensive income before reclassification	(23,368)	(7,796)
Federal income tax expense	4,907	1,637
Other comprehensive income before reclassification, net of tax	(18,461)	(6,159)
Amounts reclassified from AOCI	(2)	(51)
Federal income tax expense		11
Amounts reclassified from AOCI, net of tax	(2)	(40)
Other comprehensive income	(18,463)	(6,199)
Ending balance	$ (13,151)	$ 7,047

Underwriting Information - Repo

Underwriting Information - Reportable Segments (Details) - segment	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reportable segment
Number of reportable segments	1	1

Underwriting Information - Gros

Underwriting Information - Gross Written Premiums by Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Gross written premiums
Amount	$ 170,934	$ 103,577
% of GWP	100.00%	100.00%
Residential Earthquake
Gross written premiums
Amount	$ 46,336	$ 35,898
% of GWP	27.10%	34.70%
Fronting Premiums
Gross written premiums
Amount	$ 29,845
% of GWP	17.50%	0.00%
Commercial Earthquake
Gross written premiums
Amount	$ 25,144	$ 21,277
% of GWP	14.70%	20.50%
Inland Marine
Gross written premiums
Amount	$ 18,237	$ 7,834
% of GWP	10.70%	7.60%
Specialty Homeowners
Gross written premiums
Amount	$ 16,284	$ 14,002
% of GWP	9.50%	13.50%
Commercial All Risk
Gross written premiums
Amount	$ 11,210	$ 8,190
% of GWP	6.60%	7.90%
Hawaii Hurricane
Gross written premiums
Amount	$ 6,914	$ 6,137
% of GWP	4.00%	5.90%
Residential Flood
Gross written premiums
Amount	$ 2,993	$ 2,283
% of GWP	1.80%	2.20%
Others
Gross written premiums
Amount	$ 13,971	$ 7,956
% of GWP	8.10%	7.70%

Underwriting Information - Gr_2

Underwriting Information - Gross Written Premiums by State (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Gross written premiums
Amount	$ 170,934	$ 103,577
% of GWP	100.00%	100.00%
California
Gross written premiums
Amount	$ 68,718	$ 50,502
% of GWP	40.20%	48.80%
Texas
Gross written premiums
Amount	$ 18,979	$ 11,054
% of GWP	11.10%	10.70%
Hawaii
Gross written premiums
Amount	$ 8,540	$ 6,920
% of GWP	5.00%	6.70%
Washington
Gross written premiums
Amount	$ 6,881	$ 4,088
% of GWP	4.00%	3.90%
Florida
Gross written premiums
Amount	$ 4,962	$ 6,058
% of GWP	2.90%	5.80%
Oregon
Gross written premiums
Amount	$ 4,373	$ 2,904
% of GWP	2.60%	2.80%
Illinois
Gross written premiums
Amount	$ 4,273	$ 2,522
% of GWP	2.50%	2.40%
North Carolina
Gross written premiums
Amount	$ 4,078	$ 3,888
% of GWP	2.40%	3.80%
Other States
Gross written premiums
Amount	$ 50,130	$ 15,641
% of GWP	29.30%	15.10%

Underwriting Information - Gr_3

Underwriting Information - Gross Written Premiums by Insurance Subsidiary (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Gross written premiums
Amount	$ 170,934	$ 103,577
% of GWP	100.00%	100.00%
PSIC
Gross written premiums
Amount	$ 104,004	$ 79,845
% of GWP	60.80%	77.10%
PESIC
Gross written premiums
Amount	$ 66,930	$ 23,732
% of GWP	39.20%	22.90%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Effective Income Tax Rate Reconciliation, Percent
Statutory tax rate (as a percent)	21.00%
Stock-based compensation	23.80%
Effective Income Tax Rate Reconciliation, Employee Stock Option Exercises		17.30%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share
Net income	$ 14,537	$ 16,630
Weighted average common shares outstanding:
Basic	25,362,179	25,552,629
Common Share equivalents (in shares)	537,111	703,652
Diluted (in shares)	25,899,290	26,256,281
Earnings per share:
Basic (in dollars per share)	$ 0.57	$ 0.65
Earnings per share:
Diluted (in dollars per share)	$ 0.56	$ 0.63

Reinsurance (Details)

Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	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	1,710
Hurricane events
Reinsurance Retention Policy
XOL reinsurance, protection	$ 700

Credit Agreements (Details)

Credit Agreements (Details) - USD ($)	1 Months Ended
	Dec. 31, 2021	Mar. 31, 2022
Line of Credit Facility [Line Items]
Federal home loan bank, advances, branch of FHLB bank, amount of advances	$ 0	$ 15,000,000
Federal home loan bank, advances, branch of FHLB bank, interest rate		0.35%
Revolving credit facility | U.S. Bank Credit Agreement
Line of Credit Facility [Line Items]
Maximum credit facility borrowing amount	$ 100,000,000
Line of credit facility, commitment fee percentage	0.25%
Line of credit prepayment premium	$ 0
Revolving credit facility | U.S. Bank Credit Agreement | SOFR Rate
Line of Credit Facility [Line Items]
Interest rate spread (as a percent)	1.75%
Revolving credit facility | U.S. Bank Credit Agreement | Alternate Base Rate
Line of Credit Facility [Line Items]
Interest rate spread (as a percent)	0.75%