Item 7.01. Regulation FD Disclosure
On May 30, 2023, Palomar Holdings, Inc. (the “Company”) updated its corporate presentation that it uses for presentations at conferences and to analysts, current stockholders, and others. A copy of the Company’s presentation that it intends to use at such events is attached as Exhibit 99.1 and incorporated herein by reference.
Item 8.01. Other Events.
On May 30, 2023, the Company also issued a press release announcing the successful completion of certain reinsurance programs incepting June 1, 2023 and increased the Company’s full year 2023 adjusted net income guidance. A copy of the press release is attached hereto as Exhibit 99.2.
The Company’s reinsurance coverage now exhausts at $2.68 billion for earthquake events including $17.5 million of additional limit incepting September 1, 2023, $900 million for Hawaii Hurricane events, and $100 million for all continental United States hurricane events. The reinsurance program provides ample capacity for the Company’s growth in the subject business lines as well as coverage to a level exceeding Palomar’s 1:250-year peak zone Probable Maximum Loss (“PML”).
The Company has now purchased approximately $550 million of reinsurance limit to support the growth of its earthquake franchise in 2023. $200 million of the new limit was sourced through a new catastrophe bond, the Torrey Pines Re Series 2023-1 notes. The new catastrophe bonds were the fourth Insurance Linked Securities (“ILS”) issuance Palomar has sponsored.
The Company’s per occurrence catastrophe event retention is now $17.5 million, a level that remains well within management’s previously stated guideposts, on an after-tax basis, of less than one quarter’s earnings and less than 5% of the Company’s surplus.
Other highlights of the Company’s reinsurance program include:
●$875 million of multi-year ILS capacity providing diversifying collateralized reinsurance capital;
●A reinsurance panel of 78 reinsurers, including multiple new reinsurers, all of which have an “A-” (Excellent) or better financial strength rating from A.M. Best and/or S&P (Standard & Poor) or are fully collateralized;
●Prepaid reinstatements for substantially all layers with a reinstatement provision, thereby limiting the pre-tax net loss to our $17.5 million retention with modest additional reinsurance premium due.
Item 9.01. Financial Statements and Exhibits
(d)Exhibits
