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Palomar Holdings total exposure to SoCal earthquake is 'considerably less' than reserves

Tomi Kilgore

San Diego-based insurer Palomar Holdings Inc. issued a statement in the wake of the 6.4 magnitude earthquake that hit Searles Valley, Calif. on July 4, the largest in Southern California in the past 20 years. The specialty property insurer said its exposure included 14 residential earthquake policies within a 30-mile radius of the quake's epicenter, 22 total residential policies within a 50-mile radius and no commercial properties within a 50-mile radius. The company said the total insured value of its policies within a 100-mile radius of the epicenter is "considerably less" than its excess of loss insurance. The stock rose 0.5% in afternoon trading, but was down as much as 1.1% earlier in the session. The stock went public on April 17; since the close of its first day, it has rallied 28%, while the SPDR S&P Insurance ETF has climbed 8.3% and the S&P 500 has advanced 3.0%.