LA JOLLA, Calif., Dec. 30, 2019 (GLOBE NEWSWIRE) -- Specialty property insurer Palomar Holdings, Inc. (PLMR) (‘Palomar’ or the ‘Company’) today announced the successful completion of certain reinsurance programs renewing and incepting at January 1, 2020.
The Company renewed approximately $300 million of its core reinsurance program and purchased $145 million of incremental limit to support its growth. Effective January 1, 2020, the Company’s reinsurance program provides coverage up to $1.2 billion for earthquake events. The incremental limit allows Palomar to maintain a cushion above the 1:250 year peak zone probable maximum loss and significantly exceeds simulated losses from any recorded historical event. As of September 30, 2019, a modeled earthquake equivalent to the 1994 Northridge or 1906 San Francisco earthquake would generate a gross loss of $763 million or $680 million, respectively.
Palomar’s per event retention remains at $5.0 million and is set at that level through May 31, 2020.
“We are pleased to successfully complete our 1/1 renewal,” commented Mac Armstrong, Chief Executive Officer and Founder. “We were able to procure an incremental $145 million of limit to support our growth and moreover allow us to capitalize on emerging opportunities in several of our lines of business. We thank our reinsurance panel for their partnership and confidence in Palomar. We will continue to work hard for them.”
Palomar’s reinsurance panel currently consists of over 85 reinsurers who either have an “A-“ (Excellent) or better financial strength rating from A.M. Best or post collateral.
Palomar President, Heath Fisher offered, “Palomar continues to thoughtfully refine and optimize its risk transfer strategy. Our robust panel of reinsurers remain instrumental in our success. We thank them for their support at 1/1 and look forward to working with them on our June renewal.”
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the ultimate parent and insurance holding company of its operating subsidiaries, Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd. Palomar is an innovative insurer that focuses on the provision of specialty property insurance for residential and commercial clients. Palomar’s underwriting and analytical acumen allow it to concentrate on certain markets that it believes are underserved by other insurance companies, such as the markets for earthquake, wind and flood insurance. Based in La Jolla, California, the company is an admitted carrier in 27 states. Palomar Specialty Insurance Company has an A.M. Best financial strength rating of “A-” (Excellent). To learn more about us, visit www.palomarspecialty.com.
Except for the historical information, the matters discussed herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, and subsequent reports filed by the Company with the Securities and Exchange Commission (the “Commission”). For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by the registrant by filing reports with the Commission, through the issuance of press releases or by other methods of public disclosure.