Model Update: Slight Adjustments to Account for Changing Business Mix

Research evidence excerpt

Model Update: Slight Adjustments to Account for Changing Business Mix

C O M PA N Y N O T E

J u n e 2 9 , 2 0 2 6

Palomar Holdings, Inc. (PLMR) Overweight

CONCLUSION PRICE: US$126.32

We are in the process of our end of quarter reviews where we speak with company TARGET: US$132.00

management, review earnings call transcripts and other news in the quarter. We are Our $132 target is based on 12.0x our 27E EPS

lowering our estimates in the second quarter mainly driven by higher adjusted underwriting of $11.00.

expenses and loss ratio.

Paul Newsome, CFA, CPCU

Managing Director, Piper Sandler & Co.

• We raised our estimate for adjusted underwriting expense and loss ratio. We 312 281-3445, paul.newsome@psc.com

think based on the historic trend our prior loss ratio estimate was a little light for the Cam Bianchi

second quarter. We also expect adjusted underwriting expenses to be higher as there Research Analyst, Piper Sandler & Co.

are additional expenses from Grey Surety that we were not accounting for. 612 456-9841, cam.bianchi@psc.com

Eleanor Nentl

• Our full year EPS estimates are unchanged. Research Analyst, Piper Sandler & Co. 612 398-1846, eleanor.nentl@psc.com

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION Changes Previous Current

The company’s very niche lines of business; changes in competition; regulatory Rating — Overweight

COMPANY DESCRIPTION Price Tgt — US$132.00

Palomar Holdings, Inc. provides insurance services. FY26E EPS — US$9.95

FY27E EPS — US$11.00

Market Cap. (mil) US$3,448.5

Book Value/Share US$36.16

Tang. Book/Share $27.53

Price/Book 349%

Price/Tang.Book 459%

52-Week High / Low US$156.55 / US$100.81

Avg Daily Vol (000) 252

Total Assets ($mil) 3,612

ROE 25.76%

Shares Out (mil) 27.3

Div (ann) US$0.00

Institutional Ownership 90.9%

Insider Ownership 2.4%