Palomar Holdings, Inc. 8-K

What Happened

• On May 29, 2026, Palomar Holdings (PLMR) filed an 8-K and issued a press release announcing the successful completion of reinsurance programs effective June 1, 2026, and an increase to its full-year 2026 adjusted net income guidance.
• The company procured roughly $421 million of incremental limit for its earthquake business; earthquake reinsurance now exhausts at $3.92 billion and U.S. hurricane reinsurance at $135 million. Per-occurrence retentions remain $20 million for earthquake and $11 million for hurricane.
• $360 million of the earthquake limit was secured via a new catastrophe bond, Torrey Pines Re Series 2026-1 (Palomar’s seventh ILS transaction). Palomar also renewed a standalone excess-of-loss treaty for Laulima Exchange (Hawaii hurricane), raising per-occurrence coverage to $865 million (a $130 million YOY increase) with a $1.5 million retention.

Key Details

• Effective date: June 1, 2026.
• Incremental reinsurance limit added: ~$421 million.
• Total earthquake reinsurance exhaustion: $3.92 billion; hurricane exhaustion (continental U.S.): $135 million.
• Torrey Pines Re Series 2026-1 catastrophe bond: $360 million toward earthquake; Torrey Pines platform provides $410 million in this issuance and contributes $50 million to Laulima XOL.
• Reinsurance panel: 100+ reinsurers and ILS investors, all rated A- or better by A.M. Best/S&P or fully collateralized; reinstatements largely prepaid.

Why It Matters

• The expanded and diversified reinsurance program increases Palomar’s capacity to grow its earthquake and Hawaii hurricane franchises while limiting the company’s net exposure to catastrophic losses.
• Using ILS (catastrophe bonds) and a broad reinsurer panel brings collateralized capital and diversification, which can improve financial stability after large events.
• Retention levels ($20M earthquake, $11M hurricane, $1.5M Laulima) remain within management’s stated risk guideposts (below one quarter’s adjusted net income and under 5% of shareholders’ equity), suggesting catastrophe risk per event is unlikely to be materially destabilizing to capital.
• Management’s upward revision of full-year 2026 adjusted net income guidance signals they expect better-than-previously forecasted results, although the 8-K does not disclose the new guidance figure in the filing.