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Palomar Holdings (PLMR) stock moved after its fourth quarter 2025 report, where revenue reached US$253.36 million and net income was US$56.17 million, but underwriting results and the combined ratio fell short of market expectations.
See our latest analysis for Palomar Holdings.
The Q4 2025 earnings release and the new US$450 million unsecured credit facilities have kept Palomar in focus, with the 1-day share price return of 4.01% helping the stock recover some of the nearly 10% drop that followed concerns over underwriting profitability. Even so, momentum looks more measured, with a 7-day share price return of 3.51% and a 1-year total shareholder return of 4.08% compared with a much stronger 3-year total shareholder return that is well over 100%.
If this earnings swing has you thinking about insurance peers and beyond, it could be a good time to broaden your search and look at 23 top founder-led companies as potential next candidates to research.
With Palomar trading at US$132.10, showing a sizeable intrinsic value discount estimate and around 23% room to current analyst targets, you have to ask: is the recent wobble a chance to buy, or is the market already pricing in future growth?
At $132.10, the most followed narrative sees Palomar Holdings as trading below an implied fair value of about $160.67, with that gap framed by detailed growth and margin assumptions.
Ongoing investment in proprietary technology, data analytics, and advanced underwriting disciplines is improving risk assessment and pricing accuracy, already reflected in strong combined ratios and low loss ratios, which should continue to enhance underwriting profitability and expand net margins over time.
Digital distribution and adoption of automated underwriting and claims technology are creating structural cost advantages, lowering operational expenses and potentially improving net margins, especially in lower competition or higher barrier-to-entry admitted markets such as residential earthquake, Hawaii hurricane, and builders risk.
Want to see what kind of revenue growth and profit profile has to line up for that fair value to make sense? The narrative leans on compounded premium expansion, firm underwriting discipline, and a future earnings multiple that sits above the broader insurance group. Curious how those ingredients fit together and what that implies for long term earnings power? The full narrative lays out the assumptions line by line.
