Palomar Holdings Inc, the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has reported second quarter net income of $25.7 million, a 46 per cent jump compared with the prior year quarter figure of $17.6 million.

Adjusted net income was $32 million, compared with $21.8 million in the second quarter of 2023.

Gross written premiums increased by 40.4 per cent to a record $385.2 million, compared with $274.3 million in the prior year quarter.

The company’s annualised return on equity was 19.9 per cent, compared with 17.2 per cent in the second quarter of 2023.

Mac Armstrong, chairman and chief executive, said: “I am very pleased with our second quarter results as we achieved record gross written premium and adjusted net income during the quarter.

“Additionally, our profitable growth remained robust with gross written premium and adjusted net income increasing 40 per cent and 47 per cent, respectively, year-over-year.”

Meanwhile, AM Best has upgraded the long-term issuer credit rating to “bbb” (Good) from “bbb-” (Good) of Palomar Holdings.

Concurrently, the agency upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the long-term ICRs to “a” (Excellent) from “a-” (Excellent) of its subsidiaries, including Bermudian-based Palomar Re.

The outlook of these credit ratings has been revised to stable from positive.

The agency said the ratings reflect Palomar’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.