Palomar Holdings Inc, the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has reported net income of $30.5 million for the third quarter of 2024.

That compares with net income of $18.4 million in the prior year quarter.

Adjusted net income was $32.4 million, which compares with $23.3 million in the third quarter of 2023.

Gross written premiums increased by 32.2 per cent year-on-year to $415 million.

Underwriting income for the third quarter was $26.4 million resulting in a combined ratio of 80.5 per cent compared with underwriting income of $20.7 million resulting in a combined ratio of 75.8 per cent during the same period last year.

An adjusted combined ratio excluding catastrophe losses of 67.6 per cent compared with 71.5 per cent, in the third quarter of 2023.

Net investment income increased by 56 per cent to $9.4 million compared with $6 million in the prior year’s third quarter.

Annualised return on equity of 19.7 per cent compared with 17.7 per cent in the third quarter of 2023.

Mac Armstrong, chairman and chief executive, said: “I am very pleased with our third quarter results as they clearly demonstrate our successful efforts to deliver consistent earnings and returns.

“In a quarter that experienced a heightened level of cat activity, we delivered 39 per cent adjusted net income growth, a 77 per cent adjusted combined ratio, and a 21 per cent adjusted ROE.

“Our results further validate the concerted efforts that we have undertaken to diversify the business, reduce the volatility in our earnings base and profitably grow.”

For the full year 2024, the company said it expects to achieve adjusted net income of $124 million to $128 million.

This range includes additional catastrophe losses incurred during the fourth quarter of 2024 of approximately $8  million related to Hurricane Milton.