The parent company of island-based Palomar Specialty Reinsurance Company Bermuda Ltd has reported net income of $16.6 million in the fourth quarter of 2021, which contributed to full year net income of $45.8 million.

California-based Palomar Holdings Inc said those results compared with net income of $6.3 million for full-year 2020, and a net loss of $1.8 million in the fourth quarter of 2020.

The company said gross written premiums increased by 51 per cent in 2021 to $535.2 million compared with $354.4 million in 2020.

Palomar had a combined ratio of 80 per cent, compared with 102.5 per cent in 2020.

Return on equity was 12.1 per cent, compared with 2.1 per cent in 2020.

In the fourth quarter, gross written premiums increased by 56 per cent to $149.9 million compared with $96.1 million in 2020.

The combined ratio was 75 per cent compared with 112.8 per cent in the fourth quarter a year previous.

Annualised return on equity was 17.2 per cent, compared with negative two per cent in the fourth quarter of 2020.

Mac Armstrong, chairman and chief executive officer, said: “At the onset of 2021, Palomar announced four key strategic initiatives that it intended to implement over the course of the year.

“First, we would grow our core book of business at a level similar to that of 2020; next, we would build our newly launched E&S company, Palomar Excess & Surplus Insurance Company; additionally, we would launch several new initiatives that would position Palomar for sustained long-term, profitable growth; and lastly, we would reduce the volatility of our operating results through the exit of unprofitable business segments, underwriting enhancements and conservative risk transfer solutions.

“I am pleased to report that our results in 2021 reflect the significant progress made on each of these initiatives.”

He added: “Our strong fourth-quarter results, most notably the 19.9 per cent adjusted ROE and the aforementioned top line growth of 56 per cent, demonstrate the momentum in our business and the confidence we have in our ability to profitably grow Palomar in 2022 and beyond.”

Palomar Holdings Inc is the holding company of subsidiaries Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd, Palomar Insurance Agency Inc and Palomar Excess and Surplus Insurance Company.