Palomar Holdings Inc, the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has reported net income of $52.2 million for fiscal year 2022 (2021: $45.8 million).

In the fourth quarter, Palomar, which describes itself as a specialty catastrophe insurer, recorded net income of $18.8 million (2021: $16.6 million).

Mac Armstrong, the chairman and chief executive, said: “Palomar’s strong fourth-quarter results are the final illustration of success in a record-setting year.

“During the quarter we generated nearly 60 per cent top-line growth while also achieving strong profitability with an annualised adjusted return on equity of 22.4 per cent.

“For the full-year 2022, we delivered record premium growth and earnings, generating an adjusted ROE of 18.3 per cent. The fourth-quarter and full-year results demonstrate further execution of Palomar 2X, our strategy to profitably grow the company, deliver predictable earnings and achieve an ROE in excess of 20 per cent while maintaining industry-leading profit margins.”

Gross written premiums for the full year were $881.9 million (2021: $535.2 million).

The total loss ratio was 24.9 per cent (2021: 17.7 per cent), and the combined ratio was 80.4 per cent (2021: 80 per cent).

In the fourth quarter, gross written premiums increased to $239.1 million (2021: $149.9 million).

The total loss ratio was 22.4 per cent (2021: 15 per cent) and the combined ratio was 75.5 per cent (2021: 75 per cent).

Paoloma says it provides insurance coverage to underserved areas.