Palomar Holdings Inc, the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has reported net income of $79.2 million for the 2023 fiscal year.

That compares with $52.2 million in 2022.

In the fourth quarter, the company reported net income of $25.9 million, which compares with $18.8 million in the prior-year quarter.

For the full year, gross written premiums increased by 29.4 per cent to $1.1 billion compared with $881.9 million in 2022.

Adjusted net income was $93.5 million compared with $71.3 million in 2022.

Return on equity was 18.5 per cent compared with 13.4 per cent in 2022.

The improved combined ratio of 76.6 per cent compared with 80.4 per cent in 2022.

Mac Armstrong, chairman and chief executive, said: "The fourth quarter provided a strong end to what was a stellar 2023.

“During the quarter, we generated gross written premium and adjusted net income growth of 27 per cent and 33 per cent, respectively, and, importantly, an adjusted return on equity of 25 per cent.

“When looking at the full year, we are especially proud of record gross written premium and adjusted net income, strong top and bottom-line growth and numerous initiatives that led to diversification and reduced earnings volatility.

“Additionally, we introduced multiple new lines of business, including Crop, Environmental Liability and Assumed Reinsurance.

“This robust and disciplined growth translated into an adjusted return on equity well above the 20 per cent benchmark level espoused in our Palomar 2X strategic plan.”

He added: “Our 'grow where we want to' mantra not only reduces the volatility in our book of business, but also provides numerous growth vectors.

“The 2023 execution of Palomar 2X in a generationally hard property cat reinsurance market combined with the introduction of new products instils strong conviction and confidence in what we can accomplish across the organisation.

“We exit the year energised by our prospects for profitable growth in 2024 and beyond.”