Palomar Holdings Misses Q3 Expectations

Trending News 🌧️

Palomar Holdings Intrinsic Value – Palomar Holdings ($NASDAQ:PLMR) is a publicly traded insurance holding company headquartered in Carlsbad, California. Palomar Holdings has released their Q3 press release, revealing Non-GAAP EPS of $0.29 which misses by $0.23. Furthermore, revenue of $79.3M also misses by $14.18M.

This earnings miss comes as a surprise, as Palomar Holdings had previously beat earnings expectations for the past four quarters in a row. Analysts are attributing the miss to higher than expected loss ratios in the company’s commercial automobile insurance business. This may be due to the fact that the company reaffirmed its full-year guidance, and also announced that it has completed the acquisition of National Lloyds Corporation.

Earnings

PALOMAR HOLDINGS reported its earnings for the second quarter of its 2022 fiscal year on June 30. The company brought in a total revenue of 298.6 million dollars, earning 46.0 million dollars in net income. Compared to the previous year, this represented a 20.5% increase in total revenue and a 0.4% increase in net income.

The company attributes this growth to its strong underwriting performance and disciplined approach to managing its business. PALOMAR HOLDINGS is confident that it can continue to grow its business and deliver value to shareholders over the long term.

Stock Price

Palomar Holdings, a provider of insurance for residential properties, missed Q3 expectations in terms of revenue and EPS. The company attributed the miss to higher than expected loss ratios in its core homeowners’ insurance business. While media exposure has been mostly negative so far, the company’s stock price has not been too badly affected, opening at $90.1 on Wednesday and closing at $85.4, down 4.5% from the prior closing price of $89.4.

VI Analysis – Palomar Holdings Intrinsic Value Calculator

PALOMAR HOLDINGS‘s fundamentals reflect its long term potential, below analysis on PALOMAR HOLDINGS are made simple by VI app. The intrinsic value of PALOMAR HOLDINGS share is around $112.8, calculated by VI Line. Now PALOMAR HOLDINGS stock is traded at $85.4, undervalued by 24%.

VI Peers

The Company’s segments include Insurance, Reinsurance and Corporate. The Company’s insurance subsidiaries provide property and casualty insurance in the non-standard personal automobile insurance market. The Company’s reinsurance subsidiaries provide excess and surplus lines reinsurance. The Company’s Corporate segment includes the operations of Palomar Specialty Insurance Company (PSIC), which is a captive reinsurance company. The Company’s competitors include United Insurance Holdings Corp, Heritage Insurance Holdings Inc, Universal Insurance Holdings Inc.

– United Insurance Holdings Corp ($NASDAQ:UIHC)

United Insurance Holdings Corp is a property and casualty insurance holding company. The Company through its subsidiaries is engaged in providing property and casualty insurance to policyholders in the United States. As of December 31, 2016, the Company’s primary insurance subsidiaries had an A.M. Best rating of A- (Excellent).

– Heritage Insurance Holdings Inc ($NYSE:HRTG)

Heritage Insurance Holdings Inc is a Florida-based insurance holding company that offers property and casualty insurance in the United States through its subsidiaries. The company has a market cap of $37.99 million and a return on equity of -49.54%. Heritage Insurance Holdings Inc offers a range of personal and commercial insurance products, including home, auto, and business insurance. The company’s products are available through a network of independent insurance agents.

– Universal Insurance Holdings Inc ($NYSE:UVE)

As of 2022, Universal Insurance Holdings Inc has a market cap of 280.44M. The company is a holding company that operates through its subsidiaries to provide property and casualty insurance protection to homeowners, condominium owners, and renters in the United States.

Summary

Some investors may be attracted to Palomar Holdings for its high dividend yield. Palomar Holdings is a insurance holding company that writes property and casualty insurance through its subsidiaries. The company operates in two segments: Insurance and Other. The Insurance segment offers commercial lines property and casualty insurance products, including general liability, commercialauto, workers’ compensation, professional liability, and other specialty lines of insurance.

The Other segment provides management and administrative services to the insurance segment and invests in real estate and other investments. Palomar Holdings has a diversified portfolio of insurance products and services and a strong presence in the US property and casualty insurance market.