LA JOLLA, Calif. - Palomar Holdings, Inc. (NASDAQ: PLMR) announced today the appointment of Benson Latham as Executive Vice President, Head of Crop. Latham, a seasoned executive with three decades of experience in the Crop insurance industry, will lead Palomar’s Crop insurance operations.
Latham's career spans significant achievements, including the development of a large-scale Crop franchise at ProAg, which reported $500 million in revenue. Following the sale of ProAg to CUNA Mutual in 2010, he founded and expanded Longhorn Re, a Bermuda-based reinsurer, before selling it to Validus Re in 2013. At Validus, he established and grew the company's Crop division to over $1 billion in revenue.
Palomar's CEO, Mac Armstrong, expressed confidence in Latham's ability to steer Palomar's Crop franchise to become a market leader in the $19 billion Crop insurance market. In its first full year, the company has already written more than $100 million of Crop premium.
Latham conveyed his enthusiasm for joining Palomar, highlighting the company's strong balance sheet, data and technology resources, and distribution partnership with Advanced AgProtection as key factors for rapid success in building their Crop insurance business.
Palomar Holdings, known for its innovative approach to specialty insurance, offers a range of products including Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop insurance. The company's insurance subsidiaries are recognized for their financial strength with an 'A' (Excellent) rating from A.M. Best.
This executive appointment is part of Palomar's strategic efforts to expand and strengthen its position in the specialty insurance sector. The information in this article is based on a press release statement from Palomar Holdings, Inc.
In other recent news, Palomar Holdings Inc (NASDAQ:PLMR). reported a robust third-quarter performance in 2024, with significant growth across key financial metrics despite market challenges. The company's adjusted net income and total premium growth increased by 39% and 32% respectively, driven by substantial gains in the Earthquake, Casualty, and Crop insurance segments. Palomar also successfully raised $160 million in equity, with the intent to capitalize on market dislocations and expand its crop business.
The company's Earthquake segment saw a 19% rise in gross written premium, while Casualty premiums surged by 91%. However, the Fronting business experienced an 11% decline in premiums due to the separation from Omaha National. Despite this setback, the Crop insurance segment generated $60 million in premiums, a significant increase from the previous year's $12.1 million.
Palomar anticipates a full-year adjusted net income guidance of $124 million to $128 million, a 35% increase from 2023. The company is also on track to meet its Palomar 2X goal, which aims to double its adjusted underwriting income in three years. Management plans to take on more risk in the Crop sector starting January 1, 2025, indicating a strategic focus on this particular segment.
InvestingPro Insights
Palomar Holdings' recent appointment of Benson Latham as Executive Vice President, Head of Crop, aligns well with the company's strong financial performance and growth trajectory. According to InvestingPro data, Palomar has demonstrated impressive revenue growth, with a 40.19% increase in the last twelve months as of Q3 2023, and an even more striking 63.31% quarterly growth in Q3 2023. This robust growth supports the company's ambitious expansion into the Crop insurance market.
The company's financial health is further underscored by its profitability. InvestingPro Tips indicate that Palomar has been profitable over the last twelve months, with analysts predicting continued profitability this year. This financial stability provides a solid foundation for the company's strategic move into the $19 billion Crop insurance market.
Investors should note that Palomar is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.47 as of Q3 2023. This suggests that the stock may be undervalued considering its growth prospects, which could be further boosted by the expansion of its Crop insurance operations under Latham's leadership.
For those interested in a deeper dive into Palomar Holdings' financials and prospects, InvestingPro offers 8 additional tips, providing a comprehensive analysis to inform investment decisions.
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