UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01. Other Events.
On May 12, 2021, Palomar Holdings, Inc. (the “Company”) issued a press release announcing the successful completion of certain reinsurance programs incepting June 1, 2021.
The Company procured approximately $180 million of incremental limit for earthquakes and $100 million of incremental limit for windstorms. Reinsurance coverage now exhausts at $1.65 billion for earthquake events and $700 million for hurricane events, providing adequate headroom to support the Company’s growth initiatives as well as coverage in excess of Palomar’s 1:250-year zone peak zone Probable Maximum Loss (“PML”).
The Company increased its catastrophe event retention from $10 million to $12.5 million for all perils. Additionally, the Company completely placed the excess of loss layers of its catastrophe program thereby eliminating its co-participation and retention in selected layers. Previously the Company had $3 million of co-participation within its reinsurance program, effective June 1st Palomar has reduced its net retained loss for covered events by $500 thousand. The $12.5 million per occurrence pre-tax retention is further backstopped by the $25 million catastrophe aggregate excess of loss cover (“The Aggregate Cover”) put into place April 1st.
Additional highlights of the 6/1 placement include:
| ● | Successful issuance of $400 million of collateralized capacity through Torrey Pines Re 144A Catastrophe Bond, which diversifies the panel by accessing ILS investors on a multi-year basis; |
| ● | The addition of 6 new reinsurers to bring Palomar’s reinsurance panel to approximately 82 reinsurers, all of which have an “A-” (Excellent) (Outlook Stable) or better financial strength rating from A.M. Best or post collateral; |
| ● | Prepaid reinstatements for all layers that include a reinstatement provision, thereby limiting the pre-tax net loss to $12.5 million without any offset for additional reinsurance premium. |
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. | Description | |||
99.1 | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
PALOMAR HOLDINGS, INC. | ||
Date: | May 13, 2021 | /s/ T. Christopher Uchida |
T. Christopher Uchida | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||