UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01. Other Events.
On May 31, 2022, Palomar Holdings, Inc. (the “Company”) issued a press release announcing the successful completion of certain reinsurance programs incepting June 1, 2022.
The Company procured approximately $430 million of incremental limit for earthquakes and $200 million of incremental windstorm limit. Reinsurance coverage now exhausts at $2.08 billion for earthquake events and $900 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 peak zone Probable Maximum Loss (“PML”).
The Company maintained its catastrophe event retention of $12.5 million for all perils. Additionally, the Company completely placed the excess of loss layers of its catastrophe program. 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”) renewed on April 1, 2022.
Other highlights of the reinsurance program include:
| ● | Successful issuance of $275 million of collateralized capacity through Torrey Pines Re 144A Catastrophe Bond, bringing Palomar’s total outstanding Catastrophe Bond capacity to $675 million and diversifying its reinsurance capital by accessing ILS investors on a multi-year basis; |
| ● | The addition of 9 new reinsurers brings Palomar’s reinsurance panel to 84 reinsurers, all of which have an “A-” (Excellent) (Outlook Stable) or better financial strength rating from A.M. Best and/or S&P or post collateral; |
| ● | Prepaid reinstatements for substantially all layers that include a reinstatement provision, thereby limiting the pre-tax net loss to the Company’s $12.5 million retention with modest additional reinsurance premium due. |
Item 9.01. Financial Statements and Exhibits
(d)Exhibits
Exhibit No. | Description |
99.1 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: | June 2, 2022 | /s/ T. Christopher Uchida |
T. Christopher Uchida | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||