56 unchanged sentences
We evaluate each reinsurance claim based on the facts of the case, historical experience with the reinsurer on similar claims and existing case law and consider including any amounts deemed uncollectible from the reinsurer in a reserve for uncollectible reinsurance.
−Removed: As of June 30, 2024, we had $381.1 million of aggregate reinsurance recoverables.
+Added: As of September 30, 2024, we had $419.1 million of aggregate reinsurance recoverables.
Our loss reserves are established based on estimates which may be inadequate to cover actual incurred losses and could have a material adverse impact on our results of operations and financial condition.
29 unchanged sentences
In addition to reinsurance purchased from traditional reinsurers, we have historically incorporated collateralized protection from the insurance linked securities market via catastrophe bonds.
−Removed: During the first quarter of 2021, we closed a $400 million 144A catastrophe bond which became effective June 1, 2021.
−Removed: The catastrophe bond was completed through Torrey Pines Re Pte.
−Removed: (“Torrey Pines Re Pte.”).
−Removed: Torrey Pines Re Pte.
−Removed: is a special purpose reinsurance vehicle incorporated in Singapore that provided Palomar with indemnity-based reinsurance covering earthquake events through June 1, 2024.
During the second quarter of 2022, we closed a $275 million 144A catastrophe bond which became effective June 1, 2022.
This catastrophe bond was completed through Torrey Pines Re Ltd., a Bermuda-domiciled special purpose insurer that provides indemnity-based reinsurance covering earthquake events through June 1, 2025.
−Removed: During the second quarter of 2023, we also closed a $200 million 144A catastrophe bond which became effective June 1, 2023.
+Added: During the second quarter of 2023, we closed a $200 million 144A catastrophe bond which became effective June 1, 2023.
This catastrophe bond was also completed through Torrey Pines Re Ltd and provides indemnity-based reinsurance covering earthquake events through June 1, 2026.
−Removed: During the second quarter of 2024, the Company also closed a $420 million 144A catastrophe bond which became effective June 1, 2024.
+Added: During the second quarter of 2024, we closed a $420 million 144A catastrophe bond which became effective June 1, 2024.
This catastrophe bond was also completed through Torrey Pines Re Ltd and provides indemnity-based reinsurance covering earthquake events through June 1, 2027.
39 unchanged sentences
Best financial strength ratings range from “A++” (Superior) to “F” for insurance companies that have been publicly placed in liquidation.
−Removed: As of June 30, 2024, A.M.
+Added: As of September 30, 2024, A.M.
Best has assigned a financial strength rating of “A” (Excellent) (Outlook Positive) to our insurance company subsidiaries, Palomar Specialty Insurance Company (“PSIC”) and Palomar Excess and Surplus Insurance Company (“PESIC”).
30 unchanged sentences
Our business is concentrated in California and, as a result, we are exposed more significantly to California loss activity and regulatory environments.
−Removed: Our policyholders and insurance risks are currently concentrated in California, which generated 53% of our gross written premiums for the year ended December 31, 2023 and 45% for the six months ended June 30, 2024.
+Added: Our policyholders and insurance risks are currently concentrated in California, which generated 53% of our gross written premiums for the year ended December 31, 2023 and 44% for the nine months ended September 30, 2024.
We are exposed to business, economic, political, judicial and regulatory risks due to this concentration that are greater than the risks faced by insurance companies with a lower concentration of their premiums in California.
19 unchanged sentences
There were no other program administrators which distributed greater than 10% of our gross written premiums for the year ended December 31, 2023.
−Removed: For the six months ended June 30, 2024, our largest program administrator distributed $193.9 million or 25.7% of our gross written premiums and our second largest program administrator distributed $91.4 million, or 12.1% of our gross written premiums.
−Removed: There were no other program administrators which distributed greater than 10% of our gross written premiums for the six months ended June 30, 2024.
+Added: For the nine months ended September 30, 2024, our largest program administrator distributed $298.7 million or 25.6% of our gross written premiums and our second largest program administrator distributed $123.0 million, or 10.5% of our gross written premiums.
+Added: There were no other program administrators which distributed greater than 10% of our gross written premiums for the nine months ended September 30, 2024.
Our largest program administrator, Arrowhead General Insurance Agency, distributes our Value Select Residential Earthquake program, which represents the majority of our Residential Earthquake premium and is administered through a mutually exclusive agreement for the states of California, Oregon and Washington.
129 unchanged sentences
These securities are carried on the balance sheet at fair market value and are subject to potential losses and declines in market value based on the performance of equity markets.
−Removed: Our equity invested assets totaled $37.8 million as of June 30, 2024.
+Added: Our equity invested assets totaled $40.2 million as of September 30, 2024.
Risks for all types of securities are managed through the application of our investment policy, which establishes investment parameters that include but are not limited to, maximum percentages of investment in certain types of securities and minimum levels of credit quality, which we believe are within applicable guidelines established by the National Association of Insurance Commissioners (“NAIC”), the Oregon Division of Financial Regulation and the California and Arizona Departments of Insurance.
21 unchanged sentences
While we have implemented business contingency plans and other reasonable plans to protect our systems, sustained or repeated system failures or service denials could severely limit our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or otherwise operate in the ordinary course of business.
−Removed: A portion of our employees work remotely and outside of our primary offices on a regular basis.
−Removed: We believe remote work increases the need for our information technology and telecommunications systems to work properly and creates additional operational risk and difficulty should these systems fail.
Security breaches or cyber-attacks could expose us to liability and damage our reputation and business.
107 unchanged sentences
As PSIC grows, its share of any assessments in each state in which it underwrites business on an admitted basis may increase.
−Removed: PSIC paid assessments of $0.2 million in 2023 and paid $5.0 million of assessments for the six months ended June 30, 2024.
+Added: PSIC paid assessments of $0.2 million in 2023 and paid $5.0 million of assessments for the nine months ended September 30, 2024.
We cannot predict with certainty the amount of future assessments because they depend on factors outside our control, such as insolvencies of other insurance companies as well as the occurrence of significant catastrophes.
166 unchanged sentences
If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our common stock could decrease, which could cause our stock price and trading volume to decline.
+Added: Unregistered Sales of Equity Securities and Use of Proceeds
+Added: Defaults Upon Senior Securities
+Added: Mine Safety Disclosures
+Added: Not applicable.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.