Palomar Holdings completes reinsurance renewal
Specialty property insurer Palomar Holdings (Palomar) has renewed approximately $300 million of its core reinsurance program and purchased $145 million of incremental limit to support its growth.
Effective January 1, 2020, the company’s reinsurance program provides coverage up to $1.2 billion for earthquake events. The incremental limit allows Palomar to maintain a cushion above the 1:250 year peak zone probable maximum loss and significantly exceeds simulated losses from any recorded historical event. As of September 30, 2019, a modelled earthquake equivalent to the 1994 Northridge or 1906 San Francisco earthquake would generate a gross loss of $763 million or $680 million, respectively.
Palomar’s per event retention remains at $5.0 million and is set at that level through May 31, 2020.
“We are pleased to successfully complete our 1/1 renewal,” said Mac Armstrong, chief executive officer and founder. “We were able to procure an incremental $145 million of limit to support our growth and moreover allow us to capitalise on emerging opportunities in several of our lines of business. We thank our reinsurance panel for their partnership and confidence in Palomar. We will continue to work hard for them.”
Palomar’s reinsurance panel currently consists of over 85 reinsurers who either have an “A-“ (Excellent) or better financial strength rating from AM Best or post collateral.
Palomar President Heath Fisher said: “Palomar continues to thoughtfully refine and optimise its risk transfer strategy. Our robust panel of reinsurers remain instrumental in our success. We thank them for their support at 1/1 and look forward to working with them on our June renewal.”
