UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition.
On November 2, 2021, Palomar Holdings, Inc (“Palomar” or the “Company”) announced revised pretax catastrophe losses of $17.5 million, net of reinsurance and prior period development, for the third quarter of 2021. These estimates represent anticipated losses from Hurricanes Ida and Nicholas as well as a full $5 million loss from an excess liability indemnity policy related to losses incurred by PG&E Corporation covered by Palomar Excess and Surplus Insurance Company (“PESIC”).
The PESIC policy referenced was a high-attaching excess of loss liability policy that afforded coverage for liability associated with wildfire up to a maximum of $5.0 million. The magnitude of the loss was disclosed by PG&E Corporation on November 1st and remains subject to further review and adjudication, including potential recoveries. The net impact of this loss after the acceleration of earned premium will result in $0.09 per share of incremental loss, or $2.3 million, for the quarter.
Palomar’s loss estimates are subject to change due to the complexity of the claims and preliminary nature of the information available to prepare the estimates. In addition, Palomar’s financial closing and review procedures for the fiscal quarter are not yet complete. Updated loss estimates related to recent catastrophes will be reflected in Palomar’s third quarter 2021 results.
The information contained in this Item 2.02 and in the accompanying exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing
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: | November 2, 2021 | /s/ T. Christopher Uchida |
T. Christopher Uchida | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||