Palomar Holdings is a specialty property and casualty insurer focused on niche markets it believes are underserved by large generalist carriers. Palomar's core product is earthquake insurance — it is the 2nd largest earthquake insurer in California and 3rd largest in the U.S. — covering residential and commercial properties. Beyond earthquake, Palomar writes casualty (general liability, E&S, environmental, and surety), inland marine and other property (builders risk, Hawaii hurricane, residential flood), crop insurance under the USDA federal program, and fronting (issuing policies on behalf of other carriers). Palomar distributes through retail agents, wholesale brokers, program administrators, and partnerships with over 35 insurance carriers. Palomar earns money through underwriting income and investment income. On underwriting, Palomar collects gross written premiums, cedes a significant portion to reinsurers through quota share and excess-of-loss treaties, and retains the net premium. Quota share treaties generate ceding commission income that offsets acquisition costs, and as Palomar seasons a book of business, it increases net retention — converting ceded premium into retained underwriting income. Palomar's net earned premium retention ratio was roughly 45% in FY25, meaning there is meaningful earnings leverage as retention increases. Investment income is a secondary contributor, generated from a fixed income portfolio. Palomar's growth strategy centers on its "Palomar 2x" initiative — targeting a doubling of adjusted net income over a rolling 3- to 5-year period — through organic expansion and acquisitions in technically complex lines like surety.