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Palomar completes June 1 renewals

Palomar Holdings Inc, the parent company of island-based Palomar Specialty Reinsurance Company Bermuda Ltd, has announced the successful completion of June 1 reinsurance renewals.

The company said it had procured approximately $430 million of incremental limit for earthquakes and $200 million of incremental wind storm limit.

Palomar said reinsurance coverage now exhausted 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.

The company said it had 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 programme. The $12.5 million per occurrence pre-tax retention is further backstopped by the $25 million catastrophe aggregate excess of loss cover renewed on April 1.

Mac Armstrong, Palomar’s chief executive officer and chairman, said: “We are very pleased to successfully complete our 6/1 placement.

“In a challenging market, we were able to purchase $430 million of incremental limit to conservatively support our growth; maintain our per event retention at $12.5 million; and further incorporate ILS solutions into our comprehensive reinsurance programme.”

The company said that other highlights of the reinsurance programme included:

•Successful issuance of $275 million of collateralised 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 multiyear basis;

•The addition of nine 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 AM 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 its $12.5 million retention with modest additional reinsurance premium due.

Palomar is the holding company of subsidiaries Palomar Specialty Insurance Company, Palomar Insurance Agency Inc and Palomar Excess and Surplus Insurance Company in addition to the island-based reinsurer.

Mac Armstrong, Palomar’s chief executive officer and chairman (File photograph)

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Published June 01, 2022 at 4:38 pm (Updated June 01, 2022 at 9:33 pm)

Palomar completes June 1 renewals

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