Palomar Holdings, Inc. (NASDAQ:PLMR) Q4 2023 Earnings Call Transcript

Chris Uchida : Yes. So for the fourth quarter, our investment yield was about 4.1%. It’s been improving throughout the year, which is very similar to other folks, right? I think the new money yield in the fourth quarter was about 5.9%. So still above that number. So we still think there is upside in investment income. I think, the one thing I’d point out, and so there is a little bit of improvement from our view in our 2024 results. But when we go back to anything like Palomar 2X or adjusted underwriting income and the improvements we’re seeing there, that’s before investment income, right? We are an underwriting company first, we want to be valued on the results of our underwriting, right? And then we think investment income is something that you kind of put on top of that.

We are performing well. We are doing everything we need to do to help keep that performance at a very high level while still being very conservative. But overall, the growth we’re seeing in the bottom line is being delivered by our underwriting results, not a buyer investment income. So yes, I do feel there is upside investment income but I am happy with the overall organization and the improvements that we’ve made and the growth in the underwriting income that we’re seeing for the organization.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Mac for closing comments.

A – Mac Armstrong : Great. Thank you, operator, and thank you to all who joined us this morning. We appreciate your participation, your questions and your sustained support of Palomar. To conclude, I’d like to just reiterate how pleased I am with not only in our fourth quarter but also our full year results. But moreover, how proud I am of the team at Palomar who allowed us to achieve these results. I’m confident that 2024 will generate equally strong performance and results and our guidance indicates as much. I am equally confident that Palomar’s sound and consistent execution will be recognized by the market and hence, we will deliver real value to our shareholders. So thank you all, and enjoy the rest of your day. We’ll talk to you next quarter.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.