We recently published an article titled Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Palomar Holdings, Inc. (NASDAQ:PLMR) stands against the other insurance stocks.
Insurance stocks are back in the spotlight after Berkshire Hathaway’s annual shareholder report for 2024. These stocks are not only benefiting from stable cash flows, but they are also benefiting from higher investment yields and premium growth as inflation trends have benefited insurers.
Moreover, AI and tech innovations are starting to spill over into many other industries, which include insurance. It is also benefiting from a demographic tailwind as the growing “silver segment” requires more life and health insurance.
As such, it is worth looking into some of the top performers in this industry. There are good reasons behind each of the stocks’ uptrends.
Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.
Methodology
For this article, I screened the top-performing defense stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A real estate investment banker sitting in a plush office, reviewing financials and papers.
Palomar Holdings, Inc. (NASDAQ:PLMR)
Number of Hedge Fund Holders In Q4 2024: 20
Palomar Holdings, Inc. (NASDAQ:PLMR) is a specialty insurance company that provides property and casualty insurance products.
The stock is up significantly so far in 2025 after solid Q4 2024 earnings. Net income increased 35% to $35 million and gross written premiums grew 23.3% to $373.3 million. Adjusted net income grew 47.5% to $41.3 million.
Guidance is also solid, with management projecting adjusted net income between $180 million and $192 million. It anticipates mid-to-high teens growth in earthquake premiums. Moreover, crop insurance premiums are expected to reach $200 million.
Last month, the stock rose following the completion of a $25 million First Indemnity of America Insurance acquisition.
The consensus price target of $127.33 implies 6.94% upside.
Palomar Holdings, Inc. (NASDAQ:PLMR) is up 12.69% year-to-date.
Overall PLMR ranks 9th on our list of the insurance stocks that are skyrocketing so far in 2025. While we acknowledge the potential of PLMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
