Palomar Holdings currently trades at $130.29 per share and has shown little upside over the past six months, posting a middling return of 4.3%.

Given the underwhelming price action, is now a good time to buy PLMR? Or should investors expect a bumpy road ahead? Find out in our full research report, it’s free.

Why Are We Positive on PLMR?

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

1. Net Premiums Earned Skyrocket, Fueling Growth Opportunities

When insurers sell policies, they protect themselves from extremely large losses or an outsized accumulation of losses with reinsurance (insurance for insurance companies). Net premiums earned are therefore net of what’s ceded to reinsurers as a risk mitigation and transfer strategy.

Palomar Holdings’s net premiums earned has grown at a 55.8% annualized rate over the last two years, much better than the broader insurance industry and in line with its total revenue.

2. Growing BVPS Reflects Strong Asset Base

Book value per share (BVPS) serves as a key indicator of an insurer’s financial stability, reflecting a company’s ability to maintain adequate capital levels and meet its long-term obligations to policyholders.

Palomar Holdings’s BVPS increased by 19.7% annually over the last five years, and growth has recently accelerated as BVPS grew at an incredible 34% annual clip over the past two years (from $20.13 to $36.17 per share).

3. Projected BVPS Growth Is Remarkable

The key to book value per share (BVPS) growth is an insurer’s ability to earn underwriting profits while generating strong returns on its float - Warren Buffet’s secret sauce.

Over the next 12 months, Consensus estimates call for Palomar Holdings’s BVPS to grow by 23.2% to $37.76, elite growth rate.

Final Judgment

These are just a few reasons why Palomar Holdings is one of the best insurance companies out there. At $130.29 per share (or 3.2× forward P/B), is now the right time to buy the stock? See for yourself in our full research report, it’s free.

Stocks We Like Even More Than Palomar Holdings

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.