May 2022 Investor Presentation

Investor Presentation

May 2022

Disclaimer

This presentation contains forward-looking statements about Palomar Holdings, Inc. (the "Company"). These statements involve known and unknown risks that relate to the Company's future events or future financial performance and the actual results could differ materially from those discussed in this presentation. This presentation also includes financial measures which are not prepared in accordance with generally accepted accounting principles ("GAAP"). For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the appendix to this present.

Forward-looking statements generally relate to future events or the Company's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as ''may'', ''will'', ''should'', ''expects'', ''plans'', ''anticipates'', ''could'', ''intends'', ''target'', ''projects'', ''contemplates'', ''believes'', ''estimates'', ''predicts'', ''would'', ''potential'' or ''continue'' or the negative of these words or other similar terms or expressions that concethe Company's expectations, strategy, plans or intentions. These forward-looking statements include, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs and other similar matters. These forward-looking statements are based on management's current

expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others, future results of operations; financial position; the impact of the ongoing and global COVID-19 pandemic; general economic, political and other risks, including currency and stock market fluctuations and uncertain economic environment; the volatility of the trading price of our common stock; and our expectations about market trends.

The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company makes. While the Company may elect to update these forward-looking statements at some point in the future, the Company has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the Company's views as of any date subsequent to the date of this presentation. Additional risks and uncertainties relating to the Company and its business can be found in the "Risk Factors" section of Palomar Holdings, Inc.'s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other filings with the United States Securities and Exchange Commission.

Company Profile

TRACK RECORD OF DELIVERING STRONG GROWTH AND CONTINUED PROFITABILITY

Specialty insurer using data analytics and underwriting acumen to capitalize on market dislocations and provide disruptive products that resonate with producers, other insurers and reinsurers

Leading Earthquake insurer in the United States

Multi-channel distribution serving residential and commercial clients

Admitted and E&S offerings with nationwide scope

A.M. Best "A- (Excellent)" FSC group rating

Risk transfer strategy limits exposure to major events and reduces earnings volatility

Committed to environmental, social, governance, diversity

and inclusion initiatives

NASDAQ: PLMR Q1 2022 HIGHLIGHTS

GWP of $170.9 million, up 65% from Q1 2021
Adjusted net income of $17.6 million, compared to $19.3 million of Q1 2021
Annualized adjusted ROE of 18.1%, compared to 20.8% of Q1 2021
Adjusted combined ratio of 72.1%, compared to 53.3% of Q1 2021
Successfully renewed aggregate reinsurance program effective April 2022
Authorized new two-year $100 million share repurchase program in January 2022
- 219,061 shares repurchased, equivalent to $13 million
Released second annual Sustainability & Citizenship report in February 2022
Full year 2022 adjusted net income guidance of $80 to $85 million
- Adjusted ROE of 19% at the mid-point of the range
- Adjusted ROE floor of 14% with renewed aggregate program

31. This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix.

Our Strategy

Combining data analytics, underwriting acumen and technology to create flexible products that deliver

value for policy holders, producers, reinsurers and insurance company partners

	• Markets with attractive long term returns but fragmented competition
MARKETS	•	Straightforward risks, legal environments and claims processes
	• Willingness to enter dislocated markets


	•	Products that are A.M. Best rated and clearly differentiated from alternatives
PRODUCTS	•	Flexible coverages compared to alternatives with rigid forms or limited options
	•	Personal and commercial products available on an admitted and E&S basis


	•	Scalable underwriting approach combining data analysis with human expertise
UNDERWRITING	•	Lines of business that can leverage automation and improved risk selection at scale
	•	Straightforward risks that can be quoted efficiently and perform homogenously


	• Open architecture model that leverages multiple distribution channels
DISTRIBUTION	•	Opportunities to solve a clear market need for producers
	•	Internal Inside Sales team extends agency reach and offers personalized service


	• Comprehensive risk transfer program utilizing excess of loss, quota share and property per risk coverages
RISK TRANSFER	•	Accumulate risks with attractive returns that are hard for reinsurers to access or aggregate
	•	Flexibility to modify risk appetite and strategy to suit market conditions and maturity of programs

Q1 Update: 2022 Strategic Initiatives

SUSTAIN STRONG

GROWTH

Generated exceptional top line growth of 65% year-over-year
Residential Earthquake and Commercial Earthquake increased 29% and 18% respectively
Record new business sales for Residential Earthquake in Q1
Additional product growth: Inland Marine 133%, Commercial All Risk 37% and Residential Flood 31%
PESIC delivered $66.9 million of GWP, representing 182% year- over-year growth

MONETIZE RECENT

INVESTMENTS

Traction at PLMR-FRONT with $29.8 million of Q1 GWP
Affirmed target of $80 to $100 million of managed Fronting GWP for YE 2022
Continued progress within Commercial General Liability, Professional Liability and Excess Property development
Prioritized quota share reinsurance, distribution network buildout and development of systems, forms and filings for new products

ENHANCE EARNINGS

PREDICTABILITY

Concerted efforts to mitigate earnings volatility
Renewed aggregate reinsurance to protect from multiple severe events and establish an adjusted ROE floor of 14%
Successfully placed new quota shares for our new professional lines and Casualty products
Continued reduction of continental wind exposure; non- Texas Homeowners business is in run-off and halting exposure growth within Commercial All Risk

SCALE THE

ORGANIZATION

Using technology and process optimization to reduce organizational costs enabling future scale and margin expansion
Hired talent and expertise within actuarial, analytics, operations and technology departments to support growth
New hires leverage existing technology and infrastructure platforms to scale new initiatives efficiently

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Palomar Holdings Inc. published this content on 19 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2022 11:06:41 UTC.