AM Best Affirms Credit Ratings for Palomar Holdings, Inc. and Its Member Companies and Affiliate

OLDWICK, N.J., October 09, 2026--AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb" (Good) of Palomar Holdings, Inc. (Palomar) (Delaware) [NASDAQ: PLMR], the ultimate parent and insurance holding company of Palomar Specialty Insurance Company (PSIC) (Portland, OR), Palomar Excess and Surplus Insurance Company (PESIC) (Phoenix, AZ), Palomar Specialty Reinsurance Company Bermuda Ltd. (Palomar Re) (Bermuda), First Indemnity of America Insurance Company (FIA) (Morris Plains, NJ), and Palomar Casualty and Surety Company (Metairie, LA). Concurrently, AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of "a" (Excellent) of PSIC, PESIC, Palomar Re and FIA, which are collectively rated as a group. The outlook of these Credit Ratings (ratings) is stable. In addition, AM Best has also affirmed the FSR of A- (Excellent) and the Long-Term ICR of "a-" (Excellent) of Palomar Casualty and Surety Company, which is a separately rated sister company. The outlook of these ratings is positive.

The ratings reflect Palomar's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

Palomar's overall balance sheet strength is consistently supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), though the position has moderated from prior levels reflecting planned capital deployment. Solid liquidity, net underwriting leverage that remains at an acceptable level relative to its capital base and favorable loss reserve development patterns in recent periods remain supportive of the assessment. Furthermore, the implementation of shareholder dividends is not expected to materially impact key balance sheet metrics but is expected to partially offset future capital growth. The group maintains a material level of reinsurance dependency, reflective of the strategic use of excess of loss and quota share arrangements to mitigate exposure. Palomar writes a variety of risks through its admitted and nonadmitted entities, with earthquake coverage remaining a pillar of the portfolio, while the group also concentrates on inland marine/other property, surety/credit, casualty and crop business. Management continues to expand its footprint and curate a portfolio of non-correlated risks. The consolidated group consistently reports profitable results, reflective of diligent underwriting strategies.