Exhibit 99.1

Palomar Holdings, Inc. Reports First Quarter 2020 Results

La Jolla, CA, May 5, 2020 – Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or the “Company”) reported net income of $11.8 million, or $0.48 per diluted share, for the first quarter of 2020 compared to a net loss of $14.4 million, or $(0.85) per diluted share, for the first quarter of 2019. Adjusted net income(1) was $12.3 million, or $0.50 per diluted share, for the first quarter of 2020 as compared to $8.8 million, or $0.52 per diluted share, for the first quarter of 2019.

First Quarter 2020 Highlights

Mac Armstrong, Chief Executive Officer and Founder, commented, “We currently find ourselves amid extraordinary times produced by the COVID-19 pandemic, our thoughts are with those impacted by the virus and our thanks go to those working in earnest to stem its impact. Since the onset of the pandemic, our first priority has been and remains, the health and safety of our employees and the constituents within the Palomar network. I am proud of our team who seamlessly adapted to a remote work environment providing uninterrupted continuity of service and support to our policyholders and partners. In an effort to further support the challenges potentially facing our insureds, we rapidly implemented a premium grace period to accommodate late payments across all lines of business in all states where we operate. While the risks in our portfolio of specialty property insurance products have not seen a diminution in exposure or hazard, we continue to assess additional methods to potentially help our policyholders and the communities in which they live.”

Mr. Armstrong continued, “When we founded Palomar in 2014, we architected the entire business to withstand severe catastrophe events, and the COVID-19 pandemic may prove to be the greatest catastrophic event in our lifetime. Our deliberate planning encompassed detailed work from home contingency plans, a cloud-based technology infrastructure, an emphasis on holding high quality, liquid fixed income investment securities, and maintaining a debt-free balance sheet that was bolstered by $35.5 million of incremental equity in January. We also architected a comprehensive risk transfer program that would enable us to endure multiple natural catastrophes. These efforts have permitted us to operate effectively from both a market facing and back office standpoint during the current COVID-19 pandemic.

With respect to the first quarter of 2020, we are pleased with the results we generated from both a top and bottom-line perspective. We continued to see strong top line growth driven by an attractive rate environment for our commercial lines offerings and sustained demand and heightened awareness of our personal lines products. The 40% year-over-year growth in adjusted net income resulted in annualized adjusted ROE of 20.6%.

Looking ahead, we are fortunate that our products serve an important and enduring need to consumers and businesses in a way that is generally independent of economic conditions. That said we are by no means impervious to the impact of COVID-19 on the insurance industry, in particular business interruption (“BI”) insurance coverage, claims and legislation. BI is a very modest contributor to our

overall exposure and our policies either feature a virus exclusion and require physical damage to the property or require physical damage to the property caused by an earthquake or flood. We are very focused on this evolving dynamic. Our steadfast effort to address COVID-19 will neither reduce our long-term opportunities, nor our intention to expand our product portfolio in a disciplined and profitable fashion.”

Underwriting Results

Gross written premiums increased 32.3% to $71.5 million compared to $54.0 million in the first quarter of 2019, while net earned premiums increased 89.7% compared to the prior year’s first quarter. The Company’s gross written premiums in the first quarter of 2019 included the impact of a new Residential Earthquake partnership in which the Company assumed $6.6 million of in-force premium. Excluding the impact of this 2019 premium assumption, the period over period increase in gross written premiums was 50.8%. Losses and loss adjustment expenses for the first quarter were $1.9 million, which resulted in a 5.4% loss ratio. Loss activity during the first quarter was primarily attributable to attritional loss from applicable products, as well as modest losses from the March 18th Salt Lake City earthquake. The first quarter results include $0.3 million of favorable prior year development. Underwriting income(1) was $12.7 million resulting in a combined ratio of 63.6% compared to an underwriting loss of $17.2 million and a combined ratio of 193.8% during the same period last year. The first quarter of 2020 and 2019 included certain expenses related to the Company’s stock offerings and stock-based compensation. Excluding those items, the Company’s adjusted combined ratio(1) was 61.6% in the first quarter compared to 66.7% in the same period in 2019, and the Company’s adjusted net income(1) during the first quarter increased by 39.5% to $12.3 million compared to $8.8 million in last year’s first quarter.

Investment Results

Net investment income increased by 112% to $2.0 million compared to $1.0 million in the prior year’s first quarter. The year-over-year increase was primarily due to interest income generated from a higher average balance of investments compared to the year prior, with the increase in investments primarily due to the combination of net proceeds received from the Company’s stock offerings and positive cash flows from operations. Funds are generally invested conservatively in high quality securities, including government agency, asset and mortgage-backed securities, municipal and corporate bonds with an average credit quality of "A1/A+." The fixed income investment portfolio had a book yield of 2.85% as of March 31, 2020. Cash and invested assets totaled $320.4 million at March 31, 2020. During the first quarter, the Company recognized realized and unrealized gains of $0.4 million related to its investment portfolio as compared to $2.4 million in last year’s first quarter.

Tax Rate

The effective tax rate for the three months ended March 31, 2020 was 22.3% compared to (1.0)% for the three months ended March 31, 2019. The 2019 first quarter tax rate was significantly impacted by the reduction of the valuation allowance on the Company’s federal deferred tax assets, and addback related to the nondeductible stock compensation charge.

Stockholders’ Equity and Returns

Stockholders' equity was $260.8 million at March 31, 2020, compared to $101.9 million at March 31, 2019. For the three months ended March 31, 2020, the Company’s annualized return on equity was 19.7% compared to (58.2)% for the same period last year. Over the same period, annualized adjusted return on equity(1) decreased to 20.6% from 35.7%. The change in the annualized adjusted return on equity reflects the significant increase in the Company’s stockholders’ equity as a result of raising $122.9 million from stock offerings and earning net income of $36.8 million.

Full Year 2020 Outlook

For the full year 2020, the Company affirms prior guidance of adjusted net income of $50.5 to $53.0 million, equating to a growth rate of 33% to 40% compared to the full year 2019.

Conference Call

As previously announced, Palomar will host a conference call May 6, 2020, to discuss its first quarter 2020 results at 12:00 p.m. (Eastern Time). The conference call can be accessed by dialing 1-877-423-9813 (domestic) or 1-201-689-8573 (international) and asking for the Palomar First Quarter 2020 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13701399. The

telephonic replay will be available until 11:59 pm (Eastern Time) on May 13, 2020.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

About Palomar Holdings, Inc.

Palomar Holdings, Inc. is the ultimate parent and insurance holding company of its operating subsidiaries, Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd. Palomar is an innovative insurer that focuses on the provision of specialty property insurance for residential and commercial clients. Palomar’s underwriting and analytical acumen allow it to concentrate on certain markets that it believes are underserved by other insurance companies, such as the markets for earthquake, wind and flood insurance. Based in La Jolla, California, the Company is an admitted carrier in 27 states. Palomar Specialty Insurance Company has an A.M. Best financial strength rating of “A-” (Excellent) FSC VIII. To learn more about us, visit www.palomarspecialty.com.

Non-GAAP and Key Performance Indicators

Palomar discusses certain key financial and operating metrics, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

Underwriting revenue is a non‑GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

Underwriting income is a non‑GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments and interest expense. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

Adjusted net income is a non‑GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the effective tax rate at the end of each period. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Adjusted return on equity is a non‑GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Adjusted combined ratio is a non‑GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

Diluted adjusted earnings per share is a non‑GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

Tangible stockholders’ equity is a non‑GAAP financial measure defined as stockholders’ equity less intangible assets. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

Safe Harbor Statement

Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events. competitive conditions, and the impact of COVID-19 and related economic conditions, including the Company's assessment of the vulnerability of certain categories of investments to the economic disruptions associated with COVID-19 and legislative or regulatory developments affecting the insurance industry. These and other factors that may result in differences are discussed in greater detail in the Company's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investor Relations

1-619-771-1743

investors@palomarspecialty.com

Source: Palomar Holdings, Inc. 

Summary of Operating Results

The following table summarizes the Company’s results for the three months ended March 31, 2020 and 2019:

(1)- Indicates Non-GAAP financial measure- see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

Condensed Consolidated Balance sheets

Palomar Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

(in thousands, except shares and par value data)

Condensed Consolidated Income Statement

Palomar Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited)

(in thousands, except shares and per share data)

Underwriting Segment Data

The Company has a single reportable segment and offers primarily earthquake, wind, and flood insurance products. Gross written premiums (GWP) by product and location are presented below:

Gross and net earned premiums

The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

Reconciliation of Non‑GAAP Financial Measures

For the three months ended March 31, 2020 and 2019, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

Underwriting revenue

Underwriting income (loss)

Adjusted net income

Annualized adjusted return on equity

Adjusted combined ratio

Diluted adjusted earnings per share

Tangible Stockholders’ equity