Palomar Holdings, Inc. - Common stock (PLMR) Covered Calls

Palomar Holdings, Inc. is a specialty property and casualty insurance company that provides innovative solutions for underserved and mispriced markets. The firm offers a diverse suite of products including residential and commercial earthquake, inland marine, casualty, and crop insurance. By leveraging proprietary technology and sophisticated data analytics, Palomar maintains a disciplined underwriting approach and a robust reinsurance program to manage catastrophe exposure.

You can sell covered calls on Palomar Holdings, Inc. - Common stock to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PLMR (prices last updated Mon 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Palomar Holdings, Inc. is a high-growth specialty insurer that focuses on niche markets where it can leverage its proprietary data and technology for competitive advantage. The company’s primary product is earthquake insurance, supported by a world-class reinsurance tower and catastrophe bond program. Following its acquisition of The Gray Casualty & Surety Company, the firm has significantly expanded its casualty and surety footprint, diversifying its revenue streams away from purely catastrophe-exposed property lines.

The company operates through a multi-channel distribution model that includes retail agents, program administrators, wholesale brokers, and strategic partnerships. Its Palomar Automated Submission System (PASS) provides a digital-first experience for agents, enabling rapid quoting and binding. By focusing on "short-tail" property lines and fee-based fronting arrangements, the firm generates high risk-adjusted returns and maintains a superior combined ratio compared to traditional diversified insurers.

Competition

The specialty insurance market is competitive and fragmented, with Palomar competing against both large multi-line carriers and specialized boutique insurers. Success in this sector is driven by pricing accuracy and the ability to secure favorable reinsurance terms. Key competitors that are publicly traded on the NASDAQ or NYSE and have active options markets include W. R. Berkley Corporation, Kinsale Capital Group, and The Travelers Companies. Other relevant peers with optionable stock include RLI Corp. and Lemonade, Inc.

While Hamilton Insurance Group and Skyward Specialty are notable regional rivals, Palomar differentiates itself through its heavy concentration in the earthquake market and its capital-light fronting business. The firm's use of advanced catastrophe modeling and a massive panel of reinsurers allows it to underwrite risks that larger carriers often avoid. This focus on underserved niches, combined with a leaner operational structure, has enabled the company to consistently report an adjusted return on equity that significantly outpaces the industry average.

Strategic Outlook and Innovation

The strategic roadmap is defined by the "Palomar 2X" initiative, which focuses on doubling underwriting income through product expansion and operational excellence. Management is prioritizing the growth of non-catastrophe lines, such as casualty and surety, to achieve a more balanced and predictable earnings profile across all market cycles. The company is also expanding its presence in large-scale infrastructure projects, targeting builders risk for bridges and data centers to supplement its property franchise with stable, long-term premium growth.

Innovation efforts are centered on the evolution of its proprietary analytics platform to incorporate real-time environmental data and AI-driven risk selection. The company is expanding its use of insurance-linked securities (ILS) and catastrophe bonds to optimize its cost of capital and maintain a robust risk transfer program. Additionally, the firm is exploring new specialized coverages for the renewable energy and cyber-catastrophe sectors. These strategic maneuvers are designed to solidify Palomar's position as a technology-enabled specialty insurer while delivering sustainable value across changing market environments.

Want more examples? PLG Covered Calls | PLNT Covered Calls