Palomar Holdings, Inc. (PLMR) — ESG & Values Scores

Environment story

Palomar Holdings operates as a specialty insurance company with significant exposure to climate-related catastrophe risks, particularly earthquake, hurricane, and flood perils. The company acknowledges climate change as a material risk factor in its 10-K filing, noting that global warming increases the unpredictability and frequency of natural disasters. However, Palomar discloses no direct operational Scope 1 or Scope 2 emissions data, no renewable energy commitments, and no net-zero target year. The company's primary environmental exposure is underwriting risk, not operational emissions. No verified decarbonization infrastructure investments or ESG-specific environmental initiatives are disclosed. The company's risk management relies on catastrophe modeling and reinsurance strategies rather than emissions reduction. Given lack of disclosed climate commitment, no net-zero target, and absence of Scope 1/2/3 emissions data and renewable energy initiatives, Environmental score reflects significant gaps in ESG transparency and commitment.

Criticisms on file

2025 California Wildfires Impact: Homes and businesses damaged or destroyed by 2025 California wildfires may cancel or not renew policies with Palomar, creating revenue pressure from climate events.
Source: PLMR 10-K Form, Risk Factors, December 31, 2025
No disclosed Scope 1, 2, or 3 emissions; no net-zero commitment or target date; no renewable energy initiatives disclosed. Company does not appear to conduct or disclose corporate carbon footprint assessment.
Source: PLMR 10-K Form 10-K filing, MD&A and Risk Factors sections

Disclosed initiatives

Catastrophe Risk Management

Company employs catastrophe modeling, reinsurance treaties (XOL coverage up to $3.1B for earthquakes, $100M for hurricanes), and catastrophe bonds ($525M issued Q2 2025) to manage climate-related underwriting exposure.

Reduces financial exposure to catastrophe events but does not constitute operational decarbonization.
Climate Risk Disclosure in Risk Factors

10-K explicitly identifies climate change and increased frequency/severity of extreme weather as material business risks affecting loss modeling and pricing.

Demonstrates recognition of climate materiality but not proactive mitigation of company emissions.

Social story

Palomar Holdings acknowledges dependency on attracting and retaining qualified personnel in a competitive talent market and notes that higher demand for employees could increase compensation expectations. The 10-K identifies Founder, CEO, and Chairman Mac Armstrong, CFO Christopher Uchida, and President Jon Christianson as key personnel whose departure could harm competitive position. The company reports employee base doubled in the past 12 months, including through acquisition, but provides no disclosed metrics on CEO-to-median-worker pay ratio, workforce diversity (women/URG %), leadership diversity, turnover rates, union relations, or supply-chain labor audits. No documented union-suppression activities, strikes, or major labor controversies are disclosed in available materials. Diversity and pay-equity data are not publicly disclosed in the 10-K. The absence of DEI metrics and supply-chain human-rights audit disclosures limits Social score despite no evidence of active labor violations.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio, workforce diversity metrics (women/URG %), leadership diversity percentages, turnover rates, or pay-equity commitments in 10-K filing.
Source: PLMR 10-K Form, MD&A and Risk Factors sections
Founder/CEO and key executive dependency risk: Continued service of Founder, CEO, and Chairman Mac Armstrong; CFO Christopher Uchida; and President Jon Christianson noted as critical to competitive position. Departure could materially adversely affect results.
Source: PLMR 10-K Form, Risk Factors, December 31, 2025
No disclosed supply-chain labor audits, human-rights due diligence, or conflict minerals policy in 10-K filing.
Source: PLMR 10-K Form, MD&A and Risk Factors sections

Disclosed initiatives

Talent Acquisition and Retention Programs

Company emphasizes importance of attracting and retaining experienced personnel and senior management with specialized insurance expertise. Employee base has doubled in the past 12 months including through acquisitions.

Demonstrates commitment to workforce development but lacks quantified diversity or pay-equity outcomes.
Management Depth and Industry Experience

Management team described as combining decades of insurance industry experience across specialty underwriting, reinsurance, program administration, distribution, claims, and analytics.

Suggests investment in experienced leadership; no disclosure of diversity or succession planning.

Governance story

Palomar Holdings is a public company subject to SEC regulations and NYSE listing standards. The 10-K confirms A.M. Best financial strength rating of 'A' (Excellent) for insurance subsidiaries PSIC, PESIC, and FIA as of December 31, 2025. The company maintains a Credit Agreement with financial covenants including maximum leverage ratio and minimum net worth requirements, as well as minimum Risk-Based Capital Ratio and A.M. Best rating maintenance requirements. Board independence percentage, share structure (single vs. dual-class), and specific lobbying expenditure disclosures are not provided in the 10-K excerpt. No antitrust proceedings, SEC consent decrees, or significant consumer-protection fines are disclosed. The company emphasizes compliance with extensive state insurance regulations and maintains regulatory engagement with state insurance commissioners. No evidence of shareholder litigation, greenwashing suits, or regulatory violations is disclosed. Governance score reflects compliance with insurance regulation and debt covenants, but lack of disclosed board independence, voting structure, and lobbying data limits precision.

Criticisms on file

Board independence percentage, dual-class share structure, and voting rights not disclosed in 10-K excerpt.
Source: PLMR 10-K Form, MD&A and Risk Factors sections
Lobbying expenditure and political contribution amounts not disclosed in 10-K filing.
Source: PLMR 10-K Form, MD&A and Risk Factors sections
No significant antitrust, SEC consent decrees, or major regulatory fines disclosed in 10-K; however, company notes subjective regulatory interpretation risks and potential for unexpected coverage disputes that could result in litigation.
Source: PLMR 10-K Form, Risk Factors section, December 31, 2025

Disclosed initiatives

Financial Strength Rating Maintenance

All three insurance subsidiaries (PSIC, PESIC, FIA) maintain A.M. Best 'A' (Excellent) financial strength rating with Stable outlook as of December 31, 2025.

Demonstrates strong financial governance and regulatory compliance; critical for market credibility.
Regulatory Compliance and Risk-Based Capital Requirements

Company maintains compliance with state insurance regulatory requirements, risk-based capital standards (NAIC model), and debt covenants under Credit Agreement. Subsidiaries PSIC, PESIC, FIA, and PSRE maintain required solvency and liquidity levels.

Demonstrates rigorous governance adherence to insurance regulatory framework.
Bermuda Reinsurance Subsidiary Regulation

PSRE (Bermuda subsidiary) maintains Class 3A license and meets minimum liquidity ratio (75% of relevant assets to relevant liabilities for general business) and enhanced solvency requirements under Bermuda Insurance Act.

Reflects multi-jurisdictional governance compliance; subject to BMA oversight.
Dividend and Capital Distribution Controls

Subsidiaries subject to state-specific dividend restrictions (e.g., California/Oregon: lesser of 10% of statutory surplus or 100% of statutory net income). PSIC paid $99.0M dividend October 2025. All dividends require regulatory approval.

Strong capital controls to protect policyholders; limits flexibility but ensures financial stability.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Palomar Holdings, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Palomar Holdings, Inc. in the app for interactive charts and portfolio building.

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