Palomar Sponsors Laulima Exchange

Palomar Holdings, Inc. (“Palomar”) sponsors formation of Laulima Exchange (“Laulima”)

• Laulima is a fully licensed Hawaii-domiciled reciprocal insurer

Palomar will serve as the attorney-in-fact manager for Laulima

This new vehicle provides several benefits to Palomar, including:

• Allows Palomar to transition their business model for the Hawaii Hurricane product from one that is risk-bearing to one that is fee-generative
• Reduces Palomar’s corporate excess of loss reinsurance costs and all but eliminates balance sheet exposure to wind losses from hurricanes hitting Hawaii
• Allows Palomar to remain a meaningful player in the Hawaii market, albeit with a different long-term risk profile

Palomar is a publicly traded (NASDAQ: PLMR) specialty insurer serving residential and commercial clients across the nation

• Palomar wrote ~$882mm of total gross premium in 2022 with GAAP equity of ~$421mm as of September 30, 2023
• Palomar has served the Hawaii market since 2015 and wrote ~$40mm of direct written premium in Hawaii in 2022

HTCMA acted as exclusive transaction advisor to Palomar; key roles and responsibilities included:

• Assistance in preparing Laulima’s business plan and financial projections
• Assistance in reinsurance structuring
• Assistance in preparing regulatory and rating agency presentations
• Assistance throughout the regulatory approval process
• Provided objective advice and acted as a confidant to Palomar throughout the process

This transaction further solidifies HTCMA as a market leader in reciprocal exchange formations

• Including the formations of Vault Reciprocal Exchange, Noblr, Kin Interinsurance Network (KIN), Trusted Resource Underwriters Exchange (TRUE), American Mobile Insurance Exchange (AMIE), Tower Hill Insurance Exchange (THIE), and Victor Insurance Exchange (VIE)