Palomar Holdings, Inc. PLMR reported third-quarter 2020 operating loss of 62 cents per share, wider than the Zacks Consensus Estimate of an operating loss of 55 cents. In the year-ago quarter, it had reported operating income of 40 cents.Palomar witnessed escalating expenses and underwriting loss in the reported quarter, offset by improved premiums.Palomar Holdings, Inc. Price, Consensus and EPS Surprise Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. QuoteBehind the Q3 HeadlinesTotal revenues improved 43.3% year over year to $43 million, mainly attributable to higher premiums, net investment income and commission and other income. However, the top line missed the Zacks Consensus Estimate by 6.5%.Gross written premiums increased 55.4% year over year to $102.9 million. Net written premiums grew 60.8% year over year to $61.4 million owing to an increase in gross written premiums.Net investment income increased 23.7% year over year to $2.1 million. The increase was the result of a higher average balance of investments held during the three months ended Sep 30, 2020 attributable primarily to cash generated from operations as well as proceeds from the company’s January and June 2020 stock offerings.Palomar witnessed underwriting loss of $24 million versus underwriting income of $7.4 million in the year-earlier period.Total expenses increased 218% to $66.8 million, mainly due to higher losses and loss adjustment expenses and acquisition expenses.Adjusted combined ratio deteriorated 9220 basis points (bps) year over year to 155.8%.Financial UpdateAs of Sep 30, 2020, Palomar Holdings had assets worth $699.7 million, up 76.9% from the level at 2019 end.Cash and cash equivalents decreased 57.6% from 2019-end level to about $14 million.Shareholder equity at the end of the reported quarter increased 65.6% from 2019-end to $361.9 million.Annualized adjusted return on equity was negative 17% in the third quarter of 2020, compared to 14.6% in the year-ago quarter.2020 OutlookPalomar Holdings updated its prior guidance of adjusted net income of $51.0 to $52.0 million excluding catastrophe losses, equating to a growth rate of 35% to 37% from 2019.Zacks RankPalomar Holdings currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersThird-quarter earnings of CNA Financial CNA, Reinsurance Group of America RGA and Athene Holding ATH beat the respective Zacks Consensus Estimate.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNA Financial Corporation (CNA): Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report Athene Holding Ltd. (ATH): Free Stock Analysis Report Palomar Holdings, Inc. (PLMR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research