Palomar Holdings, Inc. Goodwill & Intangibles Disclosure
7. Intangible Assets and Goodwill
Intangible assets and goodwill consist of the following:
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December 31, |
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2025 |
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2024 |
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($ in thousands) |
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Goodwill from acquisitions: |
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$ |
30,466 |
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$ |
3,755 |
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Indefinite-lived intangibles: |
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State insurance licenses |
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$ |
2,344 |
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$ |
744 |
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Finite-lived intangibles: |
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Customer relationships |
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38,472 |
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14,288 |
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Accumulated amortization on finite-lived intangibles |
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(10,228 |
) |
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(5,545 |
) |
Total Goodwill and intangible assets, net |
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$ |
61,054 |
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$ |
13,242 |
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Goodwill of $4.9 million was recognized upon the Company’s acquisition of FIA in January 2025 and goodwill of $21.8 million was recognized upon the Company’s acquisition of AAP.
State insurance licenses consist of licenses acquired at the inception of PSIC and in connection with the acquisition of First Indemnity of America Insurance Co. (“FIA”). Customer relationships were recognized in connection with the FIA and AAP Advanced AgProtection, LLC (“AAP”) acquisitions.
Customer relationships are amortized on a straight line over a period of 8 years. Amortization expense was $4.7 million for the year ended December 31, 2025 and $1.6 million for the year ended December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 9, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.