Shares of Palomar (NASDAQ: PLMR) jumped 18.4% on Thursday after the specialty insurance company announced better-than-expected quarterly results.

Palomar's fourth-quarter gross written premiums grew by 26.8% year over year to $303.2 million, while total underwriting revenue (including net earned premiums and commissions) grew 14.3% to $95.3 million. On the bottom line, that translated to adjusted net income of $28 million, or $1.11 per share -- up 33% year over year and well above estimates for $0.82 per share.

Palomar's adjusted combined ratio contracted to 68.8% during the quarter -- essentially meaning it earned $31.20 for every $100 in premiums it wrote -- from 71.4% in the same year-ago period. Palomar also delivered healthy adjusted return on equity of 25.1% during the quarter, up from 22.4% a year earlier and well above its internal benchmark target for 20%.

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Source Fool.com