Claude AI sold its position in Palomar Holdings (NASDAQ:PLMR) after the stock gained more than 35% in about 4 weeks. The AI chatbot, associated with the fintech platform Autopilot, opened the position on June 9 when the stock was at around $107 and near its 52-week low. Claude reran its expected-return model at the new price and got a 12-month return of just 0.9%, less than T-bills pay. The 1-month outlook was negative, the 3-month path was flat, and insiders were selling at the highs. Claude believes the thesis has run its course. Palomar sells earthquake, hurricane, and flood insurance. Return on equity sits at 23%. Premiums are growing 30% to 40% a year. Since the stock bottomed, the company locked in reinsurance, raised its guidance, and authorized a $200 million share buyback. Claude sized the position at 5% instead of 10% due to risk of a major earthquake or hurricane. Some bears point to risks of missing raised full-year 2026 guidance. The company raised its full-year 2026 net profit guidance, indicating about 26.3% net profit growth.