LA JOLLA, Calif. - Palomar Holdings, Inc. (NASDAQ:PLMR) has completed its acquisition of The Gray Casualty & Surety Company (Gray Surety), the specialty insurer announced Monday in a press release.
The transaction, which was finalized on January 31, comes alongside the closing of new unsecured financing totaling $450 million. The financing package, completed on January 27, consists of a $150 million revolving facility and a $300 million term loan.
The banking consortium for the financing was led by U.S. Bank National Association and KeyBank National Association as joint lead arrangers and book runners. Other participating financial institutions included Citizens Bank, The Huntington National Bank, PNC Bank, Wells Fargo Bank, and JPMorgan Chase Bank.
Mac Armstrong, Palomar’s Chairman and Chief Executive Officer, stated that the acquisition "meaningfully strengthens Palomar’s surety franchise" by adding "scale and geographic reach" to the company’s existing operations.
The acquisition aligns with Palomar’s strategic growth framework. Gray Surety is described as a national surety carrier that will be integrated into Palomar’s existing insurance operations.
Palomar Holdings operates through several subsidiaries including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and now Gray Surety. The company provides specialty insurance across five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop.
According to the announcement, Palomar’s insurance subsidiaries maintain an A (Excellent) financial strength rating from A.M. Best.
Further details about the acquisition and financing are available in the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.
In other recent news, Palomar Holdings reported a strong performance for the third quarter of 2025, exceeding earnings expectations with an earnings per share (EPS) of $2.01, compared to the forecasted $1.57. The company’s revenue also surpassed projections, reaching $597.2 million against the expected $540.07 million. In addition to the earnings news, BCP announced the completion of its sale of The Gray Casualty & Surety Company to Palomar Holdings. This acquisition aligns with Palomar’s strategic growth plans. Moreover, Keefe, Bruyette & Woods raised its price target for Palomar Holdings to $170, maintaining an Outperform rating on the stock. The revised target is based on updated 2026 earnings per share estimates. These developments highlight Palomar Holdings’ recent financial and strategic achievements.