Palomar Holdings Acquires Gray Casualty & Surety Company to Expand Services

Palomar Holdings, Inc., a leading property insurance provider, has announced the completion of its acquisition of The Gray Casualty & Surety Company. This strategic move marks Palomar's entry into the national surety market, diversifying its service offerings and expanding its industry footprint. Initially disclosed in October 2025, this acquisition is valued at $300 million in cash and involved collaboration with Bernhard Capital Partners and The Gray Insurance Company, solidifying Palomar's stance in regulatory environments.

To facilitate this acquisition, Palomar secured robust financial backing, including a $150 million revolving credit facility alongside a $300 million term loan. This process involved key financial players, with U.S. Bank National Association and KeyBank National Association acting as Joint Lead Arrangers and Joint Book Runners. Significant financial institutions such as Citizens Bank, N.A., The Huntington National Bank, PNC Bank, National Association, Wells Fargo Bank, National Association, and JPMorgan Chase Bank participated in the term loan syndication.

Mac Armstrong, Chairman and CEO of Palomar, expressed enthusiasm about the acquisition, highlighting it as a strategic enhancement to Palomar's surety franchise. The inclusion of Gray Surety, a respected national surety carrier, is set to increase Palomar's scale, geographic reach, and operational synergy, aligning with the company's aim to become a market leader in the surety sector. This acquisition is part of Palomar's commitment to advancing its Palomar 2x strategy, fortifying its risk management capabilities and driving growth in the competitive insurance landscape.