Palomar Holdings, Inc. Completes Acquisition of The Gray Casualty & Surety Company and Closes $450 Million Credit Facility
MWN-AI** Summary
Palomar Holdings, Inc. (NASDAQ: PLMR) announced the successful completion of its acquisition of The Gray Casualty & Surety Company (“Gray Surety”) as of January 31, 2026. This strategic move aims to bolster Palomar's footprint in the surety insurance sector, enhancing its scale and geographic reach, while also complementing its existing operations. Mac Armstrong, Palomar's CEO, expressed his enthusiasm about welcoming the Gray Surety team, emphasizing that the transaction aligns with the company’s ambition to establish itself as a leader in the surety market.
In conjunction with the acquisition, Palomar also finalized a significant $450 million unsecured credit facility, which includes a $150 million revolving facility and a $300 million term loan, effective January 27, 2026. This funding is expected to support the integration of Gray Surety and provide additional resources to enhance Palomar's operational capabilities. U.S. Bank National Association and KeyBank National Association acted as the Joint Lead Arrangers and Book Runners for the financing arrangement, with participation from several other major banks.
Palomar, headquartered in La Jolla, California, operates a diverse portfolio that includes various insurance subsidiaries, such as Palomar Specialty Insurance Company and Palomar Crop Insurance Services. The firm specializes in innovative insurance products across several categories, including Earthquake and Crop Insurance. The company is committed to building on its strong reputation, as demonstrated by its subsidiaries receiving an “A” (Excellent) rating from A.M. Best.
Palomar warns that while the company is optimistic about the future, actual results may differ from its projections due to inherent business risks. Comprehensive details on the acquisition and financing can be accessed via the company's latest filings with the SEC.
MWN-AI** Analysis
Palomar Holdings, Inc. (NASDAQ: PLMR) recently completed the acquisition of The Gray Casualty & Surety Company and secured a substantial $450 million credit facility, which positions it for significant growth in the competitive surety market. The acquisition enhances Palomar's operational scale and geographic reach, aligning perfectly with its strategy to build a market leader in the surety sector.
The financing arrangement, comprising a $150 million revolving facility and a $300 million term loan, reflects the company's commitment to bolstering its capital structure and executing on its growth strategy. The backing of prominent financial institutions such as U.S. Bank and KeyBank underscores confidence in Palomar's strategic direction.
Investors should take note of the strategic importance of this acquisition. With Gray Surety’s established reputation and experienced management team, Palomar is poised to leverage synergies that could lead to improved operational efficiencies and enhanced market penetration. The integration of Gray Surety into Palomar's existing operations will be crucial, and successful execution of this merger should generate competitive advantages.
However, while the acquisition represents a significant opportunity for growth, potential investors should remain cautious. The company has emphasized forward-looking statements regarding anticipated synergies, which carry inherent risks and uncertainties. Integration challenges, competitive pressures, and market conditions could impact the realization of these expectations.
In light of these developments, potential investors might consider a cautious but optimistic approach. Long-term value could be realized as Palomar strengthens its position in the surety market, but it is advisable to monitor performance closely during the integration phase. An increase in market share and financial strength post-acquisition could lead to upward adjustments in earnings forecasts and consequently, stock appreciation, making Palomar a compelling watch on market dynamics.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
LA JOLLA, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ: PLMR) (“Palomar”, the “Company”) today announced the completion of the previously announced acquisition of The Gray Casualty & Surety Company (“Gray Surety”), effective January 31, 2026, and the successful closing of new unsecured financing, effective January 27, 2026.
The financing includes a $150 million revolving facility and a $300 million term loan. U.S. Bank National Association and KeyBank National Association served as the Joint Lead Arrangers and Joint Book Runners, with U.S. Bank National Association as Administrative Agent, KeyBank National Association as Syndication Agent, and Citizens Bank, N.A., The Huntington National Bank, PNC Bank, National Association, Wells Fargo Bank, National Association as co-documentation agents, and JPMorgan Chase Bank participated in the term loan.
“I am pleased to announce the successful closing of our acquisition of Gray Surety, a national surety carrier with a proven and exceptional management team,” commented Mac Armstrong, Palomar’s Chairman and Chief Executive Officer. “This transaction meaningfully strengthens Palomar surety franchise. It adds scale and geographic reach, complements our existing operations and puts us well on our way to building a market leader in the attractive surety sector. We are thrilled to officially welcome the Gray Surety team to Palomar and look forward to their contributions in advancing our Palomar 2x strategic framework.”
Further information on the announced acquisition and financing can be found on the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission, which can be accessed at www.SEC.gov.
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc. (“PIA”), Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. ("PUEO"), First Indemnity of America Insurance Co. ("FIA"), Palomar Crop Insurance Services, Inc. ("PCIS"), and The Gray Casualty & Surety Company (“Gray Surety”). Palomar's consolidated results also include Laulima Exchange ("Laulima"), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, PESIC, FIA and Gray Surety have a financial strength rating of “A” (Excellent) from A.M. Best.
To learn more, visit PLMR.com
Follow Palomar on LinkedIn: @PLMRInsurance
Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including the ability to recognize the anticipated synergies and scale of the proposed transaction, the ability to successfully integrate Gray Surety with the Company’s existing operations, and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com
Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com
Source: Palomar Holdings, Inc.
FAQ**
How does the acquisition of Gray Casualty & Surety Company enhance the strategic goals of Palomar Holdings Inc. (PLMR) in the surety sector?
What synergies does Palomar Holdings Inc. (PLMR) anticipate from integrating Gray Surety into its existing operations?
What are the anticipated challenges faced by Palomar Holdings Inc. (PLMR) in realizing the benefits of the new financing and acquisition?
How will the new financing arrangement impact Palomar Holdings Inc. (PLMR)'s growth strategy and overall financial position moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Palomar Holdings Inc. (NASDAQ: PLMR).
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