Palomar Holdings, Inc. Completes Acquisition of The Gray Casualty & Surety Company and Closes $450 Million Credit Facility
Rhea-AI Summary
Palomar Holdings (NASDAQ: PLMR) completed the acquisition of The Gray Casualty & Surety Company effective January 31, 2026, and closed a new unsecured credit facility effective January 27, 2026 totaling $450 million (a $150 million revolver and a $300 million term loan).
The deal expands Palomar's surety scale and geographic reach and adds Gray Surety to Palomar's rated insurance subsidiaries, all carrying an "A" (Excellent) A.M. Best financial strength rating.
Positive
- Completed acquisition of The Gray Casualty ↑ effective Jan 31, 2026
- Closed new unsecured credit facility of $450 million (150M revolver, 300M term loan)
- Gray Surety expands Palomar surety scale and geographic reach
- Palomar insurance subsidiaries including Gray Surety hold an A A.M. Best rating
Negative
- Company incurred $450 million new unsecured debt facility, increasing leverage risk
Key Figures
Market Reality Check
Peers on Argus
Peer moves appear mixed: KMPR up 0.41%, MCY up 0.81%, while HCI, LMND, and SIGI are down, suggesting PLMR’s 0.31% gain is more company-specific to the Gray Surety acquisition and new credit facility.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Surety acquisition deal | Positive | +1.3% | Announced $300M cash deal to acquire Gray Surety and expand surety footprint. |
| Mar 20 | Crop MGA acquisition | Positive | -1.1% | Agreement to acquire Advanced AgProtection to build out Crop franchise. |
| Jan 02 | Surety entry acquisition | Positive | +0.4% | Completed acquisition of FIA, marking strategic entry into Surety market. |
Acquisition announcements have typically led to modest single-day moves, with mostly positive but sometimes mixed price reactions.
Over the past year, Palomar has repeatedly used acquisitions to expand its specialty footprint. It entered the Surety market by completing the First Indemnity of America acquisition on Jan 2, 2025, then agreed to buy Advanced AgProtection in Mar 2025 to deepen its Crop franchise. On Oct 30, 2025, Palomar announced the Gray Surety purchase, further scaling its surety platform. Today’s completion of that deal and related financing advances this multi-transaction growth strategy.
Historical Comparison
Past acquisition headlines for PLMR led to an average move of 0.94%. Today’s completion of the Gray Surety deal with new financing fits that pattern of modest, strategic reactions.
Acquisition activity shows a progression from initial Surety entry via FIA, to expanding Crop through Advanced AgProtection, and now scaling the surety platform further with Gray Surety.
Market Pulse Summary
This announcement finalizes Palomar’s acquisition of Gray Surety and pairs it with a new $450 million unsecured credit facility, including a $150 million revolver and $300 million term loan. It advances an ongoing acquisition strategy that previously added FIA and Advanced AgProtection. Investors may watch integration progress, capital deployment under the facility, and how the expanded surety franchise contributes to earnings and risk diversification over time.
Key Terms
revolving facility financial
term loan financial
Form 8-K regulatory
variable interest entity financial
AI-generated analysis. Not financial advice.
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
“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
When did Palomar (PLMR) complete the acquisition of The Gray Casualty & Surety Company?
What is the size and structure of Palomar's new credit facility announced in January 2026?
How does the Gray Surety acquisition affect Palomar's surety business and geographic reach?
Does Palomar or Gray Surety have a financial strength rating after the acquisition?
Who were the lead arrangers and participating banks on Palomar's $450 million facility?
