Palomar Holdings, Inc. Announces Agreement to Acquire The Gray Casualty & Surety Company

Core Viewpoint - Palomar Holdings, Inc. has announced a definitive agreement to acquire The Gray Casualty & Surety Company for a total consideration of $300 million in cash, enhancing its position in the surety market [1][3] Company Overview - Palomar Holdings, Inc. operates as a holding company for various subsidiaries, providing innovative specialty insurance across five product categories, including Earthquake and Casualty [5] - The Gray Casualty & Surety Company specializes in contract surety bonds for midsized and emerging contractors in the U.S., licensed in all 50 states and operating through thirteen regional offices [2][6] Transaction Details - The acquisition is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions [1] - The transaction has been approved by the boards of directors of both Palomar and Gray Surety [1] Strategic Implications - The acquisition is anticipated to significantly enhance Palomar's surety franchise, complementing its existing operations and market position [3] - Gray Surety's management team, known for its entrepreneurial culture and disciplined underwriting, is expected to contribute to Palomar's strategic growth initiatives [3][6] Financial Performance - Gray Surety has demonstrated sustained annual double-digit growth while maintaining a loss ratio below the industry average, indicating strong operational performance [6]