Palomar(US:PLMR) Prnewswire·2025-10-30 20:20Core Viewpoint - BCP has announced the sale of The Gray Casualty & Surety Company to Palomar Holdings, marking a significant transaction in the surety bond market for midsized and emerging contractors [1][2]. Group 1: Transaction Details - The transaction has received approval from the boards of directors of both Gray Surety and Palomar and is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions [2]. - J.P. Morgan is serving as the exclusive financial advisor for Gray Surety, while Evercore is advising Palomar on the transaction [4]. Group 2: Company Background - Gray Surety specializes in contract bonds for midsized and emerging contractors across the United States and is licensed in all 50 states, operating through 13 regional offices [3][7]. - Since BCP's investment in 2021, Gray Surety has experienced significant growth, maintaining a loss ratio below the industry average and achieving annual double-digit growth [7]. Group 3: Strategic Implications - The partnership with Palomar is expected to provide Gray Surety with enhanced financial strength, scale, and strategic support, allowing for expanded reach and improved relationships with agency partners [4]. - The transaction reflects the successful positioning of Gray Surety for long-term success, as noted by BCP's partner Jeff Koonce [4].