AM Best Removes From Under Review With Positive Implications and Affirms Credit Ratings of Palomar Casualty and Surety Company

Core Viewpoint - AM Best has removed Palomar Casualty and Surety Company from under review with positive implications and affirmed its credit ratings, indicating strong financial stability and growth potential following its recent acquisitions [1] Group 1: Credit Ratings and Financial Strength - AM Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) for Palomar Casualty and Surety Company, with a positive outlook assigned to these ratings [1] - The ratings reflect PCSC's very strong balance sheet strength, adequate operating performance, limited business profile, and appropriate enterprise risk management [1] Group 2: Recent Acquisitions and Strategic Importance - In early 2026, Palomar Holdings, Inc. completed the acquisition of The Gray Casualty & Surety Company, which has been renamed to Palomar Casualty and Surety Company, enhancing its surety coverage capabilities [1] - The strategic importance of PCSC is expected to grow as it integrates into a larger organization with sophisticated distribution channels and a strong capital structure [1] Group 3: Operational Performance - PCSC reported pretax operating income in four of the last five years, with consistent combined and operating ratios below 100, indicating profitable operations [1] - The company's surplus has grown in most years, contributing to its strong risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR) [1]