Specialty property and casualty insurance company Palomar Holdings, Inc. has completed its acquisition of national insurance company The Gray Casualty & Surety Company (Gray Surety) and successfully closed new unsecured financing.
The acquisition was originally announced in October 2025, with Palomar agreeing to acquire Gray Surety from Bernhard Capital Partners (BCP) and The Gray Insurance Company for total cash consideration of $300 million.
The financing includes a $150 million revolving credit facility and a $300 million term loan.
U.S. Bank National Association and KeyBank National Association are serving as joint lead arrangers and joint bookrunners. U.S. Bank National Association is acting as administrative agent and KeyBank National Association is acting as syndication agent. Citizens Bank of North Carolina, Huntington National Bank, PNC Bank, National Association and Wells Fargo, National Association acted as co-documenting agents, and J.P. Morgan Chase Bank participated on the term loan.
Mac Armstrong, Chairman and Chief Executive Officer of Palomar, commented: “I am pleased to announce that we have successfully completed the acquisition of Gray Surety, a national surety company with a proven and outstanding management team.
“This transaction meaningfully strengthens the Palomar Guaranty franchise. It adds scale and geographic coverage, complements our existing business, and allows us to establish a market leader in an attractive guaranty segment. We are pleased to officially welcome the Gray Guaranty team to Palomar and look forward to their contributions in advancing our Palomar 2x strategic framework.”
