Palomar Completes $300M Acquisition of Gray Casualty

Palomar Holdings’ subsidiary, Palomar Insurance Holdings, completed the acquisition of The Gray Casualty & Surety Company. The equity purchase agreement called for a purchase price of $300 million, subject to customary adjustments.

The transaction closed on January 31, 2026. Palomar entered into a $450 million unsecured credit agreement on January 27, 2026, consisting of a $150 million revolving facility and a $300 million term loan, with maturity on January 27, 2031. Palomar also has uncommitted incremental facilities of up to $100 million.

The credit agreement’s borrowing margins vary based on a debt-to-capital ratio, and interest is based on Term SOFR or an alternate base rate plus applicable margins.