NEW YORK –Â Specialty insurer Palomar Holdings Inc said on Tuesday it has agreed to acquire The Gray Casualty & Surety Company from private equity firm Bernhard Capital Partners in a cash deal valued at $300 million.
The acquisition, approved by both companies’ boards, is expected to close in the first half of 2026, pending regulatory approvals, Palomar said.
The purchase of Gray Surety, a Treasury-listed carrier specializing in contract bonds for contractors, will significantly expand Palomar’s footprint in the U.S. surety market. Gray Surety is licensed in all 50 states and operates through a network of thirteen regional offices.
“I am pleased to announce the acquisition of Gray Surety, a leading surety carrier with a strong national presence and a proven, experienced management team,” said Mac Armstrong, Palomar’s Chairman and Chief Executive Officer. He added that the deal would play a “key role” in advancing the company’s strategic goals.
Cullen Piske, President of Gray Surety, said his team was “thrilled to join the Palomar team,” citing a shared entrepreneurial culture and disciplined underwriting approach. He noted the partnership would provide Gray Surety with the financial strength and scale to expand its reach.
Evercore served as exclusive financial advisor to Palomar, with DLA Piper acting as legal advisor. J.P. Morgan was the exclusive financial advisor to Gray Surety, with Kirkland & Ellis serving as legal counsel.
Palomar Holdings, listed on the Nasdaq under the ticker “PLMR,” focuses on providing property and casualty insurance.