Palomar closes $300M Gray Surety acquisition to expand US market reach
Palomar Holdings, Inc. has finalised its purchase of The Gray Casualty & Surety Company (Gray Surety) for $300 million in cash. The deal, first announced in October 2025, marks a significant step in expanding the firm's surety operations across the US.
The acquisition was supported by a fresh round of financing, including both secured and unsecured loan facilities.
The transaction closed following months of planning, with U.S. Bank National Association and KeyBank National Association acting as Joint Lead Arrangers and Joint Book Runners. Financing included a $150 million revolving credit facility alongside a $300 million term loan. Palomar also secured new unsecured funding to support the deal.
Mac Armstrong, Chairman and CEO of Palomar, confirmed the successful completion of the acquisition. He highlighted the strategic importance of Gray Surety in bolstering Palomar's market presence, particularly in the US casualty insurance and surety sectors. The purchase adds scale and broadens the company's geographic footprint.
Palomar has welcomed the Gray Surety team, emphasising their role in driving forward the Palomar 2x strategic framework. While the move strengthens the firm's position, no direct comparisons with competitors like The Hartford, Travelers, or Chubb have been disclosed.
The $300 million acquisition of Gray Surety is now complete, with financing fully in place. The expanded surety franchise is set to enhance Palomar's capabilities in key markets. The company expects the new team to contribute to its long-term growth strategy.
