Palomar Holdings completes Gray Surety acquisition and financing

Palomar Holdings ( (PLMR) ) has issued an update.

On February 2, 2025, Palomar Holdings announced it had completed the acquisition of The Gray Casualty & Surety Company, effective January 31, 2026, and closed a new $450 million unsecured credit facility, effective January 27, 2026, consisting of a $150 million revolving line and a $300 million term loan arranged by a syndicate of major U.S. banks. The approximately $311 million purchase price for Gray Surety was funded with proceeds from the term loan and cash on hand, a move that significantly expands Palomar’s national surety platform, adds scale and geographic reach to its casualty franchise, and supports its broader “Palomar 2x” growth strategy while underscoring the company’s ability to secure substantial long-term financing for acquisitions and general corporate purposes.

The most recent analyst rating on (PLMR) stock is a Buy with a $139.00 price target. To see the full list of analyst forecasts on Palomar Holdings stock, see the PLMR Stock Forecast page.

Spark’s Take on PLMR Stock

According to Spark, TipRanks’ AI Analyst, PLMR is a Outperform.

Overall score is driven primarily by strong financial quality (profitable growth and a zero-debt balance sheet) and a very positive earnings update with raised guidance and strong underwriting results. Technicals add support via a clear uptrend and positive momentum, while valuation is more neutral due to a moderate P/E and no provided dividend yield.

To see Spark’s full report on PLMR stock, click here.

More about Palomar Holdings

Palomar Holdings, Inc. is a La Jolla, California-based innovative specialty insurer and holding company whose subsidiaries provide residential and commercial coverage across five product categories: earthquake, inland marine and other property, casualty, fronting, and crop. The group includes Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda, Palomar Insurance Agency, Palomar Excess and Surplus Insurance Company, Palomar Underwriters Exchange Organization, First Indemnity of America Insurance Company, Palomar Crop Insurance Services, Laulima Exchange, and, following the latest transaction, The Gray Casualty & Surety Company; its key insurance subsidiaries carry an “A” (Excellent) financial strength rating from A.M. Best.

Average Trading Volume: 233,247

Technical Sentiment Signal: Buy

Current Market Cap: $3.28B

Learn more about PLMR stock on TipRanks’ Stock Analysis page.