Specialty property insurer Palomar Holdings has agreed to acquire The Gray Casualty & Surety Company from Bernhard Capital Partners (BCP), and The Gray Insurance Company for a total consideration of $300 million in cash.
The transaction has been approved by the boards of Gray Surety and Palomar, with the expectation the transaction will close in the first half of 2026, subject to regulatory approvals and other customary closing conditions.
Mac Armstrong, Chairman and Chief Executive Officer, Palomar, commented, “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. This transaction meaningfully enhances Palomar’s surety franchise, bolstering our current market position and complementing our existing operations.
“We are excited to welcome Cullen Piske, Michael Pitre and the entire Gray Surety team to Palomar. Their expertise and acumen will play a key role in advancing our Palomar 2x strategic imperative and driving sustained profitable growth.”
Cullen Piske, President, Gray Surety, added, “We are thrilled to join the Palomar team, a company that shares our entrepreneurial culture, disciplined underwriting approach and commitment to the surety market.
“Partnering with Palomar provides us with the financial strength, scale, and strategic support to expand our reach, deepen relationships with our agency partners and to continue delivering exceptional service to our business partners.”
For Palomar, Evercore was the exclusive financial advisor and DLA Piper LLP (US) was the legal advisor.
Meanwhile, J.P. Morgan acted as the exclusive financial advisor for Gray Surety with Kirkland & Ellis LLP serving as legal advisor.
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