Palomar Holdings announced Thursday it has a definitive agreement to acquire Gray Casualty & Surety from Bernhard Capital Partners and Gray Insurance for $300 million in cash.
The transaction, approved by both companies’ boards, is expected to close in the first half of 2026, subject to regulatory approvals.
Gray Surety specializes in contract surety bonds for mid-sized and emerging contractors across the U.S. The insurer operates through 13 regional offices and is licensed in all 50 states.
Once the deal closes, Gray Surety President Cullen Piske and Chief Operating Officer Michael Pitre and staff will join Palomar.
The deal strengthens Palomar’s surety franchise, bolstering its current market position, Chairman and CEO Mac Armstrong said in a statement.
La Jolla, California-based specialty insurer Palomar offers earthquake, inland marine and property, casualty, fronting and crop coverage to commercial and residential policyholders.