Palomar Acquires Gray Surety, Raises 2026 Net Income Guidance
PLMR is trading near its 52-week low of $105.51 (1.5% above the low).
Summary
Palomar Holdings announced the acquisition of Gray Surety, marking its entry into the surety bonds market. The deal was financed with $450 million in new debt, comprising a $150 million revolver and a $300 million term loan. Concurrently, the company raised its 2026 adjusted net income guidance to a range of $266 million to $280 million. This strategic acquisition diversifies Palomar's business lines and significantly increases its goodwill and intangible assets, while the raised guidance reflects a more optimistic outlook for future profitability. This news follows the recent completion of its June 1 reinsurance program, which expanded earthquake coverage to $3.92 billion.
At the time of this announcement, PLMR was trading at $107.04 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $105.51 to $175.85. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Wiseek News.