Palomar Holdings completes acquisition of First Indemnity of America, expanding into the Surety market for profitable growth.
Quiver AI Summary
Palomar Holdings, Inc. has successfully completed its acquisition of First Indemnity of America Insurance Company, effective January 1, 2025. Palomar's Chairman and CEO, Mac Armstrong, expressed enthusiasm about the acquisition, highlighting its strategic entry into the profitable Surety market and the strong performance of FIA in the past five years. This move is expected to diversify Palomar's specialty insurance portfolio and enhance its growth potential, ultimately benefiting shareholders. Palomar operates multiple insurance subsidiaries and holds an "A" rating for financial strength from A.M. Best, indicating its reliability in serving clients across various insurance sectors.
Potential Positives
- Palomar Holdings, Inc. successfully completed the acquisition of First Indemnity of America Insurance Company, enhancing its portfolio and market presence.
- The acquisition provides Palomar entry into the Surety market, a profitable sector with a healthy growth profile.
- FIA's management team brings significant industry experience and has demonstrated strong performance with loss ratios outperforming the broader surety market.
- This strategic move diversifies Palomar's specialty insurance offerings and aims to enhance long-term shareholder value through consistent, profitable growth.
Potential Negatives
- The press release heavily relies on forward-looking statements, which may create uncertainty for investors regarding the company's future performance and plans.
- The emphasis on entering the Surety market may indicate that the company is facing limitations in its current product offerings and is in need of diversification.
- Without details on the financial terms of the acquisition of First Indemnity of America Insurance Company, stakeholders may question the immediate financial impact and the associated risks of the acquisition.
FAQ
What recent acquisition did Palomar Holdings complete?
Palomar Holdings completed its acquisition of First Indemnity of America Insurance Company effective January 1, 2025.
How does the acquisition impact Palomar's market presence?
This acquisition provides Palomar entry into the highly profitable Surety market, enhancing its specialty insurance portfolio.
What advantages does First Indemnity of America offer Palomar?
FIA's management team brings decades of industry experience and a strong track record of outperforming loss ratios in the surety market.
What are Palomar's future plans following this acquisition?
Palomar aims to diversify its offerings and drive innovation in the specialty insurance sector leveraging FIA's expertise.
What is Palomar Holdings' financial strength rating?
Palomar's insurance subsidiaries have an "A" (Excellent) financial strength rating from A.M. Best.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PLMR Insider Trading Activity
$PLMR insiders have traded $PLMR stock on the open market 47 times in the past 6 months. Of those trades, 1 have been purchases and 46 have been sales.
Here’s a breakdown of recent trading of $PLMR stock by insiders over the last 6 months:
- MAC ARMSTRONG (CEO and Chairman) has traded it 16 times. They made 0 purchases and 16 sales, selling 63,185 shares.
- T CHRISTOPHER UCHIDA (Chief Financial Officer) has traded it 16 times. They made 0 purchases and 16 sales, selling 17,374 shares.
- JON CHRISTIANSON (President) has traded it 11 times. They made 0 purchases and 11 sales, selling 22,091 shares.
- JONATHAN KNUTZEN (Chief Risk Officer) sold 758 shares.
- ANGELA L. GRANT (Chief Legal Officer) has traded it 2 times. They made 0 purchases and 2 sales, selling 11,173 shares.
- THOMAS A BRADLEY purchased 1,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$PLMR Hedge Fund Activity
We have seen 166 institutional investors add shares of $PLMR stock to their portfolio, and 81 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- DRIEHAUS CAPITAL MANAGEMENT LLC added 281,209 shares (+93.7%) to their portfolio in Q3 2024
- BLACKROCK, INC. added 212,005 shares (+5.4%) to their portfolio in Q3 2024
- VANGUARD GROUP INC added 153,924 shares (+6.5%) to their portfolio in Q3 2024
- CHAMPLAIN INVESTMENT PARTNERS, LLC removed 142,495 shares (-10.7%) from their portfolio in Q3 2024
- AMERICAN CENTURY COMPANIES INC added 128,629 shares (+28.8%) to their portfolio in Q3 2024
- STEPHENS INVESTMENT MANAGEMENT GROUP LLC removed 125,236 shares (-12.5%) from their portfolio in Q3 2024
- POINT72 ASSET MANAGEMENT, L.P. added 116,125 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
LA JOLLA, Calif., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ: PLMR) (“Palomar” or the “Company”) today announced the completion of the Company’s acquisition of First Indemnity of America Insurance Company (“FIA”), effective January 1, 2025.
“I am very excited to announce the completion of our acquisition of FIA and to welcome FIA’s management team, employees and insureds to Palomar,” commented Mac Armstrong, Palomar’s Chairman and Chief Executive Officer. “This transaction provides us entry into the Surety market, a highly profitable line of business with a healthy growth profile. FIA’s leaders are industry veterans with decades of underwriting and claims experience who have delivered loss ratios that have outperformed the broader surety market over the past five years.”
Mr. Armstrong added, “Expanding into the Surety market represents a significant opportunity to diversify our specialty insurance portfolio with a growing, high-margin product. This acquisition strengthens our ability to generate consistent, profitable growth and enhance our long-term value for shareholders. We look forward to leveraging FIA's industry expertise as we continue to drive innovation and strengthen our position in the specialty insurance sector.”
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd., Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), and Palomar Underwriters Exchange Organization, Inc. Palomar's consolidated results also include Laulima Exchange, a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and Palomar Excess and Surplus Insurance Company, have a financial strength rating of “A” (Excellent) from A.M. Best.
To learn more, visit PLMR.com.
Follow Palomar on LinkedIn: @PLMRInsurance
Safe Harbor Statement
Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words "believe," "expect," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact
Media Inquiries
Lindsay Conner
1-551-206-6217
lconner@plmr.com
Investor Relations
Jamie Lillis
1-203-428-3223
investors@plmr.com
Source: Palomar Holdings, Inc.
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