Palomar Holdings, Inc. Completes Acquisition of First Indemnity of America Insurance Company
Palomar Holdings (NASDAQ: PLMR) has completed the acquisition of First Indemnity of America Insurance Company (FIA), effective January 1, 2025. The acquisition marks Palomar's strategic entry into the Surety market, a highly profitable business line with strong growth potential. FIA brings experienced management and a track record of outperforming the broader surety market in loss ratios over the past five years.
According to Mac Armstrong, Palomar's Chairman and CEO, this strategic move aims to diversify the company's specialty insurance portfolio while adding a high-margin product. The acquisition is expected to strengthen Palomar's ability to generate consistent, profitable growth and enhance long-term shareholder value through FIA's industry expertise and innovation in the specialty insurance sector.
Palomar Holdings (NASDAQ: PLMR) ha completato l'acquisizione di First Indemnity of America Insurance Company (FIA), con effetto dal 1 gennaio 2025. L'acquisizione segna l'ingresso strategico di Palomar nel mercato delle garanzie, una linea di business altamente redditizia con un forte potenziale di crescita. FIA porta con sé un management esperto e un track record di performance superiore rispetto al mercato delle garanzie in termini di rapporti di perdita negli ultimi cinque anni.
Secondo Mac Armstrong, Presidente e CEO di Palomar, questa mossa strategica mira a diversificare il portafoglio assicurativo specialty dell'azienda, aggiungendo un prodotto ad alta marginalità. Si prevede che l'acquisizione rafforzi la capacità di Palomar di generare una crescita profittevole e costante, aumentando il valore a lungo termine per gli azionisti attraverso l'esperienza di FIA nel settore e l'innovazione nell'assicurazione specialty.
Palomar Holdings (NASDAQ: PLMR) ha completado la adquisición de First Indemnity of America Insurance Company (FIA), efectiva a partir del 1 de enero de 2025. La adquisición marca la entrada estratégica de Palomar en el mercado de fianzas, una línea de negocio altamente rentable con un fuerte potencial de crecimiento. FIA aporta una gestión experimentada y un historial de desempeño superior al del mercado de fianzas en relación con las tasas de pérdidas en los últimos cinco años.
Según Mac Armstrong, Presidente y CEO de Palomar, este movimiento estratégico tiene como objetivo diversificar el portafolio de seguros especializados de la empresa mientras se agrega un producto de alto margen. Se espera que la adquisición fortalezca la capacidad de Palomar para generar un crecimiento rentable y consistente, y aumente el valor a largo plazo para los accionistas a través de la experiencia e innovación de FIA en el sector de seguros especializados.
팔로마 홀딩스 (NASDAQ: PLMR)는 퍼스트 인댐니티 오브 아메리카 보험 회사 (FIA)의 인수를 2025년 1월 1일자로 완료했습니다. 이번 인수는 팔로마의 보증 시장에 대한 전략적 진입을 의미하며, 이는 높은 수익성을 가진 비즈니스 라인으로 강력한 성장 잠재력을 가지고 있습니다. FIA는 경험이 풍부한 경영진과 지난 5년 동안 손실 비율에서 더 넓은 보증 시장을 초과 달성한 기록을 제공합니다.
맥 암스트롱 팔로마 회장 겸 CEO에 따르면, 이 전략적 움직임은 회사의 특화된 보험 포트폴리오를 다양화하고 높은 마진 제품을 추가하는 것을 목표로 하고 있습니다. 인수는 FIA의 산업 전문성과 특화된 보험 분야에서의 혁신을 통해 팔로마가 일관되고 수익성 있는 성장을 생성할 수 있는 능력을 강화하고 장기적으로 주주 가치를 높일 것으로 예상됩니다.
Palomar Holdings (NASDAQ: PLMR) a finalisé l'acquisition de First Indemnity of America Insurance Company (FIA), avec effet au 1er janvier 2025. Cette acquisition marque l'entrée stratégique de Palomar sur le marché des cautions, une ligne d'activité très rentable avec un fort potentiel de croissance. FIA apporte une direction expérimentée et un historique de performance supérieure à celle du marché des cautions en matière de ratios de pertes au cours des cinq dernières années.
Selon Mac Armstrong, Président et CEO de Palomar, ce mouvement stratégique vise à diversifier le portefeuille d'assurances spécialisées de l'entreprise tout en ajoutant un produit à haute marge. L'acquisition devrait renforcer la capacité de Palomar à générer une croissance rentable et cohérente, tout en augmentant la valeur des actionnaires à long terme grâce à l'expertise industrielle et à l'innovation de FIA dans le secteur de l'assurance spécialisée.
Palomar Holdings (NASDAQ: PLMR) hat die Übernahme von First Indemnity of America Insurance Company (FIA) zum 1. Januar 2025 abgeschlossen. Die Übernahme markiert Palomars strategischen Eintritt in den Bürgschaftsmarkt, eine äußerst rentable Geschäftslinie mit starkem Wachstumspotenzial. FIA bringt ein erfahrenes Management und eine Erfolgsbilanz, die in den letzten fünf Jahren in Bezug auf Verlustquoten besser abschneidet als der breitere Bürgschaftsmarkt.
Mac Armstrong, Vorsitzender und CEO von Palomar, erklärt, dass dieser strategische Schritt darauf abzielt, das Spezialversicherungsportfolio des Unternehmens zu diversifizieren und ein Produkt mit hoher Marge hinzuzufügen. Die Übernahme wird voraussichtlich Palomars Fähigkeit stärken, konsistent profitables Wachstum zu generieren und den langfristigen Shareholder-Value durch FIAs Branchenexpertise und Innovation im Bereich Spezialversicherungen zu steigern.
- Entry into highly profitable Surety market segment
- Acquisition of company with proven track record of outperforming market in loss ratios
- Portfolio diversification with high-margin product
- Addition of experienced management team with industry expertise
- None.
Insights
The acquisition of First Indemnity of America Insurance Company (FIA) marks a strategic expansion into the lucrative surety insurance market. The deal's timing at the start of 2025 positions Palomar Holdings to immediately capture market share in a specialized segment known for its attractive profit margins and stable growth characteristics.
What makes this acquisition particularly compelling is FIA's track record of outperforming the broader surety market in loss ratios over the past five years. Surety insurance, which essentially provides guarantees for construction projects, commercial contracts and other business obligations, typically maintains loss ratios below 20%, significantly better than most property and casualty lines. This addition should enhance Palomar's overall portfolio profitability.
The strategic value lies in both diversification and synergy potential. With a market cap of
This acquisition represents a calculated entry into the surety market, which has historically demonstrated resilience during economic downturns. The surety sector's appeal lies in its unique characteristics: low loss ratios, minimal capital requirements and fee-based income potential. For context, while traditional property insurance might run combined ratios in the 90s, surety business often operates in the 70-80% range, indicating superior profitability.
The retention of FIA's management team is crucial, as surety underwriting requires specialized expertise and long-standing broker relationships. Their proven track record of outperforming market loss ratios suggests strong underwriting discipline and risk management practices. This expertise, combined with Palomar's distribution network and financial resources, creates potential for accelerated growth without compromising underwriting standards.
Think of surety insurance as a high-margin specialty product that acts more like a credit instrument than traditional insurance. It's similar to having a co-signer on a loan - the surety company guarantees performance or payment, making money primarily from fees rather than taking on catastrophic risks.
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.
FAQ
When did Palomar Holdings (PLMR) complete the acquisition of First Indemnity of America Insurance Company?
What new market segment will PLMR enter through the FIA acquisition?
How has FIA's performance compared to the broader surety market?
What are the expected benefits of the FIA acquisition for PLMR shareholders?
How will the FIA acquisition impact PLMR's specialty insurance portfolio?
