La Jolla, California-based Palomar Holdings, Inc. reports it is buying First Indemnity of America Insurance Co. (FIA), a Morris Plains, New Jersey domiciled insurance carrier specializing in surety bonds for small to medium sized contractors primarily in the Northeast states.
On August 8, Palomar announced the pricing of a public offering of 1,200,000 shares of common stock at a price of $88.00 per share. The company said it intends to use about $25 million of the net proceeds from the offering to finance the contemplated acquisition of First Indemnity, with the rest io proceeds to be used to fund future growth.
Founded in 1979, FIA Initially provided surety for small and medium size contractors but the company has expanded to cover additional surety needs such as increased bond limits and all surety bond categories. FIA began writing surety in New Jersey but now also writes in Alabama, Delaware, Florida, Georgia, Maryland, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.
Patrick J. Lynch Sr. is president of FIA.
Palomar is a specialty insurer serving residential and commercial clients in five product categories: earthquake, inland marine and other property, casualty, fronting, and crop. Palomar Holdings, Inc. is the holding company of subsidiaries including Palomar Specialty Insurance Co., Palomar Specialty Reinsurance Co. Bermuda Ltd., Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Co. and Palomar Underwriters Exchange Organization, Inc.
In announcing Palomar’s second quarter results earlier this week, Mac Armstrong, chairman and chief executive officer, reminded investors that in 2022 the company set a goal of doubling its underwriting income over a three-to-five-year time frame. This week the company announced that gross written premiums increased 40.4% to $385.2 million compared to $274.3 million in the second quarter of 2023, while net earned premiums increased 47.1% compared to the prior year’s second quarter.
Topics Mergers & Acquisitions
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