Palomar Holdings, Inc. has announced the formation of a new surplus lines insurance company subsidiary, called Palomar Excess and Surplus Insurance Company (PESIC).
PESIC is based in Arizona and after receiving all necessary regulatory approvals, is licenced to transact across all of Palomar’s existing lines of specialty property business as well as other lines of insurance, including but not limited to casualty and surety.
Currently, the new subsidiary is in the process of becoming an eligible surplus lines carrier in all US jurisdictions and plans to start underwriting E&S business, on a national basis beginning, in the second half of this year.
Mac Armstrong, the company’s Chairman and Chief Executive Officer (CEO), commented: “The creation of Palomar Excess and Surplus Insurance Company represents a natural and exciting progression in our Company’s evolution. We believe that the data-driven underwriting acumen and market expertise we have established and demonstrated across Palomar’s existing lines of specialty property business can also be logically applied to the E&S market. Candidly, several of our commercial products are perhaps better suited for the E&S market.
“As we continue to grow Palomar and expand the Company’s product offerings, PESIC will enable us to write and insure certain risks that our admitted products and geographic footprint cannot currently satisfy. PESIC allows Palomar to extend both the breadth and reach of our specialty product offerings and continue to meet the demand for specialty property insurance protection.
“We are very excited to launch this new vehicle and bring a new solution to the market in the second half of 2020.”
Palomar has also today revealed the pricing of its previously announced underwritten public offering of 1,000,000 shares of its common stock, par value $0.0001 per share, at a public offering price of $82 per share. Additionally, the underwriters have been granted a 30-day option to acquire up to 150,000 additional shares of common stock from Palomar at the public offering price, minus underwriting discounts and commissions.
“The Company intends to use the net proceeds that it will receive from the offering for general corporate purposes, including to make contributions to the capital of Palomar Excess and Surplus Insurance Company and to fund future growth,” explains the firm.