Reinsurance News

Palomar sets sights on $97m-$110m IPO

10th April 2019 - Author: Charlie Wood

Palomar Holdings, a specialty property insurance provider backed by Genstar Capital, has set its sights on raising between $97 million and $110 million for its upcoming initial public offering (IPO) of common stock.

palomar-specialty-logoThe company had initially been targeting $50 million for the IPO, driven by the opportunity to increase its capitalisation and financial flexibility through access to the public equity markets.

Palomar is now offering 5,625,000 shares of its common stock, plus up to an additional 843,750 shares that the underwriters have the option to purchase.

The initial public offering price is expected to be between $15 and $17 per share.

The shares are expected to trade on the Nasdaq Global Select Market under the ticker symbol PLMR.

Genstar Capital will remain the majority shareholder following the IPO and will be able to control the outcome of all matters submitted to a vote of Palomar’s stockholders, including the election of directors, amendments to its certificate of incorporation, and mergers or other business combinations.

The insurer also revealed that Barclays, J.P. Morgan and Keefe Bruyette Woods are the joint lead book-running managers on the deal, but did not disclose any pricing terms.

Palomar generated gross written premiums of $154.9 million in 2018 (versus $120.2 million in 2017), and net written premiums of $71.9 million ($73.3 million in 2017). Its net income was $18.2 million, compared with $3.8 million in 2017.

Founded in 2014, Palomar focuses on markets that it believes are underserved by other insurance companies, covering perils such as earthquake, wind and flood.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Secondary perils the main driver of 2018 insured cat losses: Swiss Re

Global insured losses from natural catastrophe events in 2018 totalled $76 billion, with more than 60% of the losses coming...