Reinsurance News

Palomar’s new E&S start-up receives credit ratings from AM Best

30th July 2020 - Author: Katie Baker

Palomar Holdings, Inc. has confirmed that AM Best has assigned its new start-up underwriting company Palomar Excess and Surplus Insurance Company (PESIC) a Financial Strength Rating of A- whilst also receiving a Long-Term Issuer Credit Rating of A-.

Palomar HoldingsThis comes after last month where Palomar announced the formation of a new excess & surplus lines focused company named PESIC.

The ratings of PESIC reflect the combined balance sheet strength of Palomar, which AM Best has categorised as very strong, along with their sufficient operating performance, limited business profile and appropriate enterprise risk management.

Palomar’s Chairman and Chief Executive Officer commented: “The receipt of an A- Financial Strength Rating from A.M. Best allows PESIC to go to market with a strong balance sheet and a well-vetted strategic plan. The pooled resources of Palomar Speciality Insurance Company and PESIC now provide our distribution partners with innovative speciality property insurance products from well-capitalised admitted and E&S insurance vehicles. “

“PESIC’s third quarter launch will further enable Palomar to respond even more quickly to opportunities across the entire nation in both existing and new markets,” he continued. “As always Palomar and PESIC will leverage our data-driven underwriting acumen as we engage new partners and serve more American businesses and families.”

PESIC is domiciled in Arizona and licensed 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.

PESIC intends to write excess and surplus business on a national basis beginning in the second half of 2020.

Last month Palomar also revealed the pricing of its previously announced underwritten public offering of 1,000,000 shares of its common stock, at a public offering price of $82 per share. Additionally, the underwriters were 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.

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