Genstar Capital has exited its remaining stake in specialty property insurer Palomar after six years of partnership.

The company formed Palomar in 2014 in partnership with industry veteran and current CEO Mac Armstrong. It was funded with $75m of equity capital from Genstar and the management team.

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Genstarnoted that it has significantly expanded Palomar’sgeographic and product footprint in the last six years.

This led to the growth of Palomar’s gross written premium while diversifying its risk exposure, Genstar said.

Last year, Genstar helped take the company public and monetised its investment through two marketed follow-ons as well as a recent block trade and distribution.

Genstar president and managing director Ryan Clark said: “We have a strong focus on the insurance industry and our investment in Palomar demonstrates the power of pairing an extraordinary founder and leader with a compelling business strategy.

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“Mac’s vision and leadership of Palomar has brought the company from its founding less than seven years ago to over $2 billion in market capitalisation in June 2020.  We thank Mac for his partnership and look forward to following all of Palomar’s future success.”

As part of the sale, Clark will resign as chairman of Palomar’s board of directors. He will be replaced by CEO Mac Armstrong.

Richard Taketa, a current member of Palomar’s board of directors and a member of Genstar’s strategic advisory board, will take up the position of lead independent director.

Commenting on the latest development, Armstrong said: “When we founded Palomar, we identified Genstar Capital as a partner that had the right insurance expertise, a proven track-record of investment success, and the creativity and vision to see the opportunity ahead for Palomar.  We appreciate all of their support throughout the growth of Palomar.”