Palomar Holdings has completed the acquisition of First Indemnity of America Insurance Company (FIA) for an undisclosed sum.
This acquisition aids Palomar’s entry into the surety market.
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Set up in 1979, FIA began its operations writing surety bonds in New Jersey.
Over the years, the company has expanded its reach to include several other states including Alabama, Florida, Georgia and Maryland, where it is authorised to issue bonds.
Palomar chairman and CEO Mac Armstrong stated: “I am very excited to announce the completion of our acquisition of FIA and to welcome FIA’s management team, employees and insureds to Palomar.
“This transaction provides us entry into the Surety market, a highly profitable line of business with a healthy growth profile. FIA’s leaders are industry veterans with decades of underwriting and claims experience who have delivered loss ratios that have outperformed the broader surety market over the past five years.”
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By GlobalDataArmstrong added: “Expanding into the Surety market represents a significant opportunity to diversify our specialty insurance portfolio with a growing, high-margin product.
“This acquisition strengthens our ability to generate consistent, profitable growth and enhance our long-term value for shareholders.”
In Q3 2024 , Palomar Holdings reported net income of $30.5m. This performance is an improvement on the $18.4m net income reported in the same period of the previous year.
The adjusted net income for Q3 2024 stood at $32.4m, compared with $23.3m in Q3 2023.
Palomar Holdings serves as the holding company for subsidiaries such as Palomar Specialty Insurance, Palomar Specialty Reinsurance Bermuda, Palomar Insurance Agency, Palomar Excess and Surplus Insurance Company, and Palomar Underwriters Exchange Organisation.
The company’s consolidated results also include Laulima Exchange, a variable interest entity.
