Business Description

Who We Are We are a specialty insurance company that provides property and casualty insurance products to individuals and businesses. We leverage underwriting expertise and data-driven analytics to offer innovative solutions in five product categories: Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting. We offer coverage in both the admitted and excess and surplus lines (“E&S”) markets, utilizing proprietary data analytics and a technology-enabled platform to support customized underwriting and pricing. Our insurance company subsidiaries, Palomar Specialty Insurance Company (“PSIC”), Palomar Excess and Surplus Insurance Company (“PESIC”), and First Indemnity of America Insurance Co. (“FIA”) carry an “A” financial strength rating from A.M. Best Company (“A.M. Best”), a leading rating agency for the insurance industry. We distribute our products through multiple channels, including retail agents, program administrators, wholesale brokers, and strategic partnerships with other insurance companies. Our business strategy is supported by a comprehensive risk transfer program with reinsurance coverage that we believe reduces earnings volatility and provides appropriate levels of protection from catastrophic events and other significant loss events. Our management team combines decades of insurance industry experience across specialty underwriting, reinsurance, program administration, distribution, analytics, and claims. Founded in 2014, we have significantly grown our business and have generated attractive returns. We have organically increased gross written premiums from $16.6 million in our first year of operations to $2.0 billion for the year ended December 31, 2025, which reflects a compound annual growth rate of approximately 55%. We have been profitable since 2016, and our net income has increased over that period at a compound annual growth rate of approximately 46%. We seek to continuously grow our income by developing product offerings that harness our core competencies and where we believe we can generate attractive risk adjusted returns. In recent years, we have introduced several new products including Crop, E&S Casualty, Surety and Environmental Liability. These new products diversify our book of business and broaden our specialty product portfolio. We believe that our market opportunity, distinctive products, and differentiated business model position us to grow our business profitably. Recent Developments In January 2026, we acquired The Gray Casualty & Surety Company (“Gray Surety”), a Treasury-listed surety carrier specializing in contract bonds for mid-sized and emerging contractors nationwide. Gray Surety is licensed in all 50 states, operates through 13 regional offices, is led by an experienced entrepreneurial management team, and carries an “A-” financial strength rating from A.M. Best. Subsequent to the acquisition we renamed Gray Surety to Palomar Casualty & Surety Company (“PCSC”) and will refer to it as such in the future. To facilitate this acquisition, the Company entered into a credit agreement providing for unsecured credit facilities totaling $450 million maturing on January 27, 2031. Proceeds may be used for general corporate purposes, permitted acquisitions and refinancing of existing indebtedness. We will reorganize the presentation of our product offerings in 2026 and report Surety and Credit premium as a separate line, reflecting changes in strategy and market focus following the Gray Surety acquisition. Our Fronting premium will cease to be reported as a separate line of business and the underlying premium will be consolidated into existing lines. Our Business Our management team founded our company to address unmet needs that we perceived to exist in certain specialty insurance markets. These markets have historically been served by large generalist insurance companies and state-managed entities applying “one-size-fits-all” pricing and policy forms across broad geographies. Our admitted products feature rates and policy forms approved by state insurance departments and are backed by state guaranty funds, providing a further level of security to policyholders. We believe that for our personal lines products, both our customers and distribution partners prefer the ease of use and security of admitted products with flexible coverages. We write surplus lines policies primarily for our commercial business.…