Palomar acquires Gray Surety for $300 million

Palomar announced an agreement to acquire The Gray Casualty & Surety Company from Bernhard Capital Partners and The Gray Insurance Company for $300 million in cash, subject to customary adjustments. The deal, approved by both companies’ boards, is expected to close in the first half of 2026 pending regulatory approval.

Founded as a Treasury-listed surety carrier, Gray Surety specializes in contract bonds for midsized and emerging contractors and operates across all 50 states through 13 regional offices.

The acquisition expands Palomar’s presence in the surety market, aligning with its “Palomar 2x” growth strategy. Upon closing, Gray Surety’s leadership team—including President Cullen Piske and COO Michael Pitre—will join Palomar.

“I am pleased to announce the acquisition of Gray Surety, a leading surety carrier with a strong national presence and a proven, experienced management team. This transaction meaningfully enhances Palomar’s surety franchise, bolstering our current market position and complementing our existing operations. We are excited to welcome Cullen Piske, Michael Pitre and the entire Gray Surety team to Palomar. Their expertise and acumen will play a key role in advancing our Palomar 2x strategic imperative and driving sustained profitable growth.” – Palomar’s Chairman and CEO, Mac Armstrong.

“We are thrilled to join the Palomar team, a company that shares our entrepreneurial culture, disciplined underwriting approach and commitment to the surety market. Partnering with Palomar provides us with the financial strength, scale, and strategic support to expand our reach, deepen relationships with our agency partners and to continue delivering exceptional service to our business partners.” – Cullen Piske, President of Gray Surety.