SAN FRANCISCO, June 15, 2020 /PRNewswire/ -- Genstar Capital, a leading private equity firm focused on investments in targeted segments of the financial services, healthcare, industrial, and software industries, announced today that it has exited its remaining stake in specialty property insurer Palomar Holdings, Inc. (NASDAQ:PLMR).
In 2014, Genstar partnered with industry veteran and current Chief Executive Officer Mac Armstrong to form Palomar, a new specialty insurance platform company that was funded with $75 million of equity capital from Genstar and the management team. In the last six years, the company has significantly expanded its geographic reach and product footprint, dramatically growing Palomar's gross written premium while diversifying the company's risk exposure. Genstar helped take the company public in April 2019 and since monetized its investment, including through two marketed follow-ons and a recent block trade and distribution in May 2020.
Commenting on the investment, Ryan Clark, President and Managing Director of Genstar, 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. 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 capitalization in June 2020. We thank Mac for his partnership and look forward to following all of Palomar's future success."
Mr. Armstrong commented, "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."
As part of the sale, Mr. Clark will step down as Chairman of the Board of Palomar's Board of Directors and will be succeeded by Chief Executive Officer Mac Armstrong. Richard Taketa, a current member of Palomar's Board of Directors and a member of Genstar's Strategic Advisory Board, will serve as lead independent director.
About Palomar Holdings, Inc.
Palomar Holdings, Inc. is the ultimate parent and insurance holding company of its operating subsidiaries, Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd. Palomar is an innovative insurer that focuses on the provision of specialty property insurance for residential and commercial clients. Palomar's underwriting and analytical acumen allow it to concentrate on certain markets that it believes are underserved by other insurance companies, such as the markets for earthquake, wind and flood insurance. Based in La Jolla, California, the company is an admitted carrier in 29 states. Palomar Specialty Insurance Company has an A.M. Best financial strength rating of "A-" (Excellent). To learn more about us, visit www.palomarspecialty.com.
About Genstar Capital
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $19 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrial, and software industries.
Contact: Chris Tofalli
Chris Tofalli Public Relations
SOURCE Genstar Capital