Business Wire·Oct 9, 2026, 12:16 PM ET

AM Best Affirms Credit Ratings for Palomar Holdings, Inc. and Its Member Companies and Affiliate

PLMR

AM Best affirmed Palomar Holdings' Long-Term ICR at "bbb" (Good) with a stable outlook.
The insurer group comprising PSIC, PESIC, Palomar Re, & FIA received an FSR of A (Excellent) & Long-Term ICRs of "a" (Excellent) with a stable outlook.
Palomar Casualty & Surety Company was affirmed with an FSR of A- (Excellent) & Long-Term ICR of "a-" (Excellent) with a positive outlook.
Ratings reflect Palomar's very strong balance sheet, strong operating performance, limited business profile, & appropriate enterprise risk management.
Risk-adjusted capitalization remains at the strongest level per BCAR, though moderated from prior levels due to planned capital deployment.
Solid liquidity, acceptable net underwriting leverage, & favorable loss reserve development support the assessment.
Shareholder dividends are not expected to materially impact key balance sheet metrics but will partially offset future capital growth.
The group maintains material reinsurance dependency using excess of loss & quota share arrangements to mitigate exposure.
Portfolio pillars include earthquake coverage, inland marine/other property, surety/credit, casualty, & crop business.
In early 2026, Palomar acquired The Gray Casualty & Surety Company, which was renamed Palomar Casualty & Surety Company to expand the surety portfolio.
The positive outlook for Palomar Casualty & Surety reflects integration benefits, including sophisticated distribution channels & a formidable capital structure.
Palomar Casualty & Surety maintains the strongest BCAR level despite considerable growth in premium & exposure from geographic expansion.
The company has reported consistent profitability over the last five years, with 2026 results expected to remain profitable despite post-acquisition expense structure changes.