Palomar Holdings has completed the acquisition of First Indemnity of America Insurance Company (FIA) for an undisclosed sum.

This acquisition facilitates Palomar’s entry into the bond market.

Established in 1979, FIA began operations writing bonds in New Jersey.

Over the years, the company has expanded its reach to include other states, including Alabama, Florida, Georgia and Maryland, where it is authorized to issue bonds.

Palomar President 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 policyholders to Palomar .

“This transaction allows us to enter the Bond market, a highly profitable business line 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 underwriting market over the past five years.”

Armstrong added: “Expansion into the surety market represents a significant opportunity to diversify our specialist insurance portfolio with a growing, high-margin product.

“This acquisition strengthens our ability to generate consistent, profitable growth and enhance our long-term shareholder value.”

In the third quarter of 2024, Palomar Holdings reported net income of $30.5 million. This performance represents an improvement over net income of $18.4 million reported in the same period last year.

Adjusted net income for the third quarter of 2024 was $32.4 million, compared to $23.3 million for the third quarter of 2023.

Palomar Holdings acts as a 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 Organization.

The company’s consolidated results also include Laulima Exchange, a variable interest entity.

“Palomar Closes Deal to Acquire First Indemnity of America Insurance Company” was originally created and published by International life insurancea trademark owned by GlobalData.

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