XML 45 R33.htm IDEA: XBRL DOCUMENT v3.25.4
Note 24 - Subsequent Events
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

24. Subsequent Events

Credit Agreement

On January 27, 2026, the Company entered into a credit agreement providing for unsecured credit facilities totaling $450 million, comprised of a $150 million revolving credit facility and a $300 million term loan, each maturing on January 27, 2031. Borrowings bear interest at Term SOFR or an alternate base rate plus an applicable margin based on the Company’s Debt to Capital Ratio. The term loan amortizes quarterly beginning June 30, 2026. Proceeds may be used for general corporate purposes, permitted acquisitions and refinancing of existing indebtedness.

Gray Surety Acquisition

On January 31, 2026, the Company acquired 100% of the issued and outstanding equity interests of The Gray Casualty & Surety Company (“Gray Surety”) pursuant to an equity purchase agreement for an aggregate purchase price of approximately $311 million. The acquisition was funded with proceeds from a term loan entered into in January 2026 and cash on hand. The acquisition was completed to further expand the Company’s surety platform as part of its ongoing strategy to strengthen and diversify its specialty insurance portfolio. Subsequent to the acquisition, the Company renamed Gray Surety to Palomar Casualty & Surety Company (“PCSC”) and will refer to it as such in the future.

The acquisition will be accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, in the period of acquisition. Given the proximity of closing to the issuance of the financial statements, the Company has not completed the initial accounting and will provide additional disclosures required by ASC 805, including those related to the allocation of the purchase price, in future filings as such information becomes available.

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that there are no other events requiring disclosure.