Palomar Specialty in California Raises $17.5M in Surplus Capital

Palomar Specialty Insurance Co. announced that it has successfully completed a $17.5 million surplus note issuance in a private placement to RenaissanceRe Ventures Ltd. and funds under management by a premier asset manager.

Proceeds from the transaction will be used for general working capital purposes and will increase its policyholder surplus, the company stated.

Willis Capital Markets & Advisory acted as exclusive placement agent in the transaction. Michelman & Robinson, LLP and Ropes & Gray LLP acted as legal counsel.

Palomar Specialty is a recently established catastrophe insurer that has initially focused on writing residential earthquake insurance, commercial earthquake insurance and difference in conditions in earthquake-exposed states including California, Oregon and Washington. In recent months, the company has expanded its licensure and is now an admitted carrier in 16 states.