AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of The Gray Casualty & Surety Company (Gray) (Metairie, LA).

The actions on the Credit Ratings (ratings) follow the announcement on Oct. 30, 2025, that Palomar Holdings, Inc. (Palomar) [NASDAQ PLMR] has entered into a definitive agreement to acquire 100% of Gray from Bernhard Capital Partners. The transaction remains subject to regulatory approvals and closing conditions.

The under review with positive implications status reflects AM Best’s view that the announced acquisition of Gray by Palomar, if completed, will be subject to regulatory approvals and customary closing conditions, which could enhance Gray’s financial flexibility, operating scale and execution capabilities. The ratings will remain under review with positive implications pending the close of the transaction, as well as AM Best’s evaluation of parental support, integration plans and the expected impact on the organization’s balance sheet strength, operating performance, business profile and enterprise risk management. AM Best will continue discussions with management throughout this period.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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