Genstar exits US specialty insurer Palomar
Private equity firm Genstar Capital has exited its remaining stake in US specialty property insurer Palomar Holdings with Ryan Clark stepping down as chairman of the insurer's board.
In 2014, Genstar partnered with industry veteran and current chief executive officer (CEO) Mac Armstrong to form Palomar, a specialty insurance platform company that was funded with $75 million of equity capital from Genstar and the management team. In the last six years, the company has expanded its geographic reach and product footprint, while diversifying its risk exposure.
Genstar took the California-based company public in April 2019 and since monetized its investment, including through two marketed follow-ons and a recent block trade and distribution in May 2020.
As part of the sale, Clark has stepped down as chairman of Palomar's board of directors and will be succeeded by Armstrong. Richard Taketa, a current member of Palomar's board of directors and a member of Genstar's strategic advisory board, will serve as lead independent director. The company now has six directors.
Clark, president and managing director of Genstar, said: "We have a strong focus on the insurance industry and our investment in Palomar demonstrates the power of pairing an extraordinary founder and leader with a compelling business strategy. Mac's vision and leadership of Palomar has brought the company from its founding less than seven years ago to over $2 billion in market capitalization in June 2020. We thank Mac for his partnership and look forward to following all of Palomar's future success."
Armstrong commented: "When we founded Palomar, we identified Genstar Capital as a partner that had the right insurance expertise, a proven track-record of investment success, and the creativity and vision to see the opportunity ahead for Palomar. We appreciate all of their support throughout the growth of Palomar."
