Bernhard Capital Partners agreed to sell The Gray Casualty & Surety Company to Palomar Holdings, Inc., enhancing Palomar's portfolio in the surety bond market.

Target Company Overview

The Gray Casualty & Surety Company, a prominent provider of surety bonds, specializes in catering to the needs of midsized and emerging contractors. With a strong industry presence, Gray Surety has established itself as a trusted resource for clients seeking assurance and financial security in their projects. The company's commitment to understanding the unique challenges faced by contractors has positioned it favorably within the market, offering tailored solutions that enhance the viability and success of its partners.

Industry Overview in the United States

The surety bond industry in the United States has experienced steady growth over the past few years, driven by an increase in construction activities and infrastructure projects. Specifically, the rising demand for commercial and residential construction has propelled the need for surety bonds, which are essential for contractors to obtain project financing and comply with regulatory requirements. This growth has resulted in a competitive landscape where companies are continuously innovating to meet the evolving needs of the market.

Moreover, the introduction of new technologies and digital platforms has transformed the way surety bond services are offered. Companies are now leveraging data analytics to streamline processes and enhance customer