Genstar Capital Management, a middle market private equity firm, has joined hands with insurance industry veteran David M "Mac" Armstrong to form a new company, Palomar Insurance Holdings.
Launched with an initial equity capital of $75m provided by Genstar and the management team, the new insurance startup will initially serve as a pure-play provider of commercial and residential earthquake insurance.
Palomar Insurance Holdings purchased an admitted insurance company from a national insurer that is licensed to underwrite business in seven states and subsequently rebranded as Palomar Specialty Insurance Company.
Genstar is partnering with Mac Armstrong, former President of Arrowhead General Insurance Agency, who will act as CEO of Palomar.
The new insurance firm will market its product and services leveraging a network of program administrators as well as selected retail producers and wholesale brokers.
Genstar managing director J Ryan Clark said, "Genstar’s investment in Palomar follows a proven growth strategy in the insurance industry and one that we at Genstar have utilized to create strong and growing companies operating in niche sectors of this market.
"Palomar is well capitalized and we look forward to working with Mac and his extremely talented management team to pursue the growth and development initiatives we have identified in the approximately $4 billion earthquake insurance market."