Palomar Holdings Inc, the parent company of Palomar Specialty Reinsurance Company Bermuda Ltd, has completed the acquisition of New Jersey-headquartered First Indemnity of America Insurance Company.

Chairman and chief executive Mac Armstrong said: “This transaction provides us entry into the surety market, a highly profitable line of business with a healthy growth profile.

“FIA’s leaders are industry veterans with decades of underwriting and claims experience who have delivered loss ratios that have outperformed the broader surety market over the past five years.”

He added: “Expanding into the surety market represents a significant opportunity to diversify our specialty insurance portfolio with a growing, high-margin product.

“This acquisition strengthens our ability to generate consistent, profitable growth and enhance our long-term value for shareholders.

“We look forward to leveraging FIA’s industry expertise as we continue to drive innovation and strengthen our position in the specialty insurance sector.”