Palomar Specialty Insurance Company has expanded into 10 more states, six months after launching as a provider of commercial and residential earthquake insurance.
The California-based company initially targeted California, Oregon, Washington and Missouri. Expansion adds Texas, Oklahoma, Arizona, Nevada, Utah, Kentucky, Kansas, Indiana, Tennessee and Alaska to its coverage area.
CEO Mac Armstrong explained in a statement that the expansion is designed to address a market need for catastrophe insurance in parts of the U.S. that are vulnerable to earthquakes.
Sixteen U.S. states are at high risk of damaging earthquakes, but 42 face some degree of earthquake risk, the U.S. Geological Survey concluded in a July 2014 update of its seismic hazard maps.
Genstar Capital Management, LLC, a middle market private equity firm, partnered with Armstrong and other Palomar managers to launch the company earlier this year with $75 million in equity capital. Armstrong was previously president of Arrowhead General Insurance Agency, Inc., a program administrator with over $800 million in written premium.
Palmar has an A.M. Best financial strength rating of A-, or “Excellent.”
Source: Palomar Specialty Insurance Company