Credit rating agency AM Best has affirmed its ratings for Palomar Holdings, Inc., the specialty insurance group whose operations include a Bermuda-domiciled reinsurance company, signalling continued financial stability for the Nasdaq-listed firm.

The agency confirmed a Long-Term Issuer Credit Rating of "bbb" (Good) for the Delaware-based parent company, which trades on the NASDAQ under the ticker PLMR. Palomar serves as the ultimate holding company for a group of insurers that includes Palomar Specialty Insurance Company of Portland, Oregon, Palomar Excess and Surplus Insurance Company of Phoenix, Arizona, and Palomar Specialty Reinsurance Company Bermuda Ltd., known as Palomar Re.

The affirmation is notable for Bermuda's insurance sector, as Palomar Re forms part of the island's substantial reinsurance market. Rating affirmations from AM Best, a leading specialist assessor of insurance companies, are closely watched across the industry and can influence confidence among brokers, cedants and investors doing business with Bermuda-based carriers.

Palomar has built its business around specialty insurance products, including earthquake, flood and other property coverage, with its Bermuda reinsurance vehicle playing a role in the group's risk transfer strategy. The island remains one of the world's premier domiciles for reinsurance companies, hosting hundreds of licensed insurers and reinsurers that benefit from its regulatory framework and Solvency II equivalence.

AM Best's continued endorsement of Palomar's creditworthiness underscores the stability of the group's operations across its US and Bermuda entities at a time when the global reinsurance market continues to navigate elevated catastrophe activity and firm pricing conditions.