First Quarter 2022: Expansion Continues


2022 Gray Surety Quarterly Review

At Gray Surety, the first quarter of 2022 was marked by growth in our team, formation of a new regional office, and increased Treasury list limits.

Compared to this period last year:

  • Premiums are up 47%
  • Submissions are up 44%

Regional Growth

Gray Surety is expanding its reach out of the Southeast and Southwest across the country with the establishment of the Upper Midwest regional office. David Martinson is leading the charge as the regional manager covering Minnesota, Wisconsin, Iowa, South Dakota, and North Dakota.

“Entering a new region in this competitive market is definitely challenging, but there is a need here for the type of service that Gray Surety can provide,” Martinson says.

For now, Martinson’s role is a combination of sales, marketing, and underwriting. He meets with agents and contractors every day, building relationships and learning about their projects and industries.

“Each submission presents the chance to work with an agent and develop that relationship,” he explains. “Over time, submission volume will translate to premium growth.”

Increased Capacity

Gray Surety has the ability to write bonds on the paper of two Treasury-listed carriers: The Gray Insurance Company (GIC) and The Gray Casualty & Surety Company (GCAS). Until recently, we relied on GIC’s 50-state licensure and its $13.5 million underwriting limitation for the majority of our bonds.

In late February, the U. S. Treasury recognized the infusion of over $100 million in capital to GCAS from our merger with Bernhard Capital Partners. The substantial capital infusion increased GCAS’s underwriting limitations to $11,087,000. GCAS has also expanded its licensure to 17 additional states since June 2021.

“We hope to have the company licensed in 50 states by the end of this calendar year, so that the vast majority of Gray Surety bonds can be written on GCAS paper,” says Michael Pitre, chief operating officer.