#United States #New York #Obsidian Insurance #Premium Growth #Surplus Capital

Obsidian Insurance Holdings Increases Surplus for Future Growth

Obsidian Insurance Holdings, Inc. has announced a significant move to enhance its financial position to support ongoing growth and new market opportunities. This marks the company's third consecutive year of remarkable growth, with premiums soaring by over 50%. As a prominent player in the insurance sector, Obsidian is committed to expanding its operations and providing reliable services to its clients.

In 2025, Obsidian is projecting total gross written premium to exceed $1 billion. This impressive growth has been driven both by established relationships and the introduction of new insurance programs throughout the year. To strengthen its capital base, Obsidian successfully issued $40 million in senior unsecured notes with an 8% interest rate due in November 2030. The notes have been awarded a favorable long-term credit rating of "BBB-" from Kroll Bond Rating Agency, reflecting the company's solid financial foundation.

Additionally, existing shareholders, including Genstar Capital, contributed an extra $30 million, enabling Obsidian to bolster its group capital and surplus to a robust $131.65 million. This move comes at a strategic time as the company seeks to support not only its growth but also the sustainability of its operational model, aimed squarely at delivering underwriting profitability and exceptional service.

Focus on Relationships and Growth

William Jewett, the CEO of Obsidian, expressed his confidence in the company's strategic direction. "Since we started, Obsidian has endeavored to position itself as a leading program carrier by focusing on underwriting profitability and cultivating strong, enduring relationships within the insurance sector," Jewett stated. He emphasized that the additional capital raised will be instrumental in continuing this path of profitable growth.

Craig Rappaport, the company president, echoed these sentiments, highlighting the crucial support from investors which supports Obsidian's unique business model. He noted, “We foresee considerable opportunities in the market for our enduring growth and performance. We remain eager to collaborate with our partners in executing our strategic initiatives over the next few years.”

The Future of Obsidian Insurance

Founded in 2020, Obsidian Insurance Holdings has rapidly evolved into a formidable force in the insurance scene, with subsidiaries such as Obsidian Specialty Insurance Company, Obsidian Insurance Company, and Obsidian Pacific Insurance Company. The company employs a methodical approach in sourcing, underwriting, and managing a diverse array of insurance programs, which encompasses property, casualty, and specialty lines. Most of its business is efficiently reinsuring to a select group of reinsurers, which bolsters its capacity to mitigate risk and optimize its portfolio performance.

With a keen focus on operational excellence and a commitment to building strong partnerships, Obsidian is poised to navigate the opportunities and challenges that distinct market conditions may present in the future. As they continue to innovate and lean into growth, Obsidian Insurance Holdings represents a dynamic example of resilience and forward-thinking in today's business environment.

For more remarkable updates and insights into Obsidian’s ongoing journey, interested readers can visit their official website at www.obsidianspecialty.com.