Obsidian increases surplus to support growth and opportunities

Program carrier Obsidian Insurance Holdings has increased surplus in its writing companies by raising capital through a senior notes issuance and additional capital investment from its existing equity holders, including Genstar Capital.

Obsidian issued $40 million in 8% senior unsecured notes due November 15, 2030. The notes received a long term credit rating of “BBB-” from Kroll Bond Rating Agency. In addition, Obsidian received an additional $30 million from its existing shareholders. Obsidian’s group capital and surplus now stands at $131.65 million.

Obsidian’s business is expected to exceed $1 billion in gross written premiums in 2025.

“Since our inception five and a half years ago, Obsidian has become a leading program carrier with a keen focus on underwriting profitability, operational excellence, and the establishment of strong and enduring relationships with our MGA and reinsurer partners. This additional capital will fuel and support continued profitable growth in the years ahead. We are very appreciative of all of our partners and stakeholders that have contributed to our success.” – William Jewett, CEO of Obsidian.

“Our strong support from investors has validated the Obsidian story and the exceptional differentiated business our team has built. We see significant opportunities in the market to continue Obsidian’s robust growth and performance and look forward to working with our partners to execute our strategy over the next several years.” – Craig Rappaport, President of Obsidian.