Obsidian Insurance Holdings, Inc. has increased surplus in its writing companies in order to raise capital through a successful senior notes issuance and additional capital investment from its existing equity holders, including Genstar Capital. This move aims to support the firm’s third consecutive year of premium growth over 50%.
The firm’s business has continued to expand, with expected total gross written premiums to exceed $1 billion in 2025. This can be attributed to strong growth from Obsidian’s existing relationships and new programs onboarded during the year.
To support this growth, Obsidian issued $40 million in 8% senior unsecured notes, which have received a long-term credit rating of “BBB-” from Kroll Bond Rating Agency, and are due November 15th, 2030.
Obsidian received an additional $30 million from its existing shareholders, so the firm’s group capital and surplus now stand at $131.65 million.
Through Obsidian’s underwriting and operationally focused business model, programs are supported by a diverse panel of over 200 reinsurers.
William Jewett, Chief Executive Officer, Obsidian, commented, “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.”
Craig Rappaport, President, Obsidian, added, “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.”
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