Obsidian Insurance Holdings, Inc. is boosting its financial strength to keep up with fast growth. The company raised capital through issuing $40 million in senior notes and receiving $30 million in additional investments from current shareholders, including Genstar Capital. This move brings the group’s total capital and surplus to $131.65 million.
Obsidian is the parent company of three insurance firms: Obsidian Specialty Insurance Company, Obsidian Insurance Company, and Obsidian Pacific Insurance Company. They are expecting to surpass $1 billion in gross written premium in 2025, marking a third year in a row with premium growth above 50%.
The $40 million senior notes carry an 8% interest rate and are due in November 2030. These notes received a “BBB-” rating from Kroll Bond Rating Agency, reflecting the company’s solid position. The capital injection will help the insurer maintain its rapid but profitable expansion.
Obsidian has grown thanks to strong partnerships and new business programs supported by over 200 reinsurers. William Jewett, CEO, shared that since the company was founded five and a half years ago, it has become a leading provider focused on profitable underwriting and building lasting relationships with managing general agents (MGAs) and reinsurers. He said the new capital will help sustain growth in the coming years.
Craig Rappaport, Obsidian’s president, emphasized the importance of investor trust. He said the backing from shareholders shows confidence in the company’s business and strategy. Rappaport added that they see plenty of opportunities ahead to keep growing and plan to work closely with partners to achieve their goals.
With this fresh capital, Obsidian is well-positioned to continue expanding its insurance offerings while keeping a sharp focus on profitability and operational strength.