In a rare crossing of insurance lines, Alabama-based Protective Life Insurance Co. is moving to expand into property/casualty lines by acquiring Obsidian Insurance Holdings, Inc., a New York-based property, casualty and specialty insurance platform.
The companies say the acquisition will establish a new business line for Protective while giving Obsidian long-term capital support and additional flexibility.
Terms were not disclosed.
The purchase agreement was signed with Obsidian’s private equity founder, Genstar Capital, and involves acquiring Obsidian Insurance Holdings, Inc. and its affiliates Obsidian Specialty Insurance Co. (Delaware), Obsidian Insurance Co. (Ohio), and Obsidian Pacific Insurance Co. (Delaware).
Obsidian’s admitted and non-admitted insurance carrier subsidiaries issue policies underwritten by managing general agents, managing general underwriters and program managers. Through its platform, Obsidian sources, underwrites and manages programs and reinsures the majority of the business to select reinsurers.
Obsidian was established in 2020 by Genstar, which partnered with William Jewett and Craig Rappaport to lead the company. Since its founding, Obsidian has provided nationwide insurance capacity through its carrier subsidiaries, while growing annual gross written premium above $1 billion.
Protective Life Corp. is a U.S. subsidiary of Daiichi Life Group, Inc. Protective Life Corp. has approximately $142 billion in assets. In addition to its headquarters in Birmingham, Alabama, it also has offices in the greater Cincinnati area and St. Louis.
This transaction will mark Protective’s 62nd acquisition and its ninth since becoming part of Tokyo-based Daiichi Life in 2015.
“Protective has a long history of growing thoughtfully in ways that strengthen our ability to serve customers and partners,” said Rich Bielen, chief executive officer of Protective. “By bringing Obsidian into Protective, we are adding a high-quality specialty insurance platform that expands where and how we grow while staying true to our vision to protect more people through life’s many moments.”
The transaction is expected to close in the fourth quarter of 2026 or first quarter of 2027.
AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Obsidian Specialty Insurance Co. and its pooling affiliates, Obsidian Insurance Co. and Obsidian Pacific Insurance Co. that comprise Obsidian Insurance Group.
AM Best said it believes the deal could “enhance Obsidian’s financial flexibility, operating scale and execution capabilities.” The ratings firm said its action also considers Obsidian’s strategic importance to Protective as a”specialty property/casualty insurance platform for expansion into complementary markets and earnings diversification.”
Topics
Mergers & Acquisitions
Carriers
Excess Surplus
Property Casualty
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