Obsidian boosts capital as it eyes further growth

Robert Johnson ; 2025-11-29 08:48:06

Expansion plans are driving Obsidian's business toward a premium milestone

Insurance News

By Insurance Business

Nov 21, 2025Share

Obsidian Insurance Holdings, Inc. is expanding its financial capacity to support rapid growth, increasing surplus across its writing companies through a senior notes issuance and additional shareholder investment.

The capital boost comes as Obsidian, the parent company of Obsidian Specialty Insurance Company, Obsidian Insurance Company, and Obsidian Pacific Insurance Company, prepares for a third consecutive year of over 50% premium growth.

The company expects total gross written premium in 2025 to surpass $1 billion.

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Strategic capital raise strengthens foundation

Obsidian issued $40 million in 8% senior unsecured notes due November 15, 2030, rated “BBB-” by Kroll Bond Rating Agency, alongside $30 million from existing equity holders, including Genstar Capital.

With this infusion, the company’s group capital and surplus now stands at $131.65 million.

Obsidian’s growth has been fueled by both established partnerships and newly onboarded programs, supported by diverse panel of more than 200 reinsurers.

Obsidian CEO William Jewett highlighted how the company has evolved since its founding 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,” he said.

“This additional capital will fuel, and support continued profitable growth in the years ahead. We are very appreciative of all our partners and stakeholders that have contributed to our success.”

For Obsidian president Craig Rappaport, investor confidence is a crucial part of the company’s narrative. “Our strong support from investors has validated the Obsidian story and the exceptional differentiated business our team has built,” he said.

“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."