Alabama-based Protective Life Insurance Co. is entering the property/casualty insurance space by acquiring New York-based property, casualty and specialty insurance platform Obsidian Insurance Holdings, Inc., a rare insurance crossover.
The companies said the acquisition will establish a new business line for Protective while providing Obsidian with long-term capital support and additional flexibility.
Terms were not disclosed.
The acquisition agreement, signed with Obsidian’s private equity founder Genstar Capital, involves the acquisition of Obsidian Insurance Holdings, Inc. and its affiliates Obsidian Specialty Insurance Co. (Delaware), Obsidian Insurance Co. (Ohio) and Obsidian Pacific Insurance Co. (Delaware).
Obsidian’s accredited and non-accredited insurance company subsidiaries issue underwritten policies through managing general agents, managing general underwriters and project managers. Through its platform, Obsidian sources, underwrites and manages projects and reinsures the majority of its business to selected reinsurers.
Obsidian was founded in 2020 by Genstar, who leads the company in partnership with William Jewett and Craig Rappaport. Since its inception, Obsidian has provided nationwide insurance capabilities through its carrier subsidiaries while growing annual gross premiums by more than $1 billion.
Protective Life Corp. is the 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, the company has offices in the Greater Cincinnati area and St. Louis.
The transaction will mark Protective’s 62nd acquisition and ninth since becoming part of Tokyo-based Daiichi Life in 2015.
“Protective has long been thoughtfully evolving to enhance our ability to serve our customers and partners,” said Rich Bielen, CEO of Protective. “By bringing Obsidian into Protective, we add a high-quality specialty insurance platform that expands where and how we grow while staying true to our vision to protect more people at many moments in life.”
The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027.
AM Best has reviewed the A- (Excellent) financial strength rating and the ‘a-‘ (Excellent) long-term issuer credit rating of Obsidian Specialty Insurance Co. and its associated subsidiaries Obsidian Insurance Co. and Obsidian Pacific Insurance Co. (comprising the Obsidian Insurance Group) with a positive impact.
AM Best said it believed the transaction would “enhance Obsidian’s financial flexibility, operational scale and execution capabilities.” The ratings firm said its action also takes into account Obsidian’s strategic importance to Protective as a “specialty property/casualty insurance platform that expands into complementary markets and profitably diversifies.”
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Casualties of excess remaining property of mergers and acquisitions carriers
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