Protective Life Corporation’s principal subsidiary, Protective Life Insurance Company, is set to acquire property, casualty and specialty insurance platform, Obsidian Insurance Holdings, Inc. and its affiliates, from private equity firm Genstar Capital.
The deal, which is expected to close in the fourth quarter of 2026 or first quarter of 2027, will establish a new business line for Protective and is another important step in the company’s “long-term strategy to diversify its earnings and grow in complementary markets.”
Once closed, it will be Protective’s 62nd acquisition and its ninth since becoming part of Daiichi Life Group, Inc., a global financial services organisation based in Tokyo, in 2015.
Rich Bielen, Chief Executive Officer of Protective, commented: “Protective has a long history of growing thoughtfully in ways that strengthen our ability to serve customers and partners. 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. We look forward to welcoming Obsidian’s team upon closing.”
Genstar launched Obsidian in 2020, and since its inception, the insurer has supported programme partners across the US and provided nationwide insurance capacity via its subsidiaries, while at the same time expanding annual gross written premium to more than $1 billion.
The insurance holding company has both admitted and non-admitted insurance carrier subsidiaries that issue policies underwritten by managing general agents, managing general underwriters, and programme managers. The property, casualty and specialty insurance platform underwrites and manages a diverse portfolio of programmes, and also reinsures most of the business to select reinsurance companies.
Obsidian expects the agreement to provide long-term capital support as well as additional flexibility to continue investing in its platform, partners, and people.
“This is a meaningful milestone for Protective as we enter the specialty property and casualty market through a proven platform. Obsidian has built a strong business by supporting specialized insurance programs with deep expertise and a disciplined approach to risk. With Protective’s long-term ownership and financial strength, we believe Obsidian is well-positioned to continue building on that momentum,” said Wade Harrison, Vice Chairman and Chief Operating Officer of Protective.
William Jewett, Chief Executive Officer of Obsidian, said: “Obsidian was built with a clear focus on underwriting discipline, strong partnerships and delivering solutions in areas where specialty expertise matters. We are grateful for Genstar’s partnership and the support they have provided in building Obsidian into the platform it is today. Protective’s financial strength and long-term approach make it an excellent fit. Together, we expect to expand our ability to support specialized insurance programs while continuing to deliver for our people and the markets we serve.”
Craig Rappaport, President and Chief Operating Officer of Obsidian, added: “From the beginning, our goal has been to make it easier for specialist underwriters and program managers to grow with confidence. Protective shares our commitment to disciplined execution and long-term relationships. This transaction will strengthen our ability to support our partners and preserve the culture and operating model our team values.”
“We want to extend our gratitude to Bill, Craig and the entire Obsidian team. They delivered on the Obsidian business plan and have built a premier, high quality specialty insurance platform that is supporting a top tier lineup of program partners. We have been proud partners in creating and growing this business, and are confident Protective is the right home to take Obsidian into its next chapter of growth,” commented Ryan Clark, President and Managing Partner at Genstar Capital.
Citi is serving as exclusive financial advisor, Oliver Wyman is serving as actuarial advisor, and Willkie Farr & Gallagher LLP is serving as external legal counsel for Protective. Ropes & Gray LLP and Mayer Brown LLP are serving as external legal counsel for Obsidian.
