Protective Life Insurance Company, a major subsidiary of Protective Life Corporation, plans to acquire property, casualty and specialty insurance platform Obsidian Insurance Holdings, Inc. and its affiliates from private equity firm Genstar Capital.
The deal, expected to close in the fourth quarter of 2026 or the 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 profitably diversify and grow in complementary markets.”
Once completed, this will be Protective’s 62nd acquisition and ninth since becoming part of Daiichi Life Group, Inc., a global financial services organization headquartered in Tokyo in 2015.
Rich Bielen, CEO of Protective, commented: “Protective has long been committed to growing in thoughtful ways that enhance our ability to serve our customers and partners. By bringing Obsidian into Protective, we will 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. We look forward to welcoming Obsidian’s team following the closing.”
Genstar launched Obsidian in 2020, and since its inception, the insurer has supported plan partners across the United States and provided nationwide coverage capabilities through its subsidiaries while expanding annual gross written premiums to more than $1 billion.
Insurance holding companies have accredited and non-accredited insurance company subsidiaries and underwrite policies by managing general agents, managing general underwriters and program managers. The property, casualty and specialty insurance platform underwrites and manages a diverse portfolio of projects and reinsures a substantial portion of its business to select reinsurers.
Obsidian expects the agreement will provide long-term capital support as well as additional flexibility to continue investing in its platform, partners and people.
Wade Harrison, Vice Chairman and Chief Operating Officer of Protective, said: “This is a meaningful milestone for Protective as we enter the specialty property and casualty market with a proven platform. Obsidian has built a strong business by supporting specialty insurance plans with deep expertise and a disciplined risk management approach. With Protective’s long-term ownership and financial strength, we believe Obsidian is well-positioned to continue to build on this momentum.”
Obsidian CEO William Jewett said: “Obsidian was built with a clear focus on underwriting discipline, strong partnerships and delivering solutions in areas where expertise is critical. We are grateful for Genstar’s partnership and their support in building Obsidian into the platform it is today. Protective’s financial strength and long-term strategy make it a great fit. Together we look forward to expanding our capabilities to support specialty insurance programs while continuing to serve our employees 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 professional underwriters and project managers to grow with confidence. Protective shares our commitment to rigorous execution and building long-term relationships. This transaction will enhance our ability to support our partners and maintain the culture and operating model of our team’s values.”
Ryan Clark, President and Managing Partner of Genstar Capital, commented: “We would like to express our gratitude to Bill, Craig and the entire Obsidian team for delivering on Obsidian’s business plan and building a best-in-class, high-quality specialty insurance platform that supports a top-tier lineup of project partners. We have been a proud partner in creating and growing this business and believe Protective is the right home to lead Obsidian into its next chapter of growth.”
Citibank served as Protective’s exclusive financial advisor, Oliver Wyman served as actuarial advisor, and Willkie Farr & Gallagher LLP served as Protective’s outside legal advisor. Ropes & Gray LLP and Mayer Brown LLP are serving as Obsidian’s outside legal counsel.
