NEW YORK, Nov. 11, 2020 /PRNewswire/ — Obsidian Insurance Holdings, Inc., a new fronting insurance holding company, announced today that AM Best has assigned an A- (Excellent) financial strength rating to its recently-formed Obsidian Specialty Insurance Company, an excess and surplus (E&S) lines insurer.
Obsidian Specialty Insurance Company was established in Delaware as a domestic surplus lines insurer with the carrier receiving its certificate of authority in September, 2020. The insurer was capitalized with a $30 million cash contribution from Obsidian Insurance Holdings as well as the contribution of 100% of the capital stock of Obsidian Insurance Company, an AM Best rated A- rated admitted insurance company. Obsidian Specialty’s addition strengthens the strategic position of Obsidian as a leading program fronting carrier serving Managing General Agents, Managing General Underwriters, and Program Managers. Obsidian Specialty intends to operate on a countrywide basis.
The rating of Obsidian Specialty brings together Obsidian Insurance Company’s rating with Obsidian Specialty on a pooled basis. Both the Ohio and Delaware Departments of Insurance have approved the consolidated group entering into three inter-company agreements for administrative services, tax sharing, and pooled reinsurance. AM Best’s ratings reflect the consolidated group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The hardening rates in the E&S market as well as an increase in overall MGA activity in the E&S market drove the strategic decision to form Obsidian Specialty. William Jewett, Chief Executive Officer of Obsidian, said, “Obsidian Specialty continues to build a truly differentiated hybrid program carrier, and the addition of surplus lines capabilities represents a significant step in our development. It is important that Obsidian offer a full suite of capabilities and supporting services as we partner with best-in-class MGAs and program managers.”
Obsidian was formed earlier this year in partnership with leading insurance industry executives and Genstar Capital. Obsidian Insurance Company received an A- financial strength rating from AM Best in March. The Company has been building its operation through investments in infrastructure and talent with the addition of Obsidian Specialty bringing together a key strategic tool for the organization to expand and grow its hybrid fronting business.
About Obsidian
Obsidian Insurance Holdings, Inc., through its insurance carrier subsidiary Obsidian Insurance Company, is a new fronting insurance holding company to issue policies underwritten by Managing General Agents, Managing General Underwriters, and program managers. Obsidian will source, underwrite, and manage a diverse portfolio of property, casualty, and specialty insurance programs, and reinsure the majority of the business to select reinsurers. For more information, visit www.obsidianspecialty.com.
Contact: Chris Tofalli
Chris Tofalli Public Relations
914-834-4334
Regulators authorized AstraZeneca’s coronavirus vaccine for use in adults throughout the European Union on Friday, amid criticism the bloc is not moving fast enough to vaccinate its population.
WASHINGTON (AP) — A former FBI lawyer was sentenced to probation for altering an email that the Justice Department relied on during its surveillance of an aide to President Donald Trump during the Russia investigation.
MADISON, Wis. (AP) — Democratic Gov. Tony Evers lashed out Friday at rival Republicans who tried to repeal his statewide mask mandate, saying killing the order would be a ridiculous move comparable to abolishing speed limits.
COLUMBIA, S.C. (AP) — As some conservatives in South Carolina celebrated getting a bill that would ban almost all abortions in the state past a legislative barrier and likely becoming law, they said they are not finished trying to end all abortions.
A Moscow court on Friday put the brother and several allies of Russian opposition leader Alexei Navalny under house arrest for two months as authorities sought to stymie more protests over the jailing of the top Kremlin foe.