Obsidian Insurance Holdings, which is backed by Genstar Capital, has acquired Western Home Insurance Company from Western National Mutual Insurance Company. No financial terms were disclosed.
NEW YORK, July 7, 2021 – Obsidian Insurance Holdings, Inc. (“Obsidian”), an A.M. Best rated “A-” hybrid fronting group, today announced the acquisition of admitted carrier, Western Home Insurance Company (“Western Home”), from Western National Mutual Insurance Company (“Western National”).
The acquisition supports the company’s strategic growth plans and together with Obsidian’s existing admitted carrier, Obsidian Insurance Company, Western Home will provide Obsidian’s current and existing program managers access to countrywide admitted insurance capabilities, including the sizable California marketplace. Obsidian also offers countrywide E&S capabilities through its surplus lines carrier, Obsidian Specialty Insurance Company. Prior to closing, all remaining liabilities were assumed by Western National, an A.M. Best rated “A+” insurer.
Western Home, a Minnesota domestic insurer, is commercially domiciled in California, and holds certificates of authority in five other states. Western Home is being acquired as a “clean shell” to support the strategy and growth of Obsidian. Prior to the acquisition, Western Home, incorporated in 1973, was a broadly authorized personal and commercial lines subsidiary of Western National. Western Home will be renamed post-closing.
“The addition of Western Home to the organization’s footprint is an exciting next step for Obsidian, providing the ability to offer its top tier partners and new program administrators with broad admitted access on a countrywide basis. This acquisition is a significant step in the continued growth of the Obsidian enterprise,” said William Jewett, CEO of Obsidian. Obsidian’s COO and CFO, Craig Rappaport, added, “The expansion into the California market is well-timed allowing for the development of Obsidian’s existing and new portfolio partnerships to grow in a robust insurance marketplace. Obsidian’s infrastructure and capabilities are now largely in place to support Obsidian’s growth strategy and value proposition to program administrators and reinsurers.”
Obsidian Insurance Group carries an “A-” financial strength rating from A.M. Best. Throughout the first half of 2021, the Company has been building partnerships to expand its hybrid fronting business while continuing to invest in its infrastructure and talent.
Obsidian Insurance Holdings, Inc., through its existing insurance carrier subsidiaries, Obsidian Insurance Company and Obsidian Specialty Insurance Company, is a fronting insurance holding company positioned to issue policies underwritten by Managing General Agents, Managing General Underwriters, and program managers. Obsidian sources, underwrites, and manages a diverse portfolio of property, casualty, and specialty insurance programs, and reinsures the majority of the business to select reinsurers. Obsidian was formed in 2020 in partnership with leading insurance industry executives and Genstar Capital. For more information, visit www.obsidianspecialty.com.