Obsidian Acquires Western Home to Expand in California
Property and casualty insurer Obsidian Insurance Holdings has expanded its presence in California by acquiring Western Home, an admitted carrier, from Western National Mutual.
This acquisition is a part of the company’s long-term growth plan. Commercially domiciled in California, Western Home is a Minnesota-based home insurer that has been operational since 1973. The company also holds authority in another five states.
Western Home comes into Obsidian’s fold as a ‘clean shell.’Western National assumed all remaining liabilities prior to closing. In order to support Obsidian’s long-term strategy and goals better, the name will be changed post-closure.
Obsidian’s CEO, William Jewett, said: “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.”
“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,” said Craig Rappaport, the company’s COO and CFO.
Obsidian Insurance Group is already a powerhouse, with an “A-” financial strength rating given by A.M. Best. The company has been very active during the first half of 2021, working on partnerships and enlarging its hybrid fronting business while constantly investing in its talent and infrastructure.
Through its existing insurance carrier subsidiaries (Obsidian Specialty Insurance Co. and Obsidian Insurance Co.) Obsidian Insurance Holdings acts as a fronting insurance holding company. It issues policies underwritten by program managers, managing general agents, and managing general underwriters.
Obsidian was formed in 2020 in partnership between insurance industry executives and Genstar Capital, a private equity company focused on investments in targeted segments of the financial services, healthcare, and software industries.
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