Recently launched E&S insurer gets rating

Private-equity backed fronting insurer Obsidian Insurance Holdings Inc. said Wednesday that its recently formed excess and surplus lines insurance unit has received an A- rating from A.M. Best Co. Inc.

Obsidian Specialty Insurance Co. is domiciled in Delaware and will serve as a fronting insurer for managing general agents, managing general underwriters and program managers, Obsidian said in a statement.

“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,” the statement said.

New York-based Obsidian was formed earlier this year with backing from San Francisco-based Genstar Capital LLC to offer property/casualty and specialty insurance coverage with most of the business reinsured.

The insurer is headed by CEO William Jewett, who held senior positions at Endurance Specialty Holdings Ltd. before stepping down in 2012.