Press Release|Insurance
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KBRA Places Ratings of Obsidian Insurance Holdings, Inc. on Watch Upgrade Following the Announced Transaction with Protective Life Insurance Company

30 Jun 2026   |   New York

Contacts

KBRA places on Watch Upgrade the issuer rating of Obsidian Insurance Holdings, Inc. (OIH), OIH’s senior unsecured debt rating, and the insurance financial strength (IFSR) ratings on OIH’s subsidiaries Obsidian Specialty Insurance Company (OSIC), Obsidian Insurance Company (OIC), and Obsidian Pacific Insurance Company (OPIC). All ratings were placed on Watch Developing on April 28, 2026 immediately following the announced transaction with Protective Life which is currently expected to close in the fourth quarter of 2026 or first quarter of 2027 pending regulatory approvals.

The Watch Upgrade status reflects Protective Life’s view of Obsidian as strategic and core, as well as its plans to manage Obsidian on a stand-alone basis but with operational and capital support. It also reflects Protective Life’s strong financial profile and capital resources. As of YE2025, on a statutory basis, Protective Life Insurance Company had $98.2 billion in assets and $5.4 billion in capital and surplus, and in aggregate across the two years 2024 and 2025, it generated $792.4 million of net gains from operations and $562.6 million in net income. The Watch Upgrade also reflects the expectation that ownership by Protective Life will enhance Obsidian’s market position and Obsidian’s continued positive business trajectory and financial results.

Protective Life Insurance Company is a subsidiary of Protective Life Corporation (PLC), which is a subsidiary of the Daiichi Life Group, Inc. Daiichi Life had over $462 billion in total assets as of YE2025; PLC had approximately $142 billion in assets as of YE2025. Protective serves as Daiichi Life’s North American growth platform, pursuing both organic and acquisition-driven expansion. The acquisition will establish a new business line for Protective and represents a step in the company’s long-term strategy to diversify its earnings and grow in complementary markets.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015806