Fidelis Insurance Holdings Limited, the specialist insurance and reinsurance company founded by Richard Brindle, has announced a new restructuring as it prepares to set up MGU and separate the new arm and its co-founder from its businesses.
The move is seen as a way to expand the business quickly with the help of investors, as Fidelis says that it will focus on the investment of 3 billion dollars with the Fidelis MGU business.
At the same time, this move also allows more money to enter the business, providing a different opportunity for sponsors and which can be very interesting due to the number of businesses that focus on startups and writing, and the popularity of money in general management. agents and underwriters at this time.
Fidelis said they want to create a new general manager (Fidelis MGU) that will be separated from the existing insurance companies (Fidelis Balance Sheet Companies), once approved by law.
The company said the new system “will allow each organization to focus on its core business and expertise, and provide clients, brokers and other stakeholders with industry-leading services.”
Major investors in Fidelis MGU will be Capital Z Partners, The Travelers Companies, Inc. (who first invested in Fidelis a year ago), Blackstone, Further Global Capital Management and Alfa Insurance.
Blackstone is also leading the financing of the loan.
Fidelis expects that Fidelis MGU will be one of the largest managers in the world, and intends to initiate and write more than $ 3 billion in written value, for several types of special insurance and business reinsurance classes.
Richard Brindle, chairman, group chief and managing director of Fidelis, commented on the matter, “We are delighted to announce the latest transaction. The balance sheet firm will have access to market-leading talent and risk appetite, and to implement the right strategies to ensure success I have built my own career in writing with the support of regular donors – from Tarquin to Lancashire and now Fidelis – which will be continued through this process.
“With the best talent in the market, we are creating an MGU platform that will bring attractive benefits to all shareholders of the separate business. Our success will be defined by the continued development of underwriting services, consistent with our long-term philosophy of underwriting insurance and reinsurance in areas where deep expertise you need to be given a round. We look forward to the start of a long and successful partnership between the companies.”
The separation of the footnotes from the accounting pages would give Fidelis more opportunities to increase its capital and use it, and build a better writing environment.
It could also allow for greater flexibility in terms of balance sheets, as well as provide greater opportunities to bring third-party reinsurance capital alongside off-sheet capital in the future.
Fidelis Balance Sheet Companies will provide long-term leverage to support Fidelis MGU’s listing.
There will also be ways to ensure that the relationship between the separated companies, while the economy and risks of change available to Fidelis brokers and clients will not change.
Richard Brindle will lead Fidelis MGU as chairman and chief executive officer, while senior executives of the Fidelis group will be retained by the Fidelis Balance Sheet Companies.
More to come…