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Blackstone & Fairfax back Ki in $500m capital raise

17th September 2020 - Author: Luke Gallin

Ki, the fully digital and algorithmically-driven Lloyd’s of London syndicate, has raised USD 500 million of committed capital from two backers, funds managed by Blackstone Tactical Opportunities and Fairfax Financial Holdings Limited.

brit googleThe creation of Ki was revealed in May 2020 and the capital commitment is expected to fund the company’s expansion as it launches in Q4 2020, enabling it to grow rapidly to significant scale.

Ki is a newly-formed follow-only digital business and is expected to write its first risk incepting in January 2021. The company will underwrite using an algorithm-driven approach and offer instant follow capacity via its proprietary digital platform.

The new company will write a broad range of specialty business following selected leaders in the Lloyd’s market, including specialty re/insurer Brit, which launched Ki alongside Google Cloud.

Qasim Abbas, Senior Managing Director at Blackstone, said: “Matthew, Mark and the rest of the Ki team have created a unique opportunity in Lloyd’s to revolutionise the market and we are excited to be a part of this, in partnership with Fairfax. Ki’s first-of-its-kind digital model will deliver a unique advantage to its’ business partners which we believe will enable it to build to significant scale, while its algorithmically-driven approach represents an important evolution in the portfolio management of specialty risks.”

RMS

Burkhard Keese, Chief Financial Officer (CFO), Lloyd’s of London, commented: “We are delighted to see Blackstone entering Lloyd’s at this key moment in our modernisation, illustrating the appeal of our market. Ki is fully aligned to the Lloyd’s Blueprint, driving the adoption of new technology to deliver a more competitive market, and we wish the team success as it launches later this year.”

Last week, it was announced that Mark Allan, Brit Group CFO and Brit Limited Group Executive Director, would assume the role of CEO of Ki.

“Securing support from Blackstone, one of the world’s leading investment firms, is a significant statement of confidence in Ki and the vision we have set out. Blackstone’s commitment to Ki completes our world-class group of partners with Fairfax, Brit, Google Cloud and UCL already supporting the business. With our investors, we have the financial firepower to rapidly scale the business and support our plan to provide a truly differentiated offering to brokers and clients,” said Allan.

Matthew Wilson, CEO of Brit and Chairman of Ki, added: “Our Partnership with Fairfax and Blackstone on the launch of Ki will allow the business to reach its full potential with significant committed capital. Blackstone has a phenomenal track record and is entering the Lloyd’s market at a pivotal moment, with increased acceptance of digital models and a flight to quality.”

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