Reinsurance and financial management holding company FG Financial Group has announced that its reinsurance subsidiary, FGRe, has formed a reinsurance sidecar, FG Re Investors I LLC, to provide collateralised capacity to support its growing reinsurance portfolio.
According to the firm, the new reinsurance sidecar intends to raise third-party investor capital to fund its business activities.
Castle Placement, LLC has been engaged by FG Re Investors I LLC as the exclusive placement agent for the capital raise.
FG Financial Group CEO Larry Swets commented, “The reinsurance market is the strongest we have seen in many decades, presenting compelling opportunities to write attractive contracts.
“Since launching our reinsurance business we have grown the number of insurers and reinsurers that we support and remain focused on continuing to drive profitable growth.
“The creation of a reinsurance sidecar provides us with another means of leveraging our underwriting capabilities to execute our strategy of deploying capital in compelling, and frequently unique asymmetrical risk reward opportunities.”
FG Financial Group Chairman and Fundamental Global CEO Kyle Cerminara, added, “This structure enables us to source a new revenue stream from the fee income that we will earn utilizing our existing reinsurance platform. We remain focused on patiently allocating capital to drive long-term shareholder value.”
Back in September, the firm announced its intention to grow through the formation of a new merchant banking division.
In a statement, it said that it will work with Fundamental Global, a private partnership led by Kyle Cerminara and Joe Moglia, along with other strategic investors, on the venture.
