Bermuda-based insurance and reinsurance holding company, Fidelis Insurance Holdings Limited, has completed its transaction to create a new managing general underwriter (MGU) separate from its existing balance sheet insurance companies.
The deal was approved by regulators back in November and became effective as of January 3rd.
Fidelis MGU will be located at Waterloo House in Bermuda, 22 Bishopsgate in London and the Station Building II in Dublin.
Its executive committee will be led by Richard Brindle as Chairman & Group CEO, with Charles Mathias as Deputy Chairman & Group Executive Director, Richard Coulson as CEO of Insurance & UK Chief Underwriting Officer, and Richard Holden as CEO of Reinsurance.
“We are delighted to announce the completion of this intelligent and ground-breaking transaction. It has been an extraordinary effort by both entities, supported by outstanding advisors. We really believe this positions us to be leaders in an exciting market today and for the long term,” said Brindle.
“The MGU can now focus on the core competencies in underwriting, claims handling, reinsurance structuring and above all innovation of new products, supported by our market leading proprietary technology tools. We look forward to continuing and growing our relationships with brokers and clients by providing the highest standards of service and the most thoughtful deployment of capacity in the market.”
The Fidelis Insurance Group will be located in the same offices, and its executive team will include Dan Burrows as Group CEO, Denise Brown-Branch as COO, Allan Decleir as CFO, Mike Pearson as Chief Risk Officer, Ian Houston as CUO, David Smith as Chief Investment Officer, and Jonny Strickle as Chief Actuary.
“The new structure and partnership between Fidelis Insurance Group and Fidelis MGU will be highly beneficial to all stakeholders and provides an evolved capital, risk and distribution model,” commented Burrows.
The Fidelis MGU’s principal equity investors are Capital Z Partners, The Travelers Companies, Inc., Blackstone, Further Global Capital Management and Alfa Insurance.
In addition, Blackstone is leading the debt financing to the Fidelis MGU, with Oak Hill Advisors (OHA) and Barings also participating in the debt and providing equity.
The Fidelis Insurance Group capital structure will remain unchanged, as will its investors, apart from the purchase of a 9.9% stake in Fidelis Insurance Group by the Fidelis MGU from existing shareholders.
