Fidelis Insurance Holdings (Fidelis) has announced the launch of Socium Insurance (Socium), a Bermuda-domiciled special purpose insurer set to provide collateralised capacity support for Fidelis’ reinsurance portfolio.
Having entered into a quota share agreement with Fidelis on June 1 2018, Socium is able to reinsure a share of Fidelis’ worldwide excess of loss portfolio.
The vehicle has secured capital commitments of approximately $50 million, a figure that includes capital from third-party investors and around $5 million from Fidelis. The sidecar sits alongside the firm’s rated quota share partners and it intends to grow both strategies.
Executive Head of Partnerships and Head of International Reinsurance, Philip Vandoninck, commented, “This is an important step in the development of our business strategy. We have been pleased with the capital markets interest in our reinsurance portfolio and received commitments at almost double the targeted capital raise amount.”
“In 2017, Fidelis’ reinsurance portfolio significantly outperformed the market, and this will have positively influenced investor interest in this transaction,” Vandoninck added.
