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Fidelis raises a further $500 million of equity capital for growth

10th June 2020 - Author: Luke Gallin

Fidelis Insurance Holdings Limited, the specialty insurance and reinsurance firm, has announced that it has executed agreements to raise an additional $500 million of equity capital from existing investors.

Combined with the successful raising of $300 million from existing stakeholders and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) in February, Fidelis has now secured $800 million of additional equity in the last six months.

The firm states that it will have capital for underwriting in excess of $2 billion, which provides it with the ability to deepen relationships with both existing and new clients in the classes of business it currently writes, enabling it to take advantage of the attractive and hardening rate environment.

Fidelis’ Chairman and Chief Executive Officer (CEO), Richard Brindle, commented: “We are seeing a broad-based hardening of rates and improvements to terms and conditions in multiple lines of business.  This is due not just to the effects of COVID-19, but to multiple factors from ILS retrenchment to the increasing realisation that underwriting profits are the only sustainable basis for (re)insurers to build long-term business success.

“The $800 million of equity capital we have raised over the last six months demonstrates the confidence that our investors have in us to thrive in the current rating environment and over the longer term.

“Following on from the announcement of the rating upgrade from AM Best to “A” it is clear that we are well positioned for the current market conditions as we continue our development of a quality underwriting franchise.”

The additional raise from Fidelis follows that of Hiscox, Beazley, RenaissanceRe, and most recently Lancashire. All of the specialty re/insurers have noted improving market conditions and a hardening rating environment, suggesting that more capital raises could be on the horizon.

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