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Fidelis secures additional $185mn, brings total raised to $1.3bn

10th December 2020 - Author: Charlie Wood

Specialty re/insurer Fidelis has raised an additional $185 million from investors, as the company looks to raise funds to support its growth plan.

$60 million of equity capital has come from existing and new investor relationships including Alfa Insurance and affiliated companies, with which Fidelis has a long-standing relationship.

Additionally, Fidelis has raised from institutional investors $125 million of 6.625% Fixed-Rate Reset Junior Subordinated Notes due 2041 which are redeemable at the option of the company at each interest reset date which occurs every five years.

The notes have received Tier 2 capital treatment under the Bermuda Monetary Authority’s Group Supervision Rules.

Fidelis has now raised over $1.3 billion in the past year, with the company having previously secured $300 million in June.

The week before, Fidelis announced that it had agreed to raise $500 million of equity capital, and in February it raised around $300 million of equity capital from existing stakeholders and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

“We are very pleased to have Alfa as our latest equity investor. We have built a strong relationship with the Alfa team over the years through their quota share support of our underwriting and our participation on their treaties,” said Richard Brindle, Chairman and Chief Executive Officer of Fidelis.

“Their equity investment further cements our partnership and long-term relationship. Having raised over $1.3 billion of capital in the past year, we have been able to take advantage of the hardening market conditions and have the financial and human resources to continue to build on our existing portfolio in 2021.”

John Hemmings, Senior Vice President, Chief Financial Officer and Chief Investment Officer of Alfa Insurance said, “We are excited about this opportunity to broaden our relationship and expand our partnership with Fidelis as equity shareholders.

“We have great respect and admiration for the Fidelis management team’s proven track record and have great confidence in their ability to generate successful growth and financial strategies in the future.

“Alfa Insurance seeks to be a long-term partner and is dedicated to helping Fidelis build a successful and profitable company.”

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