Fidelis to build out new global underwriting business

Fidelis Insurance Holdings Limited (Fidelis), a holding company that provides property, bespoke, and specialty insurance and reinsurance products globally, has announced its creation of a new managing general underwriter, subject to regulatory approval.

The new business, called Fidelis MGU, will see Fidelis separate itself from the existing balance sheet insurance companies – the Fidelis Balance Sheet Companies – to focus on its core functions and specialisms and provide clients, brokers, and stakeholders with continued industry-leading service. As part of the separation, it will provide a comprehensive range of services to Fidelis Balance Sheet Companies while retaining its underwriters and attracting more talent across the broader Fidelis business.

Fidelis aims to make Fidelis MGU one of the largest managing general underwriters globally by originating and underwriting over US$3 billion of gross written premium (GWP) across a wide range of specialty insurance and reinsurance classes of business. Its principal equity investors are Capital Z Partners, The Travelers Companies, Inc., Blackstone, Further Global Capital Management and Alfa Insurance – with Blackstone leading the debt financing.

Richard Brindle will act as the chairman and chief executive officer (CEO) of Fidelis MGU. He has built his underwriting career with stable capital providers’ support – from Tarquin to Lancashire and now, Fidelis.

“We are delighted to announce this ground-breaking transaction. The balance sheet companies will have access to our market-leading underwriting talent and risk origination, with appropriate structures in place to ensure alignment,” Brindle said. “Built on the best talent in the market, we are creating an MGU platform that will generate attractive returns for the shareholders of both separated businesses.

“Our success will be defined by the continued delivery of underwriting outperformance, aligned with our long-term philosophy of writing insurance and reinsurance in areas where deep expertise is required to deliver through the cycle. We look forward to the start of a long-term and successful partnership between the companies.”