Fidelis Insurance completes $163m buyback of remaining CVC stake

Bermuda-based global specialty re/insurer Fidelis Insurance Holdings has agreed to repurchase all remaining common shares held by CVC Falcon Holdings for $163 million, a move expected to enhance book value per share and return on average equity.

The company will buy back approximately 8,6 million shares at $19.00 per share, after which CVC will no longer hold any ownership interest in Fidelis. 

The transaction is below Fidelis’s year-end diluted book value per common share of $24.61 and is expected to increase book value per share and return on average equity.

Dan Burrows (pictured), Fidelis Insurance Group CEO, said: “We are pleased to announce the repurchase of CVC’s remaining shares at a compelling value. This transaction, completed below our year-end diluted book value per common share of $24.61, is expected to deliver meaningful accretion to our book value per share and return on average equity.” 

Burrows further commented, “We appreciate CVC’s longstanding support and investment in Fidelis Insurance Group. As we move forward, our strong financial position and ongoing momentum reinforce our commitment to creating long-term value for all our shareholders.” 

Daniel Brand, partner, US head of financial services and co-head of business services at CVC, added: “As a founding investor, we are very proud of all that Fidelis Insurance Group, and its talented and accomplished management team, have achieved. We wish them continued success in the future.” 

Sidley Austin served as legal adviser to Fidelis in the transaction.

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